Australian Broker Call *Extra* Edition – Nov 06, 2023

This story features AUSSIE BROADBAND LIMITED, and other companies. For more info SHARE ANALYSIS: ABB

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)

ABB   AKE   ALK   BMT   BXB   CIA (2)   CNB   COL (2)   CRD   CXO   EVS   FMG   GEM (2)   GUD   IFL   JBH (2)   LIC   MGH   MP1   MVF   PLS (2)   RMD   RWC (2)   SDR   SFR (2)  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $3.58

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

It's been an impressive start to the new financial year for Aussie Broadband according to Wilsons. In the first four months the company reports broadband connections increases by 40,600, with residential accounting for 26,000 of those connections.

Wilsons feels the update reflects the value of Aussie Broadband's residential businesses, and the supplementary input of other segments. The company's enterprise and government segment reported wins in the period, and described an expanding pipeline of opportunity.

The Market Weight rating is retained and the target price increases to $3.76 from $3.75.

This report was published on October 27, 2023.

Target price is $3.76 Current Price is $3.58 Difference: $0.18
If ABB meets the Wilsons target it will return approximately 5% (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 14.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.03.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 24.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.55.

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

AKE    ALLKEM LIMITED

New Battery Elements – Overnight Price: $9.54

Goldman Sachs rates ((AKE)) as Buy (1) –

First quarter lithium carbonate production at Olaroz came in below Goldman Sachs forecast due to ongoing Stage 2 commissioning. Mt Cattlin spodumene production materially exceeded expectations largely due to higher recoveries from an improvement in grade.

Stronger sales at Mt Cattlin supported flat quarter-on-quarter revenue, notes the broker, despite a -39% slump in realised spodumene pricing to US$2,625/t.

Goldman lowers its target to $14.40 from $15.20 due to lower near-term lithium price forecasts. The Buy recommendation is kept.

The proposed merger with Livent continues to progress.

This report was published on October 27, 2023.

Target price is $14.40 Current Price is $9.54 Difference: $4.86
If AKE meets the Goldman Sachs target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $15.76, suggesting upside of 65.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 50.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.5, implying annual growth of -34.5%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 14.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 65.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.6, implying annual growth of 41.6%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 10.0.

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

ALK    ALKANE RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.60

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

According to Petra Capital, Alkane Resources' Tomingley gold project continues to deliver "solid, cash-generative" production. With expansion on the cards following final approvals in October, gold output is set to increase to 100,000 ounces per annum from 2025. 

The approvals allows for the development of a new open pit and underground mines at the San Antonio and Roswell deposits, alongside a 1.75m tonne per annum mill expansion. Petra Capital expects gold output of 100,000 ounces from 2026, from a current 67,000 ounces. 

The Buy rating is retained and the target price decreases to $1.05 from $1.49.

This report was published on October 30, 2023.

Target price is $1.05 Current Price is $0.60 Difference: $0.445
If ALK meets the Petra Capital target it will return approximately 74% (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 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.40.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.03.

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

BMT    BEAMTREE HOLDINGS LIMITED

Healthcare services – Overnight Price: $0.21

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

From Beamtree Holdings' first quarter results, Petra Capital considers the company to be tracking towards its full year revenue target. The broker expects investors to be reassured that broadening the geographic base is contributing to a significant pipeline of new opportunities and wins.

The company reaffirmed expectations of positive operating profit for the full year, and remains committed to its annual recurring revenue target of $60m by the end of 2026. 

The Buy rating and target price of 60c are retained.

This report was published on October 30, 2023.

Target price is $0.60 Current Price is $0.21 Difference: $0.39
If BMT meets the Petra Capital target it will return approximately 186% (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 minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.50.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $13.45

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

Brambles' September-quarter result outpaced the Jarden's forecast but management retained earnings guidance, suggesting a deceleration, says the broker.

Management expected pricing growth would moderate throughout the year, but the broker doubts contracted pricing will turn negative in FY24.

Rather, Jarden considers the risks weigh to the upside, and raises its earnings forecasts to the upper end of management's guidance.

Meanwhile, market share losses to whitewood have been offset by new customer wins and Jarden expects switching to whitewood will moderate as inflation cools. The broker observes US pallet price/cost spread is positive.

Overweight rating retained. Target price eases to $15.90 from $16.

This report was published on October 26, 2023.

Target price is $15.90 Current Price is $13.45 Difference: $2.45
If BXB meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $14.96, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 70.79 cents and EPS of 79.68 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 16.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.1, implying annual growth of N/A.
Current consensus DPS estimate is 43.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 76.82 cents and EPS of 86.16 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.3, implying annual growth of 11.3%.
Current consensus DPS estimate is 47.9, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 13.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CIA    CHAMPION IRON LIMITED

Iron Ore – Overnight Price: $7.83

Goldman Sachs rates ((CIA)) as Buy (1) –

Iron ore production in the 1Q from Champion Iron's Bloom Lake was an 8% beat against the forecast by Goldman Sachs, and full nameplate capacity was achieved during October, post the reporting period.

Quarter-on-quarter earnings rose strongly and were well ahead of the consensus forecast though just below the broker's estimate.

Management expects a final investment decision (FID) for the Direct Reduced Pellet Feed project before the end of 2023. This comes as the Quebec government has decided upon the allocation of power supply to projects in the region, explains Goldman.

The target price rises to $7.20 from $7.00. Buy.

This report was published on October 27, 2023.

Target price is $7.20 Current Price is $7.83 Difference: minus $0.63 (current price is over target).
If CIA meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in March.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 21.11 cents and EPS of 54.73 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.31.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 26.14 cents and EPS of 72.60 cents.
At the last closing share price the estimated dividend yield is 3.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.78.

This company reports in CAD. 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

---

Jarden rates ((CIA)) as Buy (1) –

Champion Iron's September-quarter result appears to have pleased Jarden, the broker describing it as "encouraging" thanks to record production and a -9.3% fall in operating costs (albeit all-in-sustaining-cost remained high due to capital expenditure).

The company closed the quarter (and the half) with C$66m in cash, and paid a fifth consecutive interim dividend of C10c a share, compared with the broker's forecast C4c.

Jarden appreciates the company's strong balance sheet, the company finishing with C$27m in net cash.

The company is also working to take advantage of the rise in pelletisation queries, which demands higher premiums.

Buy rating retained. Target price rises to $7.44 from $7.33.

This report was published on October 26, 2023.

Target price is $7.44 Current Price is $7.83 Difference: minus $0.39 (current price is over target).
If CIA meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 26.81 cents and EPS of 79.08 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.90.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 1.12 cents and EPS of 87.57 cents.
At the last closing share price the estimated dividend yield is 0.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.94.

This company reports in CAD. 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

CNB    CARNABY RESOURCES LIMITED

Mining – Overnight Price: $0.64

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

Carnaby Resources has announced a maiden resource for its Greater Duchess project of 21.8m tonnes at 1.4% copper equivalent, which Petra Capital describes as comfortably beating its forecast.

Importantly, says the broker, 60% of the resource it in the higher confidence indicated category and will underpin a scoping study in March quarter. Further, according to the broker the resource will grow as step out drilling progresses. 

The Buy rating and target price of $1.50 are retained.

This report was published on November 30, 2023.

Target price is $1.50 Current Price is $0.64 Difference: $0.86
If CNB meets the Petra Capital target it will return approximately 134% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $15.45

Goldman Sachs rates ((COL)) as Sell (5) –

Coles Group's 1Q sales for Food and Liquor were a slight misses against Goldman Sachs forecasts.

Management pointed to a slight decline in Liquor volumes due to an industry-wide pull-back on discretionary spending.

The broker suggests management has under-invested in its strategies for digital transformation and omni-channel, which is the primary reason for structural market share loss.

The Sell rating is unchanged and a 14.70 target price is set.

This report was published on October 27, 2023.

Target price is $14.70 Current Price is $15.45 Difference: minus $0.75 (current price is over target).
If COL meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.17, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 59.20 cents and EPS of 74.00 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.5, implying annual growth of -10.9%.
Current consensus DPS estimate is 61.9, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 56.00 cents and EPS of 70.20 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.3, implying annual growth of 9.1%.
Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 19.0.

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

---

Jarden rates ((COL)) as Neutral (3) –

Coles Group's September-quarter sales proved mixed, sales easing but management forecasting an uplift margins.

Jarden says Coles appears to be focussing on margins to compensate for losses from theft in the June half and read this as a positive for the industry given it suggests pricing will be rational.

On the downside, supermarkets are still experiencing declines in non-food every day products such as health, cleaning and pet sales as inflation pressures behaviour, observes Jarden, which the broker says could hit loyalty, basket size, market share and profit.

On the loyalty front, Coles reported a 10% increase in active members and participation in offers rose 22%, but it still lags Woolworths ((WOW)).

Neutral rating retained. Target price rises to $15.90 from $15.70.

This report was published on October 26, 2023.

Target price is $15.90 Current Price is $15.45 Difference: $0.45
If COL meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $16.17, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 58.00 cents and EPS of 77.10 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.5, implying annual growth of -10.9%.
Current consensus DPS estimate is 61.9, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 64.00 cents and EPS of 84.70 cents.
At the last closing share price the estimated dividend yield is 4.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.3, implying annual growth of 9.1%.
Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 19.0.

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

CRD    CONRAD ASIA ENERGY LIMITED

Business & Consumer Credit – Overnight Price: $1.34

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

Striking WA union members have been upstaged by the Middle East as the No. 1 issue for the LNG market observes Canaccord Genuity, so the broker is pleased that Conrad Asia Energy has signed a detailed non-binding term sheet with Singaporean utility Sembcorp for the supply of Mako gas.

The broker considers this a major milestone for Conrad, albeit a while in coming.

Under the deal, Mako will supply 293Bcf, with the potential to expand to 392Bcf, and has been endorsed by the Indonesian regulator. It still requires Ministerial approval. 

The company is working on a partial divestment of its interest in Mako from the current 76.5%, and the broker expects the contract will support an expedited farm-down, but given interest in the asset, a deal could be executed even earlier.

Speculative Buy rating retained. Target price falls to $2.69 From $2.78 to reflect a delay in first production at Mako.

This report was published on October 26, 2023.

Target price is $2.69 Current Price is $1.34 Difference: $1.345
If CRD meets the Canaccord Genuity target it will return approximately 100% (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 minus 12.95 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.38.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 14.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.11.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.39

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

Core Lithium has reported production of 20,700 tonnes of spodumene and shipment of 23,400 tonnes in the September quarter. Petra Capital notes guidance was reaffirmed, albeit with higher volumes at a  lower grade. 

According to the broker receipts of $21.7m for the period were under reported, with 13,100 tonnes delivered as part of the Yahua pre-pay contract but partial payment returned due to a price decline since the deal was made. Operating cashflow of -$26m includes reimbursement. 

The Buy rating is retained and the target price decreases to 59 cents from 60 cents. 

This report was published on October 30, 2023.

Target price is $0.59 Current Price is $0.39 Difference: $0.205
If CXO meets the Petra Capital target it will return approximately 53% (excluding dividends, fees and charges).
Current consensus price target is $0.48, suggesting upside of 24.7%(ex-dividends)
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 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of 885.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 5.7.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.6, implying annual growth of -31.3%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 8.4.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.06

Moelis rates ((EVS)) as Buy (1) –

EnviroSuite has reported annual recurring revenue of $60.6m as of the end of the September quarter, up 10.0% year-on-year. Annual recurring revenue for the aviation segment increased 6% year-on-year, helped by a significant expansion with a key UK customer. 

The company continues to target positive earnings for the full year, and Moelis has lowered its full year earnings forecast -9.0% to $4.0m, implying annual recurring revenue growth of 12% for FY24. 

The Buy rating is retained and the target price decreases to 12 cents from 15 cents.

This report was published on October 26, 2023.

Target price is $0.12 Current Price is $0.06 Difference: $0.061
If EVS meets the Moelis target it will return approximately 103% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.50.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.00 cents.

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

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $23.23

Goldman Sachs rates ((FMG)) as Sell (5) –

Fortescue Metals largely pre-reported operating results and reconfirmed FY24 production guidance at the recent investor tour in the Pilbara, leaving Goldman Sachs little to ponder after the release of Q1 results.

Goldman Sachs notes FY24 guidance highlighted an ongoing elevated spend to maintain hematite group shipments at around 190Mtpa going forward.

Management remains committed to Fortescue Energy and decarbonisation developments, and will progress five projects to final investment decision (FID) stage by the end of 2023.

The broker's target rises to $16.30 from $16.20 after the operating result and due to increased forecasts for 2Q hematite price realisations. Sell retained.

This report was published on October 27, 2023.

Target price is $16.30 Current Price is $23.23 Difference: minus $6.93 (current price is over target).
If FMG meets the Goldman Sachs target it will return approximately minus 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.78, suggesting downside of -23.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 109.96 cents and EPS of 198.83 cents.
At the last closing share price the estimated dividend yield is 4.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 230.2, implying annual growth of N/A.
Current consensus DPS estimate is 159.4, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 10.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 69.29 cents and EPS of 140.08 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.1, implying annual growth of -20.9%.
Current consensus DPS estimate is 133.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 12.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $0.97

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

G8 Education investor strategy day generally pleased Canaccord Genuity but occupancy gains in the past two months fell short of the broker's expectations, and appear to be lagging industry peers.

Management advised its improved portfolio following the divestment of 31 underperforming childcare centres should increase longer term earnings quality and the broker appears to agree, forecasting 20% EPS growth (potential) in 2024.

The broker considers the sale of the childcare centres to Genius Education for $26.5m at 8.8 times earnings (EBIT) to be favourably priced based on industry feedback. EPS forecasts fall roughly -10% for 2023 and 2024.

Buy rating retained. Target price falls to $1.37 from $1.46.

This report was published on October 27, 2023.

Target price is $1.37 Current Price is $0.97 Difference: $0.395
If GEM meets the Canaccord Genuity target it will return approximately 41% (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 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.93.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 5.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.83.

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

---

Moelis rates ((GEM)) as Hold (3) –

G8 Education's spot occupancy has continued to decline, reportedly reaching 75.4% in late October or -2.2 percentage points below 2019 occupancy. Moelis notes strong cost management has mitigated occupancy performance, according to the company. 

G8 Education is divesting 31 underperforming centres to Genius Education Group, at a cost of $26.5m. These centres are generating a combined -$9m earnings loss, and divestment is in line with strategy to reposition as a smaller network of high quality centres. 

The Hold rating is retained and the target price decreases to $1.08 from $1.21.

This report was published on November 26, 2023.

Target price is $1.08 Current Price is $0.97 Difference: $0.105
If GEM meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.10 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 5.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.54.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 6.10 cents and EPS of 8.10 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.04.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.08

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

A robust update from G.U.D. Holdings at its annual general, says Wilsons, with solid automotive aftermarket sales growth and strong new vehicle associated sales growth broadly in line with the broker's expectations. 

Although the company is yet to provide guidance for the year, it remains confident in medium-term growth for the core automotive businesses. G.U.D. Holdings is set to invest $6m into the growth of its offshore operations, marginally higher than Wilsons had anticipated. 

The Overweight rating is retained and the target price decreases to $12.66 from $13.04.

This report was published on October 27, 2023.

Target price is $12.66 Current Price is $11.08 Difference: $1.58
If GUD meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $12.88, suggesting upside of 16.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 47.00 cents and EPS of 85.70 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.6, implying annual growth of 18.2%.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 53.00 cents and EPS of 95.20 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.5, implying annual growth of 10.8%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 12.1.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IFL    INSIGNIA FINANCIAL LIMITED

Wealth Management & Investments – Overnight Price: $2.14

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

Insignia Financial's September-quarter FUM met Jarden's forecasts by $850m mainly due to reporting basis changes for private equity portfolios. Management reiterated cost-out targets.

After adjusting for this, the broker observes resilient investment returns managed to offset an increase in net outflows.

The broker expects MLC Wrap-related outflows will continue in FY24.

EPS forecasts fall -0.9% in FY24; and -3.2% in FY25.

Overweight rating retained on valuation. Target price falls to $2.50 from $2.75.

This report was published on October 26, 2023.

Target price is $2.50 Current Price is $2.14 Difference: $0.36
If IFL meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.59, suggesting upside of 20.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 18.70 cents and EPS of 26.80 cents.
At the last closing share price the estimated dividend yield is 8.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.6, implying annual growth of 1708.0%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 7.9%.
Current consensus EPS estimate suggests the PER is 9.5.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 19.50 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 9.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 20.8%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 9.1%.
Current consensus EPS estimate suggests the PER is 7.8.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $46.58

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

JB Hi-Fi Australia's sales for the 1Q exceeded Goldman Sachs forecast, while sales for The Good Guys sales were in line and JB Hi-Fi New Zealand missed expectation.

Taking these outcomes into account, the broker raises its target for JB Hi-Fi to $44.80 from $44.40 and retains a Neutral rating.

While JB Hi-Fi Australia is executing well, in the analysts' view, macro pressure in bulky white goods and the New Zealand performance are weighing.

This report was published on October 27, 2023.

Target price is $44.80 Current Price is $46.58 Difference: minus $1.78 (current price is over target).
If JBH meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $44.32, suggesting downside of -4.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 227.00 cents and EPS of 346.90 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 333.1, implying annual growth of -30.6%.
Current consensus DPS estimate is 220.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 227.00 cents and EPS of 347.80 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 343.1, implying annual growth of 3.0%.
Current consensus DPS estimate is 225.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.6.

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

---

Jarden rates ((JBH)) as Underweight (4) –

JB Hi-Fi's September-quarter result appears to have pleased the broker, but Jarden spies growing promotional activity, which it suspects will pressure margins.

The broker believes the company has its work cut out for it given the macro environment and growing competition and rising costs.

Underweight rating retained. Target price eases to $40.20 from $41.

This report was published on October 27, 2023.

Target price is $40.20 Current Price is $46.58 Difference: minus $6.38 (current price is over target).
If JBH meets the Jarden target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $44.32, suggesting downside of -4.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 220.00 cents and EPS of 336.40 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 333.1, implying annual growth of -30.6%.
Current consensus DPS estimate is 220.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 221.00 cents and EPS of 338.90 cents.
At the last closing share price the estimated dividend yield is 4.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 343.1, implying annual growth of 3.0%.
Current consensus DPS estimate is 225.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.6.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $16.80

Goldman Sachs rates ((LIC)) as Buy (1) –

While retaining a $25.25 target and Buy rating, Goldman Sachs came away from Lifestyle Communities' investor day incrementally more positive on the outlook after upbeat commentary, even though FY24 guidance was left unchanged.

The broker believes the correct strategy is in place strategy to capitalise on structural growth for the land lease sector. Management noted tailwinds from an ageing population and the company's strategic locations in Melbourne’s growth corridors. 

Demand is sequentially improving in line with house price growth, resulting in fewer days on market for sellers, explained management.

Goldman Sachs makes no changes to its settlement outlook, based on a recent pipeline deep dive, and sits at the top-end of FY24 guidance. 

This report was published on October 27, 2023.

Target price is $25.25 Current Price is $16.80 Difference: $8.45
If LIC meets the Goldman Sachs target it will return approximately 50% (excluding dividends, fees and charges).
Current consensus price target is $18.37, suggesting upside of 9.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 17.10 cents and EPS of 79.40 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.9, implying annual growth of -11.3%.
Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 24.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 21.20 cents and EPS of 115.30 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.3, implying annual growth of 36.3%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 17.6.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $3.43

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

Maas Group has built on a robust result for the 2H of FY23 with a generally positive 1Q update, according to Wilsons, and FY24 guidance was generally in line with qualitative statements at the FY23 result presentation.

The broker notes ongoing solid momentum for the Construction Materials (CM) and the Civil Construction & Hire (CCH) divisions in the quarter, while the Residential Real Estate business has experienced an uplift in enquiries.

The asset recycling program within Commercial Real Estate is also well underway, observe the analysts, with three properties sold during the 1Q.

The target slips to $3.75 from $3.83. Overweight.

This report was published on October 30, 2023.

Target price is $3.75 Current Price is $3.43 Difference: $0.32
If MGH meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 8.00 cents and EPS of 25.30 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.56.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 11.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.72.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $10.15

Goldman Sachs rates ((MP1)) as Buy (1) –

Goldman Sachs describes a "positive" 1Q result for Megaport, which included growth for annual recurring revenue (ARR) and revenue of 36% and 38%, respectively. The revenue growth was attributed to increased up-selling and previous price increases.

Revenue and earnings (EBITDA) guidance unchanged. Management noted 90%-complete hiring of new sales staff should result in benefits from the 4Q of FY24, and drive a rebound in operating metrics.

A softer FY24 customer net additions forecast, partially offset by a higher average revenue per user (ARPU) estimate, results in a Goldman target of $11.90, down from $12.10. Buy.

This report was published on October 27, 2023.

Target price is $11.90 Current Price is $10.15 Difference: $1.75
If MP1 meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $12.85, suggesting upside of 26.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 169.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.0, 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 112.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 117.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 51.8.

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

MVF    MONASH IVF GROUP LIMITED

Healthcare services – Overnight Price: $1.31

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

Wilsons has estimated organic cycle volumes growth of 11.0% for Monash IVF in the first quarter, with the result including a first contribution from the PIVET business. While the result was weaker than Wilsons had anticipated, the broker points out it confirms industry-wide progress.

The broker points out the second quarter typically accounts for 26-28% of annual cycle volumes, as patients take advantage of Medicare safety net coverage. 

The Overweight rating and target price of $1.32 are retained.

This report was published on October 30, 2023.

Target price is $1.32 Current Price is $1.31 Difference: $0.01
If MVF meets the Wilsons target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $1.35, suggesting upside of 2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 5.10 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.2, implying annual growth of 28.6%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 5.50 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of 9.7%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 16.6.

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

PLS    PILBARA MINERALS LIMITED

New Battery Elements – Overnight Price: $3.75

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

While growth remains on track for Pilbara Minerals, according to Goldman Sachs, realised pricing in the 1Q highlighted limited free cash flow (FCF) for FY24 and FY25. FCF fell by more than -$100m in the quarter on declining lithium prices and a rising spend on growth.

Spodumene production fell by -11% quarter-on-quarter. This outcome was below forecasts by the broker and consensus, due to lower grades and recoveries from maintenance shutdowns at the P680 expansion project, explain the analysts.

The broker's target falls to $3.80 from $4.10 to reflect lower spodumene pricing along with minor changes to production/costs and capex timing guidance. The Neutral rating is unchanged.

This report was published on October 27, 2023.

Target price is $3.80 Current Price is $3.75 Difference: $0.05
If PLS meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.69, suggesting upside of 25.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 10.00 cents and EPS of 32.70 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of -46.7%.
Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 8.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 6.20 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.9, implying annual growth of 14.8%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 7.7.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

---

Jarden rates ((PLS)) as Buy (1) –

Pilbara Minerals' September-quarter production and sales appears to have outpaced Jarden's expectations, which the broker says were very low.

Realised prices disappointed the broker by -13% despite the broker having discounted its price deck on several occasions during the quarter so revenue represented a -8% miss. Operating costs also disappointed by -13%, but ended up in line due to the inclusion of freight and royalties.

Guidance was retained. The company closed the quarter with a $3bn cash balance.

Jarden retains its benchmark lithium price forecasts but applies a short-term discount to Pilbara products and cuts FY24 earnings forecasts (FY25 earnings are steady). The broker already sits -20% to -40% below consensus.

The broker retains its recently applied Buy rating. Target price edges up to $4.80 from $4.70 following the roll-off of capital expenditure.

This report was published on October 26, 2023.

Target price is $4.80 Current Price is $3.75 Difference: $1.05
If PLS meets the Jarden target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $4.69, suggesting upside of 25.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 10.00 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of -46.7%.
Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 8.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 10.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.9, implying annual growth of 14.8%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 7.7.

Market Sentiment: 0.2
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: $23.15

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

Wilsons feels no amount of analysis of solid financial results by ResMed is going to set aside concerns over the growing story for GLP-1Ra obesity drugs.

The broker acknowledges the real damage done by recent GLP-1Ra data may not be the increased competitive threat, but the ‘"showing up" of CPAP as a standard of care with an evidence problem.

It's felt no CPAP manufacturer has bothered addressing this concern, and the best way forward if for ResMed to describe the obstructive sleep apnea (OSA) population who are well treated by CPAP.

Wilsons makes only minor earnings forecast downgrades but reduces the prior "super-premium" multiple that was assumed. The target falls to $30 from $36.25. Overweight.

This report was published on October 30, 2023.

Target price is $30.00 Current Price is $23.15 Difference: $6.85
If RMD meets the Wilsons target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $32.01, suggesting upside of 38.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 29.22 cents and EPS of 106.79 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.9, implying annual growth of N/A.
Current consensus DPS estimate is 29.9, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 31.63 cents and EPS of 125.17 cents.
At the last closing share price the estimated dividend yield is 1.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.1, implying annual growth of 13.7%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 18.4.

This company reports in USD. 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

RWC    RELIANCE WORLDWIDE CORP. LIMITED

Building Products & Services – Overnight Price: $3.70

Goldman Sachs rates ((RWC)) as Buy (1) –

Following Reliance Worldwide's 1Q update, Goldman Sachs lowers its FY24 and FY25 forecasts for EMEA region volumes given weaker than anticipated trading conditions, which also has the effect of lowering projected group margins.

The Buy rating is retained and the target price decreases to $4.25 from $4.35 despite the broker assuming a higher market multiple. 

This report was published on October 27, 2023.

Target price is $4.25 Current Price is $3.70 Difference: $0.55
If RWC meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $4.02, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 25.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of N/A.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 30.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 12.8%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 12.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

---

Jarden rates ((RWC)) as Neutral (3) –

Reliance Worldwide's September-quarter AGM trading update largely met expectations, save for a miss in Europe, where the company posted double-digit falls in sales driven by weakness in the company's high margin niche products such as FluidTech.

Management reiterated FY24 guidance.

The company's core plumbing and heating business largely held up and while management expects sales will ease, it advised cost savings of $18m were running to plan, meaning margins should hold.

Neutral rating retained. Target price falls to $3.95 from $4.38 to reflect clearer guidance.

This report was published on October 27, 2023.

Target price is $3.95 Current Price is $3.70 Difference: $0.25
If RWC meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.02, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 12.35 cents and EPS of 24.85 cents.
At the last closing share price the estimated dividend yield is 3.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of N/A.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 14.16 cents and EPS of 28.47 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 12.8%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 12.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SDR    SITEMINDER LIMITED

Travel, Leisure & Tourism – Overnight Price: $4.32

Wilsons rates ((SDR)) as Upgrade to Overweight from Market Weight (1) –

While SiteMinder's share price declined -15% in the final two weeks of October, Wilsons has reiterated its belief that this should be considered an attractive entry point for investors despite broader market uncertainty. 

The company not only exceeded the broker's first quarter revenue expectations, but also announced two new transactional products that Wilsons expects to support medium-term growth and free cash flow. The broker's confidence in the medium-term outlook is improving.

The rating is upgraded to Overweight from Market Weight and the target price increases to $4.69 from $4.65.

This report was published on October 30, 2023.

Target price is $4.69 Current Price is $4.32 Difference: $0.37
If SDR meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $5.49, suggesting upside of 27.0%(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 minus 17.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.7, 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:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 75.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.0, 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: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $6.35

Goldman Sachs rates ((SFR)) as Sell (5) –

Copper production and cash costs in the 1Q for Sandfire Resources were a slight beat compared to forecasts by Goldman Sachs, while zinc production was a miss.

FY24 production and cost guidance is unchanged and management noted the Motheo copper plant expansion to 5.2Mtpa is well progressed and should be delivered at the end of Q2 and ramped-up by Q4.

The broker's $5.40 target is unchanged and the Sell rating is kept due to a stretched current valuation.

This report was published on November 27, 2023.

Target price is $5.40 Current Price is $6.35 Difference: minus $0.95 (current price is over target).
If SFR meets the Goldman Sachs target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.93, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 2.60 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 635.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 17.77 cents and EPS of 58.74 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.5, implying annual growth of 3750.0%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 16.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

---

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

The release of a "very strong" 1Q production report supports Jarden's Overweight investment thesis for Sandfire Resources.

Highlights included an exceptional ramp-up of Motheo and robust cost control at the MATSA operations, with both assets delivering production beats compared to the broker's forecasts.

Operating earnings (EBITDA) were also 18% ahead of the analysts' estimate, while all FY24 guidance metrics were left unchanged.

The target rises to $6.57 from $6.50.

This report was published on October 27, 2023.

Target price is $6.57 Current Price is $6.35 Difference: $0.22
If SFR meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.93, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.31 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 191.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 635.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 7.53 cents and EPS of 51.82 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.5, implying annual growth of 3750.0%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 16.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms