Australian Broker Call *Extra* Edition – Nov 25, 2024

This story features BLUESCOPE STEEL LIMITED, and other companies. For more info SHARE ANALYSIS: BSL

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)

BSL   CRD   CTP   CUV   EHL   HVN   JBH   NCK   NWL   PPS   PWH   QBE   SUL   WES (2)  

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $21.23

Jarden rates ((BSL)) as Neutral (3) –

The recent decline in operating performance at BlueScope Steel raises concerns with greater remedial action needed, suggests Jarden following the company’s AGM.

Structural challenges are centred on Australian energy costs, the performance of the acquired US Coated Products business, and North Star conversion costs, explains the broker.

Jarden was encouraged by AGM commentary indicating domestic volumes are holding steady.

The broker maintains a Neutral rating and a $21.90 target price, expressing long-term confidence in management’s ability to address short-term cyclical pressures while building more stable earnings streams.

This report was published on November 21, 2024.

Target price is $21.90 Current Price is $21.23 Difference: $0.67
If BSL meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $22.59, suggesting upside of 6.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 60.00 cents and EPS of 72.30 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 29.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.1, implying annual growth of -53.8%.
Current consensus DPS estimate is 58.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 25.5.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 60.00 cents and EPS of 155.90 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 187.6, implying annual growth of 125.8%.
Current consensus DPS estimate is 60.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 11.3.

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

CRD    CONRAD ASIA ENERGY LIMITED

Crude Oil – Overnight Price: $0.93

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

Conrad Asia Energy has updated the market on the economics of a small-scale LNG plant for the Aceh resource, estimating capital costs could be materially lower than expected.

Wilsons notes the facility is expected to produce 2040 mmscfd of gas with potential third-party involvement in construction and operation, reducing Conrad’s financial burden and risk.

Environmental permits for seismic acquisition are anticipated this quarter, with deepwater areas showing strong potential based on hydrocarbon indicators.

Wilsons highlights potential liquidity improvements from debt funding of $140m and a sell-down in the asset generating $40m, though a $20m raise is expected in 1H 2025 as a precaution.

Target price $2.03, with Overweight rating.

This report was published on November 20, 2024.

Target price is $2.03 Current Price is $0.93 Difference: $1.1
If CRD meets the Wilsons target it will return approximately 118% (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 minus 4.98 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 18.69.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 7.09 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 13.12.

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

CTP    CENTRAL PETROLEUM LIMITED

NatGas – Overnight Price: $0.05

Wilsons rates ((CTP)) as No Rating (-1) –

Wilsons highlights Central Petroleum has secured long-term gas sales agreements with the Northern Territory government for 12PJ over six years, refinancing debt to 2029, and initiating a two-well production program at Mereenie.

The broker expects FY24 earnings to improve to $9.8m from $2.7m in the prior year, with net operational cash flows reaching $6.9m.

Management is exploring opportunities at Jacko Bore and Dukas, with sell-downs being pursued to realise value from helium resources and the large-scale gas prospects. Mereenie’s helium recovery potential and Palm Valley drilling are additional growth avenues, the analyst states.

The company has a net cash position of $1.9m, and growing margins, Wilsons notes.

Central Petroleum is not rated. No target price.

This report was published on November 21, 2024.

Current Price is $0.05. Target price not assessed.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $13.04

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

Clinuvel Pharmaceuticals announced the European Medicines Agency is considering expanding Scenesse dosing from four to six implants annually for erythropoietic protoporphyria patients, aligning with US practices approved by the FDA in 2019.

Wilsons expects an outcome in the first quarter of 2025, potentially benefiting European patients and enhancing long-term safety data.

The broker notes this as a potential incremental boost to Scenesse revenue, with Europe currently contributing 45% of FY25 revenue forecasts. Commercial impacts would be gradual due to prescribing habits and payer support.

Wilsons makes no changes to forecasts, with FY25 revenue growth estimated at over 10%, driven primarily by US expansion.

Overweight rated with a $30.16 target price.

This report was published on November 21, 2024.

Target price is $30.16 Current Price is $13.04 Difference: $17.12
If CUV meets the Wilsons target it will return approximately 131% (excluding dividends, fees and charges).
Current consensus price target is $19.08, suggesting upside of 46.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 6.00 cents and EPS of 62.90 cents.
At the last closing share price the estimated dividend yield is 0.46%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.2, implying annual growth of 8.0%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 7.00 cents and EPS of 73.00 cents.
At the last closing share price the estimated dividend yield is 0.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.6, implying annual growth of -0.8%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 17.0.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.81

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

Jarden upgrades Emeco Holdings to Overweight from Neutral following an AGM update where initial FY25 earnings (EBITDA) guidance of at least $300m was provided.

Management indicated a similar earnings skew to FY24 in FY25, with a slight improvement anticipated in 2H25 utilisation.

The broker raises EPS estimates for FY25-27 by 17%, 7%, and 7%, respectively, supported by strong demand for surface equipment and constrained capital intensity.

Jarden increases the target price to $1.00 from $0.85, citing enhanced earnings visibility and balance sheet strength.

This report was published on November 21, 2024.

Target price is $1.00 Current Price is $0.81 Difference: $0.19
If EHL meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 14.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.47.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 15.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.09.

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

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $4.72

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

Jarden has recalibrated its views on retailers.

The broker upgrades Harvey Norman to Overweight from Neutral to reflect the replacement cycle, a more optimistic outlook for the consumer in 2025 with short-term volatility and a lot relying on Cyber week.

Target price moves to $4.90 with the company’s upcoming AGM on Nov 27.

This report was published on November 20, 2024.

Target price is $4.90 Current Price is $4.72 Difference: $0.18
If HVN meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $4.95, suggesting upside of 4.9%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 32.4, implying annual growth of 14.5%.
Current consensus DPS estimate is 25.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY26:

Current consensus EPS estimate is 35.3, implying annual growth of 9.0%.
Current consensus DPS estimate is 27.8, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.4.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $90.06

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

Jarden has recalibrated its views on retailers.

The broker upgrades JB Hi-Fi to Neutral from Underweight, reflecting the replacement cycle and a more optimistic outlook for consumers in 2025, despite short-term volatility and the significance of the upcoming Cyber Week.

Jarden believes JB Hi-Fi offers “quality growth” and raises the target price to $84 from $68.

This report was published on November 20, 2024.

Target price is $84.00 Current Price is $90.06 Difference: minus $6.06 (current price is over target).
If JBH meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $77.87, suggesting downside of -13.5%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 419.9, implying annual growth of 4.6%.
Current consensus DPS estimate is 301.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.4.

Forecast for FY26:

Current consensus EPS estimate is 446.6, implying annual growth of 6.4%.
Current consensus DPS estimate is 295.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.2.

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

NCK    NICK SCALI LIMITED

Furniture & Renovation – Overnight Price: $13.75

Jarden rates ((NCK)) as Buy (1) –

Jarden maintains a Buy rating for Nick Scali and retains the target price at $15.88, noting no material impact to FY25 earnings from freight delays.

Management resolved delays involving $18.6m worth of furniture stranded in China, with only a small portion of sales at risk of shifting to 2H25. The broker expects 1H25 COGS to rise slightly due to one-off storage costs, which should not affect FY25 underlying profit.

Management highlighted robust wholesale orders at the AGM, and the analysts note the UK outlook is improving.

This report was published on November 21, 2024.

Target price is $15.88 Current Price is $13.75 Difference: $2.13
If NCK meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $15.30, suggesting upside of 11.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 72.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.1, implying annual growth of -27.0%.
Current consensus DPS estimate is 58.2, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 19.1.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 86.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 38.8%.
Current consensus DPS estimate is 69.4, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.7.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $29.83

Wilsons rates ((NWL)) as Market Weight (3) –

Netwealth Group reportedf funds under administration of $98.6bn, up 12% since FY24-end, reflecting strong market uplift and robust net inflows despite a slower Q2 run-rate.

Wilsons highlights gross inflows remain at record levels, supported by fee-caps, stabilising pooled cash, and a risk-on equity environment.

The broker sees momentum across key levers, including moderate outflow rates, positive trading activity, and competitor migrations, suggesting a favourable medium-term outlook.

Market tailwinds are expected to drive further growth in funds under administration, with 2025 forecast net fund flows at $3.2bn (+25% year-on-year).

The price target is raised to $30.33 from $25.16. Market Weight rating unchanged.

This report was published on November 21, 2024.

Target price is $30.33 Current Price is $29.83 Difference: $0.5
If NWL meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $25.76, suggesting downside of -13.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 33.00 cents and EPS of 43.20 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 69.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of 27.6%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 68.4.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 41.70 cents and EPS of 51.40 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 58.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.7, implying annual growth of 23.2%.
Current consensus DPS estimate is 43.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 55.5.

Market Sentiment: 0.1
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: $0.66

Moelis rates ((PPS)) as Buy (1) –

Management reaffirmed progress on Praemium’s Spectrum IDPS product at the AGM, highlighting strong platform revenue growth and advancements in AI-driven efficiencies.

Moelis notes revenue margins improved by 3bps in early FY25 due to SMA repricing, and Euroz Hartleys adopted the full suite of the company’s products, transitioning $2bn in FUA over 18 months.

The broker estimates gross inflows of $250m, $600m, and $1bn for FY25-27, respectively, frrom Spectrum, noting potential upside if execution remains robust. OneVue synergies are expected to contribute $3m in annual earnings.

Moelis raises EPS forecasts by 0.3% in FY25 and 3.5% in FY26.

Buy rating retained. Target price rises to 87c from 80c.

This report was published on November 20, 2024.

Target price is $0.87 Current Price is $0.66 Difference: $0.21
If PPS meets the Moelis target it will return approximately 32% (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 1.52%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.57.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 1.30 cents and EPS of 3.40 cents.
At the last closing share price the estimated dividend yield is 1.97%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.41.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $7.70

Moelis rates ((PWH)) as Hold (3) –

Moelis highlights PWR Holdings reported weaker-than-expected 1H25 guidance, with revenue forecast at $61.9m, below expectations by -13%.

The outlook is impacted by reduced Motorsports growth due to delayed F1 team developments, a soft aftermarket and OEM revenues, with reductions from paused EV programs.  Aerospace and Defence remain strong, with possible defence contract opportunities.

Net profit is expected at $3.2-3.7m, including -$0.3m in factory transition costs, with cost realignment planned for 2H25. Moelis lowers EPS estimates by -22.9% in FY25 and -11.7% in FY26.

The price target is reduced to $7.74 from $10.96, with a Hold rating retained due to risks in the factory transition and execution uncertainties in new markets.

This report was published on November 20, 2024.

Target price is $7.74 Current Price is $7.70 Difference: $0.04
If PWH meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $8.54, suggesting upside of 10.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 10.80 cents and EPS of 18.90 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 40.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -34.4%.
Current consensus DPS estimate is 1682.4, implying a prospective dividend yield of 218.5%.
Current consensus EPS estimate suggests the PER is 47.5.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 14.40 cents and EPS of 24.90 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 30.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 63.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 29.1.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $19.78

Jarden rates ((QBE)) as Buy (1) –

Ahead of a trading update on 27 November, Jarden retains a Buy rating for QBE Insurance and raises the target price to $20.90 from $18.45, citing supportive underwriting conditions and an improved investment yield outlook.

The broker forecasts a FY24 combined operating ratio (COR) of approximately 93.5%, driven by lower-than-expected catastrophe (CAT) costs and favourable crop underwriting results.

Key drivers include rising premium rates, stable retention, and improved margins, which offset inflation concerns in casualty lines, explain the analysts.

Jarden highlights the potential for capital flexibility, with QBE trading at an attractive forward multiple, supported by multi-year price firming and disciplined portfolio management.

This report was published on November 21, 2024.

Target price is $20.90 Current Price is $19.78 Difference: $1.12
If QBE meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $19.91, suggesting upside of 0.6%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 85.00 cents and EPS of 167.97 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 11.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 163.6, implying annual growth of N/A.
Current consensus DPS estimate is 77.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 12.1.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 88.00 cents and EPS of 168.28 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 177.2, implying annual growth of 8.3%.
Current consensus DPS estimate is 82.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 11.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $14.50

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

Jarden has recalibrated its views on retailers.

The broker upgrades Super Retail to Overweight from Neutral with a $16.80 target price.

Jarden has a more optimistic view on the consumer for 2025 with Super Retail expected to gain market share.

This report was published on November 20, 2024.

Target price is $16.60 Current Price is $14.50 Difference: $2.1
If SUL meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $17.59, suggesting upside of 21.3%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 110.8, implying annual growth of 4.2%.
Current consensus DPS estimate is 115.2, implying a prospective dividend yield of 7.9%.
Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY26:

Current consensus EPS estimate is 120.9, implying annual growth of 9.1%.
Current consensus DPS estimate is 125.0, implying a prospective dividend yield of 8.6%.
Current consensus EPS estimate suggests the PER is 12.0.

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

WES    WESFARMERS LIMITED

Consumer Products & Services – Overnight Price: $70.92

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

Following industry consultations, Goldman Sachs lowers its earnings (EBIT) estimates for Wesfarmers by between -3.3% to -4.4% across FY25-27, reflecting a muted margin profile for Kmart and higher-than-expected other expenses.

The broker highlights strong performances at Bunnings, with continued market share gains in the DIY and trade segments, and future growth opportunities in lithium, health, and retail media.

The broker’s target price increases to $69.50 from $66.60, driven by a reduction in the discount rate applied in the analysts’ valuation model.

Goldman retains a Neutral rating, citing resilience at Bunnings but acknowledging risks related to margin pressure and platform delivery.

This report was published on November 21, 2024.

Target price is $69.50 Current Price is $70.92 Difference: minus $1.42 (current price is over target).
If WES meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $65.00, suggesting downside of -8.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 200.00 cents and EPS of 227.00 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 31.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.9, implying annual growth of 5.4%.
Current consensus DPS estimate is 207.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 29.8.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 224.00 cents and EPS of 255.00 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 27.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.9, implying annual growth of 8.4%.
Current consensus DPS estimate is 224.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.5.

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 ((WES)) as Downgrade to Underweight from Neutral (4) –

Jarden has recalibrated its views on retailers.

The broker downgrades Wesfarmers to Underweight from Neutral with risks to the earnings outlook.

Target price $61.

This report was published on November 20, 2024.

Target price is $61.00 Current Price is $70.92 Difference: minus $9.92 (current price is over target).
If WES meets the Jarden target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $65.00, suggesting downside of -8.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 202.00 cents and EPS of 231.40 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 30.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.9, implying annual growth of 5.4%.
Current consensus DPS estimate is 207.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 29.8.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 229.00 cents and EPS of 263.80 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 26.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.9, implying annual growth of 8.4%.
Current consensus DPS estimate is 224.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.5.

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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Disclaimer:
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