Australian Broker Call *Extra* Edition – Feb 29, 2024

This story features CAR GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: CAR

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)

CAR   CTD   DHG   HMC   IRE   KMD   MGH   PRN   REA   RTR   RWC   SEK   SGF   SVR  

CAR    CAR GROUP LIMITED

Automobiles & Components – Overnight Price: $36.02

Goldman Sachs rates ((CAR)) as Upgrade to Buy from Neutral (1) –

After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.

The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.

CAR Group grew market share in the 1H and the analysts are increasingly confident in earnings momentum both domestically and globally.

Goldmans rating is upgraded to Buy from Neutral and the target increased by 19% to $39.40.

This report was published on February 20, 2024.

Target price is $39.40 Current Price is $36.02 Difference: $3.38
If CAR meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $34.02, suggesting downside of -5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 73.00 cents and EPS of 91.00 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.4, implying annual growth of -54.0%.
Current consensus DPS estimate is 67.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 43.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 82.00 cents and EPS of 102.00 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.3, implying annual growth of 15.5%.
Current consensus DPS estimate is 78.1, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 37.4.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $15.84

Wilsons rates ((CTD)) as Downgrade to Market Weight from Overweight (3) –

Corporate Travel Management's H1 performance missed Wilsons' forecasts by a mile, or two, with the UK Bridging Contract but one reason why.

Conditions overall seem to have improved in H2, but management still revised FY24 guidance downwards, by a few miles.

The company also disclosed more details about its 5-year plan, which the broker welcomes. The objective is to double EBITDA between FY24 to FY29.

Wilsons believes the heavy disappointment this season now means time is needed to rebuild investors' confidence. The broker downgrades its rating to Market Weight from Overweight, also inspired by the share price, and reduces its price target to $15.25 (was $21.31).

This report was published on February 22, 2024.

Target price is $15.25 Current Price is $15.84 Difference: minus $0.59 (current price is over target).
If CTD meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $18.92, suggesting upside of 19.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 39.40 cents and EPS of 88.00 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.9, implying annual growth of 61.9%.
Current consensus DPS estimate is 38.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 46.80 cents and EPS of 99.90 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.8, implying annual growth of 20.8%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 15.3.

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

DHG    DOMAIN HOLDINGS AUSTRALIA LIMITED

Real Estate – Overnight Price: $3.31

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

After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.

The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.

The analysts prefer Buy-rated REA Group over Domain Holdings Australia (Neutral, target $3.60), despite Domain's significant valuation discount by comparison to REA Group.

The broker holds longer-term market share concerns for Domain despite a strong near-term growth trajectory.

This report was published on February 20, 2024.

Target price is $3.60 Current Price is $3.31 Difference: $0.29
If DHG meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $3.39, suggesting upside 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 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of 95.7%.
Current consensus DPS estimate is 5.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 40.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 6.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of 16.0%.
Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 35.2.

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

HMC    HMC CAPITAL LIMITED

Wealth Management & Investments – Overnight Price: $6.94

Jarden rates ((HMC)) as Neutral (3) –

Following HMC Capital's 1H results, Jarden updates its FY24-26 EPS forecasts by -12.8%, -6.8% and 3.6%, respectively, and the target rises to $7.00 from $6.35 with the help of a valuation roll-forward. 

The broker admires the "impressive platform" HMC Capital is building in attractive asset classes, which should drive material growth for both earnings and assets under management (AUM).

The analysts' Neutral rating is kept as underlying earnings momentum does not yet match either the growth narrative or the current share price.

This report was published on February 21, 2024.

Target price is $7.00 Current Price is $6.94 Difference: $0.06
If HMC meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $6.92, suggesting downside of -0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 11.80 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.9, implying annual growth of 48.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 24.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 11.80 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of 5.2%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 22.8.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $7.72

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

Wilsons saw Iress releasing a slight EBITDA beat with its 2023 report, carried by solid cost control, but cashflow was deemed "poor". The latter means a higher-than-estimated debt burden.

The broker believes the outlook looks positive with management updating guidance and with asset sales on the agenda. But several items weigh on free cash flow projections, including the necessity for higher technology investments.

There were also significant changes in accounting practices and disclosure, which has made Wilsons more cautious for the time being. Target price drops to $8 from $8.16 on reduced forecasts. Market Weight.

This report was published on February 22, 2024.

Target price is $8.00 Current Price is $7.72 Difference: $0.28
If IRE meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $8.76, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 18.00 cents and EPS of 34.70 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 22.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of N/A.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 29.5.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 35.00 cents and EPS of 45.60 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of 24.4%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 23.7.

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

KMD    KMD BRANDS LIMITED

Sports & Recreation – Overnight Price: $0.49

Jarden rates ((KMD)) as Buy (1) –

Jarden was disappointed with the trading update by KMD Brands showing deteriorating sales trends (led by Oboz and Rip Curl) relative to the update last December.

Group sales fell by -14.5% year-on-year with falls for Kathmandu, Oboz and Rip Curl of -21.5%, -20% and -9.2%, respectively.

Management's 1H underlying earnings (EBITDA) guidance of NZ$14-16m suggests to Jarden a -NZ$30m decline on the previous corresponding period, compared to the -$NZ16m run-rate at the end of November.

Oboz and Rip Curl in the Wholesale channel/division remain a key source of weakness, explain the analysts, with sales in that division falling by -17% compared to the previous corresponding period. Sales in the Consumer division only fell by -4% for the same brands.

The target is reduced to NZ85c from NZ$1.00 and the Buy rating is maintained.

This report was published on February 21, 2024.

Current Price is $0.49. Target price not assessed.
The company's fiscal year ends in July.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 1.85 cents and EPS of 1.02 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.04.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 2.32 cents and EPS of 3.43 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 14.29.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $4.62

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

The announcement that Maas Group will sell its commercial property self-storage portfolio to National Storage ((NSR)) for $68.5m together with an agreement to pursue additional development opportunities has lifted Wilsons' confidence in asset values inside the commercial property book.

The deal itself has only triggered limited adjustments to forecasts. Price target lifts to $4.67 from $4.44. Overweight.

This report was published on February 22, 2024.

Target price is $4.67 Current Price is $4.62 Difference: $0.05
If MGH meets the Wilsons target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 7.50 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.84.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 10.00 cents and EPS of 31.50 cents.
At the last closing share price the estimated dividend yield is 2.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.67.

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

PRN    PERENTI LIMITED

Mining Sector Contracting – Overnight Price: $0.87

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

Perenti's 1H earnings (EBITA) were in line with Canaccord Genuity's forecast and management's unchanged FY24 earnings guidance.

Management's statements around free cash flow suggests to the analyst a strong upcoming 2H, and the reinstatement of dividends indicates an improvement for the company's financials.

Management was also positive, in the broker's view, for Underground operations in Africa and 2H Surface earnings.

Note: the legacy Ausdrill business has been combined with the newly acquired DDH1 to form a Drilling segment.

Canaccord's Buy rating is maintained and the target is increased to $1.25 from $1.20.

This report was published on February 21, 2024.

Target price is $1.25 Current Price is $0.87 Difference: $0.38
If PRN meets the Canaccord Genuity target it will return approximately 44% (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 4.00 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.51.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 4.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.44.

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

REA    REA GROUP LIMITED

Real Estate – Overnight Price: $189.80

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

After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.

The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.

REA Group grew market share in the 1H and the analysts stay Buy-rated given a positive view on yield expansion and potential robust near-term earnings growth from a turnaround for the residential property market. Target $201.

This report was published on February 20, 2024.

Target price is $201.00 Current Price is $189.80 Difference: $11.2
If REA meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $172.74, suggesting downside of -9.0%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 340.9, implying annual growth of 26.4%.
Current consensus DPS estimate is 191.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 55.7.

Forecast for FY25:

Current consensus EPS estimate is 405.0, implying annual growth of 18.8%.
Current consensus DPS estimate is 230.8, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 46.9.

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

RTR    RUMBLE RESOURCES LIMITED

Mining – Overnight Price: $0.07

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

Overweight rating retained as Rumble Resources announced further significant high-grade Zn-Pb sulphide mineralisation has been intersected along strike of the "exciting" new Mato Prospect discovery at Earaheedy.

Wilsons welcomes the news and highlights Earaheedy is one of the largest zinc sulphide discoveries globally in the past decade.

The broker points at the results of the DMS/Ore Sorting test work as the next key catalyst for the stock. Wilsons sees a possibility the economic potential of the resource might be significantly enlarged. Target 40c.

This report was published on February 22, 2024.

Target price is $0.40 Current Price is $0.07 Difference: $0.331
If RTR meets the Wilsons target it will return approximately 480% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.50.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.25.

Market Sentiment: 0.0
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: $5.35

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

Reliance Worldwide posted a first half net profit that was ahead of Goldman Sachs estimates. The broker lauds the first half margins in the Americas of 19.9%, 160 basis points ahead of expectations.

On the other hand Europe and the Middle East continue to face headwinds. Asia-Pacific performed ahead of expectations as the business continues to adjust to the transfer of some manufacturing and all assembly to the US.

Goldman Sachs raises the target to $5.00 from $4.70 and maintains a Buy rating.

This report was published on February 19, 2024.

Target price is $5.00 Current Price is $5.35 Difference: minus $0.35 (current price is over target).
If RWC meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.08, suggesting downside of -5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 7.59 cents and EPS of 28.85 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.2, implying annual growth of N/A.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 7.59 cents and EPS of 33.40 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.7, implying annual growth of 15.4%.
Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 15.9.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $25.84

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

After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.

The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.

Goldman considers Seek the most cyclical and leveraged of the classifieds platform operators, and notes volume headwinds for the company across the APAC region. The Sell rating and $23.50 target are maintained.

This report was published on February 20, 2024.

Target price is $23.50 Current Price is $25.84 Difference: minus $2.34 (current price is over target).
If SEK meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.10, suggesting upside 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 38.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.2, implying annual growth of -83.3%.
Current consensus DPS estimate is 37.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 53.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 53.00 cents and EPS of 78.00 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.6, implying annual growth of 42.3%.
Current consensus DPS estimate is 52.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 37.7.

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

SGF    SG FLEET GROUP LIMITED

Vehicle Leasing & Salary Packaging – Overnight Price: $2.83

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

Despite falling Vehicle Risk Income, SG Fleet managed to beat Canaccord Genuity's top-of-the-market profit (NPATA) forecast by 13%. Orders increased by 1,500 vehicles (up 19%) for the Novated business, while the Corporate business fleet was broadly flat

Double-digit revenue growth for the period was due to a material step-up for on-balance sheet funded income, and a cut through of additional products/services, explains the broker. A higher finance commission per unit also contributed to the revenue uptick.

An interim dividend of 9.6cps compares to the broker's 7.5cps forecast.

The Buy rating is unchanged and the target increased to $3.58 from $3.43.

This report was published on February 21, 2024.

Target price is $3.58 Current Price is $2.83 Difference: $0.75
If SGF meets the Canaccord Genuity target it will return approximately 27% (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 18.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.48.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 19.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 6.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.76.

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

SVR    SOLVAR LIMITED

Business & Consumer Credit – Overnight Price: $1.07

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

Solvar's 1H results and management's outlook commentary were in line with Canaccord Genuity's expectations.

In a continuation of the weak 2H New Zealand performance in FY23, profits materially fell year-on-year in the 1H of FY24. The analyst anticipates another weak 2H, albeit with an improved bad debt performance.

First half normalised profit of $14.6m compares with management's guidance for between $25-30m for the full financial year.

The Buy rating and $1.55 target are unchanged.

This report was published on February 21, 2024.

Target price is $1.55 Current Price is $1.07 Difference: $0.48
If SVR meets the Canaccord Genuity target it will return approximately 45% (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 10.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 9.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.99.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 11.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 10.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.13.

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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