Australian Broker Call *Extra* Edition – Oct 16, 2023

This story features AIR NEW ZEALAND LIMITED, and other companies. For more info SHARE ANALYSIS: AIZ

An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AIZ   AMA   APE (2)   APZ   BKT   BLU   BLX   BRG   EML   EMN   IAG   IGO   MTO   RBL   RMD   RSG   STX   TAH  

AIZ    AIR NEW ZEALAND LIMITED

Transportation & Logistics – Overnight Price: $0.65

Jarden rates ((AIZ)) as Neutral (3) –

Air New Zealand has announced a profit before tax guidance for its first half of NZ$180-230m, which Jarden points out compares to an actual result of NZ$299m in the previous comparable period, implying a -31% decline at the midpoint. 

The company continues to hold around NZ$200m in customer credits, and despite attempts to increase redemption anticipates NZ$45m in credits will not be redeemed by the extended expiration date. Air New Zealand has counted this NZ$45m as profit in the current period.

Jarden points out adjusting for this leaves midpoint profit guidance at NZ$160m at the midpoint, or a -46% year-on-year decline, which it considers a weak result. The Neutral rating is retained and the target price decreases to NZ$0.72 from NZ$0.79.

This report was published on October 12, 2023.

Current Price is $0.65. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 3.42 cents and EPS of 6.19 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 3.97 cents and EPS of 7.21 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.02.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.05

Canaccord Genuity rates ((AMA)) as Upgrade to Buy from Speculative Buy (1) –

Having recently completed a $55m capital raise, AMA Group is set to deploy $35m to repay senior bank debt. Canaccord Genuity points out this will reduce net senior debt to $85m and total net debt to $135m. AMA Group is expected to refinance residual debt facilities in the financial year, and improve all-in senior debt costs.

While mindful of remaining operational headwinds and challenges, the broker upgrades to a Buy rating from Speculative Buy given the resetting of the balance sheet, improved operational stability and significant market share. 

The target price decreases to 14 cents from 22 cents. 

This report was published on October 9, 2023.

Target price is $0.14 Current Price is $0.05 Difference: $0.09
If AMA meets the Canaccord Genuity target it will return approximately 180% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.00.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $14.73

Jarden rates ((APE)) as Overweight (2) –

There will be initial 6-7% EPS accretion, suggests Jarden, from the $224m acquisition of 13 car dealerships (including three properties) to expand Eagers Automotive’s share to around 7% in Victoria.

The transaction will add roughly $1.0bn to revenue and generating a profit (PBT) margin of less than 3%, which has the potential to rise to the company’s overall average margin of more than 4%, note the analysts.

The broker’s target rises to $16.25 from $15.80 on higher forecast earnings. The Overweight rating is kept with shares trading at an around -13% discount to their average five-year valuation multiple.

This report was published on October 11, 2023.

Target price is $16.25 Current Price is $14.73 Difference: $1.52
If APE meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $15.75, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 64.30 cents and EPS of 107.10 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.6, implying annual growth of -6.4%.
Current consensus DPS estimate is 73.5, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 67.10 cents and EPS of 111.90 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.2, implying annual growth of -5.6%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Moelis rates ((APE)) as Buy (1) –

Eagers Automotive has entered a non-binding agreement to acquire a Victorian dealership operation including three properties, at a total cost of $245m. Moelis lifts its earnings per share forecasts between 4-5% for FY24 and FY25 to account for the acquisition. 

The purchase continues the company's intention to increase its presence in New South Wales and Victoria, where it has historically been underweight. Post-acquisition, Eagers Automotive's Victorian presence should be a similar size to its Queensland operations. 

The Buy rating is retained and the target price increases to $16.06 from $15.51.

This report was published on October 11, 2023.

Target price is $16.06 Current Price is $14.73 Difference: $1.33
If APE meets the Moelis target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $15.75, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 73.50 cents and EPS of 112.00 cents.
At the last closing share price the estimated dividend yield is 4.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.6, implying annual growth of -6.4%.
Current consensus DPS estimate is 73.5, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 70.30 cents and EPS of 106.90 cents.
At the last closing share price the estimated dividend yield is 4.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.2, implying annual growth of -5.6%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APZ    ASPEN GROUP LIMITED

Real Estate – Overnight Price: $1.74

Moelis rates ((APZ)) as Buy (1) –

Seasonal strength at the Darwin Free Spirit resort has seen Aspen Group deliver first quarter earnings of $8.0m. Moelis feels the first quarter result is in line with the run-rate implied by full year guidance of $29-30m, but does expect earnings to increase over the year. 

The company has divested seventeen houses and apartments year-to-date in Perth, and Moelis expects the $9.7m raised should fund the remaining capital expenditure at the company's Guildford Road complex, which is expected to be completed in the third quarter. 

The Buy rating and target price of $2.45 are retained. 

This report was published on October 11, 2023.

Target price is $2.45 Current Price is $1.74 Difference: $0.71
If APZ meets the Moelis target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 8.50 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.38.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 9.60 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BKT    BLACK ROCK MINING LIMITED

New Battery Elements – Overnight Price: $0.09

Petra Capital rates ((BKT)) as Buy (1) –

In a major milestone, according to Petra Capital, Black Rock Mining has secured approval from the credit committee of one of its lenders, a South African government-owned bank.

This outcome signals the Mahenge project has strong economic returns as well as robust ESG benefits, believes the analyst.

The approval should increase the odds other banks in the lending group will emulate this vote of confidence, which would be a major de-risking event, in Petra Capital’s opinion.

The broker maintains its Buy rating and the target slips to 35c from 39c on new currency, commodity and interest rate assumptions.

This report was published on October 12, 2023.

Target price is $0.35 Current Price is $0.09 Difference: $0.26
If BKT meets the Petra Capital target it will return approximately 289% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.86.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BLU    BLUE ENERGY LIMITED

NatGas – Overnight Price: $0.02

Petra Capital rates ((BLU)) as Buy (1) –

Blue Energy has increased its 2P reserves estimate by 36% to 91 PJ at its Sapphire project in the North Bowen Basin in Queensland. Additionally, the 2C resources estimate has been increased by 18% to 252 PJ. 

The Buy rating is maintained while the target falls to 12c from 18c on lower-than-forecast gas production rates. The lower target also reflects the removal of Petra Capital’s risked upside case, along with lower price assumptions for a future equity raise.

This report was published on October 12, 2023.

Target price is $0.12 Current Price is $0.02 Difference: $0.1
If BLU meets the Petra Capital target it will return approximately 500% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BLX    BEACON LIGHTING GROUP LIMITED

Furniture & Renovation – Overnight Price: $1.80

Jarden rates ((BLX)) as Overweight (2) –

Jarden remains positive on Beacon Lighting following the company's AGM, at which it reported better trends in September. The result was spurred by improving weather and the cycling of weaker comparables, leading Jarden to lift earnings forecasts 3% for FY24-25. 

The broker finds the -20% year-to-date share price decline, largely attributed to higher costs and housing concerns, to be  verdone. Jarden points out the backdrop for housing is improving, and sees potential for top-line growth.

The Overweight rating and target price of $2.20 are retained.

This report was published on October 12, 2023.

Target price is $2.20 Current Price is $1.80 Difference: $0.4
If BLX meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 8.20 cents and EPS of 12.90 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 9.20 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $22.60

Goldman Sachs rates ((BRG)) as Neutral (3) –

Goldman Sachs upgrades its rating for Breville Group to Buy from Neutral on valuation and in the belief the post-covid earnings slow-down will be less than the market anticipates.

The broker notes the company’s unique positioning in the global coffee premiumisation trend, with its global high-end appliance brand backed by unique innovation. 

Given these specific advantages, the analysts note recent industry feedback on healthy spending growth by US consumers, especially those in households with income above US$100k.

The target rises to $24.50 from $23.50.

This report was published on October 12, 2023.

Target price is $24.50 Current Price is $22.60 Difference: $1.9
If BRG meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $26.40, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 35.00 cents and EPS of 88.00 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.5, implying annual growth of 10.7%.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 26.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 38.00 cents and EPS of 97.00 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.9, implying annual growth of 14.5%.
Current consensus DPS estimate is 37.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 22.8.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $1.10

Wilsons rates ((EML)) as Market Weight (3) –

The sale or closure of EML Payments' PFS Card Services Ireland Limited (PCSIL) business is a real possibility, according to Wilsons, with the broker working through potential scenarios for the future of the company. 

The sale of PCSIL would reduce overheads and regulatory burden and return investment to core business, but PCSIL does contribute a meaningful proportion of interest income. As a standalone entity, the broker expects PCSIL would be unable to breakeven until FY25. 

Wilsons is anticipating an update on EML Payments' Strategic Review at the impending investor day. The Market Weight rating and target price of $1.17 are retained.

This report was published on October 13, 2023.

Target price is $1.17 Current Price is $1.10 Difference: $0.07
If EML meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.37.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.28.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EMN    EURO MANGANESE INC

New Battery Elements – Overnight Price: $0.13

Canaccord Genuity rates ((EMN)) as Speculative Buy (1) –

Euro Manganese's Chvaletice project has been named as the sole manganese strategic project in the Minerals Security Partnership (MSP). While the MSP has only named three of the projects, it has identified seventeen that will receive initial support. 

Canaccord Genuity expects this will improve confidence in Chvaletice, particularly as Euro Manganese moves through the process of financing the project.

The Speculative Buy rating and target price of $1.15 are retained.

This report was published on October 12, 2023.

Target price is $1.15 Current Price is $0.13 Difference: $1.02
If EMN meets the Canaccord Genuity target it will return approximately 785% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $5.65

Goldman Sachs rates ((IAG)) as Neutral (3) –

Insurance Australia Group has guided to first half underlying margins around the lower end of the prior guidance range of 13.5% to 15.5%.

Management’s guidance includes a $70m reinsurance reinstatement cost following events in New Zealand earlier this year, as does the prior 13.5% forecast by Goldman Sachs.

IAG (Neutral) is slightly more expensive than Buy-rated Suncorp Group ((SUN)), which has more relative upside to its target price, explain the analysts.

IAG’s target rises to $6.00 from $5.87. 

This report was published on October 12, 2023.

Target price is $6.00 Current Price is $5.65 Difference: $0.35
If IAG meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $5.85, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 28.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.8, implying annual growth of 2.6%.
Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 31.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.3, implying annual growth of 12.9%.
Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.5.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IGO    IGO LIMITED

Nickel – Overnight Price: $11.62

Jarden rates ((IGO)) as Upgrade to Buy from Overweight (1) –

Jarden sees valuation support emerging across the Lithium sector and upgrades its rating for IGO to Buy from Overweight.

While the broker lowers its medium-term forecasts for lithium and nickel prices, IGO shares still trade at a material discount to Jarden's fair value estimate, net of exploration upside and the nickel downstream strategy.

The broker’s short-term nickel price forecasts are materially lowered (-20%) to reflect the current commodity price and macroeconomic weakness.

The target falls to $14.70 from $15.53.

This report was published on October 11, 2023.

Target price is $14.70 Current Price is $11.62 Difference: $3.08
If IGO meets the Jarden target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $14.18, suggesting upside of 22.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 143.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 151.8, implying annual growth of 109.4%.
Current consensus DPS estimate is 40.5, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 7.7.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 119.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 142.5, implying annual growth of -6.1%.
Current consensus DPS estimate is 43.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 8.2.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MTO    MOTORCYCLE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $2.26

Moelis rates ((MTO)) as Buy (1) –

September quarter sales for Motorcycle Holdings rose by 5.4% on the previous corresponding period, representing the first quarter of volume growth since December 2021, highlights Moelis.

Given seasonal strength in the June quarter associated with the instant asset tax write-off, the broker is heartened by sequential sales
growth of  4.2% in the September quarter. Apart from all-terrain vehicles, all market segments grew.

While the broker leaves its FY24-26 EPS estimates unchanged, there  are indications demand may have bottomed, with a rebound since May. 

The Buy rating and $2.80 target are unchanged.

This report was published on October 12, 2023.

Target price is $2.80 Current Price is $2.26 Difference: $0.54
If MTO meets the Moelis target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 12.40 cents and EPS of 22.60 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 13.20 cents and EPS of 24.20 cents.
At the last closing share price the estimated dividend yield is 5.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.34.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RBL    REDBUBBLE LIMITED

Retailing – Overnight Price: $0.60

Canaccord Genuity rates ((RBL)) as Buy (1) –

Canaccord Genuity found a positive first quarter update from Redbubble to be "unexpected", noting marketplace revenue increased 5% quarter-on-quarter to $95m in a 6% beat to the broker's expectations. 

The broker feels an ongoing focus on improving profitability and margins over top-line growth was evident from material expansion in gross profit margins to record highs, with margin improvements driven by price increases and incorporation of tiered artist fees.

The Buy rating and target price of $1.20 are retained.

This report was published on October 12, 2023.

Target price is $1.20 Current Price is $0.60 Difference: $0.6
If RBL meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
Current consensus price target is $0.70, suggesting upside of 23.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 120.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $21.54

Jarden rates ((RMD)) as Overweight (2) –

As Jarden points out, a dramatic increase in awareness and demand for GLP-1 drugs, initially intended for type 2 diabetes sufferers but in recent months made popular as a weight loss drug, has raised questions around potential impact on sales of ResMed's sleep apnea devices and masks. 

From discussion with key stakeholders in the US, Jarden has determined that as yet there is no sign of impacts on sleep lab referrals, diagnosis rates, CPAP setups or mask replacement. However, the broker expects some impact will emerge, particularly given the role of weight loss in reducing obstructive sleep apnea severity. 

The broker does anticipate it will be several years before an impact can be quantified. The Overweight rating is retained and the target price decreases to $30.33 from $36.10.

This report was published on October 10, 2023.

Target price is $30.33 Current Price is $21.54 Difference: $8.79
If RMD meets the Jarden target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $36.89, suggesting upside of 67.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 28.90 cents and EPS of 107.74 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 115.5, implying annual growth of N/A.
Current consensus DPS estimate is 31.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 19.1.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 34.74 cents and EPS of 128.19 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.4, implying annual growth of 12.9%.
Current consensus DPS estimate is 35.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 16.9.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RSG    RESOLUTE MINING LIMITED

Gold & Silver – Overnight Price: $0.37

Canaccord Genuity rates ((RSG)) as Buy (1) –

The discovery of carbon pockets at Resolute Mining's Tabakoroni project has seen the company downgrade full year production guidance to 330-340,000 tonnes from 350,000, with previously expected high-grade oxide now replaced with lower-grade stocks. 

Canaccord Genuity expects the issue to only impact September quarter production, and anticipated a return to higher oxide grades from the December quarter. All-in sustaining costs were retained, and capital expenditure lowered to US$70m from US$88m. 

The Buy rating and target price of $1.00 are retained.

This report was published on October 14, 2023.

Target price is $1.00 Current Price is $0.37 Difference: $0.63
If RSG meets the Canaccord Genuity target it will return approximately 170% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.52 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.19.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 EPS of 9.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.10.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.43

Wilsons rates ((STX)) as Overweight (1) –

From a recent tour of Strike Energy's Perth Basin projects, Wilsons has determined a "clear intention" to focus on the Walyering and South Erregulla sites in the short- to medium-term and prioritisation of development initiatives offering quick, low cost, valuable developments. 

Drilling of Walyering-7 is expecting to commence early next year, and a potential resulting increase in production throughput capacity to 45 terrajoules a day from a current 33 terrajoules a day could net Strike Energy revenues up to $80m. 

The Overweight rating is retained and the target price increases to 54 cents from 52 cents. 

This report was published on October 13, 2023.

Target price is $0.54 Current Price is $0.43 Difference: $0.11
If STX meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $0.54, suggesting upside of 25.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 86.0.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of 200.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 28.7.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $0.91

Jarden rates ((TAH)) as Overweight (2) –

Jarden anticipates modest market downgrades following a first quarter update from Tabcorp Holdings. Revenue decline -6.1% in the quarter, driven by a -5.4% decline in wagering and media, a -3.9% decline in digital wagering and a -12.5% decline in gaming services. 

Given the result Jarden has pulled back its full year net profit forecast -10% to $79.9m, but the broker does have hope that this is simply a slow start for the company and it can claw back some ground during the upcoming Spring Carnival, where it has more exposure. 

The Overweight rating is retained and the target price decreases to $1.20 from $1.28.

This report was published on October 13, 2023.

Target price is $1.20 Current Price is $0.91 Difference: $0.29
If TAH meets the Jarden target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $1.10, suggesting upside of 24.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 2.50 cents and EPS of 3.50 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.8, implying annual growth of -4.4%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 3.20 cents and EPS of 4.60 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.1, implying annual growth of 82.1%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 17.5.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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