Australian Broker Call *Extra* Edition – Dec 07, 2023

This story features BOSS ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: BOE

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)

BOE   CDA (2)   DRE   ERD (2)   FPH (2)   GTK   HVN   MAQ   MAY   MYX   NEU   NXD   PBH   RHC   SLC   SMR   TPW (2)  

BOE    BOSS ENERGY LIMITED

Uranium – Overnight Price: $4.15

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

Since acquiring the Honeymoon project, Boss Energy has built greater confidence that revisions to its ISR extraction process will enable superior performance, both from a tenor and flow rate perspective, explains Boss Energy.

After adopting a more conservative ramp-up profile for the South Australian-based project, Canaccord Genuity lowers its target marginally to $4.73 from $4.74. The Speculative Buy rating is unchanged.

The term uranium market (which is more important than spot, suggests Canaccord) continues to see the highest activity in over ten years with 152mlb contracted year-to-date.

This report was published on November 30, 2023.

Target price is $4.73 Current Price is $4.15 Difference: $0.58
If BOE meets the Canaccord Genuity target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $4.54, suggesting upside of 9.5%(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 9.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.0, implying annual growth of 152.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 46.1.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 35.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of 181.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.4.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $8.38

Moelis rates ((CDA)) as Hold (3) –

Following Codan's announced acquisition of Wave Central, a North American systems integrator of wireless broadcast equipment, Moelis increases its FY24 and FY25 EPS forecasts by 1.4% and 2.4%, respectively. The target rises to $8.52 from $8.25.

Wave Central mostly creates wireless video camera links and transmitters, explains the broker, which utilise Domo Tactical Communications broadcast technology, for the sports, cinema and broadcast markets.

Codan will pay cash of $9.1m upfront, while an additional $12.2m in payments will be incurred should earn-out targets be met over the next three years. Hold.

This report was published on November 30, 2023.

Target price is $8.52 Current Price is $8.38 Difference: $0.14
If CDA meets the Moelis target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 22.70 cents and EPS of 43.20 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.40.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 25.80 cents and EPS of 49.20 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.03.

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

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

Codan will acquire Wave Central, a wireless broadcast solutions provider for the North American market, notes Petra Capital, in a deal which will be immediately EPS accretive (pre-synergies).

Importantly, Wave Central will add another layer of capability to Codan’s critical communications offering, explains the analyst.

The cost will be $9.1m up front, funded from existing debt facilities, and up to $12.2m of earn-outs over the next three years.

The Buy rating is retained and the target price increases to $9.49 from $9.45.

This report was published on November 30, 2023.

Target price is $9.49 Current Price is $8.38 Difference: $1.11
If CDA meets the Petra Capital target it will return approximately 13% (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 21.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.95.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 26.50 cents and EPS of 52.60 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.93.

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

DRE    DREADNOUGHT RESOURCES LIMITED

Mining – Overnight Price: $0.03

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

Canaccord Genuity previously expected a 35-40mt resource for Dreadnought Resources' Mangaroon project, with 50% Indicated. 

An updated resource statement for the Yin ironstones within the project shows 87% of tonnes and 91% of contained total rare earth oxides (TREO) are in the Measured and Indicated (M&I) category of resource classification.

Also, 64% of the total 40.8mt project tonnes are in the M&I category, notes the analysts. Notably, the Yin resource covers just 10% of the known 43km Yin trend, points out Canaccord.

The Speculative Buy rating and target price of 20 cents are retained.

This report was published on December 1, 2023.

Target price is $0.20 Current Price is $0.03 Difference: $0.168
If DRE meets the Canaccord Genuity target it will return approximately 525% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $0.86

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

Eroad's 1H result revealed strong growth in all regions and exceeded Canaccord Genuity's forecasts, partly due to initial benefits from management's cost-out strategy.

The broker highlights momentum in organic annualised monthly recurring revenue and record unit additions. A capex unwind from accelerated 3G-4G replacement is expected to drive strong near-term improvement in free cash flow.

Management reiterated FY24 revenue guidance range of NZ$175-180m.

Canaccord's Buy rating is unchanged and the target rises to NZ$1.60 from NZ$1.50.

This report was published on November 30, 2023.

Current Price is $0.86. Target price not assessed.
The company's fiscal year ends in March.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.46 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 186.15.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.23.

This company reports in NZD. 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

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Jarden rates ((ERD)) as Neutral (3) –

Following a period of research restriction, Jarden assesses 1H results for Eroad, which indicate good progress. It's felt management remains on track to deliver on short-term targets.

The company reiterated FY24 guidance and medium-term cashflow targets. However, the analysts suggest the company needs to deliver on its cost-out program to build confidence in sustainable margins for the business.

Cash flow remains a challenge during the 3G replacement cycle in New Zealand, and the broker forecasts an ongoing negative cash flow run-rate for the next 12 months.

The Neutral rating is unchanged and the target is lowered to NZ95c from NZ$1.00.

This report was published on November 30, 2023.

Current Price is $0.86. Target price not assessed.
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.00.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.71.

This company reports in NZD. 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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $22.20

Jarden rates ((FPH)) as Downgrade to Underweight from Neutral (4) –

While Jarden assesses a "solid" 1H result for Fisher & Paykel Healthcare, the rating is downgraded to Underweight from Neutral, largely due to valuation.

A key standout, in the broker's opinion, was the 26% revenue increase in Homecare, underpinned by strength for obstructive sleep apnea (OSA) masks, especially the ongoing popularity for the Evora mask.

Management maintained revenue guidance of circa NZ$1.7bn, which implies to the analysts a softer 2H revenue outlook.

The target price decreases to NZ$22.00 from NZ$22.50.

This report was published on November 30, 2023.

Current Price is $22.20. Target price not assessed.
Current consensus price target is $21.60, suggesting downside of -2.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 38.85 cents and EPS of 40.51 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.8, implying annual growth of N/A.
Current consensus DPS estimate is 38.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 54.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 39.77 cents and EPS of 53.37 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.9, implying annual growth of 29.7%.
Current consensus DPS estimate is 39.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 42.0.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

In line with EPS growth, the Fisher & Paykel Healthcare share price should grind higher, suggests Wilsons, after reviewing 1H results. Revenue grew by 16% on the previous corresponding period, only -1% shy of the broker's forecast.

The broker cites various positives including a stabilising cost structure, and normalisation of supply channels.

Given recent pressure on the Healthcare sector relating to new weight loss drugs, the company's lack of exposure, (relative to some peers) is an added advantage, according to the broker.

Market Weight maintained. The target eases to $23.25 from $23.39.

This report was published on November 30, 2023.

Target price is $23.25 Current Price is $22.20 Difference: $1.05
If FPH meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $21.60, suggesting downside of -2.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 37.92 cents and EPS of 42.27 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.8, implying annual growth of N/A.
Current consensus DPS estimate is 38.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 54.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 39.77 cents and EPS of 50.87 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.9, implying annual growth of 29.7%.
Current consensus DPS estimate is 39.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 42.0.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GTK    GENTRACK GROUP LIMITED

Software & Services – Overnight Price: $5.99

Jarden rates ((GTK)) as Downgrade to Underweight from Neutral (4) –

A strong full year result from Gentrack Group, says Jarden, not delivering metrics ahead of estimates but also issuing an upgrade to FY24 guidance. Underlying revenue grew 42% year-on-year, with total revenue NZ$11m ahead of guidance.

Gentrack Group is now guiding to revenue of at least NZ$170m in the coming year, and the broker feels the phrasing of this suggests confidence in a near-term outlook. Jarden expects the company has a reasonable line of sight on potential pipeline conversion.

The rating is downgraded to Underweight from Neutral and the target price increases to NZ$5.00 from NZ$3.90.

This report was published on December 29, 2023.

Current Price is $5.99. Target price not assessed.
The company's fiscal year ends in September.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.45 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.31.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 17.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.63.

This company reports in NZD. 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

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $3.88

Jarden rates ((HVN)) as Neutral (3) –

While elevated discounting remains a risk, Jarden was buoyed by Harvey Norman's AGM trading update showing improving sales trends over the past eight weeks. Reported sales growth to November 25 showed improved sales trajectories for all regions.

While forecasting a -46% decline in FY24 franchisee profit  the broker anticipates Australian franchisee margins will hit a nadir in FY24 at 3.4%.

The Neutral rating is unchanged and the target rises to $3.60 from $3.40.

This report was published on November 30, 2023.

Target price is $3.60 Current Price is $3.88 Difference: minus $0.28 (current price is over target).
If HVN meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.91, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 20.00 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.4, implying annual growth of -32.1%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 23.00 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 5.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.2, implying annual growth of 16.3%.
Current consensus DPS estimate is 26.6, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 11.3.

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

MAQ    MACQUARIE TECHNOLOGY GROUP LIMITED

Telecommunication – Overnight Price: $66.63

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

The most important announcement coming out of Macquarie Technology's AGM, according to Canaccord Genuity, was the faster-than- expected approval process for IC3 Super West data centre.

Management anticipates receiving final determination (approval) in the next two months, or at worst Q3 of FY24 to allow for the upcoming holiday period.

As earnings commentary was largely unchanged from the time of the FY23 result presentation, the broker leaves forecasts unchanged. 

The Buy rating and $80 target are retained.

This report was published on December 1, 2023.

Target price is $80.00 Current Price is $66.63 Difference: $13.37
If MAQ meets the Canaccord Genuity target it will return approximately 20% (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 122.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.26.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 155.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.74.

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

MAY    MELBANA ENERGY LIMITED

Crude Oil – Overnight Price: $0.07

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

Melbana Energy aims to spud its Alameda-3 appraisal well (in Cuba) in the week beginning December 11. Petra Capital suggests Alameda-3 is relatively low risk.

The broker highlights Melbana is well funded to pursue its appraisal activities and commence early production from 2024.

Buy rating and 21c target price retained.

This report was published on November 30, 2023.

Target price is $0.21 Current Price is $0.07 Difference: $0.139
If MAY meets the Petra Capital target it will return approximately 196% (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 71.00.

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 71.00.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.86

Canaccord Genuity rates ((MYX)) as Hold (3) –

Mayne Pharma's October trading update was in line with Canaccord Genuity's forecasts. Consistent revenue and profit improvements across Women’s Health and Dermatology are noted, along with a clear pathway for improvement in International.

In the financial year so far, sales rose by  27.5% compared to the prior four months, and more materially when compared to the previous corresponding period. A gross margin improvement to 57% (from 49% in the 1Q) was also notable, in the broker's view.

While still early days, the required consistency to improve investor confidence is underway, and expansion of the buyback highlights to the broker management's conviction in improved underlying value.

Hold and $3.80 target retained.

This report was published on December 1, 2023.

Target price is $3.80 Current Price is $5.86 Difference: minus $2.06 (current price is over target).
If MYX meets the Canaccord Genuity target it will return approximately minus 35% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $16.05

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

Wilsons highlights the importance of demonstrated clinical safety and acceptable tolerability of Neuren Pharmaceuticals' NNZ-2591 product in patients with neuro-development disorders.

The broker considers these safety and tolerance factors will be the most material de-risking point for the company in the next 12 months.

The analysts note the first (of four) Phase II studies is due in December evaluating NNZ-2591, initially in Phelan McDermid Syndrome.

The Overweight rating and target price of $22.79 are retained.

This report was published on November 29, 2023.

Target price is $22.79 Current Price is $16.05 Difference: $6.74
If NEU meets the Wilsons target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 120.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.34.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 31.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.28.

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

NXD    NEXTED GROUP LIMITED

Education & Tuition – Overnight Price: $0.70

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

Petra Capital believes short-term negative sentiment around NextEd Group is likely to prove transient, and maintains a belief in the company's long-term potential, based on substantial growth opportunities.

While gaining little information from the group's recent AGM, the broker was impressed by the facilities during a tour of the Pitt Street campus. The 24 classrooms were mostly full, reports the analyst.

The Buy rating and $1.00 target are unchanged.

This report was published on November 30, 2023.

Target price is $1.00 Current Price is $0.70 Difference: $0.3
If NXD meets the Petra Capital target it will return approximately 43% (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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.82.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $0.75

Jarden rates ((PBH)) as Buy (1) –

Following PointsBet Holdings AGM, and confirmation that its Fanatics deal is on track for completion in the third quarter, Jarden, despite no specific update from the company on a second capital, expects a return of 40 cents per share will be made after sale closure.

The company has engaged a third party to undertake a Board review to determine if corporate governance remains fit for purpose, with the intentional that findings and implemented change will accompany completion of the Fanatics sale.

The Buy rating and target price of 94 cents are retained.

This report was published on November 28, 2023.

Target price is $0.94 Current Price is $0.75 Difference: $0.19
If PBH meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
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 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.71.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.71.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $49.17

Jarden rates ((RHC)) as Neutral (3) –

As outlined at its recent annual general, and following the sale of Sime Darby and subsequent balance sheet improvement, Ramsay Health Care has renewed focus on its profit and loss result and its recovery pathway.

Jarden remains concerned about the apparent heavy reliance on second half earnings to meet full year expectations, as well as the absence of net profit growth over FY24.

The company warned margin recovery continues to be slowed by inflationary pressures. Ramsay Health Care is concurrently seeking additional cost inflation compensation from the French government, while negotiating reimbursement indexation from Australian insurers.

Jarden expects these to be protracted discussions, with limited hope of a resolution benefiting FY24. The Neutral rating is retained and the target price increases to $58.98 from $58.00.

This report was published on December 29, 2023.

Target price is $58.98 Current Price is $49.17 Difference: $9.81
If RHC meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $56.57, suggesting upside of 15.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 238.50 cents and EPS of 123.80 cents.
At the last closing share price the estimated dividend yield is 4.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 127.4, implying annual growth of 1.8%.
Current consensus DPS estimate is 80.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 38.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 132.10 cents and EPS of 219.50 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 197.9, implying annual growth of 55.3%.
Current consensus DPS estimate is 121.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 24.8.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $0.69

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

During the launch of a new wholesale product named Hosted Backhaul, Superloop announced a substantial contract win with a major retail services provider (RSP). 

The new product enables customers to secure their own wholesale broadband agreement (WBA) with the NBN, but Superloop brings the network, explains the analyst. Reasonable demand is expected from mid-tier RSPs.

The Buy rating is retained and the target price is unchanged at $1.11.

This report was published on November 30, 2023.

Target price is $1.11 Current Price is $0.69 Difference: $0.425
If SLC meets the Canaccord Genuity target it will return approximately 62% (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 minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.83.

Forecast for FY25:

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

SMR    STANMORE RESOURCES LIMITED

Coal – Overnight Price: $3.87

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

In a strong positive signal to the market, suggests Petra Capital, Stanmore Resources is returning excess cash to shareholders. The company will pay a special fully franked dividend of US5.82cps on December 14.

Cash was previously being set aside for the now failed bid for BHP Group's ((BHP)) Daunia coal mine, explains the broker. Further payouts should be announced as part of the FY23 results presentation.

The analyst forecasts a 7-8% fully franked dividend yield in 2023/24, building to 23% in 2025.

The Buy rating is retained and the target price slips to $5.36 from $5.47.

This report was published on November 30, 2023.

Target price is $5.36 Current Price is $3.87 Difference: $1.49
If SMR meets the Petra Capital target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 30.94 cents and EPS of 82.86 cents.
At the last closing share price the estimated dividend yield is 7.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.67.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 87.38 cents and EPS of 65.80 cents.
At the last closing share price the estimated dividend yield is 22.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.88.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $8.10

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

Canaccord Genuity was impressed by Temple & Webster's AGM trading update, due to evidence of an acceleration in revenue from the 1Q. Revenue for the 1H year-to-date increased by 23% on the previous corresponding period.

Revenue growth of 101% over the Black Friday to Cyber Monday period has contributed to the strength of 2Q revenue so far, highlight the analysts. A multiplier effect is expected into 2024 as new customers repeat in future periods.

After referring to recent ABS data, the broker notes significant market share gains being made by Temple & Webster in the broader Homewares and Furniture market.

Management reiterated FY24 earnings (EBITDA) margin guidance.

Canaccord raises its target to $8.00 from $7.50. Buy.

This report was published on November 30, 2023.

Target price is $8.00 Current Price is $8.10 Difference: minus $0.1 (current price is over target).
If TPW meets the Canaccord Genuity target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.21, suggesting downside of -11.0%(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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 405.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of -42.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 207.7.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 3.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 0.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 162.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.4, implying annual growth of 89.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 109.5.

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

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

Following an AGM trading update, Jarden upgrades its rating on preferred small cap pick Temple & Webster to Buy from Overweight and raises its target to $8.56 from $6.59.

Up to November 27 in FY24, the broker notes 23% year-on-year revenue growth and significant market share gains, against a category 
that is down -5-10% year-on-year.

The analysts feel current valuation multiples do not reflect latent earning power, as Temple & Webster is currently in a period of investment.

After making forecast revenue increases, partially offset by increased marketing costs (to reflect accelerated growth), the broker raises EPS forecasts across FY24-26 by 7%, 7% and 14%, respectively.

This report was published on November 30, 2023.

Target price is $8.56 Current Price is $8.10 Difference: $0.46
If TPW meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $7.21, suggesting downside of -11.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 180.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of -42.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 207.7.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 112.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.4, implying annual growth of 89.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 109.5.

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

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