Australian Broker Call *Extra* Edition – Jun 13, 2024

This story features ALLIANCE AVIATION SERVICES LIMITED, and other companies. For more info SHARE ANALYSIS: AQZ

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)

AQZ   ASX   BCB   BHP   BMN (2)   BRE (2)   BSL   BWP   CCP   CLG   DRE   EMR   IEL (2)   LGL   LIN   LOV   LRK   MIN (2)   MMC   OBM   PMT   SDR   SKC   STN   TPW   TWE (2)   VVA  

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics – Overnight Price: $3.02

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

Alliance Aviation's recent guidance outpaced consensus and the company announced engine sales yielding a $25m gross profit.

Wilsons says the former points to sustained earnings growth from fleet expansion and the latter to strong  earnings contribution from the Aviation Services division. 

The broker considers risk to be to the upside.

Overweight rating unchanged. Target price edges up to $4.49 from $4.47.

This report was published on June 7, 2024.

Target price is $4.49 Current Price is $3.02 Difference: $1.47
If AQZ meets the Wilsons target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 36.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.21.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 38.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.78.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $63.20

Jarden rates ((ASX)) as Neutral (3) –

Jarden notes revenue drivers for the ASX are slowly improving after a second consecutive month of double-digit futures volume growth in May as markets pushed back timing of central bank cash rate cuts.

In the first positive growth since March 2023, notes the broker, strong futures volume growth also saw collateral balances rise by 5% on the previous corresponding period.

The analysts' Neutral rating is retained given lingering uncertainty on FY25 cost growth. The $63.70 target is also unchanged.

This report was published on June 7, 2024.

Target price is $63.70 Current Price is $63.20 Difference: $0.5
If ASX meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $62.68, suggesting upside of 8.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 211.50 cents and EPS of 248.80 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.40.

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 3.6%.
Current consensus EPS estimate suggests the PER is 23.5.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 226.50 cents and EPS of 266.40 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.72.

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 3.8%.
Current consensus EPS estimate suggests the PER is 22.6.

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

BCB    BOWEN COKING COAL LIMITED

Coal – Overnight Price: $0.06

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

Petra Capital observes Bowen Coking Coal has emerged from a challenging period with a streamlined mining operation of just one low strip-ratio open cut mine.

Management has advised of sharp falls in capital expenditure this year now the refurbishment of Ellensfield is complete.

Petra Capital observes large cash outflows remain as debt repayments kick off in September and capex will kick off for Plumtree at the end of the year, most likely demanding a capital raising or refinance within a year.

Buy rating retained on valuation. Target price falls to 11c from 21c.

This report was published on June 7, 2024.

Target price is $0.11 Current Price is $0.06 Difference: $0.05
If BCB meets the Petra Capital target it will return approximately 83% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.58.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $43.50

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

Goldman Sachs reinstates coverage of BHP Group, considering its share to be attractively priced, citing robust free cash flow and growth potential in the copper sector.

BHP is expected to generate significant EBITDA from copper, with forecasts showing an increase to US$11.5bn in FY25. The broker appreciates the company's optionality from its US$20bn copper pipeline but observes its production and valuation lag that of Rio Tinto ((RIO)).

Financial forecasts have been adjusted, with EPS for FY24 revised to US$2.58 and FY25 to US$2.28. The broker remains optimistic about BHP’s ongoing superior margins and operating performance, particularly in the Pilbara iron ore sector.

Buy, alongside a 12-month price target of $49.00.

This report was published on June 12, 2024.

Target price is $49.00 Current Price is $43.50 Difference: $5.5
If BHP meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $45.06, suggesting upside of 4.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 216.36 cents and EPS of 393.11 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 349.1, implying annual growth of N/A.
Current consensus DPS estimate is 232.3, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 191.99 cents and EPS of 347.40 cents.
At the last closing share price the estimated dividend yield is 4.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 423.4, implying annual growth of 21.3%.
Current consensus DPS estimate is 253.8, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 10.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BMN    BANNERMAN ENERGY LIMITED

Uranium – Overnight Price: $3.88

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

Canaccord Genuity remains bullish on the uranium market as restarts and brownfield expansions will likely prove insufficient to restore equilibrium to the market.

Increasing recognition of nuclear energy's positive contributions to decarbonisation, energy security and the provision of economically dispatchable electricity will drive substantial demand growth, in the broker's view.

While the U3O8 spot price is down slightly year-to-date, the more important contract price is 13% higher, note the analysts.

The Speculative Buy rating and $4.65 target are kept for Bannerman Energy.

Canaccord Genuity researches six other ASX-listed uranium companies and further notes a number of juniors (not currently under coverage) which are making significant progress with their respective developments.

In alphabetical order these juniors are: Alligator Energy ((AGE)), Aura Energy ((AEE)), Berkeley Energia ((BKY)), Cauldron Energy ((CXU)), DevEx Resources ((DEV)), Elevate Uranium ((EVE)), Global Uranium and Enrichment ((GUE)), Laramide Resources ((LAM)), Orpheus Uranium ((ORP)) and Toro Energy ((TOE)).

This report was published on June 13, 2024.

Target price is $4.65 Current Price is $3.88 Difference: $0.77
If BMN meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.88.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 7.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.36.

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

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

Petra Capital believes Bannerman Energy is well placed to attract development funding at its Etango uranium project, given an uncommitted offtake and a clear need for new uranium supply to enter the market.

Front End Engineering Design (FEED) studies are now complete and capex inflation concerns (as the Etango DFS was 18 months ago) have been addressed, explains the broker.

The Buy rating remains and the target eases to $5.23 from $5.39

This report was published on June 12, 2024.

Target price is $5.23 Current Price is $3.88 Difference: $1.35
If BMN meets the Petra Capital target it will return approximately 35% (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

BRE    BRAZILIAN RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $3.65

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

Canaccord Genuity observes initial drilling confirms high-grade primary mineralisation at Sulista in Chile, near the company's high-grade Monte Alto.

While exploration is still early, the broker surmises the high-grade primary could prove more extensive than thought.

Speculative Buy rating retained. Target price rises to $5.50 from $4.25. No EPS forecasts are provided.

This report was published on June 11, 2024.

Target price is $5.50 Current Price is $3.65 Difference: $1.85
If BRE meets the Canaccord Genuity target it will return approximately 51% (excluding dividends, fees and charges).

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

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

Brazilian Rare Earths' Sulista project has revealed ultra-high-grade rare earth mineralisation of up to 22.4% TREO, observes Petra Capital, taking the companies drilling grades there and at its flagship Monte Alto to above those logged by Lynas Rare Eraths ((LYC)) and US-listed MP Materials.

The broker is confident the company will deliver more of the same as its drill program continues, likely delineating the highest rare-earth resource in the world.

Buy rating reiterated. Target price rises to $5.13 from $4.29.

This report was published on June 7, 2024.

Target price is $5.13 Current Price is $3.65 Difference: $1.48
If BRE meets the Petra Capital target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 12.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.44.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.59.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $20.53

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

Jarden observes BlueScope Steel is considering investing -US$1.2bn to further integrate of its US steel value chain and is undergoing feasibility work.

Under the proposal, the company would add 550ktpa of cold rolling and metal coating into its US operations, capturing US$180m of incremental earnings (EBIT) in the process from its North Star HRC steel mill.

Acquisitions could be part of the strategy.

The broker observes the company's strong recent track record and five-year average return on invested capital of 21.6% and considers the company to be well placed to execute on the strategy.

Overweight rating and $23.90 target price retained.

This report was published on June 4, 2024.

Target price is $23.90 Current Price is $20.53 Difference: $3.37
If BSL meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $23.09, suggesting upside of 12.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 50.00 cents and EPS of 205.70 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 208.6, implying annual growth of -4.1%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 50.00 cents and EPS of 198.20 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 202.7, implying annual growth of -2.8%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 10.1.

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

BWP    BWP TRUST

REITs – Overnight Price: $3.61

Moelis rates ((BWP)) as Downgrade to Sell from Hold (5) –

Moelis updates its forecasts after BWP Trust moves to 100% ownership of Newmark Property REIT ((NPR)) from the prior 93% stake.

The broker downgrades its rating for BWP Trust to Sell from Hold following two months of strong share market performance, and reduces the target to $3.61 from $3.64.

The broker points to an ongoing capex burden for BWP Trust from repositioning as Bunnings vacates older assets. 

This report was published on June 10, 2024.

Target price is $3.61 Current Price is $3.61 Difference: $0
If BWP meets the Moelis target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $3.65, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 18.30 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 217.0%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 18.70 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.6, implying annual growth of 2.8%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 19.5.

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

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $14.23

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

Canaccord Genuity believes the retreat in Credit Corp's share price to historic lows in terms of both absolute and relative valuation represents a good opportunity for entry, attributing most of the fall to sentiment.

The company has said it believes US operational challenges are behind it and the broker observes net profit after tax is finally gaining traction after a period of flat earnings growth.

Canaccord Genuity notes Credit Corp's gross loan book and annualised revenue remain firm, the company writing $204m of loans in the first half of 2024, which management expects will translate into strong FY25 earnings.

FY25 EPS forecasts fall -4% as the broker realigns its figures with past performance.

Buy rating retained. Target price falls to $20.90 from $21.90.

This report was published on June 6, 2024.

Target price is $20.90 Current Price is $14.23 Difference: $6.67
If CCP meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $18.24, suggesting upside of 26.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 48.00 cents and EPS of 120.00 cents.
At the last closing share price the estimated dividend yield is 3.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.2, implying annual growth of -43.2%.
Current consensus DPS estimate is 52.3, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 70.00 cents and EPS of 139.00 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 131.9, implying annual growth of 73.1%.
Current consensus DPS estimate is 67.3, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 10.9.

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

CLG    CLOSE THE LOOP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.35

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

Canaccord Genuity initiates coverage of Close the Loop with a Buy rating and 65c target price, which the broker considers to be conservative.

Close the Loop is leveraged to the circularity megatrend and is involved in sustainable packaging, printer cartridge recycling and the repurposing of personal and enterprise electronic equipment for OEMs (the broker believes the latter opportunity to be the most compelling).

The broker observes the company, which is a circularity pioneer, enjoys relationships with 17 leading operating equipment manufacturers, most of which either have or will be establishing circularity divisions/enterprises. 

The company is profitable across the P&L and boasts good free cash flow, which Canaccord Genuity expects will continue over FY24 to FY26, during which period it expects 17% EPS growth.

Canaccord Genuity observes the company is free cash flow positive and boasts a cheap valuation.

This report was published on June 12, 2024.

Target price is $0.65 Current Price is $0.35 Difference: $0.3
If CLG meets the Canaccord Genuity target it will return approximately 86% (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 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.14.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.60.

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

DRE    DREADNOUGHT RESOURCES LIMITED

Mining – Overnight Price: $0.02

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

Dreadnought Resources assays reveal four niobium-rich (rare earth) zones within its carbonatite, observes Cannacord, which adds the results are also significant for Encounter Resources ((ENR)) and WA1 Resources ((WA1)) and the broader Mangaroon project.

Dreadnought is also assessing its WA gold and copper opportunities, a recent review confirming a copper-gold system at Tarraji Yami in the Kimberley with drilling scheduled for this month. High-grade copper, zinc, silver and gold gossans have been observed at Tiger in Mangaron.

Speculative Buy rating and 7c target price are retained. 

This report was published on June 6, 2024.

Target price is $0.07 Current Price is $0.02 Difference: $0.052
If DRE meets the Canaccord Genuity target it will return approximately 289% (excluding dividends, fees and charges).

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

EMR    EMERALD RESOURCES NL

Gold & Silver – Overnight Price: $3.66

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

Canaccord Genuity initiates coverage of Emerald Resources with a Buy rating and $4.60 target price.

The broker observes the company is an established single-asset, low-cost, mid-tier producer but is set to become a three-mine 300koz a year producer by 2026, yielding a 10% dividend yield.

The company owns the Okvau gold mine in Cambodia and is developing its Memot gold deposit nearby, and the North Laverton Bullseye asset in WA.

The broker expects Memot will include a low capex (-$80m funded by cash flow) concentrator and the concentrate would be shipped to Okvau for final processing.

This report was published on June 11, 2024.

Target price is $4.60 Current Price is $3.66 Difference: $0.94
If EMR meets the Canaccord Genuity target it will return approximately 26% (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 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.53.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 24.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.25.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $15.20

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

IDP Education's trading update disappointed Goldman Sachs as volumes fell more than expected due to weaker demand from India and South Asia and and testing competition in Canada.

On the upside, fees are rising and will help offset the industry's woes.

The broker says the update should help investors better frame an earnings base for FY25 as clarity is gained over regulatory tightening (which is expected to prompt a -20% to -25% industry contraction in FY25).

The broker expects the company will outperform the industry given the quality of its customer base and brand. Goldman Sachs also expects the company to be well positioned to capitalise on a normalisation in FY26.

Buy rating retained. Target price falls -14% to $21.75 a share.

This report was published on June 7, 2024.

Target price is $21.75 Current Price is $15.20 Difference: $6.55
If IEL meets the Goldman Sachs target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $19.68, suggesting upside of 29.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 40.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.0, implying annual growth of 3.1%.
Current consensus DPS estimate is 41.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 38.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of -0.4%.
Current consensus DPS estimate is 42.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 27.8.

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

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

Jarden believes IDP Education is nearing an end of an earnings downgrade cycle following new FY24 guidance and implied cuts to FY25 consensus earnings (EBIT). Management expects FY24 earnings broadly in line with FY23 earnings.

While confident in a recovery, the company expects FY25 global system student volumes to fall by -20-25% year-on-year (broadly in line with the broker's expectation) due to current policy and market trends.

The target falls to $17.75 from $19.70 and the Overweight rating is maintained.

This report was published on June 7, 2024.

Target price is $17.75 Current Price is $15.20 Difference: $2.55
If IEL meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $19.68, suggesting upside of 29.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 29.50 cents and EPS of 53.80 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.0, implying annual growth of 3.1%.
Current consensus DPS estimate is 41.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 24.20 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of -0.4%.
Current consensus DPS estimate is 42.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 27.8.

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

LGL    LYNCH GROUP HOLDING LIMITED

Agriculture – Overnight Price: $1.39

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

Management has lowered FY24 earnings (EBITDA) guidance by around -6% at the midpoint of the range, following a slower-than-expected recovery in China, owing to ongoing weakness in pricing, explains Jarden.

The broker's expectations for Lynch Group's Australian operations are being met, with sales through supermarkets outperforming and florists weaker.

The Overweight rating is retained and the target price decreases to $2.00 from $2.30 partly due to the slow recovery for pricing in China, and a cut to Jarden's medium-term new farm expansion assumptions for China.

This report was published on June 10, 2024.

Target price is $2.00 Current Price is $1.39 Difference: $0.615
If LGL meets the Jarden target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 5.00 cents and EPS of 8.10 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.10.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 11.00 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 7.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.75.

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

LIN    LINDIAN RESOURCES LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.10

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

Petra Capital expects the capital expenditure component of Lindian Resources' updated resource estimate for its Kangankunde Rare Earths Project in Malawi will prove a positive surprise.

The broker estimates a figure in the region of -$60m, which it compares with normal pre-production figures in the region of half a billion dollars.

While weak prices remain a challenge, the broker expects the study outcomes will lead to "renewed interest in one of the world's largest and highest grade REO projects".

Buy rating and 69c target price retained.

This report was published on June 11, 2024.

Target price is $0.69 Current Price is $0.10 Difference: $0.585
If LIN meets the Petra Capital target it will return approximately 557% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.77.

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

LOV    LOVISA HOLDINGS LIMITED

Retailing – Overnight Price: $31.36

Jarden rates ((LOV)) as Buy (1) –

John Cheston, managing director of Smiggle ((PMV)), will replace Victor Herrero as Lovisa Holdings' CEO next year.

Jarden suspects the market may have been spooked by Herrero's resignation given his fast-fashion rollout experience (not to mention the recent poor performance of Smiggle) but observes John Cheston has been heavily involved in Smiggle's global rollout and is well-incentivised to meet long-term incentives.

EPS forecasts fall -0.1% in FY24; rise 2.2% in FY25 and rise 1.5% in FY26. Buy rating retained. Target price rises to $33.08 from $28.69.

This report was published on June 4, 2024.

Target price is $33.08 Current Price is $31.36 Difference: $1.72
If LOV meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $31.01, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 73.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.7, implying annual growth of 19.7%.
Current consensus DPS estimate is 72.2, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 41.6.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 95.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.8, implying annual growth of 33.2%.
Current consensus DPS estimate is 83.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 31.2.

Market Sentiment: 0.3
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: $0.89

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

Canaccord Genuity highlights recent share price weakness has Lark Distilling Co trading below asset backing, and sees scope for material share price appreciation.

A 4Q update shows trading is tracking a little below where the broker envisaged (but in line with recent trends) due to softer Hospitality (no Dark Mofo festival in Hobart this year) and ongoing weakness in domestic B2B sales.

The company has recently enlisted Spirits Platform as a distribution partner to drive its domestic B2B sales, explain the analysts.

The Speculative Buy rating and $1.60 price target are unchanged.

This report was published on June 12, 2024.

Target price is $1.60 Current Price is $0.89 Difference: $0.71
If LRK meets the Canaccord Genuity target it will return approximately 80% (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 14.83.

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 14.83.

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

MIN    MINERAL RESOURCES LIMITED

Iron Ore – Overnight Price: $64.14

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

Mineral Resources has sold its 49% stake in the Onslow iron-ore project, haul and road along with the project's $8.04 tolling fee for $1.2bn after tax, comprising an upfront cash payment of $1.1bn and the $200m balance is deferred subject to achieving a 35Mtpa run rate for any quarter before June 30, 2026.

Goldman Sachs observes the selldown is capped at 40Mtpa of production and adds the tolling fee will be reset at a lower rate after three years, and is subject to Foreign Investment Review Board approval.

Tolling payments above 40Mtpa will be 100% owned by Mineral Resources.

The company has entered a $750m drawdown facility which the broker expects will be cancelled on or before the project's completion.

All up, the broker considers the transaction to be strategically astute and a plus for the company's balance sheet. Sell rating and $47 target price retained pending deal completion.

This report was published on June 7, 2024.

Target price is $47.00 Current Price is $64.14 Difference: minus $17.14 (current price is over target).
If MIN meets the Goldman Sachs target it will return approximately minus 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $74.14, suggesting upside of 16.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.00 cents and EPS of 79.00 cents.
At the last closing share price the estimated dividend yield is 0.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 81.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 118.9, implying annual growth of -6.6%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 53.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 19.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 0.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 286.6, implying annual growth of 141.0%.
Current consensus DPS estimate is 115.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 22.2.

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

Jarden rates ((MIN)) as Sell (5) –

Mineral Resources has entered into a binding agreement to sell a -49% interest in the Onslow Iron haul road for $1.1bn cash, plus a potential contingent $200m payment.

The sale of the minority interest to Morgan Stanley Infrastructure Partners is subject to FIRB approval and "finalisation of project conditions", notes Jarden.

The broker retains a Sell rating due to valuation metrics, an over-geared balance sheet and governance concerns. The $47.20 target is unchanged.

This report was published on June 7, 2024.

Target price is $47.20 Current Price is $64.14 Difference: minus $16.94 (current price is over target).
If MIN meets the Jarden target it will return approximately minus 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $74.14, suggesting upside of 16.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 45.00 cents and EPS of 186.30 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 118.9, implying annual growth of -6.6%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 53.5.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 60.00 cents and EPS of 252.40 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 286.6, implying annual growth of 141.0%.
Current consensus DPS estimate is 115.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 22.2.

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

MMC    MITRE MINING CORPORATION LIMITED

Gold & Silver – Overnight Price: $0.66

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

Canaccord Genuity initiates coverage of Chilean silver-gold developer Mitre Mining with a Speculative Buy and $2.30 target price.

The broker expects the company to post rapid resource growth, the company pegging an aspirational target of 100Moz. Drilling is scheduled to start in June.

The company has a 300 square kilometre holding in the Laguna Verde district and a well-funded exploration program observes the broker and expects the company could prove an attractive takeover target as its resource grows.

Canaccord Genuity cites the Silver Institute's forecast of a silver deficit for the foreseeable future, which is expected to grow 17% year on year in 2024.

This report was published on June 6, 2024.

Target price is $2.30 Current Price is $0.66 Difference: $1.645
If MMC meets the Canaccord Genuity target it will return approximately 251% (excluding dividends, fees and charges).

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

OBM    ORA BANDA MINING LIMITED

Gold & Silver – Overnight Price: $0.34

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

Canaccord Genuity initiates coverage of gold producer Ora Banda Mining with a Speculative Buy rating and 50c target price.

The company owns the Davyhurst Gold project in WA, north of Kalgoorlie.

The broker believes the appointment of Northern Star Resources' ((NST)) chief operations officer as managing director proved a strategic watershed for the company, which now focuses on underground over open-pit development.

In FY26, the broker expects the company will boast the most compelling free cash flow yield of any Australian-based gold producer in its coverage (the broker estimates 32% in FY26 and 13% in FY25).

This report was published on June 11, 2024.

Target price is $0.50 Current Price is $0.34 Difference: $0.165
If OBM meets the Canaccord Genuity target it will return approximately 49% (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 33.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.70.

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

PMT    PATRIOT BATTERY METALS INC

Mining – Overnight Price: $0.73

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

Patriot Battery Metals has announced plans to strongly expand its recently discovered high-grade zone at the CV13 spodumene pegmatite.

Given the company has delineated a high-grade mineralisation over a large area and thickness, the broker takes this as a plus.

Speculative Buy rating and $1.70 target price retained.

This report was published on June 10, 2024.

Target price is $1.70 Current Price is $0.73 Difference: $0.965
If PMT meets the Canaccord Genuity target it will return approximately 131% (excluding dividends, fees and charges).

This company reports in CAD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SDR    SITEMINDER LIMITED

Travel, Leisure & Tourism – Overnight Price: $4.79

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

Wilsons believes consensus is underestimating the incremental gross profit contribution via Channels Plus and upgrades SiteMinder's rating to Overweight from Market Weight. It's felt the product is a game changer for the company's growth profile.

Channels Plus launches in the next two months, note the analysts, enabling Hoteliers to gain increased access to online travel agencies by directly connecting to SiteMinder, rather than Hoteliers managing each individual connection.

The product is a low touch “Free Option” bundled into base subscription fees, explains the broker.

The target is increased to $6.50 from $5.40.

This report was published on June 11, 2024.

Target price is $6.50 Current Price is $4.79 Difference: $1.71
If SDR meets the Wilsons target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $6.52, suggesting upside of 34.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 59.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.3, 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:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 299.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.5, 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.

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

SKC    SKYCITY ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $1.42

Jarden rates ((SKC)) as Downgrade to Overweight from Buy (2) –

Jarden downgrades its rating for SkyCity Entertainment to Overweight from Buy and reduces the target to NZ$1.75 from NZ$2.90 after a profit warning, maiden guidance for FY25 and suspension of dividends until FY26.

Dividends are impacted while management conducts a wider capital structure review, including consideration of asset sales.

Earnings (EBITDA) guidance for FY24 was lowered to NZ$280-285m, down around -3% compared to the broker's forecast, due to the impact of a challenging economic environment on customer spend. FY25 underlying earnings guidance is NZ$250-270m.

There has also been a further delay to the Horizon Hotel opening (now set for August), and a potential increase in duty expense at the Adelaide casino following a recent South Australian Court of Appeal ruling, explain the analysts.

This report was published on June 7, 2024.

Current Price is $1.42. Target price not assessed.
Current consensus price target is $2.90, suggesting upside of 110.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 4.90 cents and EPS of 15.35 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of N/A.
Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 10.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.7, implying annual growth of -14.8%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 10.9.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

STN    SATURN METALS LIMITED

Gold & Silver – Overnight Price: $0.21

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

Petra Capital revisits Saturn Metals' Apollo Hill Gold project, observing a heap leaching scoping study from last year is being optimised with a low-capex pilot phase and feasibility studies.

Initial production is pegged for mid 2025 and the broker expects this will be in time to benefit from a strong gold price and low supply of large, long life undeveloped gold assets in Tier-1 locations.

The broker observes the company is highly leveraged to spot prices and boasts a spot valuation of $1.40.

Buy rating retained. Target price is set a 50c, compared with 91c some time ago.

This report was published on June 7, 2024.

Target price is $0.50 Current Price is $0.21 Difference: $0.285
If STN meets the Petra Capital target it will return approximately 133% (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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.07.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.30.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $9.53

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

Petra Capital sees an attractive buying opportunity for shares of Temple & Webster based on valuation and the current share buyback following a -20% share price fall in the wake of the company's May 9 trading update.

Temple & Webster is set to benefit from three long-term tailwinds in the broker's opinion. These are the shift to online, Ai disruption and rising brand awareness.

Generally speaking, Ai favours online versus offline, notes the analyst. The company has already utilised Ai to reduce costs, whilst lifting conversion.

The broker's Buy rating is maintained and the target price rises to $12.20 from $12.10.

This report was published on June 12, 2024.

Target price is $12.20 Current Price is $9.53 Difference: $2.67
If TPW meets the Petra Capital target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $11.45, suggesting upside of 15.3%(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 244.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.8, implying annual growth of -44.3%.
Current consensus DPS estimate is 0.1, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 261.3.

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 186.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of 76.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 148.2.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $11.94

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

Goldman Sachs is upbeat following Treasury Wine Estates' 2024 Americas Investor Presentation.

Management reaffirmed guidance and advised it was shifting from a defensive to offensive position, planning to expand Penfolds globally and win US market share.

The broker expects the company will deliver a two-year sales compound annual growth rate of 15% for Penfolds now China's re-entry has been secured.

Goldman Sachs also expects the company will stabilise the fall in US premium brands, while reinventing itself as the No1. luxury wine company following the purchase of Frank Family and DAOU.

All up, the broker expects the company to post an EPS CAGR of 12% during FY24 to FY26. Buy rating reiterated. Target price rises to $13.40 from $13.

This report was published on June 7, 2024.

Target price is $13.40 Current Price is $11.94 Difference: $1.46
If TWE meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $13.54, suggesting upside of 12.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 35.00 cents and EPS of 53.00 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 22.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.6, implying annual growth of 50.7%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 43.00 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.9, implying annual growth of 21.5%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 18.8.

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

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

Jarden attended the Treasury Wine Estates US tour where management reconfirmed guidance and highlighted the US luxury strategy is doing better than expected in a tough market, notes the broker.

The analyst retains earnings forecasts and points guidance of mid to high single-digit earnings before tax and interest (EBIT) of 7%, excluding Daou.

Treasury Wine Estates plans to reassess its future operating premium model, with an update expected in August.

$14.50 target and Overweight rating retained.

This report was published on June 5, 2024.

Target price is $14.50 Current Price is $11.94 Difference: $2.56
If TWE meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $13.54, suggesting upside of 12.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 54.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.6, implying annual growth of 50.7%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 66.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.9, implying annual growth of 21.5%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 18.8.

Market Sentiment: 0.7
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: $1.49

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

Viva Leisure has announced two mildly accretive acquisitions post synergies and a $16m capital raising comprising 11m shares at $1.45 a share at a -7.1% discount to its previous closing price. 

Petra Capital believes the purchases to be a good strategic fit, building its presence in the WA market through its ClubLime brand.

The broker also expects Viva Leisure will benefit from the Labor government's plans to boost the public sector workforce by roughly 36,000 people at a cost of $24bn over four years.

FY24 EPS forecast falls to 10.6c from 12.10; FY25 EPS forecast eases to 15.5c from 15.7c.

Buy rating retained. Target price rises to $2.60 from $2.52.

This report was published on June 7, 2024.

Target price is $2.60 Current Price is $1.49 Difference: $1.115
If VVA meets the Petra Capital target it will return approximately 75% (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 12.27.

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 9.58.

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.

Click to view our Glossary of Financial Terms