Australian Broker Call *Extra* Edition – Nov 20, 2024

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

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)

APZ   CPU   DSK   EVS   FLT   IPH   JHX   ORI   PEN   SMI   SPZ   XRO (2)  

APZ    ASPEN GROUP LIMITED

Real Estate – Overnight Price: $2.43

Moelis rates ((APZ)) as Buy (1) –

In mid-October, Aspen Group reported Q1 FY25 underlying EPS of 4.4c, up 20% year-on-year and well above the run-rate needed to achieve prior FY25 guidance of 15.2c, notes Moelis.

Management has now upgraded FY25 guidance for underlying EPS to 16.0c and announced plans to double its production of houses and land sites to 200 in FY25, compared to 97 settlements in FY24, highlights the broker.

Aspen divested -50% of its stake in Eureka Group ((EGH)), reducing its gearing to below 22% from 25.7%, and signalling a shift toward development income, which Moelis views as incrementally positive for long-term value creation.

Moelis raises its target price to $2.73 from $2.53 and retains a Buy rating.

This report was published on November 18, 2024.

Target price is $2.73 Current Price is $2.43 Difference: $0.3
If APZ meets the Moelis target it will return approximately 12% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 9.70 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.19.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 10.20 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.64.

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $30.90

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

As part of Computershare’s AGM update, management retained FY25 EPS guidance of 126c and margin income guidance of $745m, notes Goldman Sachs.

Operating trends across Issuer Services, Employee Share Plans, and Corporate Trust are tracking favourably, observes the broker, although expense growth remains a potential risk.

A strong balance sheet should support ongoing investments in technology and M&A opportunities, believe the analysts, while also maintaining the capital management strategy.

Goldman makes minor upgrades to its FY25 earnings forecasts, reflecting stronger-than-expected margin income balances, and raises the target price to $31 from $30. Buy rating maintained.

This report was published on November 15, 2024.

Target price is $31.00 Current Price is $30.90 Difference: $0.1
If CPU meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $30.47, suggesting downside of -1.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 96.00 cents and EPS of 189.96 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 192.4, implying annual growth of N/A.
Current consensus DPS estimate is 70.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 87.00 cents and EPS of 191.47 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 199.5, implying annual growth of 3.7%.
Current consensus DPS estimate is 73.8, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 15.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $1.20

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

Canaccord Genuity views Dusk Group’s AGM update positively, noting a 13% year-on-year increase in sales over the first 20 weeks of FY25, with online sales up 41%, representing 8.3% of total sales.

The broker highlights strong membership growth, with loyalty renewals and new sign-ups up 42% year-to-date, accounting for 57% of sales, alongside a successful product-led turnaround strategy.

Management reaffirmed its intention to undertake capital management in 2H FY25, contingent on sustained trading improvements, with the last reported net cash at $21m.

Canaccord Genuity retains a Buy rating and maintains the target price of $1.60, citing upside potential from continued operational momentum.

This report was published on November 18, 2024.

Target price is $1.60 Current Price is $1.20 Difference: $0.4
If DSK meets the Canaccord Genuity target it will return approximately 33% (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 8.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.00.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 11.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 9.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.50.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.06

Moelis rates ((EVS)) as Buy (1) –

Envirosuite’s AGM update highlighted year-to-date new annual recurring revenue (ARR) of $2.8m and project sales of $4.3m, significantly ahead of prior periods, driven by strong customer renewals and reduced churn, notes Moelis.

Hitachi’s $10m strategic investment, acquiring a 12% stake at a 29% premium, positions Envirosuite to leverage Hitachi’s 400 global customer sites and accelerate penetration into the industrial and mining sectors, explains the broker.

Management expects the partnership to enhance ARR growth in FY25 and enable additional co-selling opportunities, supported by recent leadership changes.

Moelis upgrades FY25-27 sales forecasts by 2-3% and retains a Buy rating, raising the target price to 7c from 6c.

This report was published on November 18, 2024.

Target price is $0.07 Current Price is $0.06 Difference: $0.013
If EVS meets the Moelis target it will return approximately 23% (excluding dividends, fees and charges).
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 0.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 57.00.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 28.50.

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $17.48

Jarden rates ((FLT)) as Buy (1) –

Management at Flight Centre’s AGM provided FY25 pre-tax profit guidance of $365-405m, implying 20% year-on-year growth and a -3% reduction to consensus at the midpoint, notes Jarden.

Trends improved in Q2 with October total transaction value (TTV) rising by 6% and pre-tax profit increasing by 30% year-on-year, driven by stabilising fares, market share gains, and margin expansion, explain the analysts.

Management acknowledged the 2% profit margin aspiration is unlikely to be achieved in FY25.

Jarden reduces EPS forecasts by -7-13% due to a more conservative view on growth but highlights potential upside from improved travel demand and margin expansion over the medium term.

The target price falls to $23.10 from $23.70. Buy rating maintained.

This report was published on November 15, 2024.

Target price is $23.10 Current Price is $17.48 Difference: $5.62
If FLT meets the Jarden target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $22.81, suggesting upside of 30.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 66.00 cents and EPS of 114.30 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 125.7, implying annual growth of 97.3%.
Current consensus DPS estimate is 43.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 83.00 cents and EPS of 132.50 cents.
At the last closing share price the estimated dividend yield is 4.75%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.5, implying annual growth of 15.8%.
Current consensus DPS estimate is 55.9, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 12.0.

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

IPH    IPH LIMITED

Legal – Overnight Price: $5.13

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

First quarter FY25 like-for-like revenue and earnings (EBITDA) for IPH increased moderately compared to the prior corresponding period, though earnings were slightly impacted by currency headwinds, notes Goldman Sachs.

The A&NZ region showed solid improvements, according the analysts, while Canada traded in line with expectations but facing delays in patent revenue due to system issues at the Canadian Intellectual Property Office. Asia experienced moderate revenue declines.

Management remains focused on narrowing the filings gap in A&NZ and integrating acquisitions in Canada, while client wins in Asia provide early signs of recovery.

Goldman maintains a Buy rating and a target price of $7.50, citing potential for an improving outlook in 2H25.

This report was published on November 15, 2024.

Target price is $7.50 Current Price is $5.13 Difference: $2.37
If IPH meets the Goldman Sachs target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $7.21, suggesting upside of 40.6%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 36.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 7.02%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.2, implying annual growth of 84.2%.
Current consensus DPS estimate is 34.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 39.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 7.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.9, implying annual growth of 8.0%.
Current consensus DPS estimate is 36.5, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 10.3.

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

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $55.91

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

James Hardie reported Q2 FY25 adjusted profit of US$157m, surpassing guidance (US$135-155m) and consensus estimate (US$145m), driven by strong APAC performance and effective cost management, notes Jarden.

North America volumes declined by -7% year-on-year due to weaker housing and renovation markets, according to the analysts.

Despite the volume decline, cost-saving measures and pricing improvements supported an earnings (EBIT) margin of 29%, at the upper end of guidance, explains the broker.

Management reaffirmed FY25 guidance at the lower end of prior ranges, authorised a US$300m buyback, and lowered FY25 capex guidance to -US$420-440m from -US$500-550m, reflecting delays in housing market recovery.

Jarden raises the target price to $54 from $52, reflecting slight upgrades to earnings forecasts, and retains an Overweight rating.

This report was published on November 15, 2024.

Target price is $54.00 Current Price is $55.91 Difference: minus $1.91 (current price is over target).
If JHX meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $59.14, suggesting upside of 5.8%(ex-dividends)
The company’s fiscal year ends in March.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 222.52 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 227.7, 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 24.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 256.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 266.3, implying annual growth of 17.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 21.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

ORI    ORICA LIMITED

Mining Sector Contracting – Overnight Price: $18.32

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

Orica reported FY24 underlying profit of $409m, 2% ahead of Goldman Sachs’ estimate, with Blasting Solutions earnings (EBIT) exceeding expectations by 4%, supported by strong APAC results offsetting North American weakness.

On the back of the largest plant turnaround in the company’s history, profitability per tonne improved by 15%, driven by favourable mix and volume contributions, notes the broker. Goldman Sachs forecasts earnings per tonne growth of 10% in FY25.

Management announced a FY24 dividend of 47c, up 9% year-on-year, and flagged a capital framework review as the company transitions from its M&A cycle to focus on de-leveraging or other capital management initiatives.

Goldman Sachs retains a Buy rating and maintains the target price at $21.40.

This report was published on November 15, 2024.

Target price is $21.40 Current Price is $18.32 Difference: $3.08
If ORI meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $20.84, suggesting upside of 13.7%(ex-dividends)
The company’s fiscal year ends in September.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 51.00 cents and EPS of 101.00 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.5, implying annual growth of -10.1%.
Current consensus DPS estimate is 53.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 58.00 cents and EPS of 115.00 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 115.0, implying annual growth of 15.6%.
Current consensus DPS estimate is 61.6, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 15.9.

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

PEN    PENINSULA ENERGY LIMITED

Uranium – Overnight Price: $0.06

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

Peninsula Energy has reduced 2025 production guidance to 0.6Mlbs from 0.7-0.9Mlbs and raised capex for the Lance project by US$9.5m due to operational delays, notes Canaccord Genuity.

Management expects to meet contractual commitments with US$68m in cash but faces a funding gap (estimated at -US$20m) to reach positive operational cash flow, note the analysts.

Canaccord lowers its target price to 16c from 20c, citing increased funding risks and slower ramp-up, and retains a Speculative Buy rating.

This report was published on November 18, 2024.

Target price is $0.16 Current Price is $0.06 Difference: $0.097
If PEN meets the Canaccord Genuity target it will return approximately 154% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.15 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 41.72.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.50.

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: $0.55

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

Santana Minerals’ updated pre-feasibility study (PFS) for the Bendigo-Ophir Gold Project outlines a high-margin operation producing an average of 125koz annually at costs (AISC) of $1,416/oz over a nine-year mine life, notes Canaccord Genuity.

The initial three years are expected to deliver 147koz annually at costs (AISC) of $1,255/oz, supported by high-grade open-pit mining.

Total pre-production capex is estimated at -$340m, including higher pre-strip costs, with first production targeted for the September quarter of 2027.

Management is targeting a final investment decision by mid-2025. Santana is well-funded with $32m in cash and no debt as of September 2024, explain the analysts.

Canaccord Genuity raises its target price to $1.22 from $1.16, citing an improved production profile and retains a Speculative Buy rating.

This report was published on November 18, 2024.

Target price is $1.22 Current Price is $0.55 Difference: $0.675
If SMI meets the Canaccord Genuity target it will return approximately 124% (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 3.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 18.17.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 13.63.

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

SPZ    SMART PARKING LIMITED

Hardware & Equipment – Overnight Price: $0.93

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

Smart Parking reported Q1 FY25 revenue of $17m, up 24% year-on-year, with adjusted earnings (EBITDA) of $5.4m, reflecting a 32% margin, notes Canaccord Genuity.

The company surpassed its December 2024 site target of 1,500 sites early, with 1,529 sites currently operational, and announced a new organic target of 3,000 sites by 2028, highlights the broker.

Management confirmed ambitions to expand into over ten geographies, including potential entries into the US and Scandinavia.

Canaccord Genuity raises its target price to $1.10 from $0.75 due to the roll-forward of the broker’s financial model and upgrades to long-term forecasts. A Buy rating is kept.

This report was published on November 18, 2024.

Target price is $1.10 Current Price is $0.93 Difference: $0.17
If SPZ meets the Canaccord Genuity target it will return approximately 18% (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 2.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 38.75.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 2.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 32.07.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $176.88

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

Xero reported 1H25 revenue of NZ$996m, missing Goldman Sachs’ estimate by -3%, while earnings (EBITDA) of NZ$312m exceeded forecasts by 10%, supported by lower-than-expected operating expenses.

The broker highlights strong platform revenue growth of 28% year-on-year, with payments contributing NZ$45m.

Subscriber additions were solid in A&NZ and the UK, though average revenue per user (ARPU) was impacted by seasonality and promotions, notes the analysts.

Goldman Sachs adjusts FY25-27 EBIT forecasts by between 1% and -1%, reflecting slower ARPU recovery and improved cost controls.

The target price remains at $201, and the Buy rating is retained.

This report was published on November 15, 2024.

Target price is $201.00 Current Price is $176.88 Difference: $24.12
If XRO meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $196.15, suggesting upside of 10.9%(ex-dividends)
The company’s fiscal year ends in March.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 158.12 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 111.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.5, 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 137.6.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 0.00 cents and EPS of 209.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 84.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 200.6, implying annual growth of 56.1%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 88.2.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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

Jarden notes Xero reported strong 1H25 results, with revenue increasing by 24.6% to NZ$995.9m, and earnings by 125% to NZ$175m, which were above the analyst’s and consensus estimates.

The broker highlights the operating cost ratio guidance of 73% appears conservative, given the reported 71.2% in 1H25.

Free cash flow doubled to NZ$198.5m in 1H25 which is 16% above Jarden’s forecast, prompting an 11% upgrade to the analyst’s estimate for FY26 free cash flow to NZ$519m.

Jarden lifts EPS forecasts for FY25 by 3%. Overweight rating retained while raising the price target to $177 from $151.

This report was published on November 15, 2024.

Target price is $177.00 Current Price is $176.88 Difference: $0.12
If XRO meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $196.15, suggesting upside of 10.9%(ex-dividends)
The company’s fiscal year ends in March.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 161.98 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 109.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.5, 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 137.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 106.64 cents and EPS of 211.25 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 83.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 200.6, implying annual growth of 56.1%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 88.2.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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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.

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