Australian Broker Call *Extra* Edition – Oct 23, 2024

This story features AUDINATE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AD8

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)

AD8   AOV   ARB   CAR   COL   DHG   GDF   GDG   GMD   MAC   MTS   PPS   REA   SEK   WOW  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $8.96

Moelis rates ((AD8)) as Hold (3) –

Earlier in October Moelis initiated coverage with a Hold rating due to an opaque near-term outlook as supply chains normalise following covid. It was felt earnings will be skewed to the 2H of FY25. 

This week’s trading update provided at the company’s AGM has played to that script with Audinate Group effectively issuing yet another profit warning as buying orders continue to underwhelm management’s expectation.

Q2 is now looking like Q1, so no improvement is anticipated until H2. Moelis has reduced forecasts, highlighting with no cost relief the impact on earnings is expected to be “significant”.

Commentary broadly suggests a year of transition for the company can still involve more negative outcomes as clarity is not around. Hold. Target price falls to $9.45. Revised forecasts now see two years of Audinate reporting losses.

This report was published on October 22, 2024.

Target price is $9.45 Current Price is $8.96 Difference: $0.49
If AD8 meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $11.58, suggesting upside of 32.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 11.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 75.93.

How do these forecasts compare to market consensus projections?

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

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 448.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 159.5.

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

AOV    AMOTIV LIMITED

Automobiles & Components – Overnight Price: $10.83

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

Amotiv’s AGM update inferred 1Q25 revenues rose 3.5% against a year earlier. Canaccord Genuity states this is basically in line with forecast FY25 revenue growth of 4.5%.

Management suggested a stronger 2H25 because of Jan 1 price rises.

A buyback of 5% of issued capital was also announced. The AGM update is viewed by the broker as neutral.

Buy rating reiterated as the stock is believed to be “fundamentally too cheap for its outlook and prospects”. Target price unchanged $14.40.

This report was published on October 21, 2024.

Target price is $14.40 Current Price is $10.83 Difference: $3.57
If AOV meets the Canaccord Genuity target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $13.15, suggesting upside of 20.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 50.00 cents and EPS of 90.00 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 12.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.2, implying annual growth of 21.9%.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY26:

Current consensus EPS estimate is 95.6, implying annual growth of 10.9%.
Current consensus DPS estimate is 47.1, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 11.4.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $42.19

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

ARB Corp reported sales growth of 6.5% in 1Q25 on the previous corresponding period with steady gross margins, Wilsons notes. Net profit declined slightly from labour management and transaction costs.

Management did not offer any guidance but suggested strong orderbooks and a growing export order position across key markets. New stores and products are helping to drive higher “fitment capacity” which is offsetting reduced vehicles sales.

Although the result was softer than expected, Wilsons lifts its target price to $50.27 from $47.85, maintaining an Overweight rating.

This report was published on October 18, 2024.

Target price is $50.27 Current Price is $42.19 Difference: $8.08
If ARB meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $43.30, suggesting upside of 2.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 72.00 cents and EPS of 131.20 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 32.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 135.7, implying annual growth of 8.6%.
Current consensus DPS estimate is 73.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 31.0.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 78.50 cents and EPS of 143.60 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 29.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.2, implying annual growth of 12.2%.
Current consensus DPS estimate is 83.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 27.6.

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

CAR    CAR GROUP LIMITED

Automobiles & Components – Overnight Price: $37.12

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

Jarden raises target prices for the four online classified stocks under the broker’s research coverage after updating forecasts for recent listing volumes data and to reflect the analysts’ lower risk-free rate assumptions.

The broker’s target for CAR Group climbs to $32.75 from $31.25 due solely to the lower risk-free assumptions. The Underweight rating is unchanged.

This report was published on October 18, 2024.

Target price is $32.75 Current Price is $37.12 Difference: minus $4.37 (current price is over target).
If CAR meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $38.52, suggesting upside of 4.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 74.10 cents and EPS of 92.50 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 40.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.5, implying annual growth of 41.0%.
Current consensus DPS estimate is 81.6, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 39.4.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 80.60 cents and EPS of 100.60 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 36.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.1, implying annual growth of 16.7%.
Current consensus DPS estimate is 93.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 33.7.

Market Sentiment: 0.8
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: $17.91

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

While still under-penetrated relative to the US, China, and the UK, highlights Goldman Sachs, Australia’s online retail penetration reached 11% in FY24, including 7% for supermarkets.

Supported by an expanded range and improved supply chain/last mile infrastructure, the broker anticipates online sales will outstrip offline growth, and reach around 12% for supermarkets by FY30.

For Coles Group, the target rises to $19.10 from $18.00 after the broker factors in higher forecast margins in FY25-27 on improved food and liquor margin expectations. The Neutral rating is unchanged.

The broker anticipates Woolworths will continue to broaden its leadership of the grocery market. It’s thought Coles Group will grow share but at a slower pace than Woolworths.

This report was published on October 22, 2024.

Target price is $19.10 Current Price is $17.91 Difference: $1.19
If COL meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $20.11, suggesting upside of 10.8%(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 79.10 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.64.

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 21.1.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 77.00 cents and EPS of 95.10 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 18.83.

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

DHG    DOMAIN HOLDINGS AUSTRALIA LIMITED

Real Estate – Overnight Price: $3.10

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

Jarden raises target prices for the four online classified stocks under the broker’s research coverage after updating forecasts for recent listing volumes data and to reflect the analysts’ lower risk-free rate assumptions.

The broker’s target for Domain Holdings Australia rises by 10c to $3.45 and the rating is downgraded to Overweight from Buy after a strong recent share price performance.

This report was published on October 18, 2024.

Target price is $3.45 Current Price is $3.10 Difference: $0.35
If DHG meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $3.30, suggesting upside of 8.2%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 7.20 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 35.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of 32.4%.
Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 34.3.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 8.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of 19.1%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 28.8.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.14

Moelis rates ((GDF)) as Buy (1) –

Garda Property has announced the sale of its industrial development site at North Lakes for $114.0m. The deal has several conditions attached, but these are anticipated to be satisfied by Q4 of FY25.

Moelis comments this deal allows Garda Property to reduce gearing to 22% (assuming all goes well). It is noted the deal has been concluded at a -2.4% discount to the independent on-completion value of $116.8m.

The broker notes it is the intention to make a one-off special distribution to assist security holders with the tax associated with the capital gain from the sale of North Lakes.

The broker also makes the point asset sales are materially accretive to earnings given proceeds will be used to retire most, if not all of the REIT’s variable debt facilities.

Buy. Target lifts to $1.66. EPS and DPS forecasts made a small jump.

This report was published on October 23, 2024.

Target price is $1.66 Current Price is $1.14 Difference: $0.525
If GDF meets the Moelis target it will return approximately 46% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.20 cents and EPS of 6.80 cents.
At the last closing share price the estimated dividend yield is 6.34%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.69.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 7.50 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.70.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $3.44

Moelis rates ((GDG)) as Buy (1) –

Generation Development’s market update showed yet again solid growth from Lonsec with new product growth underpinned by the continuing expansion of the private market offerings from fund managers, Moelis comments.

The broker highlights Funds under Management (FUM) is now at $42m, with sales increasing 28% quarter-on-quarter.

The better-than-projected performance has triggered upgrades to forecasts. The suggesting is made that M&A should be expected to add extra momentum.

Buy rating retained. The target price has improved to $3.91.

This report was published on October 22, 2024.

Target price is $3.91 Current Price is $3.44 Difference: $0.47
If GDG meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 3.10 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 43.54.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 4.00 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 34.06.

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

GMD    GENESIS MINERALS LIMITED

Gold & Silver – Overnight Price: $2.49

Moelis rates ((GMD)) as Buy (1) –

Genesis Minerals reported 1Q25 gold production which was higher than Moelis’ forecasts although the overall result was in line with the broker’s expectations.

With an increase in forecast production for FY25, the analyst lifts the target price to $2.70 from $2.65.

Upside momentum from higher cashflow generation in gold stocks is likely to see further upside in share prices.

Moelis remains Buy rated on Genesis Minerals with nothing in the quarterly update to change the analyst’s views.

This report was published on October 18, 2024.

Target price is $2.70 Current Price is $2.49 Difference: $0.21
If GMD meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $2.62, suggesting upside of 4.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 12.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 133.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 20.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of 3.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 13.4.

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

MAC    METALS ACQUISITION LIMITED

Copper – Overnight Price: $18.14

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

Moelis believes Metals Acquisition’s Q3 production report was “solid” with lots of progress being made to increase production and lower costs.

The broker believes the company is on track to meet its guidance for 2025, with potential upside for 2026.

The commencement of a separate mining area at QTS South Upper will in due course add both tonnes and grade to the feed blend, the broker adds.

The recent drop in the share price has triggered an upgrade to Buy from Hold. Target price has improved to $25 which, the broker highlights, makes the shares look cheap.

This report was published on October 23, 2024.

Target price is $25.00 Current Price is $18.14 Difference: $6.86
If MAC meets the Moelis target it will return approximately 38% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 42.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 42.38.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 137.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.17.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.33

Goldman Sachs rates ((MTS)) as Downgrade to Sell from Neutral (5) –

While still under-penetrated relative to the US, China, and the UK, highlights Goldman Sachs, Australia’s online retail penetration reached 11% in FY24, including 7% for supermarkets.

Supported by an expanded range and improved supply chain/last mile infrastructure, the broker anticipates online sales will outstrip offline growth, and reach around 12% for supermarkets by FY30.

For Metcash, Goldman downgrades to Sell from Neutral on market share erosion both in supermarkets and hardware. An acquisition-led strategy is also expected to lower the company’s return on invested capital (ROIC) measure.

The target falls to $3.10 from $3.70.

This report was published on October 22, 2024.

Target price is $3.10 Current Price is $3.33 Difference: minus $0.23 (current price is over target).
If MTS meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.05, suggesting upside of 20.4%(ex-dividends)
The company’s fiscal year ends in April.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 25.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of 8.2%.
Current consensus DPS estimate is 19.8, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 EPS of 27.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.3, implying annual growth of 5.0%.
Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 11.5.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.64

Moelis rates ((PPS)) as Buy (1) –

A better-than-expected trading update by Praemium has triggered upgrades to Moelis’s forecasts. More Funds under Administration are combining with stronger account growth at Scope.

Moelis highlights Praemium remains on track to meet its forecast of circa 20% CAGR in EPS growth from FY24-FY27. FY25, which is the current financial year, is seen as the year of inflection.

OneVue is expected to add $3m to the growth profile through cost synergies. Buy rating retained with a 80c price target, up from 75c.

This report was published on October 23, 2024.

Target price is $0.80 Current Price is $0.64 Difference: $0.165
If PPS meets the Moelis target it will return approximately 26% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 1.00 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.68.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 1.30 cents and EPS of 3.30 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.24.

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

REA    REA GROUP LIMITED

Real Estate – Overnight Price: $227.18

Jarden rates ((REA)) as Sell (5) –

Jarden raises target prices for the four online classified stocks under the broker’s research coverage after updating forecasts for recent listing volumes data and to reflect the analysts’ lower risk-free rate assumptions.

The broker’s target for REA Group rises to $177 from $170. The company is benefiting from ongoing strength in the Melbourne and Sydney markets, highlight the analysts.

While the Sell rating is retained on valuation grounds, the broker highlights strong momentum in yield and 1Q listing volumes.

This report was published on October 18, 2024.

Target price is $177.00 Current Price is $227.18 Difference: minus $50.18 (current price is over target).
If REA meets the Jarden target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $233.43, suggesting upside of 3.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 228.40 cents and EPS of 431.30 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 52.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 430.3, implying annual growth of 87.7%.
Current consensus DPS estimate is 237.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 52.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 259.30 cents and EPS of 488.50 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 46.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 508.3, implying annual growth of 18.1%.
Current consensus DPS estimate is 282.0, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 44.6.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $25.07

Jarden rates ((SEK)) as Buy (1) –

Jarden raises target prices for the four online classified stocks under the broker’s research coverage after updating forecasts for recent listing volumes data and to reflect the analysts’ lower risk-free rate assumptions.

The broker’s target for Seek rises to $28 from $26.60 on an improved volume outlook partly offset by an increased cost forecast. The Buy rating is maintained.

This report was published on October 18, 2024.

Target price is $28.00 Current Price is $25.07 Difference: $2.93
If SEK meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $26.68, suggesting upside of 7.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 29.70 cents and EPS of 45.70 cents.
At the last closing share price the estimated dividend yield is 1.18%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 54.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.5, implying annual growth of N/A.
Current consensus DPS estimate is 34.5, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 63.1.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 41.00 cents and EPS of 63.10 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 39.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.4, implying annual growth of 47.8%.
Current consensus DPS estimate is 47.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 42.7.

Market Sentiment: 1.0
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: $32.54

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

While still under-penetrated relative to the US, China, and the UK, highlights Goldman Sachs, Australia’s online retail penetration reached 11% in FY24, including 7% for supermarkets.

Supported by an expanded range and improved supply chain/last mile infrastructure, the broker anticipates online sales will outstrip offline growth, and reach around 12% for supermarkets by FY30.

For Woolworths Group, the target falls to $38.90 from $40.10  The Buy rating is unchanged.

The broker anticipates Woolworths will continue to broaden its leadership of the grocery market. It’s thought Coles Group will grow share but at a slower pace than Woolworths.

This report was published on October 22, 2024.

Target price is $38.90 Current Price is $32.54 Difference: $6.36
If WOW meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $37.08, suggesting upside of 12.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 141.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.08.

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 23.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 EPS of 154.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.13.

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 3.4%.
Current consensus EPS estimate suggests the PER is 21.6.

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

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