Australian Broker Call *Extra* Edition – Feb 20, 2024

Daily Market Reports | Feb 20 2024

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)

AMP   APE   ARF   BMT   BRG   CBA   CGF (2)   CQE (2)   CSL   CU6   DHG   DRR   DTL   DXS   EVN   FBU   GUD   IEL   JHX (2)   MGH   MQG   NWH   PME (2)   SEK   STX   SWM   TPW   VVA  

SWM    SEVEN WEST MEDIA LIMITED

Print, Radio & TV - Overnight Price: $0.23

Goldman Sachs rates ((SWM)) as Sell (5) -

Seven West Media's December-half earnings (EBITDA) and net profit after tax missed Goldman Sachs's forecasts by -17% and -22% respectively as weak TV advertising markets persisted into 2024 and costs slightly outpaced.

Management's FY24 guidance suggests results are likely to fall at the bottom of the guidance range.

On the upside, the TV ad market decline is showing signs of easing and the company's TV add share grew 1.7% to 41% in the December half.

The broker revises down its TV forecasts for the June half.

Sell rating retained. Target price falls -11% to 24c.

This report was published on February 13, 2024.

Target price is $0.24 Current Price is $0.23 Difference: $0.01
If SWM meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 21.7%(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 3.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.9, implying annual growth of -37.3%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 3.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of -6.8%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 8.7%.
Current consensus EPS estimate suggests the PER is 4.2.

Market Sentiment: 0.0
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: $11.50

Jarden rates ((TPW)) as Buy (1) -

Jarden is positively rapturous about Temple & Webster's 1H24  better than expected results as market share improvements come through ahead of schedule and  margins improved.

The results vindicate the stock as Jarden's preferred small cap pick with management able to handle inflation costs better than the competition.

EPS forecasts are lifted circa 53% for FY24 and 10% for FY26, with FY25 unchanged. Buy rating retained with a material upgrade in the target to $12.67 from $8.56.

This report was published on February 13, 2024.

Target price is $12.67 Current Price is $11.50 Difference: $1.17
If TPW meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $11.91, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 191.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.6, implying annual growth of -32.6%.
Current consensus DPS estimate is 0.1, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 250.0.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 157.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of 76.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 142.0.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism - Overnight Price: $1.53

Petra Capital rates ((VVA)) as Buy (1) -

Viva Leisure has reported first half revenue of $79.1m, earnings of $16.6m and net profits of $4.8m, alongside a full year guidance range of $162-164m in revenue and $35.0-35.5m in earnings. 

Full year guidance proved a beat to the broker's expectations, with revnue 3% higher and earnings 1.1% higher than Petra Capital had anticipated. The broker has upwardly revised full year forecasts to align.

The broker considers the second half a likely crucial catalyst for the company, with the outcome of its strategic review expected within the period. 

The Buy rating is retained and the target price increases to $2.52 from $2.44.

This report was published on February 16, 2024.

Target price is $2.52 Current Price is $1.53 Difference: $0.985
If VVA meets the Petra Capital target it will return approximately 64% (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 12.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.69.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 15.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.90.

Market Sentiment: 1.0
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.