Australian Broker Call *Extra* Edition – Sep 26, 2024

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

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)

ASB   CAJ   COL (2)   CXO   DUG   FBU   HLS   IDX   INR   IPD   JIN   JLG (2)   KCN   KMD   LNW   MAQ   NEU   NZK   PDN   PYC   SHV   SKC   SMI   SPK   TAH   TLX   WOW (2)  

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $3.00

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

Petra Capital forecasts Austal’s earnings (EBIT) will rise by around $30m/year over an extended period after securing a new submarine module fabrication contract with General Dynamics Electric Boat (GDEB).

Austal will receive US$450m of special US Navy incentives to build (and own) the requisite fabrication facilities at its shipyard in Mobile, Alabama.

The broker reiterates its Buy rating, and the target rise to $3.23 from $3.21.

This report was published on September 25, 2024.

Target price is $3.23 Current Price is $3.00 Difference: $0.23
If ASB meets the Petra Capital target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.26, suggesting upside of 12.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 3.00 cents and EPS of 11.10 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 27.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of 229.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 12.50 cents and EPS of 25.10 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of 33.3%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.7
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: $0.35

Canaccord Genuity rates ((CAJ)) as Hold (3) –

Given separate regional concentration, Canaccord Genuity doesn’t anticipate any regulatory problems for the Capitol Health/Integral Diagnostics tie-in, which is set for November, pending shareholder approval.

The analysts see potential for material margin expansion via referring benefits and further structural cost-savings (i.e. incorporating the teleradiology offering across the enterprise).

The broker’s Hold rating and 32c target are maintained for Capitol Health.

This report was published on September 25, 2024.

Target price is $0.32 Current Price is $0.35 Difference: minus $0.03 (current price is over target).
If CAJ meets the Canaccord Genuity target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.33, suggesting downside of -7.0%(ex-dividends)

Forecast for FY25:

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 2.9%.
Current consensus EPS estimate suggests the PER is 1.1.

Forecast for FY26:

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 3.4%.
Current consensus EPS estimate suggests the PER is 0.9.

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

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $18.09

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

Goldman Sachs notes the ACCC announcement to commence separate legal proceedings in the Federal Court into alleged breach of Australian Consumer Law for Coles Group and Woolworths Group ((WOW)) in misleading consumers on discount pricing claims on hundreds of supermarket goods.

The broker notes Coles Group had 245 products sold as part of the Down Down program for 15 months from 2022 to 2023.

Coles Group has announced its intentions to defend the allegations.

The analyst believes there is risk from negative consumer sentiment towards the major supermarkets which may have adverse impacts on sales.

No change to Neutral rating and $18 target price.

This report was published on September 23, 2024.

Target price is $18.00 Current Price is $18.09 Difference: minus $0.09 (current price is over target).
If COL meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.11, suggesting upside of 10.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 64.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of 2.6%.
Current consensus DPS estimate is 70.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY26:

Current consensus EPS estimate is 97.6, implying annual growth of 13.5%.
Current consensus DPS estimate is 80.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 18.6.

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

---

Jarden rates ((COL)) as Neutral (3) –

Coles Group intends to defend proceedings launched by the ACCC for allegedly misleading consumers over the discounting applied to circa 500 products (includes tally for simultaneous action against Woolworths Group) over a 15-month period prior to May 2023. 

Jarden highlights potential fines for each breach could incur the maximum penalty of -$50m, or reasonably attributable benefit, or, if not determined, 30% of adjusted turnover.

While such near-term noise is not helpful, Jarden sees limited impact in the longer-term.

No change to Neutral rating and $17.10 target price.

This report was published on September 24, 2024.

Target price is $17.10 Current Price is $18.09 Difference: minus $0.99 (current price is over target).
If COL meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.11, suggesting upside of 10.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 69.00 cents and EPS of 84.50 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of 2.6%.
Current consensus DPS estimate is 70.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 95.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.6, implying annual growth of 13.5%.
Current consensus DPS estimate is 80.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 18.6.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.10

Jarden rates ((CXO)) as Downgrade to Sell from Neutral (5) –

Jarden lowers its target for Core Lithium to 8c from 10c and downgrades to Sell from Neutral after revised forecasts for the Finniss hard rock lithium mine introduced the need for around $250m of new funding and working capital.

These changes are made despite the apparently positive announcement of a 223% increase to BP33, the potential second ore source to feed the Finniss operations, explains the broker.

In the absence of compelling and plausibly funded project economics to provide valuation support, the analysts suggest Core Lithium is increasingly an exposure to exploration.

This report was published on September 26, 2024.

Target price is $0.08 Current Price is $0.10 Difference: minus $0.02 (current price is over target).
If CXO meets the Jarden target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.09, suggesting downside of -10.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 0.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Jarden forecasts a full year FY25 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 16.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: -0.7
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: $2.47

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

Contemplating the -25% decline in the Dug Technology share price since the August results, Canaccord Genuity highlights there might be some market concerns over the CFO role which has been challenged with a high turnover rate post listing.

Despite the strong FY24 earnings report, the broker points to a lack of large contract wins as another overhang for the stock, although FY24 results were contract/revenue growth weighted in the 2H which might be repeated in FY25.

Recent presentations from the company support the commercialisation of Dug Cool and Dug Nomad with Elastic-MP-FW1 imaging product launched into the market recently.

Buy rating and $3.50 target price remain.

This report was published on September 23, 2024.

Target price is $3.50 Current Price is $2.47 Difference: $1.03
If DUG meets the Canaccord Genuity target it will return approximately 42% (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 82.33.

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 41.17.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $2.74

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

Goldman Sachs’ first take on Fletcher Building’s NZ$700m equity raising concludes this will allow the company to strengthen its balance sheet and reduce debt leverage to 1.22x from 1.99x.

The company can also now avoid any forced asset sales, the broker observes.

Management offered a trading update for July and August with slightly better revenue results than the broker’s forecast while volumes were in line with expectations.

In FY25 management is targeting cost outs of -NZ$180m. Neutral rating with $3 target unchanged.

This report was published on September 23, 2024.

Target price is $3.00 Current Price is $2.74 Difference: $0.26
If FBU meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $2.48, suggesting downside of -6.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 18.44 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 EPS of 30.43 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.5, implying annual growth of 51.2%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 10.8.

This company reports in NZD. 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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $1.70

Jarden rates ((HLS)) as Upgrade to Neutral from Underweight (3) –

Healius announced the sale of Lumus imaging to Affinity Equity Partners for net consideration of $825m.

Jarden highlights the price is around $250m higher than the expected valuation and will facilitate the paydown of some $361m in debt by Healius.

Management has slimmed down the business with a few divestments making Healius the second largest pathology company in Australia, although the company has been losing market share, the broker notes. 

A return of pathology volumes is considered integral to the business going forward. The stock is upgraded to Neutral from Underweight with the target price lifting to $1.67 from $1.41.

This report was published on September 23, 2024.

Target price is $1.67 Current Price is $1.70 Difference: minus $0.025 (current price is over target).
If HLS meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.50, suggesting downside of -11.2%(ex-dividends)
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 2.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 65.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.1, implying annual growth of N/A.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 54.5.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 30.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.8, implying annual growth of 87.1%.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 29.1.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $2.83

Canaccord Genuity rates ((IDX)) as Hold (3) –

Given separate regional concentration, Canaccord Genuity doesn’t anticipate any regulatory problems for the Capitol Health/Integral Diagnostics tie-in, which is set for November, pending shareholder approval.

The analysts see potential for material margin expansion via referring benefits and further structural cost-savings (i.e. incorporating the teleradiology offering across the enterprise).

The broker’s Hold rating and $2.50 target are maintained for Integral Diagnostics.

This report was published on September 25, 2024.

Target price is $2.50 Current Price is $2.83 Difference: minus $0.33 (current price is over target).
If IDX meets the Canaccord Genuity target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 6.80 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 28.30.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 9.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.77.

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

INR    IONEER LIMITED

New Battery Elements – Overnight Price: $0.21

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

Canaccord Genuity highlights the final Environmental Impact Statement for ioneer’s Rhyolite Ridge Lithium-Boron project in Nevada has been announced.

The analyst also notes the US Fish and Wildlife Services stated the project will not “jeopardise the endangered Tiehm’s buckwheat of adversely impact on habitat”.

These announcements are viewed as milestones for the company with a final investment decision expected at the end of 2024.

The Speculative Buy rating and 35c target are retained for ioneer.

This report was published on September 20, 2024.

Target price is $0.35 Current Price is $0.21 Difference: $0.135
If INR meets the Canaccord Genuity target it will return approximately 63% (excluding dividends, fees and charges).

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.06

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

Management at ImpediMed still needs to translate payor coverage to contract wins and improve the installed base at an acceptable SaaS price point, suggests Canaccord Genuity.

These views by the broker follow ImpediMed announcing Emblem Health and Presbyterian Health in the USA has updated its medical policies to include the use of bioimpedence spectroscopy (the basis of the SOZO device) for lymphoedema assessment.

The Speculative Buy rating and 9c target are maintained.

This report was published on September 25, 2024.

Target price is $0.09 Current Price is $0.06 Difference: $0.034
If IPD meets the Canaccord Genuity target it will return approximately 61% (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 minus 1.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 5.09.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 5.60.

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: $13.52

Jarden rates ((JIN)) as Upgrade to Buy from Overweight (1) –

Jarden attributes part of Jumbo Interactive’s share price weakness post FY24 results to management’s conservative guidance which illustrates a more normalised jackpot season post a record 55 jackpots in FY24. 

The analyst views the underperformance of the stock by -16% is now overdone and Jumbo Interactive is trading notably lower than the three-year average historical valuations.

Jarden raises EPS forecasts by 5.8% for FY25 to FY27 for stronger SaaS total transaction value growth; a small share buyback in FY25 which is offset from increased employee costs.

The target price lifts to $15.50 from $14.70 with the stock upgraded to Buy from Overweight post the fall of -10% in the share price post the FY24 results.

This report was published on September 23, 2024.

Target price is $14.70 Current Price is $13.52 Difference: $1.18
If JIN meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $15.93, suggesting upside of 16.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 55.00 cents and EPS of 71.80 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.5, implying annual growth of 6.7%.
Current consensus DPS estimate is 57.4, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 18.7.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 58.60 cents and EPS of 80.80 cents.
At the last closing share price the estimated dividend yield is 4.33%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.5, implying annual growth of 10.9%.
Current consensus DPS estimate is 62.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 16.8.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $3.69

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

Following the recent acquisitions of SSKB Strata and Chill-Rite HVAC, Johns Lyng is also acquiring an 87.5% equity interest in Queensland-based Keystone Group.

The transaction helps expand Johns Lyng’s core domestic Insurance Building & Restoration Services (IB&RS) business, notes the broker.

Scale and capacity will also be increased to effectively respond to large-scale catastrophic (CAT) weather events, points out the analyst.

The broker’s Buy rating is kept, and the target falls to $6.10 from $6.23.

This report was published on September 25, 2024.

Target price is $6.10 Current Price is $3.69 Difference: $2.41
If JLG meets the Canaccord Genuity target it will return approximately 65% (excluding dividends, fees and charges).
Current consensus price target is $4.63, suggesting upside of 23.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 10.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of 1.5%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of 13.6%.
Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 18.7.

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

---

Moelis rates ((JLG)) as Buy (1) –

Moelis likes the acquisition of Keystone Group by Johns Lyng with the addition boosting the company’s exposure in commercial insurance as well as restoration and hazardous material removal.

Consideration is -$44.7m for an 87.5% stake with management keeping a 12.5% shareholding. The acquisition is expected to be earnings positive.

Moelis highlights net debt of 0.86x EBITDA for FY25 and Johns Lyng will use its option and decrease the share component of consideration for acquisitions SSKB and Chill-rite due to the company’s share price weakness. The cash component will rise in lieu of the adjustment.

The broker lifts EPS forecasts by 4% and 3.7% for FY25/FY26, respectively. Buy rating with a $5.11 target price.

This report was published on September 23, 2024.

Target price is $5.11 Current Price is $3.69 Difference: $1.42
If JLG meets the Moelis target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $4.63, suggesting upside of 23.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 10.70 cents and EPS of 21.40 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of 1.5%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 12.30 cents and EPS of 25.40 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of 13.6%.
Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 18.7.

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

KCN    KINGSGATE CONSOLIDATED LIMITED

Gold & Silver – Overnight Price: $1.39

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

Kingsgate Consolidated is the most undervalued gold producer under Canaccord Genuity’s research coverage of the ASX.

The broker sees significant exploration and resource growth potential at the Chatree Gold Mine in Thailand.

Further, as the silver price has risen by 31% in 2024, the potential value of the Nueva Esperanza gold/silver project in Chile is under-appreciated by investors, suggest the analysts.

Canaccord Genuity lowers its target to $2.90 from $3.20, and the Speculative Buy rating is kept.

This report was published on September 25, 2024.

Target price is $2.90 Current Price is $1.39 Difference: $1.51
If KCN meets the Canaccord Genuity target it will return approximately 109% (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 15.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.27.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 29.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 4.79.

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

KMD    KMD BRANDS LIMITED

Sports & Recreation – Overnight Price: $0.46

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

Jarden lowers its target for KMD Brands to NZ67c from NZ70c and downgrades to Overweight from Buy following a “difficult” FY24 due to weakness for the Kathmandu brand.

Wholesale channel destocking also weighed on Rip Curl and Oboz in FY24, explain the analysts, though green shoots have been spotted in the 2H.

The trading update for the first eight weeks of FY25 shows improvement in Kathmandu, which Jarden weighs against ongoing weakness in 1H25 wholesale orders. Its view is more work is needed to build confidence in a turnaround for Kathmandu.

This report was published on September 26, 2024.

Current Price is $0.46. Target price not assessed.
Current consensus price target is $0.40, suggesting downside of -11.1%(ex-dividends)
The company’s fiscal year ends in July.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.57 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 29.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.3, implying annual growth of N/A.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 2.77 cents and EPS of 4.15 cents.
At the last closing share price the estimated dividend yield is 6.02%.
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 4.8, implying annual growth of 45.5%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 9.4.

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

LNW    LIGHT & WONDER INC

Gaming – Overnight Price: $134.61

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

Litigation and lawsuits come with participation in the gaming industry, highlights Canaccord Genuity, suggesting the negative share price reaction towards Light & Wonder far exceeds any earnings impact.

Furthermore, Light & Wonder will defend and appeal the decision by the US District Court for Nevada issuing a preliminary injunction relating to the company’s Dragon Train game.

Legal proceedings were first initiated by Aristocrat Leisure ((ALL)), with management alleging Light & Wonder obtained confidential information about the maths and functionality of Aristocrat’s Dragon Link game.

The Buy rating is retained, the $180 target price is also unchanged.

This report was published on September 25, 2024.

Target price is $180.00 Current Price is $134.61 Difference: $45.39
If LNW meets the Canaccord Genuity target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $168.40, suggesting upside of 21.4%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 339.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 39.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 448.4, implying annual growth of 66.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 30.9.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 492.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 27.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 598.0, implying annual growth of 33.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 23.2.

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

MAQ    MACQUARIE TECHNOLOGY GROUP LIMITED

Telecommunication – Overnight Price: $81.28

Petra Capital rates ((MAQ)) as Upgrade to Buy from Hold (1) –

While Petra Capital keeps a $87.81 target for Macquarie Technology, the rating is upgraded to Buy from Hold after the share price has fallen from a recent high of $98.35 down to around $81.00.

The broker believes investors need to be positioned in the stock for likely positive news regarding contract wins prior to ‘go-live’ for the IC3 Super West facility, even though practical completion is two-years away.

IC3 has 45MW of power available on day one, an important factor for global customers, stresses the analyst.

In a further scenario analysis, Petra Capital also highlights a de-merger of the group’s data centre assets would realise significant value.

This report was published on September 25, 2024.

Target price is $87.81 Current Price is $81.28 Difference: $6.53
If MAQ meets the Petra Capital target it will return approximately 8% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 148.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 54.66.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 150.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 54.11.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $13.83

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

Canaccord Genuity explores the potential impact on Neuren Pharmaceuticals should a key program be wound up for rare paediatric disease (RPD).

The priority review voucher (PRV) program -established to fill the gap in much needed treatment options for children- is set to expire at the end of September this year, explains the broker.

However, as higher prices will likely be offered for those already in possession of a PRV, in the analysts’ view, Neuren Pharmaceuticals may stand to benefit from a resale.

The Buy rating and $29.00 target are maintained.

This report was published on September 20, 2024.

Target price is $29.00 Current Price is $13.83 Difference: $15.17
If NEU meets the Canaccord Genuity target it will return approximately 110% (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 0.00 cents and EPS of 58.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.84.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 88.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.72.

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

NZK    NEW ZEALAND KING SALMON INVESTMENTS LIMITED

Overnight Price: $0.23

Jarden rates ((NZK)) as Neutral (3) –

Commenting on “solid” 1H results for New Zealand King Salmon Investments, Jarden notes management delivered a stable fish performance through the riskier February to July operating period for a second year in row.

While the feed conversion ratio (FCR) measure and mortality expense both increased year-on-year, the broker points out these metrics were generally consistent with the higher levels of biomass.

Freight and feed inputs are beginning to show positive signs of easing, highlight the analysts, with freight costs a tailwind in H1 and feed cost relief expected into the 2H.

FY25 guidance is for sales volumes of 6,800mt and operating earnings (EBITDA) of between NZ$26-30m.

The target rises to NZ29c from NZ28c. The Neutral rating is maintained.

This report was published on September 25, 2024.

Current Price is $0.23. Target price not assessed.
The company’s fiscal year ends in July.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.58 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.71.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 2.58 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.71.

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

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $10.64

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

Canaccord Genuity retains its US$90/lb long-term price forecast for uranium and sees a compelling opportunity in the space as uranium equities appear to have decoupled from an 18% improvement in the term price for 2024.

The broker points to incremental uranium demand, in an already tight market, resulting from the signing of a 20-year power purchase agreement between Microsoft and Constellation Energy. This agreement will support the restart of Three Mile Island Unit 1.

The Buy rating and $16.50 target are maintained for Paladin Energy.

This report was published on September 25, 2024.

Target price is $16.50 Current Price is $10.64 Difference: $5.86
If PDN meets the Canaccord Genuity target it will return approximately 55% (excluding dividends, fees and charges).
Current consensus price target is $14.16, suggesting upside of 26.1%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 48.6, implying annual growth of N/A.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 23.1.

Forecast for FY26:

Current consensus EPS estimate is 92.1, implying annual growth of 89.5%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 12.2.

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

PYC    PYC THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.15

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

Canaccord Genuity explores the potential impact on PYC Therapeutics should a key program be wound up for rare paediatric disease (RPD).

The priority review voucher (PRV) program -established to fill the gap in much needed treatment options for children- is set to expire at the end of September this year, explains the broker.

Unfortunately, PYC Therapeutics is materially impacted by cessation of the program given the company’s asset type, nearer term read-outs and funding requirements.

However, as higher prices will likely be offered for potential PRV approvals in the two-year time frame, in the analysts’ view, PYC Therapeutics may stand to benefit from a resale.

The Buy rating and 22c target are maintained.

This report was published on September 20, 2024.

Target price is $0.22 Current Price is $0.15 Difference: $0.065
If PYC meets the Canaccord Genuity target it will return approximately 42% (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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $3.60

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

It is Wilsons view Select Harvests announced a disappointing trading update with guidance for FY24 at the lower end of consensus despite improved almond prices.

Slower cash collection resulted in higher net debt for year-end due to problems with the transition to a new freight operator. The company’s $80m equity raising will assist in lowering gearing levels and improve the balance sheet, Wilsons highlight.

Target price falls to $4.57 from $5.53 because of lower earnings forecasts from FY26 onward and higher working capital expectations.

The rating is downgraded to Market Weight from Overweight.

This report was published on September 23, 2024.

Target price is $4.57 Current Price is $3.60 Difference: $0.97
If SHV meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $4.43, suggesting upside of 22.1%(ex-dividends)
The company’s fiscal year ends in September.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 211.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.8, implying annual growth of N/A.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 95.5.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 23.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.1, implying annual growth of 455.3%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.3
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: $1.25

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

Jarden sees signs of a positive earnings trajectory for SkyCity Entertainment due to the shift to a regulated model in response to new rules around online casino gaming in New Zealand.

Overweight. The target climbs to NZ$1.85 from NZ$1.75 on the regulated online benefit and a lower risk-free rate (RFR) estimate within the broker’s weighted average cost of capital (WACC) estimate.

This report was published on September 23, 2024.

Current Price is $1.25. Target price not assessed.
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 12.45 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.04.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 4.61 cents and EPS of 10.51 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.89.

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

SMI    SANTANA MINERALS LIMITED

Gold & Silver – Overnight Price: $2.37

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

As part of the Bendigo-Ophir mine in New Zealand, Santana Minerals is currently developing its Rise and Shine deposit, which Canaccord Genuity highlights is the largest single New Zealand gold discovery in more than 40 years.

The broker begins research coverage with a Speculative Buy rating and $3.00 target.

In April, a scoping study detailed a 10-year operation producing an average of 110koz per year, with low-quartile costs (AISC) of $1,057/oz, highlights the broker. The study was based on an initial eight-year staged open pit and four-year underground mine.

Santana Minerals compares favourably to peers in gold mining development, suggests Canaccord Genuity, with compelling capital intensity and relatively high open pit grades over a long life-of-mine.

This report was published on September 20, 2024.

Target price is $3.00 Current Price is $2.37 Difference: $0.63
If SMI meets the Canaccord Genuity target it will return approximately 27% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 29.63.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 12.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 19.75.

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

SPK    SPARK NEW ZEALAND LIMITED

Telecommunication – Overnight Price: $2.82

Jarden rates ((SPK)) as Upgrade to Overweight from Neutral (2) –

Jarden highlights a long-term positive view on Spark New Zealand from the mobile business contribution which continues to grow. The analyst revises earnings forecasts for the outlook on mobile, increasing market share loss in broadband and ongoing declines in voice.

The build out of Spark New Zealand’s data centre projects to 38MW are included in the analyst’s forecasts with an additional 15MW over FY25-FY26 with the broker exploring a 50:50 joint venture on the first 38MW which would realise NZ$500m from a sale of 50% and bring in capital for further data centre build outs.

Target falls to NZ$3.98 from NZ$4.28.

Rating upgraded to Overweight from Neutral.

This report was published on September 23, 2024.

Current Price is $2.82. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 25.36 cents and EPS of 17.52 cents.
At the last closing share price the estimated dividend yield is 8.99%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.09.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 25.36 cents and EPS of 19.18 cents.
At the last closing share price the estimated dividend yield is 8.99%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.70.

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $0.43

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

Finalising both board and management teams should help create much needed clarity at Tabcorp Holdings, suggests Jarden, following underwhelming FY24 results and abandonment of TAB25 financial goals.

The broker was commenting after the announced pending retirement of Chairman Bruce Akhurst and fellow director Justin Milne.

The Overweight rating and 65c target are retained.

This report was published on September 23, 2024.

Target price is $0.65 Current Price is $0.43 Difference: $0.22
If TAH meets the Jarden target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $0.55, suggesting upside of 25.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 1.20 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.4, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.4.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 2.10 cents and EPS of 3.50 cents.
At the last closing share price the estimated dividend yield is 4.88%.
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 2.8, implying annual growth of 100.0%.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 15.7.

Market Sentiment: 0.2
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: $20.12

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

Wilsons highlights the Telix Pharmaceuticals acquisition of Radiopharmacies which the broker believes is the “smartest M&A strategy in radiopharma” as the acquisition will “fit” with the company’s US supply chain goals.

Radiopharma has 31 pharmacies in 18 states and supplies 85% of the US population, Wilsons observes, 

Overweight retained. Target is steady at $22.

This report was published on September 23, 2024.

Target price is $22.00 Current Price is $20.12 Difference: $1.88
If TLX meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 103.71.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 27.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 73.16.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $32.98

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

Goldman Sachs notes the ACCC announcement to commence separate legal proceedings in the Federal Court into alleged breach of Australian Consumer Law for Coles Group ((COL)) and Woolworths Group in misleading consumers on discount pricing claims on hundreds of supermarket goods.

Woolworths Group has 266 products sold as part of the Price Dropped program for 20 months between 2021 and 2023.

The analyst believes there is risk from negative consumer sentiment towards the major supermarkets which may have adverse impacts on sales.

Buy rating and $40.10 target price unchanged.

This report was published on September 23, 2024.

Target price is $40.10 Current Price is $32.98 Difference: $7.12
If WOW meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $37.08, suggesting upside 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 114.00 cents and EPS of 150.00 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 21.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 140.7, implying annual growth of 1489.8%.
Current consensus DPS estimate is 103.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.6.

Forecast for FY26:

Current consensus EPS estimate is 152.5, implying annual growth of 8.4%.
Current consensus DPS estimate is 111.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.7.

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

---

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

The ACCC has launched proceedings against Woolworths Group for allegedly misleading consumers over the discounting applied to circa 500 products (includes tally for simultaneous action against Coles Group) over a 15-month period prior to May 2023.

Jarden highlights potential fines for each breach could incur the maximum penalty of -$50m, or reasonably attributable benefit, or, if not determined, 30% of adjusted turnover.

While such near-term noise is not helpful, Jarden sees limited impact in the longer-term.

No change to Overweight rating and $38.60 target price.

This report was published on September 24, 2024.

Target price is $38.60 Current Price is $32.98 Difference: $5.62
If WOW meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $37.08, suggesting upside of 11.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 114.00 cents and EPS of 151.10 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 21.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 140.7, implying annual growth of 1489.8%.
Current consensus DPS estimate is 103.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 127.00 cents and EPS of 168.20 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.5, implying annual growth of 8.4%.
Current consensus DPS estimate is 111.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.7.

Market Sentiment: 0.3
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