Australian Broker Call
Produced and copyrighted by at www.fnarena.com
December 20, 2021
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, 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.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
Citi rates 29M as Buy (1) -
Citi initiates a 90-day "catalyst watch" on 29Metals in the light of upgrades to the broker's zinc prices.
Citi notes zinc accounts of 27% of the company's forecast CY22 revenue; and says the zinc market appears tight and is likely to get tighter after the curtailment of the Auby smelter and likelihood of further European smelter disruptions as the power crunch worsens.
Buy rating and $3.20 target price retained.
Target price is $3.20 Current Price is $2.79 Difference: $0.41
If 29M meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $3.21, suggesting upside of 16.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.6, implying annual growth of 10.0%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 36.4. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 3.00 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.7, implying annual growth of 93.4%. Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 18.8. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $8.45
Macquarie rates CHN as Outperform (1) -
Macquarie feels completion of the Falcon Metals ((FAL)) demerger enables Chalice Mining to focus its exploration management team entirely on Julimar and the exploration potential in the Yilgarn.
Falcon Metals will house the company's gold exploration projects in Victoria and Western Australia, explains the analyst.
Outperform rating is maintained. Target price falls to $10.55 from $10.75.
Target price is $10.55 Current Price is $8.45 Difference: $2.1
If CHN meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 17.90 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.50 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.12
Citi rates HLS as Neutral (3) -
Healius has bought bioanalytical laboratory Agilex for $301m in a deal Citi expects will prove dilutive to return on investment capital.
Struck at 20x CY22 earnings (EBITDA), Citi doubts the deal is sufficiently strategic to justify the price. Management estimates the acquisition will be low-single-digit EPS accretive (Citi estimates 2%) but discounted-cash-flow neutral. By comparison, Citi estimates the company's $300m buyback to be 8% accretive.
Citi observes no crossover between clinical diagnostic pathology and clinical trial markets and views Agilex as a standalone business.
Neutral rating retained, the broker noting risk is to the upside. Target price is steady at $5.10.
Target price is $5.10 Current Price is $5.12 Difference: minus $0.02 (current price is over target).
If HLS meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.24, suggesting downside of -1.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 16.00 cents and EPS of 57.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 48.2, implying annual growth of 473.8%. Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 11.0. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 15.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 26.1, implying annual growth of -45.9%. Current consensus DPS estimate is 14.7, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 20.3. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
MFG MAGELLAN FINANCIAL GROUP LIMITED
Wealth Management & Investments
More Research Tools In Stock Analysis - click HERE
Overnight Price: $29.36
Morgan Stanley rates MFG as Underweight (5) -
Morgan Stanley thinks Magellan Financial Group could de-rate and head towards the broker's $17.00 bear-case valuation. It is estimated about 75% of funds under management (FUM) is at risk of suffering lumpy institutional outflows.
This comes as the company entered a trading halt on Friday over a ‘termination of a material contract’, which implies to the analyst an earnings impact of at least -5%. Underweight rating and $29.30 target price are maintained. Industry view: In-line.
Target price is $29.30 Current Price is $29.36 Difference: minus $0.06 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $37.11, suggesting upside of 87.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 240.00 cents and EPS of 243.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 243.3, implying annual growth of 68.3%. Current consensus DPS estimate is 229.4, implying a prospective dividend yield of 11.6%. Current consensus EPS estimate suggests the PER is 8.1. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 EPS of 252.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 252.0, implying annual growth of 3.6%. Current consensus DPS estimate is 229.7, implying a prospective dividend yield of 11.6%. Current consensus EPS estimate suggests the PER is 7.8. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.98
Morgan Stanley rates MVF as Overweight (1) -
Morgan Stanley points out that while month-to-month variability can be observed in the October Medicare data, retention of elevated market volume on FY21 is seen as a positive for Monash IVF Group.
Overweight rating and $1.10 target price are retained. Industry view is In-Line.
Target price is $1.10 Current Price is $0.98 Difference: $0.12
If MVF meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $1.11, suggesting upside of 14.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 2.10 cents and EPS of 2.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.3, implying annual growth of -17.8%. Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 18.3. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 2.10 cents and EPS of 3.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.6, implying annual growth of 5.7%. Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 17.3. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.26
Macquarie rates PAN as Outperform (1) -
Macquarie assesses a key de-risking event will be achieved by Panoramic Resources after the departure of the first concentrate shipment from Savannah on December 27.
In addition, the opening of the WA Border on February 5 should deliver improved operational flexibility, according to the analyst. Outperform rating and $0.30 target price are unchanged.
Target price is $0.30 Current Price is $0.26 Difference: $0.04
If PAN meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.90 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.60 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PRN PERENTI GLOBAL LIMITED
Mining Sector Contracting
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.82
Macquarie rates PRN as Outperform (1) -
Perenti Global has announced the $43.6m sale of MinAnalytical, as well as $32.1m in sales of non-core properties. Macquarie likes the significant level of work in hand and large order book support, which should support cash flow and de-leveraging.
After management updated its capital management policy, the analyst shifts forecast cash flow from dividends to debt repayments, resulting in lower net debt and, thus, lower finance charges. Target price rises to $1.20 from $1.10.
Management has reaffirmed FY22 guidance. Outperform rating is unchanged.
Target price is $1.20 Current Price is $0.82 Difference: $0.38
If PRN meets the Macquarie target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.80 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.20 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
QAN QANTAS AIRWAYS LIMITED
Transportation & Logistics
More Research Tools In Stock Analysis - click HERE
Overnight Price: $4.78
UBS rates QAN as Buy (1) -
Qantas's first-half trading update proved a mixed bag, management guiding to the weakest trading period since Covid and forecasting a -$1.1bn earnings (EBITDA) loss, an increase of -$200m from previous guidance of -$900m. Management cited continuing Delta disruption and reopening costs.
On the flipside, freight was running at record levels, and Qantas Loyalty added material positive cash flow.
Advance bookings outpaced UBS's estimates, contributing to an improvement in working capital, and net debt guidance fell to -$5.65bn, compared with UBS's estimate of -$5.8bn, the company expecting a further reduction in the second half.
UBS reiterates its Buy rating, believing risks are more than priced in, and attributing the guidance miss to liquidity, omicron fears and domestic competition. Target price falls to $6.20 from $6.40.
Target price is $6.20 Current Price is $4.78 Difference: $1.42
If QAN meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $6.01, suggesting upside of 26.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 55.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -46.7, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is N/A. |
Forecast for FY23:
UBS forecasts a full year FY23 dividend of 10.00 cents and EPS of 36.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 47.3, implying annual growth of N/A. Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 10.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
RDY READYTECH HOLDINGS LIMITED
Software & Services
More Research Tools In Stock Analysis - click HERE
Overnight Price: $3.96
Macquarie rates RDY as Outperform (1) -
Macquarie expects a boost for tender win rates from an expanded product offering after ReadyTech Holdings acquired Open Windows Software for a maximum consideration of -$14.3m. The purchase price is considered attractive.
The analyst likes that Open Windows' founders will remain aligned and expects upside from revenue synergies. Target price rises to $4.10 from $3.98. Outperform rating retained.
Target price is $4.10 Current Price is $3.96 Difference: $0.14
If RDY meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 6.60 cents and EPS of 14.10 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 7.40 cents and EPS of 16.10 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $43.15
Morgan Stanley rates SHL as Overweight (1) -
Morgan Stanley points out covid testing benefits hit another record high of $314m (as revealed by October Medicare data) surpassing the previous high of $266m observed in September 2021. Compared with October 2019, imaging benefits rose 4%.
Sonic Healthcare remains the broker's top preference for domestic health services. Overweight rating, target price of $46.10 and In-Line Industry view are unchanged.
Target price is $46.10 Current Price is $43.15 Difference: $2.95
If SHL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $45.13, suggesting upside of 1.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 91.20 cents and EPS of 224.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 270.6, implying annual growth of -1.8%. Current consensus DPS estimate is 103.4, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 16.4. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 110.00 cents and EPS of 160.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 166.8, implying annual growth of -38.4%. Current consensus DPS estimate is 106.9, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 26.7. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates STO as Add (1) -
After combining Santos and Oil Search into forecasts, Morgans arrives at an $8.65 price target, down from $8.85, and retains its Add rating. Further synergies in Alaska are envisaged, beyond management's company-wide guidance for US$90-$115m of synergies.
The analyst feels a wave of future investment will be largely determined by the company's ability to sell down equity in assets like PNG LNG, Alaska and Dorado. Upside risk is expected to be generated from any sell downs.
Target price is $8.65 Current Price is $6.42 Difference: $2.23
If STO meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $8.55, suggesting upside of 40.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 13.28 cents and EPS of 42.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 56.8, implying annual growth of N/A. Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 10.8. |
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 13.28 cents and EPS of 63.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.9, implying annual growth of 37.1%. Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 7.8. |
This company reports in USD. 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
TCL TRANSURBAN GROUP LIMITED
Infrastructure & Utilities
More Research Tools In Stock Analysis - click HERE
Overnight Price: $13.53
Citi rates TCL as Neutral (3) -
Transurban Group is making a -$2bn capital contribution to West Gate Tunnel project, citing cost overruns due to soil contamination, double Citi's forecasts of -$1bn, surprising the market. The amount is 50% more than Transurban's initial share of costs of $4bn says Citi.
Management plans to fund the contribution from corporate liquidity and capital releases, and expects the costs will be capitalised without affecting free cash flow. Completion will be pushed out to 2025 from 2023. This compares with Citi's estimate of 2024.
The D&C subcontractor and Victorian government are chipping in similar amounts, and the broker says the only consolation to be drawn from the situation is that a resolution was reached without expensive recourse to the courts.
Target price falls to $13.49 from $13.78. Neutral rating retained, reflecting toll affordability concerns and work-from-home risks to traffic numbers.
Target price is $13.49 Current Price is $13.53 Difference: minus $0.04 (current price is over target).
If TCL meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $14.78, suggesting upside of 8.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 42.30 cents and EPS of 5.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of N/A. Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 160.6. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 62.20 cents and EPS of 19.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.6, implying annual growth of 154.1%. Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 63.2. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates TCL as Outperform (1) -
Macquarie prefers certainty on costs versus prolonged litigation and associated certainty, following Transurban's announcement of a -$2bn settlement for the Westgate Tunnel Project. Target price falls to $14.44 from $14.72.
Separately, management's traffic update confirms the analyst's expectation of a recovery. Outperform rating is maintained.
Target price is $14.44 Current Price is $13.53 Difference: $0.91
If TCL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $14.78, suggesting upside of 8.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 40.70 cents and EPS of 40.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of N/A. Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 160.6. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 61.10 cents and EPS of 60.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.6, implying annual growth of 154.1%. Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 63.2. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates TCL as Equal-weight (3) -
Morgan Stanley assesses contributions of about -$1.5bn for the West Gate Tunnel Project were already reflected in Transurban's share price, following the announced requirement for additional funds of circa -$2bn.
Management had previously flagged cost over-runs of at least -$3.8bn and a desire to settle.
Equal-weight rating and $14.28 target price are maintained. Industry View: Cautious.
Target price is $14.28 Current Price is $13.53 Difference: $0.75
If TCL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $14.78, suggesting upside of 8.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 44.70 cents and EPS of 4.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of N/A. Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 160.6. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 52.10 cents and EPS of 11.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.6, implying annual growth of 154.1%. Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 63.2. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates TCL as Add (1) -
Morgans says resolution of Transurban Group's dispute over the West Gate Tunnel Project removes a major uncertainty though the size of the required financial contribution will disappoint some investors.
Separately, the analyst points out the latest weekly traffic performance offers hope of further improvement following the lifting of restrictions in October in NSW and Victoria. Add rating is retained. Target price falls to $14.57 from $14.79.
Target price is $14.57 Current Price is $13.53 Difference: $1.04
If TCL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $14.78, suggesting upside of 8.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 35.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.5, implying annual growth of N/A. Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 160.6. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 55.25 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 21.6, implying annual growth of 154.1%. Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 63.2. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TWE TREASURY WINE ESTATES LIMITED
Food, Beverages & Tobacco
More Research Tools In Stock Analysis - click HERE
Overnight Price: $12.12
Citi rates TWE as Buy (1) -
Citi attended the GFA industry fourth-quarter update, which indicated a recovery in high-margin on-premise and cellar-door wine sales in the United States, consistent with other vintner updates.
The broker says this represents a boost for Treasury Americas, given high-margin channels contribute 19% of the division's net sales realisation, and forecasts a 19% rise the division's first-half earnings (EBITS)
On the downside, the broker notes US demographics are unfavourable, given the numbers of people reaching drinking age are slowing and retailers are resisting price increases.
Buy rating and $13.80 target price are retained.
Target price is $13.80 Current Price is $12.12 Difference: $1.68
If TWE meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $13.45, suggesting upside of 11.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 29.00 cents and EPS of 47.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 44.3, implying annual growth of 27.8%. Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 27.2. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 36.00 cents and EPS of 58.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 54.3, implying annual growth of 22.6%. Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 22.2. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.80
Morgan Stanley rates VRT as Underweight (5) -
Morgan Stanley points out that while month-to-month variability can be observed in the October Medicare data, retention of elevated market volume on FY21 is seen as a positive for Virtus Health.
Underweight rating and $6.50 target price are retained. Industry view is In-Line.
Target price is $6.50 Current Price is $6.80 Difference: minus $0.3 (current price is over target).
If VRT meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.91, suggesting upside of 3.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 33.20 cents and EPS of 46.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.7, implying annual growth of -18.9%. Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 35.70 cents and EPS of 49.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 46.7, implying annual growth of 6.9%. Current consensus DPS estimate is 28.6, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 14.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates VRT as Add (1) -
Morgans believes Virtus Health should continue focusing on its core value proposition of improving IVF outcomes and clinicians. Hence, the analyst is not disappointed about the terminated agreement with Healius (HLS) to acquire the Adora business.
The broker makes no changes to forecasts and retains its Add rating and $7.13 target price.
Target price is $7.13 Current Price is $6.80 Difference: $0.33
If VRT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $6.91, suggesting upside of 3.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 21.00 cents and EPS of 42.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.7, implying annual growth of -18.9%. Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 23.00 cents and EPS of 45.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 46.7, implying annual growth of 6.9%. Current consensus DPS estimate is 28.6, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 14.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
CHN | Chalice Mining | $8.45 | Macquarie | 10.55 | 10.75 | -1.86% |
HLS | Healius | $5.29 | Citi | 5.10 | 4.95 | 3.03% |
PRN | Perenti Global | $0.83 | Macquarie | 1.20 | 1.10 | 9.09% |
QAN | Qantas Airways | $4.76 | UBS | 6.20 | 6.40 | -3.13% |
RDY | ReadyTech | $3.73 | Macquarie | 4.10 | 3.98 | 3.02% |
STO | Santos | $6.11 | Morgans | 8.65 | 8.85 | -2.26% |
TCL | Transurban Group | $13.65 | Citi | 13.49 | 13.78 | -2.10% |
Macquarie | 14.44 | 14.72 | -1.90% | |||
Morgans | 14.57 | 14.79 | -1.49% |
Summaries
29M | 29metals | Buy - Citi | Overnight Price $2.79 |
CHN | Chalice Mining | Outperform - Macquarie | Overnight Price $8.45 |
HLS | Healius | Neutral - Citi | Overnight Price $5.12 |
MFG | Magellan Financial | Underweight - Morgan Stanley | Overnight Price $29.36 |
MVF | Monash IVF | Overweight - Morgan Stanley | Overnight Price $0.98 |
PAN | Panoramic Resources | Outperform - Macquarie | Overnight Price $0.26 |
PRN | Perenti Global | Outperform - Macquarie | Overnight Price $0.82 |
QAN | Qantas Airways | Buy - UBS | Overnight Price $4.78 |
RDY | ReadyTech | Outperform - Macquarie | Overnight Price $3.96 |
SHL | Sonic Healthcare | Overweight - Morgan Stanley | Overnight Price $43.15 |
STO | Santos | Add - Morgans | Overnight Price $6.42 |
TCL | Transurban Group | Neutral - Citi | Overnight Price $13.53 |
Outperform - Macquarie | Overnight Price $13.53 | ||
Equal-weight - Morgan Stanley | Overnight Price $13.53 | ||
Add - Morgans | Overnight Price $13.53 | ||
TWE | Treasury Wine Estates | Buy - Citi | Overnight Price $12.12 |
VRT | Virtus Health | Underweight - Morgan Stanley | Overnight Price $6.80 |
Add - Morgans | Overnight Price $6.80 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 13 |
3. Hold | 3 |
5. Sell | 2 |
Monday 20 December 2021
Access Broker Call Report Archives here
Disclaimer:
The content of this information does in no way reflect the opinions of
FNArena, or of its journalists. In fact we don't have any opinion about
the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
and comment on. By doing so we believe we provide intelligent investors
with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
Latest News
1 |
ASX Winners And Losers Of Today – 08-10-246:35 PM - Daily Market Reports |
2 |
Australian Broker Call *Extra* Edition – Oct 08, 20243:50 PM - Daily Market Reports |
3 |
BHP Shares Eyeing Return To $5011:30 AM - Technicals |
4 |
Audinate’s Recurring Revenue Opportunity11:00 AM - Small Caps |
5 |
Weekly Update On LICs & LITs – 07-Oct-202410:30 AM - Weekly Reports |