Australian Broker Call *Extra* Edition – Dec 18, 2023

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

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)

BPT   COH   ENN   EVN   GNX   IPL   KAR   MAP   NDO   RRL   SPZ   STO   TIE   TPW   WDS  

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.56

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

Jarden lowers its 12-month target prices by as much as -11% across the broker's Energy sector coverage, after allowing for lower near-term oil and LNG prices, as well as a stronger Australian dollar.

The analysts' Overweight rating is retained for Beach Energy and the target falls to $1.80 from $1.85. It is felt progress on Waitsia Stage 2 is key for the outlook.

This report was published on December 8, 2023.

Target price is $1.80 Current Price is $1.56 Difference: $0.24
If BPT meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $1.81, suggesting upside of 15.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 3.00 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of -2.2%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 9.1.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 11.00 cents and EPS of 25.60 cents.
At the last closing share price the estimated dividend yield is 7.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of 59.3%.
Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 5.7.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $299.77

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

Wilsons has issued a 38% increase to its target price for Cochlear, so as to not allow discounted cash flow considerations to "stand in the way of making outperforming returns".

The broker points out more than a year ago it identified material pockets of fresh indication expansion unfolding in single-sided deafness and mixed or conductive hearing loss. Favourably for Cochlear, both feature reduced competitive intensity and have years left to run.

The rating is upgraded to Overweight from Market Weight and the target price increases to $318.46 from $230.84.

This report was published on December 12, 2023.

Target price is $318.46 Current Price is $299.77 Difference: $18.69
If COH meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $236.90, suggesting downside of -21.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 406.90 cents and EPS of 577.60 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 553.5, implying annual growth of 21.1%.
Current consensus DPS estimate is 388.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 54.2.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 456.50 cents and EPS of 651.50 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 625.3, implying annual growth of 13.0%.
Current consensus DPS estimate is 440.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 47.9.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $1.48

Moelis rates ((ENN)) as Buy (1) –

Elanor Investors has acquired a $172m Brisbane office asset, as part of a newly launched fund. Moelis notes the building is 100% leased, with 97% of income generated from a lease to the ATO, set to run until 2028.

It is the broker's opinion that this purchase demonstrates the capability of the company's new relationship with Fidante, and particularly the strong capital raising capabilities of the partnership.

The Buy rating is retained and the target price decreases to $2.15 from $2.26.

This report was published on December 12, 2023.

Target price is $2.15 Current Price is $1.48 Difference: $0.67
If ENN meets the Moelis target it will return approximately 45% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 15.50 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 10.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.46.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 16.10 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 10.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.51.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $3.71

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

Evolution Mining has signed a binding agreement to acquire an 80% stake in the Northparkes gold-copper mine from CMOC, for a total consideration of US$475m with a US$400m upfront payment.

Canaccord Genuity notes Northparkes is expected to produce 12,500 tonnes of copper and 19,000 ounces of gold in the second half, implying a 25% increase to copper production and 2% increase to gold production.

The Buy rating and target price of $4.00 are retained.

This report was published on December 8, 2023.

Target price is $4.00 Current Price is $3.71 Difference: $0.29
If EVN meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.78, suggesting upside of 1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of 214.3%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 11.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.3, implying annual growth of 11.8%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 11.9.

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

GNX    GENEX POWER LIMITED

EV, Solar & Batteries – Overnight Price: $0.17

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

Having secured a fifteen-year power purchase agreement with Stanwell Corporation, alongside the ten-year agreement made with Energy Australia in October, Petra Capital expects Genex Power, with joint venture partner J-POWER, to commence the debt financing process.

The Stanwell Corporation agreement covers 50% of the 258 megawatt Kidston Wind project, at a fixed price where increases are linked to the consumer price index.

Petra Capital expects the long-term power purchase agreements, fixed pricing structures, and quality of offtake partners to be highly attractive to debt financiers.

The Buy rating is retained and the target price decreases to 27.5 cents from 28.5 cents.

This report was published on December 11, 2023.

Target price is $0.28 Current Price is $0.17 Difference: $0.105
If GNX meets the Petra Capital target it will return approximately 62% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 170.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 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 170.00.

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

IPL    INCITEC PIVOT LIMITED

Agriculture – Overnight Price: $2.85

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

Goldman Sachs reinstates coverage of Incitec Pivot with an unchanged Buy rating and $3.25 target (down from $4.70 in March) following the completed sale of the WALA ammonia facility for US$1,675m on December 4.

As a result of the sale, the broker lowers its FY24-26 earnings (EBIT) forecast by -14-22%.

As previously announced, management intends to return up to $1bn via a combination of an on-market buy-back of up to $500m, and a
distribution of up to $500m via a pro-rata capital return and special dividend.

This report was published on December 12, 2023.

Target price is $3.25 Current Price is $2.85 Difference: $0.4
If IPL meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.16, suggesting upside of 10.8%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 10.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of -25.8%.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 11.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 3.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.3, implying annual growth of -9.8%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 14.8.

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

KAR    KAROON ENERGY LIMITED

Crude Oil – Overnight Price: $1.98

Jarden rates ((KAR)) as Buy (1) –

Jarden lowers its 12-month target prices across the broker's Energy sector coverage by as much as -11%, after allowing for lower near-term oil and LNG prices, as well as a stronger Australian dollar.

The analysts' Buy rating is retained for Karoon Energy and the target falls to $2.50 from $2.80. It is felt the market may take time to become comfortable with the technical and commercial attributes around the Who Dat acquisition.

This report was published on December 8, 2023.

Target price is $2.50 Current Price is $1.98 Difference: $0.525
If KAR meets the Jarden target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $3.01, suggesting upside of 52.2%(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 34.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.6, implying annual growth of N/A.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 2.5.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 26.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.1, implying annual growth of -25.4%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 3.3.

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

MAP    MICROBA LIFE SCIENCES LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.20

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

Canaccord Genuity has been pleased by the positive safety and tolerability data reported by Microba Life Sciences for its MAP315 product, which showed no negative safety signals. The most common adverse event reported was a mild headache, where a higher number of events was reported by the placebo group.

From here, the broker expects Microba Life Sciences will meet with regulators to finalise the trial design, anticipating a Phase II program would include 60-90 patients in a first stage and 100-200 patients in a second stage.

The Speculative Buy rating and target price of 44 cents are retained.

This report was published on December 8, 2023.

Target price is $0.44 Current Price is $0.20 Difference: $0.235
If MAP meets the Canaccord Genuity target it will return approximately 115% (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

NDO    NIDO EDUCATION LIMITED

Childcare – Overnight Price: $0.96

Canaccord Genuity rates ((NDO)) as Initiation of coverage with Buy (1) –

Following Nido Education's recent listing on the ASX in October, Canaccord Genuity initiates coverage on the childcare provider with a Buy rating and a target price of $1.30.

While the broker expects Nido Education will report an earnings breakeven in 2023, it expects this to grow to over $28m in 2024.

The company has stated that it could increase its centre-based earnings to $110m through the acquisition of 100 centres over the coming six years. Canaccord Genuity assumes the company could acquire 10-20 centres yearly, and models an additional 8 centres per year from 2025.

This report was published on December 11, 2023.

Target price is $1.30 Current Price is $0.96 Difference: $0.34
If NDO meets the Canaccord Genuity target it will return approximately 35% (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 4.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.43.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 3.10 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.07

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

As alluded to by management during the September quarter results presentation, notes Goldman Sachs, Regis Resources has closed out all remaining commitments on its existing gold sales hedge book.

Given the business is now fully unhedged, with all gold sales exposed to spot gold prices, the broker anticipates an improvement in realised pricing, earnings and free cash flow (FCF).

The target rises to $1.95 from $1.90 and the Buy rating is maintained on valuation.

This report was published on December 12, 2023.

Target price is $1.95 Current Price is $2.07 Difference: minus $0.12 (current price is over target).
If RRL meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.02, suggesting downside of -2.3%(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 minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 69.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.2, 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 1035.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 2.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.4, implying annual growth of 8600.0%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 11.9.

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

SPZ    SMART PARKING LIMITED

Hardware & Equipment – Overnight Price: $0.35

Petra Capital rates ((SPZ)) as Initiation of coverage with Buy (1) –

Petra Capital initiates coverage on Smart Parking with a Buy rating and a target price of 56 cents. The company offers car parking technology solutions that has evolved into a cloud-centered service provider with a focus on automated number plate recognition solutions.

Having established a profitable business in the United Kingdom, Smart Parking is now in the early stages of penetrating the German market, which Petra Capital sees as a 140,000 site opportunity. The broker expects a "healthy stream of announcements" as the company evaluates new markets.

This report was published on December 11, 2023.

Target price is $0.56 Current Price is $0.35 Difference: $0.21
If SPZ meets the Petra Capital target it will return approximately 60% (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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.29.

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

STO    SANTOS LIMITED

NatGas – Overnight Price: $7.75

Jarden rates ((STO)) as Upgrade to Overweight from Neutral (2) –

Prior to any Woodside Energy merger speculation, Jarden upgraded its rating for Santos (on December 6) to Overweight from Neutral after a share price sell-off.

At the time, the broker also lowered 12-month target prices across its Energy sector coverage by as much as -11%, after allowing for lower near-term oil and LNG prices, as well as a stronger Australian dollar.

The analysts' target for Santos was reduced to $7.25 from $7.85.

Following the merger talk, Jarden issued additional research on December 7, noting ACCC issues could potentially emerge (particularly in the West Coast gas market), but felt any concerns were manageable via prudent divestments.The target and rating were maintained.

This report was published on December 8, 2023.

Target price is $7.25 Current Price is $7.75 Difference: minus $0.5 (current price is over target).
If STO meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.14, suggesting upside of 18.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 24.46 cents and EPS of 68.25 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 11.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.9, implying annual growth of N/A.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 9.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 26.42 cents and EPS of 49.98 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.0, implying annual growth of -6.1%.
Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 10.3.

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

TIE    TIETTO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.63

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

Tietto Minerals has again downgraded its second half production guidance, now anticipating production between 65,0000-75,000oz, off the back of a softer November result compared to the record result from October.

Canaccord Genuity notes guidance was also impacted by a mill shutdown that has been brought forward to December, with the company expecting ot lose three days of milling.

The broker had anticipated second half production of 72,000oz, now expecting this would be the top end of what could be achieved. Consequently, Canaccord Genuity lowers its forecast to 69,000oz, noting this would require production of 12,000oz in December.

The Speculative Buy rating and target price of 70 cents are retained.

This report was published on December 11, 2023.

Target price is $0.70 Current Price is $0.63 Difference: $0.07
If TIE meets the Canaccord Genuity target it will return approximately 11% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.50.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.00.

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: $9.09

Petra Capital rates ((TPW)) as Initiation of coverage with Buy (1) –

Petra Capital has initiated coverage on Australia’s largest online only furniture & homewares retailer, Temple & Webster. The broker sees Temple & Webster as well placed to continue taking advantage of the value-conscious shopper to accelerate its market share.

The retailer announced a new strategy with its full year results, which included additional marketing spend. Petra Capital considers this a sensible decision at a time when consumers are increasingly shopping around for better value, and given a significant market of potential first-time customers.

The broker initiates with a Buy rating and a target price of $9.20.

This report was published on December 12, 2023.

Target price is $9.20 Current Price is $9.09 Difference: $0.11
If TPW meets the Petra Capital target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $7.66, suggesting downside of -15.7%(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 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 233.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.0, implying annual growth of -41.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 227.3.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 178.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of 87.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 121.2.

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

WDS    WOODSIDE ENERGY GROUP LIMITED

NatGas – Overnight Price: $30.58

Jarden rates ((WDS)) as Upgrade to Neutral from Underweight (3) –

Prior to any Santos merger speculation, Jarden upgraded its rating for Woodside Energy (on December 6) to Neutral from Underweight, following a share price sell-off.

At the time, the broker also lowered 12-month target prices across its Energy sector coverage by as much as -11%, after allowing for lower near-term oil and LNG prices, as well as a stronger Australian dollar.

The analysts' target for Woodside Energy was reduced to $30.50 from $34.

Following the merger talk, Jarden issued additional research on December 7, noting ACCC issues could potentially emerge (particularly in the West Coast gas market), but felt any concerns were manageable via prudent divestments. The target and rating were maintained.

This report was published on December 8, 2023.

Target price is $30.50 Current Price is $30.58 Difference: minus $0.08 (current price is over target).
If WDS meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.98, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 199.31 cents and EPS of 250.19 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 228.3, implying annual growth of N/A.
Current consensus DPS estimate is 182.9, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 157.03 cents and EPS of 199.46 cents.
At the last closing share price the estimated dividend yield is 5.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 209.4, implying annual growth of -8.3%.
Current consensus DPS estimate is 167.2, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 14.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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