Australian Broker Call *Extra* Edition – Apr 12, 2024

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

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)

ASX   AVA   CXO   DVP   IGO   JIN   LRK   LTR   ORR   PLS   PRU   PSC   TLC   WES  

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $63.80

Jarden rates ((ASX)) as Neutral (3) –

While equity turnover and capital raisings remain depressed, futures volume growth of 8-9% is expected over FY25-26. Jarden thinks the recovery in futures volumes plus tighter cost control could support 2-5% upside to current consensus forecasts.

The broker does emphasise tighter cost control is needed as broader revenue trends remain challenging.

Price target grows to $63.30 from $62.70. Neutral. Forecasts have been lifted.

This report was published on April 10, 2024.

Target price is $63.30 Current Price is $63.80 Difference: minus $0.5 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $62.68, suggesting downside of -1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 209.40 cents and EPS of 246.30 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.0, implying annual growth of 49.5%.
Current consensus DPS estimate is 208.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 225.90 cents and EPS of 265.70 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 254.7, implying annual growth of 4.0%.
Current consensus DPS estimate is 216.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 25.0.

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

AVA    AVA RISK GROUP LIMITED

Hardware & Equipment – Overnight Price: $0.14

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

Ava Risk's three-year growth plans suggest revenues are poised to at least double by then, Canaccord Genuity points out. The most positive scenario has even more upside in mind.

The broker has adopted a more conservative approach, placing its forecasts near the bottom end of the suggested trajectory guidance. This, the broker highlights, still suggests "substantial" growth lays ahead.

Buy rating retained while a re-modeling of the fresh input has sliced off -3c from the broker's valuation; price target tumbles to 30c from 33c.

This report was published on April 9, 2024.

Target price is $0.30 Current Price is $0.14 Difference: $0.165
If AVA meets the Canaccord Genuity target it will return approximately 122% (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 17.00 cents and EPS of minus 0.66 cents.
At the last closing share price the estimated dividend yield is 125.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.45.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.44.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.16

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

Further supply rationing of lithium is needed to reduce the 2024 and 2025 surplus, in Goldman Sachs’ opinion, and the recent rally in lithium prices should not be interpreted as the end of the bear market. 

The broker forecasts a 2024 lithium surplus of 150kt, down from 225kt previously, which largely reflects a trend of delays to ramp-up paths, meaning little to no impact on the supply path post-2024. A larger surplus of 336kt is now expected in 2025, up from 288kt.

Goldman's preferred lithium exposure from stocks under research coverage is Buy-rated IGO due to undervaluation and a positive free cash flow outlook.

The Sell rating is maintained for Core Lithium and the target eases to 12c from 13c.

This report was published on April 9, 2024.

Target price is $0.12 Current Price is $0.16 Difference: minus $0.04 (current price is over target).
If CXO meets the Goldman Sachs target it will return approximately minus 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.78.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.33.

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

DVP    DEVELOP GLOBAL LIMITED

Industrial Metals – Overnight Price: $2.28

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

Develop Global has updated its mine plan for Woodlawn and Canaccord Genuity highlights low costs, a rapid restart and a significantly de-risked production outlook are all key positives.

The broker seems enthusiastic, also highlighting the majority of the mining, processing, and ancillary facilities are already in place. The plan points to first production by H2 FY25.

Speculative Buy rating retained. The target price has fallen to $4.65 (from $5) on incorporation of the updated plan. At current spot prices, the broker highlights, the price target would increase to $5.05.

This report was published on April 10, 2024.

Target price is $4.65 Current Price is $2.28 Difference: $2.37
If DVP meets the Canaccord Genuity target it will return approximately 104% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 228.00.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.73.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $7.52

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

Further supply rationing of lithium is needed to reduce the 2024 and 2025 surplus, in Goldman Sachs’ opinion, and the recent rally in lithium prices should not be interpreted as the end of the bear market. 

The broker forecasts a 2024 lithium surplus of 150kt, down from 225kt previously, which largely reflects a trend of delays to ramp-up paths, meaning little to no impact on the supply path post-2024. A larger surplus of 336kt is now expected in 2025, up from 288kt.

Goldman's preferred lithium exposure from stocks under research coverage is Buy-rated IGO due to undervaluation and a positive free cash flow outlook.

After the broker updates forecasts to reflect lithium/nickel pricing updates and company specific changes, the target for IGO falls to $7.50 from $8.00.

This report was published on April 9, 2024.

Target price is $7.50 Current Price is $7.52 Difference: minus $0.02 (current price is over target).
If IGO meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.43, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.2, implying annual growth of -10.1%.
Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 11.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 11.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.9, implying annual growth of -48.0%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 22.2.

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

JIN    JUMBO INTERACTIVE LIMITED

Gaming – Overnight Price: $16.82

Jarden rates ((JIN)) as Neutral (3) –

Momentum is fading post the record $200m Powerball in February, but Jarden remains convinced there is sufficient jackpot activity to support further upside to earnings for both Lottery Corp and Jumbo Interactive.

For this reason, the broker argues any weakness in respective share prices should be treated as a buying opportunity.

Neutral rating and $14.70 price target retained for Jumbo Interactive.

This report was published on April 10, 2024.

Target price is $14.70 Current Price is $16.82 Difference: minus $2.12 (current price is over target).
If JIN meets the Jarden target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.44, suggesting upside of 3.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 54.00 cents and EPS of 65.80 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.3, implying annual growth of 40.1%.
Current consensus DPS estimate is 56.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 23.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 50.00 cents and EPS of 73.80 cents.
At the last closing share price the estimated dividend yield is 2.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.9, implying annual growth of 12.2%.
Current consensus DPS estimate is 62.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 21.3.

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

LRK    LARK DISTILLING CO. LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.17

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

Canaccord Genuity has initiated coverage of Lark Distilling, producer of a luxury whisky brand in Australia, with a Speculative Buy rating and $1.60 price target.

The broker posits Lark offers a unique investment opportunity on the ASX with a strong medium-term growth profile. A clear strategy by the board and management team could evolve the brand and drive strong adoption in offshore markets, suggests the broker.

On Canaccord Genuity's forecasts, Lark is expected to see strong double-digit revenue growth in FY25, with international markets potentially accounting for 50% of group sales by FY27.

The broker states the company’s unique moat, including a 30-plus year brand history and a 2.4m litre whisky bank, supports the current market capitalisation.

This report was published on April 10, 2024.

Target price is $1.60 Current Price is $1.17 Difference: $0.43
If LRK meets the Canaccord Genuity target it will return approximately 37% (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 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.50.

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $1.33

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

Further supply rationing of lithium is needed to reduce the 2024 and 2025 surplus, in Goldman Sachs’ opinion, and the recent rally in lithium prices should not be interpreted as the end of the bear market. 

The broker forecasts a 2024 lithium surplus of 150kt, down from 225kt previously, which largely reflects a trend of delays to ramp-up paths, meaning little to no impact on the supply path post-2024. A larger surplus of 336kt is now expected in 2025, up from 288kt.

Goldman's preferred lithium exposure from stocks under research coverage is Buy-rated IGO due to undervaluation and a positive free cash flow outlook.

The Neutral rating is maintained for Liontown Resources and the target eases to $1.35 from $1.45.

This report was published on April 9, 2024.

Target price is $1.35 Current Price is $1.33 Difference: $0.02
If LTR meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $1.35, suggesting upside of 1.5%(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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.42.

How do these forecasts compare to market consensus projections?

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

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.4, 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 332.5.

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

ORR    ORECORP LIMITED

Gold & Silver – Overnight Price: $0.57

Canaccord Genuity rates ((ORR)) as Downgrade to Hold from Spec Buy (3) –

Perseus Mining has won the battle for OreCorp and Canaccord Genuity notes its equity ownership has now risen beyond 50% while the offer has been declared unconditional.

The chances for a competing offer are now considered pretty close to zero.

OreCorp's key asset, the Nyanzaga gold project, located in Tanzania, is seen as one of the higher quality gold developments on the ASX.

Canaccord Genuity has downgraded its rating for OreCorp to Hold from Speculative Buy and lifted the price target to $1.20, in line with the bidder's offer.

This report was published on April 10, 2024.

Target price is $1.20 Current Price is $0.57 Difference: $0.625
If ORR meets the Canaccord Genuity target it will return approximately 109% (excluding dividends, fees and charges).

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

PLS    PILBARA MINERALS LIMITED

New Battery Elements – Overnight Price: $4.02

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

Further supply rationing of lithium is needed to reduce the 2024 and 2025 surplus, in Goldman Sachs’ opinion, and the recent rally in lithium prices should not be interpreted as the end of the bear market. 

The broker forecasts a 2024 lithium surplus of 150kt, down from 225kt previously, which largely reflects a trend of delays to ramp-up paths, meaning little to no impact on the supply path post-2024. A larger surplus of 336kt is now expected in 2025, up from 288kt.

Goldman's preferred lithium exposure from stocks under research coverage is Buy-rated IGO due to undervaluation and a positive free cash flow outlook.

The Sell rating and $2.90 target are retained for Pilbara Minerals. Goldman Sachs views the company's recent offtake additions as largely partners replacing other lost volumes, rather than signaling a material increase in demand from converters.

This report was published on April 9, 2024.

Target price is $2.90 Current Price is $4.02 Difference: minus $1.12 (current price is over target).
If PLS meets the Goldman Sachs target it will return approximately minus 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.58, suggesting downside of -11.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 2.00 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 0.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.1, implying annual growth of -86.1%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 36.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 3.10 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 0.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of 29.7%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 27.9.

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

PRU    PERSEUS MINING LIMITED

Gold & Silver – Overnight Price: $2.28

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

Perseus Mining has won the battle for OreCorp ((ORR)) and Canaccord Genuity notes its equity ownership has now risen beyond 50% while the offer has been declared unconditional.

The chances for a competing offer are now considered pretty close to zero.

OreCorp's key asset, the Nyanzaga gold project, located in Tanzania, is seen as one of the higher quality gold developments on the ASX.

Incorporating the acquisition into its modeling, Canaccord Genuity's net asset valuation for Perseus rises by 29% to $3.15. Buy rating retained.

This report was published on April 10, 2024.

Target price is $3.15 Current Price is $2.28 Difference: $0.87
If PRU meets the Canaccord Genuity target it will return approximately 38% (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 20.00 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 11.40.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 2.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 0.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.40.

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

PSC    PROSPECT RESOURCES LIMITED

New Battery Elements – Overnight Price: $0.17

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

Prospect Resources has entered into an arrangement to acquire an 85% interest in the Mumbezhi Copper project in Zambia for -US$6.5m in cash and script.

Canaccord Genuity considers this an "exciting addition" to the company's portfolio.

Price target 13c. Speculative Buy.

This report was published on April 10, 2024.

Target price is $0.13 Current Price is $0.17 Difference: minus $0.035 (current price is over target).
If PSC meets the Canaccord Genuity target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

TLC    LOTTERY CORPORATION LIMITED

Gaming – Overnight Price: $5.05

Jarden rates ((TLC)) as Neutral (3) –

Momentum is fading post the record $200m Powerball in February, but Jarden remains convinced there is sufficient jackpot activity to support further upside to earnings for both Lottery Corp and Jumbo Interactive.

For this reason, the broker argues any weakness in respective share price should be treated as a buying opportunity.

Neutral rating and $5.30 price target retained for Lottery Corp.

This report was published on April 10, 2024.

Target price is $5.30 Current Price is $5.05 Difference: $0.25
If TLC meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $5.38, suggesting upside of 6.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 15.90 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 42.9%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 29.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 16.30 cents and EPS of 18.10 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 27.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 7.1%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 27.7.

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

WES    WESFARMERS LIMITED

Consumer Products & Services – Overnight Price: $67.17

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

Goldman Sachs held the view the market has been underestimating several corporate-wide opportunities, which was the reason for why the rating was upgraded to Buy in January.

Now the share price has caught up, the broker sticks with its Buy rating. Wesfarmers will be organising its 2024 Strategy Day on May 2.

Goldman Sachs has lifted its valuation multiple for Bunnings as it is now believed this business deserves a premium vis a vis Woolworth's food business.

Target price lifts to $68.80. The forecast is for EPS CAGR of 13% between FY24-FY26.

This report was published on April 9, 2024.

Target price is $68.80 Current Price is $67.17 Difference: $1.63
If WES meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $56.73, suggesting downside of -15.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 197.00 cents and EPS of 223.00 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 227.3, implying annual growth of 4.4%.
Current consensus DPS estimate is 192.7, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 29.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 228.00 cents and EPS of 260.00 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 247.2, implying annual growth of 8.8%.
Current consensus DPS estimate is 211.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.2.

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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