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Australian Broker Call *Extra* Edition – Aug 28, 2024

Daily Market Reports | Aug 28 2024

This story features ABACUS GROUP, and other companies. For more info SHARE ANALYSIS: ABG

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)

ABG   ADA   ANZ   AX1 (2)   BEN   BRE   CAJ   CDA (2)   CGS   CKF   CNI   DUG   EDV   EHL (2)   EVN   EXP   FPH   GEM   GOR (2)   ING   IPH   JIN (2)   KYP   MYX   NHF   NST (2)   PBH   PLS   PNV   RFF (2)   RMS   RSG   SGP   TLX   VEA   WHC  

ABG    ABACUS GROUP

REITs – Overnight Price: $1.20

Moelis rates ((ABG)) as Buy (1) –

Abacus Group reported higher than forecast earnings in FY24, comments Moelis, with improved leasing boosting office occupancy to 93.4%, up from 92.6% in February.

The group’s retail assets continued to perform well. Like-for-like sales advanced 6.3%, from around 3.8% in FY23.

Some $30.6m in income was generated including distribution, management and development fees from the 19.8% stake in Abacus Storage King ((ASK)), the broker observes.

Buy rated. Target price $1.45.

This report was published on August 25, 2024.

Target price is $1.45 Current Price is $1.20 Difference: $0.25
If ABG meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.23, suggesting upside of 2.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 8.50 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 7.08%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of N/A.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 8.60 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 7.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.0, implying annual growth of 4.7%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 13.3.

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

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $0.45

Taylor Collison rates ((ADA)) as Upgrade to Speculative Buy (1) –

Despite Adacel Technologies’ disappointing FY24 result, Taylor Collison retains the faith, positing the company offers an asymmetric opportunity for investors related to the resubmission decision by the Federal Aviation Authority for Training Simulator Software, which the broker believes will be reawarded to Adacel.

The broker considers the company to be heavily undervalued by the market and observes any new contract wins will scale sharply on the company’s stable cost base.

Highlights from the FY24 result included the write down of -$1.9m of intangibles, which triggered a -$1.4m EBITDA loss versus the broker’s forecast $1m profit. 

Cash flow in the June half also disappointed due to the increase in inventory arising from the initial award of the contract, but the broker expects the build to unwind through FY25.

The big negative was downgraded FY25 guidance to $4m to $5m from $6m to $8m at the December half result as customers opted not to take up extra work.

Rating is upgraded to Speculative Buy from Outperform/Accumulate.

This report was published on August 26, 2024.

Current Price is $0.45. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.75.

Forecast for FY26:

Taylor Collison forecasts a full year FY26 dividend of 2.60 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 5.78%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.52.

This company reports in USD. 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

ANZ    ANZ GROUP HOLDINGS LIMITED

Banks – Overnight Price: $29.62

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

Due to increased concerns around ANZ Bank’s non-financial risk management, APRA has raised the capital add-on to the bank to $750m, a $250m increase.

Goldman Sachs notes the additional expense is 6 basis point of CET1 and the add-on will remain until ANZ Bank has conducted the required remediation to the regulator’s satisfaction.

The broker is not surprised by the move given recent details on issues concerning APRA. CommBank ((CBA)) is the only major bank without a capital overlay.

Target price moves to $29.45 from $29.48. Buy rating unchanged.

This report was published on August 23, 2024.

Target price is $29.45 Current Price is $29.62 Difference: minus $0.17 (current price is over target).
If ANZ meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.07, suggesting downside of -8.6%(ex-dividends)
The company’s fiscal year ends in September.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 166.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 224.5, implying annual growth of -5.2%.
Current consensus DPS estimate is 164.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 166.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 216.2, implying annual growth of -3.7%.
Current consensus DPS estimate is 166.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.7.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.03

Petra Capital rates ((AX1)) as Buy (1) –

Accent Group delivered underlying FY24 earnings that were in line with the July update and Petra Capital notes trading improved in the second half with like-for-like sales of 4.1%. This positive momentum has continued into the first half with the first seven weeks of like-for-like sales up 3.5%.

The upside risks to forecasts are now less than previously believed, and the broker comments like-for-like sales need to rise above 3-4% to drive re-leveraging, while loss-making Glue stores will still drag.

That said, the broker believes its forecasts remain on the conservative side and retains a Buy rating with a $2.35 target.

This report was published on August 26, 2024.

Target price is $2.35 Current Price is $2.03 Difference: $0.32
If AX1 meets the Petra Capital target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 18.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 13.60 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 6.70%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 38.5%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 13.90 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of 11.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 12.4.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources


Wilsons rates ((AX1)) as Overweight (1) –

After a strong sales recovery in the 2H of FY24, Wilsons highlights ongoing momentum for Accent Group in early-FY25. There was a 58bps rise in gross margin to 55.8% in FY24 and the group opened 74 net new stores in FY24. 

Management expects to open “at least 50 new stores”, underpinned by Nude Lucy (now 36 stores) and Stylerunner (28 stores trading, and 10 stores planned for FY25). The broker forecasts 55 “gross” new stores and 27 “net” new stores in FY25.

The Overweight rating is unchanged with Wilsons expecting material upside to the current share price. Target price falls to $2.40 from $2.50.

This report was published on August 26, 2024.

Target price is $2.40 Current Price is $2.03 Difference: $0.37
If AX1 meets the Wilsons target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 18.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 12.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 5.91%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 38.5%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 15.20 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 7.49%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of 11.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 12.4.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

BEN    BENDIGO & ADELAIDE BANK LIMITED

Banks – Overnight Price: $11.82

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

Despite a -3% decline in cash earnings in FY24 for Bendigo & Adelaide Bank, the results were above Goldman Sachs’ forecasts and consensus estimates, because of lower bad and doubtful debts.

Net interest margins were better than expected at 1.9% and total lending rose 2.6% in FY24.

The broker believes the results showed again the challenges in managing costs with investment spending rising $30-$40m in FY25 on FY24.

Goldman Sachs revises EPS forecasts by 8% and 3.4% for FY25/FY26. Neutral rated. Target price $11.67.

This report was published on August 26, 2024.

Target price is $11.67 Current Price is $11.82 Difference: minus $0.15 (current price is over target).
If BEN meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.43, suggesting downside of -11.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 66.00 cents and EPS of 86.00 cents.
At the last closing share price the estimated dividend yield is 5.58%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.8, implying annual growth of -13.0%.
Current consensus DPS estimate is 64.3, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 66.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 5.58%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.9, implying annual growth of -1.1%.
Current consensus DPS estimate is 66.0, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: -0.8
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: $2.60

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

Brazilian Rare Earths released assay results from ongoing drilling at Monte Alto which were noted as “high grade” by Canaccord Genuity.

The company is conducting a further 51 diamond holes at Monte Alto which should assist with the resource potential.

Initial metallurgical test results are expected by the end of 2024.

Speculative Buy rated. Target price $5.30 unchanged.

This report was published on August 26, 2024.

Target price is $5.30 Current Price is $2.60 Difference: $2.7
If BRE meets the Canaccord Genuity target it will return approximately 104% (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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.31

Jarden rates ((CAJ)) as Neutral (3) –

Capitol Health’s FY24 earnings (EBITDA) outpaced consensus’ forecasts by 2.4% and Jarden’s forecasts by 0.3%, despite posting a top below consensus forecasts by -1.9%, thanks to strong cost control.

This yielded an EBITDA margin beat; margins increased to 21% vs Jarden’s 20.4% as top-line growth outpaced rising labour costs, observes the broker.

EPS forecasts rise 1.4% in FY25; ease -0.4% in FY26; and rise 2.8% in FY27.

The broker believes the strong result, particularly the cost component, increases the attractiveness of the Integral Diagnostics ((IDX)) merger.

Neutral rating retained. Target price rises to 29c from 27c.

This report was published on August 29, 2024.

Target price is $0.29 Current Price is $0.31 Difference: minus $0.02 (current price is over target).
If CAJ meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.33, suggesting upside of 4.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 1.0.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 1.10 cents and EPS of 1.70 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.8, implying annual growth of 24.8%.
Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 0.8.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $14.96

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

Canaccord Genuity raises its target for Codan to $15.34 from 10.83 following FY24 results displaying revenue growth and
margin expansion, with forward commentary suggesting more of the same. FY24 profit beat the broker’s forecast by 8%.

Thanks to the Metal Detection division increasing 2H pre-tax profit margins by circa 240bps half-on-half to 36.7%, overall margins were a highlight for the broker.

Also, Communications segment revenue grew by 19% on the previous corresponding period (16% was organic), coming in ahead of management’s targeted level of 10-15%.

The Buy rating is maintained.

This report was published on August 23, 2024.

Target price is $15.34 Current Price is $14.96 Difference: $0.38
If CDA meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 26.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 27.70.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 31.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.75.

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


Moelis rates ((CDA)) as Upgrade to Buy from Hold (1) –

Codan reported “solid” FY24 results across the group, Moelis comments. Communications grew with an expanded orderbook of 21% year-on-year and tactical communications reported robust growth in unmanned systems and broadcast markets.

The broker points to ongoing outperformance from Zetron from FY24 into FY25.

Moelis upgrades EPS forecasts by 6% and 9.7% for FY25/FY26, boosted by margin improvements for radio communications and revenue growth for metal detection/radio communications.

The stock is upgraded to Buy from Neutral. Target price moves to $16.85 with a transfer of analyst coverage.

This report was published on August 25, 2024.

Target price is $16.85 Current Price is $14.96 Difference: $1.89
If CDA meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 27.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 27.70.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 32.40 cents and EPS of 64.70 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.12.

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

CGS    COGSTATE LIMITED

Medical Equipment & Devices – Overnight Price: $1.06

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

FY24 results for Cogstate were in line with Canaccord Genuity’s forecasts. The broker remains remain confident in the longer-term outlook given growth in the broad central nervous system (CNS) space and new customer acquisition.

The analyst explains revenue lumpiness from current trial delays and/or cancellations is standard practice for service and technology providers in the clinical trials space.

The Buy rating is unchanged, and the target falls to $1.45 from $1.80 after the broker moderates near-term revenue expectations based on the current contracted revenue figure.

This report was published on August 23, 2024.

Target price is $1.45 Current Price is $1.06 Difference: $0.385
If CGS meets the Canaccord Genuity target it will return approximately 36% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.42 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.11.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.33 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.98.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $7.63

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

Jarden notes weaker like-for-like sales and rising costs have compressed first half margins for Collins Foods although the impact of it is expected to moderate in the second half.

The decline was consistent with commentary at the FY24 result, yet the broker points out the magnitude was greater than expected, leading to a -13% reduction to EBIT estimates.

Jarden continues to believe the business is well-placed to outperform in the medium term, given a strong balance sheet, “clean” network and a master franchisor that is focused on delivering value and gaining share. Overweight. Target is reduced to $9.57 from $10.00.

This report was published on August 22, 2024.

Target price is $9.57 Current Price is $7.63 Difference: $1.94
If CKF meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $9.46, suggesting upside of 24.0%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 45.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.9, implying annual growth of -4.5%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 62.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.4, implying annual growth of 27.2%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 13.1.

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

CNI    CENTURIA CAPITAL GROUP

Diversified Financials – Overnight Price: $1.71

Jarden rates ((CNI)) as Underweight (4) –

Jarden notes, despite challenging conditions, Centuria Capital preserved funds under management through diversifying into alternatives. The broker was impressed with the growth in credit.

The main concern is about office exposures and the capital structure, the high level of intangibles and high gearing.

The stock appears “good value” and is expected to benefit from an upswing in transaction activity as interest rates moderate, although Jarden finds more appealing options elsewhere in the sector. Underweight. Target is $1.80.

This report was published on August 23, 2024.

Target price is $1.80 Current Price is $1.71 Difference: $0.09
If CNI meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $1.80, suggesting upside of 5.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 10.20 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 5.96%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of -2.6%.
Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 13.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.4, implying annual growth of 8.9%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 12.8.

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

DUG    DUG TECHNOLOGY LIMITED

Cloud services – Overnight Price: $3.22

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

While Dug Technology’s FY24 result outpaced expectations, Canaccord Genuity awaits more clarity on progress in the Middle East and a rebound in Services awards cadence.

Management has previously noted the Middle East may become the company’s leading region, but the analyst notes a new office there will temper operating margins in the near-term.

The analyst suspects Dug Technology is winning share of wallet with large customers, leading to larger and longer-term projects, given the top 10 clients in FY24 accounted for 60% of total revenue.

Buy rating. Target rises to $3.50 from $3.20.

This report was published on August 23, 2024.

Target price is $3.50 Current Price is $3.22 Difference: $0.28
If DUG meets the Canaccord Genuity target it will return approximately 9% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 107.33.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 53.67.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $5.20

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

Endeavour Group’s FY24 earnings met Goldman Sachs’ expectations on sales and earnings before interest and tax.

The group achieved market share gains in retail, due to the strength in Dan Murphy’s price leadership, the broker noted, with hotels steadying on gaming and better food/beverage.

Technology costs are expected to decline from FY27. Goldman Sachs cuts net profit forecasts by -1.9% and -2.7% for FY25/FY26 on lower retail margins and higher interest costs.

Buy rated. Target price $6.20.

This report was published on August 26, 2024.

Target price is $6.20 Current Price is $5.20 Difference: $1
If EDV meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $5.47, suggesting upside of 5.2%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 22.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.1, implying annual growth of 1.8%.
Current consensus DPS estimate is 21.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 24.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.3, implying annual growth of 7.6%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 16.6.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.80

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

FY24 earnings (EBITDA) and profit for Emeco Holdings were in line with Canaccord Genuity’s expectation, while cash conversion of 93% was considered strong.

The broker feels the end of the -$47m growth capex program in FY24 heralds the beginning of a new chapter for Emeco.

The analysts anticipate a materially stronger balance sheet due to growing earnings, falling capex, an improving return on capital (ROC) and a suspended capital management program. The broker expects the latter will be revisited at the end of FY25.

Buy rating unchanged. Target edges up to $1.05 from 99 cents.

This report was published on August 23, 2024.

Target price is $1.05 Current Price is $0.80 Difference: $0.25
If EHL meets the Canaccord Genuity target it will return approximately 31% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 14.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.52.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 3.10 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.23.

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


Jarden rates ((EHL)) as Downgrade to Neutral from Overweight (3) –

FY24 EBITDA from Emeco Holdings was largely in line although Jarden notes the negative response from the market was driven by the increased uncertainty in the outlook.

This is particularly apparent in guidance for higher depreciation and the increased growth required from rental to replace underground earnings.

The company has fleshed out a three-year plan to improve its return on capital to a target of 20% by FY26, from 15% in FY24. In the near term priorities, remain with generating greater returns from capital already invested in the core fleet.

While remaining positive, Jarden believes the benefits from initiatives must be demonstrated over FY25 to provide upside to its current investment view and the rating is downgraded to Neutral from Overweight. Target is reduced to $0.85 from $0.90.

This report was published on August 23, 2024.

Target price is $0.85 Current Price is $0.80 Difference: $0.05
If EHL meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 12.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.35.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 14.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.41.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $4.34

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

Canaccord Genuity continues to be positive about the gold price with the bond market now pricing in a 100% chance of the Fed cutting rates in September.

The broker likes Evolution Mining with a Buy rating and $4.50 target price including its production growth and improved balance sheet.

This report was published on August 22, 2024.

Target price is $4.50 Current Price is $4.34 Difference: $0.16
If EVN meets the Canaccord Genuity target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $4.17, suggesting downside of -3.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 5.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.1, implying annual growth of 50.3%.
Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY26:

Current consensus EPS estimate is 29.8, implying annual growth of -10.0%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 14.6.

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

EXP    EXPERIENCE CO LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.16

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

Experience Co pre-released its FY24 results which revealed some evidence of an earnings recovery, according to Canaccord Genuity.

July trading rose above the previous corresponding period despite weather issues which impacted Trees and Australian skydiving.

The broker observes Reef Unlimited and Skydiving NZ continue to perform well.

Canaccord Genuity revises EBITDA forecasts by -8% in FY25 and -9% for FY26 because of reduced growth assumptions for Skydive Australia.

Buy rated. Target price moves to 24c from 25c.

This report was published on August 23, 2024.

Target price is $0.24 Current Price is $0.16 Difference: $0.08
If EXP meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 160.00.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 80.00.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $32.39

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

Management at Fisher & Paykel Healthcare (march year-end) has upgraded FY25 earnings guidance, confirming strong demand across categories and geographies. Wilsons points out Homecare masks remain a key driver into the 2H of FY25.

FY25 profit guidance was upgraded by NZ$10m to a range of between NZ$320-370m, which compares to the broker’s prior forecast for NZ$343m.

Overweight rating. Target $35.

This report was published on August 26, 2024.

Target price is $35.00 Current Price is $32.39 Difference: $2.61
If FPH meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $23.06, suggesting downside of -28.8%(ex-dividends)
The company’s fiscal year ends in March.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 40.58 cents and EPS of 54.33 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 59.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of N/A.
Current consensus DPS estimate is 43.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 59.3.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 44.27 cents and EPS of 66.59 cents.
At the last closing share price the estimated dividend yield is 1.37%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 48.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.5, implying annual growth of 23.6%.
Current consensus DPS estimate is 49.2, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 48.0.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.25

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

Canaccord Genuity observes G8 Education reported a mixed 1H24 earnings report with the results coming in ahead of expectations but the outlook commentary cautioning on slowing occupancy rates. 

The broker highlights the rate of decline in occupancy is higher than expected which aligns with management’s more cautious outlook for 2H24 as cost-of-living pressures depress inquiries.

Staffing retention levels have improved, the analyst notes, by 2% for managers and 6% for early childhood teachers.

Fee increases of 4.5% in January and 2.4% mid-year are above the broker’s forecasts. 

Buy rating unchanged. Target moves to $1.46 from $1.43.

This report was published on August 23, 2024.

Target price is $1.46 Current Price is $1.25 Difference: $0.205
If GEM meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.30 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.94.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 5.40 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.55.

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

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.71

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

Gold Road Resources reported 1H24 EBITDA earnings which were -9% below Canaccord Genuity’s estimates and -11% below consensus forecasts.

The miss relates to inventory charges of -$10m the broker highlights.

Management reconfirmed FY24 guidance of 145koz-152.5koz and all-in-sustaining costs of $2050-$2200oz.

Canaccord Genuity makes some minor tweaks to forecasts. Buy and $2.05 target price unchanged.

This report was published on August 27, 2024.

Target price is $2.05 Current Price is $1.71 Difference: $0.34
If GOR meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.99, suggesting upside of 16.2%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 2.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of 2.5%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 4.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of 48.2%.
Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 10.5.

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


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

Wet weather impacted on 1H24 EBITDA for Gold Road Resources which declined -23% year-on-year, observes Goldman Sachs.

This was slightly below consensus and the analyst’s forecasts because of higher corporate/exploration costs and margin pressure.

The company had around $79m in cash at the end of the half year and FY24 guidance is unchanged.

Buy rating with $2.05 target price unchanged.

This report was published on August 26, 2024.

Target price is $2.05 Current Price is $1.71 Difference: $0.34
If GOR meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.99, suggesting upside of 16.2%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 2.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of 2.5%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 3.00 cents and EPS of 16.00 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 10.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of 48.2%.
Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 10.5.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.12

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

Goldman Sachs’ first take reveals Inghams Group reported FY24 results below expectations.

The company continued to experience higher cost pressures from inflation as grower contracts transitioned to performance-based variable contracts with employee cost growth from fixed contracts.

A new Woolworths Group ((WOW)) contract starting in FY25 reduces annual volumes. Capex guidance met expectations.

The stock remains Sell rated with a $3.15 target price.

This report was published on August 23, 2024.

Target price is $3.15 Current Price is $3.12 Difference: $0.03
If ING meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 10.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Current consensus EPS estimate is 18.9, implying annual growth of -30.8%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 16.5.

Forecast for FY26:

Current consensus EPS estimate is 23.9, implying annual growth of 26.5%.
Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.1.

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

IPH    IPH LIMITED

Legal – Overnight Price: $6.34

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

Jarden assesses IPH reported better than expected FY24 EPS results and above consensus, due to strong Canadian revenues and an improvement in Australia’s market share. Asian results were the weak spot with 3%-4% EBITDA growth expected in the near term.

The Bereskin & Parr acquisition boosts Canadian market share to around 35% and adds circa 3% to FY25 earnings forecasts.

Higher corporate costs, headwinds to the Australian operations, weaker Asia, alongside adjustments from the equity raising and EPS accretion from the acquistion, they all result in forecast EPS declines of -2% in FY25 up to -3% in FY27.

The stock is Overweight rated. Target price falls to $9.15 from $10.10.

This report was published on August 22, 2024.

Target price is $9.15 Current Price is $6.34 Difference: $2.81
If IPH meets the Jarden target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $8.18, suggesting upside of 29.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 36.70 cents and EPS of 48.20 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.8, implying annual growth of 86.6%.
Current consensus DPS estimate is 36.4, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 40.40 cents and EPS of 53.20 cents.
At the last closing share price the estimated dividend yield is 6.37%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.3, implying annual growth of 7.5%.
Current consensus DPS estimate is 37.5, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.6.

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

JIN    JUMBO INTERACTIVE LIMITED

Gaming – Overnight Price: $13.94

Taylor Collison rates ((JIN)) as Initiation of coverage with Outperform & Accumulate (2) –

Taylor Collison appreciates Jumbo Interactive’s FY24 result, the company snagging a 42% digital penetration rate in rate in Australian lotteries in the June Half, yielding a sharp uptick in total transaction value.

The broker acknowledges it will be difficult for the industry to post growth in FY25, observing early subdued FY25 trading, but expects Jumbo Interactive will manage these headwinds.

The broker now awaits KPS on the company’s Daily Winners loyalty program for the December half to see signs of success in higher-margin  products.

Outperform rating retained.

This report was published on August 26, 2024.

Current Price is $13.94. Target price not assessed.
Current consensus price target is $16.47, suggesting upside of 18.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 49.90 cents and EPS of 66.50 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 20.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.6, implying annual growth of 6.9%.
Current consensus DPS estimate is 57.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY26:

Taylor Collison forecasts a full year FY26 dividend of 57.30 cents and EPS of 76.40 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.5, implying annual growth of 10.7%.
Current consensus DPS estimate is 63.1, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 17.1.

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


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

Wilsons observes Jumbo Interactive reported FY24 earnings which met expectations, but the market turned up its nose at the decline in managed service margins due to the Stride business in Canada.

The broker acknowledges the first three managed service acquisitions have not been “smooth” with management discussing further investment needed to generate growth,

Wilsons continues to like the company, believing the managed services and SaaS business offer diversification to The Lottery Corporation ((TLC)) reseller market.

Wilsons revises net profit forecasts lower by -6% to -7% for FY25-FY27. Overweight rating unchanged. Target price falls -15% to $15.89.

This report was published on August 26, 2024.

Target price is $15.89 Current Price is $13.94 Difference: $1.95
If JIN meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $16.47, suggesting upside of 18.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 52.60 cents and EPS of 70.10 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.6, implying annual growth of 6.9%.
Current consensus DPS estimate is 57.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 61.80 cents and EPS of 82.40 cents.
At the last closing share price the estimated dividend yield is 4.43%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.5, implying annual growth of 10.7%.
Current consensus DPS estimate is 63.1, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 17.1.

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

KYP    KINATICO LIMITED

Software & Services – Overnight Price: $0.10

Taylor Collison rates ((KYP)) as Outperform (2) –

Kinatico’s FY24 result met Taylor Collison’s forecasts but the broker downgrades earnings forecasts to reflect an uptick in investment in FY25.

Given the forecast -$4m investment is aimed at expediting Kinatico’s $4.2m pipeline, the broker retains an Outperform rating, believing the company’s $9.8m cash balance to be sufficient to fund growth..

SaaS revenue grew 90% to $5.3m (37% of total revenue up from 31% in the December half).

The broker observes a strong focus on higher margin products. EPS forecasts rise sharply across FY25 and FY26.

This report was published on August 26, 2024.

Target price is $0.15 Current Price is $0.10 Difference: $0.05
If KYP meets the Taylor Collison target it will return approximately 50% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 50.00.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 3.03.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.04

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

On first read, Mayne Pharma reported FY24 results which met expectations according to Wilsons.

Dermatology was a slight beat versus a slight miss on Women’s Health, the broker highlights.

TXMD sales were lower than expected with Wilsons seeking more details. Nextstellis came in line which was well received by the analyst.

This report was published on August 23, 2024.

Target price is $7.09 Current Price is $5.04 Difference: $2.05
If MYX meets the Wilsons target it will return approximately 41% (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 minus 48.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 10.33.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 24.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 20.66.

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $6.25

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

nib Holdings reported earnings well below Goldman Sachs’ forecasts and consensus estimates.

Margins in Australian residents health insurance contracted to 6%-7% range with rising claims inflation of 5.7% against the longer-term level of 4.7%. New Zealand operations were also adversely impacted by higher claims inflation.

Travel was impacted by the loss of the Qantas Airways ((QAN)) contract; investment income rose 12.8% because of higher investment income.

Buy rated. Target price $6.60.

This report was published on August 26, 2024.

Target price is $6.60 Current Price is $6.25 Difference: $0.35
If NHF meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $7.59, suggesting upside of 21.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 25.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.3, implying annual growth of 18.2%.
Current consensus DPS estimate is 29.9, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 29.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.0, implying annual growth of 8.2%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.8.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $15.22

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

Canaccord Genuity continues to be positive about the gold price with the bond market now pricing in a 100% chance of the Fed cutting rates in September.

The broker believes Northern Star Resources has excellent leverage to a rising gold price with FY25 production expected to double.

Canaccord Genuity rates the stock as a Buy with a $18.75 target price. A strong balance sheet offers scope for M&A and special dividends.

This report was published on August 22, 2024.

Target price is $18.75 Current Price is $15.22 Difference: $3.53
If NST meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $15.43, suggesting upside of 1.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 41.00 cents and EPS of 89.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.4, implying annual growth of 64.4%.
Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 41.00 cents and EPS of 147.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.3, implying annual growth of 13.0%.
Current consensus DPS estimate is 43.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 14.7.

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


Jarden rates ((NST)) as Underweight (4) –

Northern Star Resources reported FY24 which were essentially in line with Jarden’s expectations. The broker highlights many of the financials had been pre-released.

The broker viewed a final 25c dividend (unfranked) as the highlight, compared to a 20c forecast.

FY25 guidance was pre-announced. Jarden believes “operational delivery” as the driver of restraining upwards pressure on cost.

A robust balance sheet is available to fund growth to over 2moz per annum; but the capex cycle is expected to curb free cashflow generation until FY28, Jarden observes.

Underweight rating and $12.30 target remain.

This report was published on August 22, 2024.

Target price is $12.30 Current Price is $15.22 Difference: minus $2.92 (current price is over target).
If NST meets the Jarden target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.43, suggesting upside of 1.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 40.00 cents and EPS of 73.60 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 20.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.4, implying annual growth of 64.4%.
Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 38.00 cents and EPS of 60.20 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 25.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.3, implying annual growth of 13.0%.
Current consensus DPS estimate is 43.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 14.7.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $0.50

Jarden rates ((PBH)) as Buy (1) –

PointsBet Holdings’ loss (EBITDA) fell at the top end of guidance and was in line with June quarter figures.

Management announced maiden guidance of revenue of $280m to $290m, EBITDA of $11m to $16m, and cash flow breakeven, in line with Jarden’s  revenue forecast but proved a miss on the broker’s EBITDA expectations.

The broker sheets this back to marketing investment and product expenditure.

In the medium-term, management guided to improved margins.

EPS forecasts fall for FY25 but the broker retains faith in its preferred wagering pick, considering the company to be well positioned thanks to its brand; sports exposure; strong platform; cash on balance sheet; and experienced management.

Buy rating retained. Target price rises to 95c from 85c.

This report was published on August 22, 2024.

Target price is $0.95 Current Price is $0.50 Difference: $0.45
If PBH meets the Jarden target it will return approximately 90% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 38.46.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.71.

Market Sentiment: 1.0
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: $3.08

Goldman Sachs rates ((PLS)) as No Rating (-1) –

Goldman Sachs highlights Pilbara Minerals reported FY24 EBITDA down around -84% on lower lithium prices, slightly below expectations.

Management has revised the leverage ratio to 1.5x and put in place a new $1bn debt facility, to increase liquidity and flexibility, the broker notes.

The new debt will be used to replace existing debt. With spodumene prices at current levels, the new facility also mitigates any convenance issues on existing debt, the broker adds.

The stock is not rated by Goldman Sachs.

This report was published on August 26, 2024.

Current Price is $3.08. Target price not assessed.
Current consensus price target is $2.88, suggesting downside of -6.7%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 4.4, implying annual growth of -48.5%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 70.0.

Forecast for FY26:

Current consensus EPS estimate is 14.2, implying annual growth of 222.7%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 21.7.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.46

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

PolyNovo’s FY24 revenue of $103.3m (excluding interest income) was a 58% increase on the previous corresponding period, beating Wilsons’ forecast by just 1%.

The broker highlights US sales were “notably strong” and business development efforts added 197 US hospital accounts.

Rest of the World (ROW) sales beat the analyst’s forecast by 5% helped by a more than doubling of sales in the EMEA division.

Overweight rating. The target rises to $3.00 from $2.65.

This report was published on August 27, 2024.

Target price is $3.00 Current Price is $2.46 Difference: $0.54
If PNV meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.43, suggesting downside of -1.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons 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 153.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of 97.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 164.0.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 66.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of 186.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 57.2.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $2.12

Moelis rates ((RFF)) as Buy (1) –

Moelis noted Rural Funds reported funds from operations were below forecast because of the later than anticipated rental from the TRG lease, which should contribute in FY25 with water rights now secured.

The broker likes the recycling of capital through the -50% sale in Mayneland and Baamba to an investor with 100% lease of the assets, easing pressure on the REIT’s gearing level.

Management guided to a 11.73c dividend per share in FY25. Buy rated with a revised target price of $2.20, down from $2.39.

This report was published on August 25, 2024.

Target price is $2.20 Current Price is $2.12 Difference: $0.08
If RFF meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 11.70 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.60.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 11.80 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.97.

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


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

Rural Funds delivered a “solid” FY24, according to Wilsons, while FY25 guidance was in line with the broker’s expectations but fell short of consensus estimates.

Property income jumped by 13% primarily driven by additional rental income earned on macadamia developments, explain the analysts.

The broker anticipates earnings growth will accelerate in the medium-term and distribution will grow.

The Overweight rating remains, and the target falls to $2.43 from $2.49. 

This report was published on August 26, 2024.

Target price is $2.43 Current Price is $2.12 Difference: $0.31
If RFF meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 11.70 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.60.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 12.20 cents and EPS of 12.40 cents.
At the last closing share price the estimated dividend yield is 5.75%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.10.

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

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.09

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

Canaccord Genuity continues to be positive about the gold price with the bond market now pricing in a 100% chance of the Fed cutting rates in September.

The broker emphasises the strength of Ramelius Resources’ cashflow generation which is expected to continue into FY25.

Buy rated with a $2.80 target price.

This report was published on August 22, 2024.

Target price is $2.80 Current Price is $2.09 Difference: $0.71
If RMS meets the Canaccord Genuity target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 15.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 8.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.6, implying annual growth of 31.1%.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY26:

Current consensus EPS estimate is 25.6, implying annual growth of N/A.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 8.2.

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

RSG    RESOLUTE MINING LIMITED

Gold & Silver – Overnight Price: $0.68

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

Canaccord Genuity continues to be positive about the gold price with the bond market now pricing in a 100% chance of the Fed cutting rates in September.

The broker believes Resolute Mining offers an attractive valuation and expects the company to improve costs and growth.

Buy rated with a $1.55 target price.

This report was published on August 22, 2024.

Target price is $1.55 Current Price is $0.68 Difference: $0.87
If RSG meets the Canaccord Genuity target it will return approximately 128% (excluding dividends, fees and charges).

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SGP    STOCKLAND

Infra & Property Developers – Overnight Price: $5.01

Jarden rates ((SGP)) as Buy (1) –

Stockland’s FY24 result appears to have met Jarden’s forecasts and the broker reiterates its Buy rating citing the following:

-The company retains a strong strategic lead over competitors in terms of growth initiatives and rising returns;
-It boasts an accelerating earnings profile thanks to its high-performing property trust (Jarden estimates a three-year 8.5% FFO compound annual growth rate);
-Its weighted average cost of debt is mainly marked to market; and 
-New capital partners.

The broker observes the company’s shares are trading at a sector discount and believes evidence of execution could trigger a re-rating of the company. Jarden adds a jump in cash generation could prove a big catalyst.

Buy rating and $5.45 target price retained ahead of the broker’s mark-to-market at the end of the reporting season.

This report was published on August 23, 2024.

Target price is $5.45 Current Price is $5.01 Difference: $0.44
If SGP meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.97, suggesting downside of -0.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 26.50 cents and EPS of 33.70 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 141.4%.
Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 38.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.0, implying annual growth of 13.3%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 14.3.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $19.97

Taylor Collison rates ((TLX)) as Speculative Buy (1) –

Telix Pharmaceuticals’ June first-half result was partially pre-reported so Taylor Collison hones in on expenditure, which outpaced the broker’s expectations.

On the upside, product gross profit margins rose 260 basis points to 65.2% and investment in R&D was modest, observed the broker.

The sting came in SG&A expenses, which rose 63% to $97m. All up, the company posted a net profit of $29.7m in the June half, up from a -$14.3m loss in the December half.

The broker cuts earnings forecasts to reflect the expenditure uptick. Outperform rating retained. Target price rises to $19.61 from $19.50.

This report was published on August 26, 2024.

Target price is $19.61 Current Price is $19.97 Difference: minus $0.36 (current price is over target).
If TLX meets the Taylor Collison target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company’s fiscal year ends in December.

Forecast for FY24:

Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of 28.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 70.82.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 66.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 30.12.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $2.99

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

The 1H24 earnings from Viva Energy were broadly in line with forecasts from Goldman Sachs. The interim dividend was 4% above estimate.

The analyst continues to focus on-the-run store transition after the =$1.2bn acquisition in March. Management flagged the rollout will take longer than originally suggested, due to planning and landlord consent delays.

Around 30 transitions are expected over the next 12-months. Goldman Sachs remains cautious on the 500-store transition, the 85 additions and a -$60m cost out program from synergies.

The stock is upgraded to Buy from Neutral. Target price falls -4% to $3.60. Earnings forecasts are tweaked by the broker.

This report was published on August 26, 2024.

Target price is $3.60 Current Price is $2.99 Difference: $0.61
If VEA meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $3.78, suggesting upside of 26.4%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 16.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 9860.0%.
Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 14.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 0.4%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 12.0.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $6.98

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

Whitehaven Coal reported net profit for FY24 above expectations because of exclusion of -$601m including -$434m of acquisition costs.

Underlying EBITDA was well below the broker’s forecasts. NSW mines performed slightly better and Qld mines considerably stronger than expected. A final 13c dividend was well above the 5c estimate.

FY25 guidance came in lower than anticipated, with softer NSW volumes from Narrabri and Maules Creek. Unit costs are expected to rise well above forecasts.

Goldman Sachs revises EPS forecasts by -41% in FY25 and -57% in FY26 for higher costs, lower volumes, increased depreciation/amortisation, and net interest charges,

The target price falls -13% to $6.80. Neutral rating unchanged.

This report was published on August 23, 2024.

Target price is $6.80 Current Price is $6.98 Difference: minus $0.18 (current price is over target).
If WHC meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.07, suggesting upside of 30.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 15.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.0, implying annual growth of 102.3%.
Current consensus DPS estimate is 26.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 7.8.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 7.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.0, implying annual growth of -7.8%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 8.4.

Market Sentiment: 0.7
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.

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ABG ADA ANZ ASK AX1 BEN BRE CAJ CBA CDA CGS CKF CNI DUG EDV EHL EVN EXP FPH GEM GOR IDX ING IPH JIN KYP MYX NHF NST PBH PLS PNV QAN RFF RMS RSG SGP TLC TLX VEA WHC WOW

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