Australian Broker Call *Extra* Edition – Jul 19, 2023

Daily Market Reports | 11:02 AM

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)

CSL (2)   DDR   DTL   EDV   EVN   KMD   MAQ   NWL   RMD   SPK   VGL   WHC   WSP   WTC  

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $6.81

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

Fourth quarter production was slightly weaker than Goldman Sachs expected, largely because of challenges at the Narrabri underground mine, which was offset by a draw down of ROM stocks and a stronger quarter from Maules Creek.

Whitehaven Coal has indicated that Narrabri is operating at a run rate of 7-8mtpa in July thus far, with the next longwall change not expected until FY25.

Goldman Sachs adjusts for the NSW coal reservation policy and the shift in the longwall move, revising EPS up by 1-4% for FY23-25.

Neutral rating retained and the target is raised to $8.00 from $7.80.

This report was published on July 17, 2023.

Target price is $8.00 Current Price is $6.81 Difference: $1.19
If WHC meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $7.74, suggesting upside of 13.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 61.00 cents and EPS of 292.00 cents.
At the last closing share price the estimated dividend yield is 8.96%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 2.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 300.0, implying annual growth of 51.8%.
Current consensus DPS estimate is 51.9, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 2.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 34.00 cents and EPS of 122.00 cents.
At the last closing share price the estimated dividend yield is 4.99%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.5, implying annual growth of -63.2%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 6.2.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $0.31

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

Whispir has announced it is on track to meet its $53-54.5m revenue guidance. Timing issues affected cash receipts in the June quarter, which fell -3% quarter on quarter.

Wilsons notes cash burn has improved dramatically since the first quarter of FY23 with the company now in position to capitalise on a more streamlined cost base.

The company has signed a new contract via one of its channel partners to deliver electronic prescription messaging as part of Australia’s national digital health strategy. Several new blue-chip customers have also been signed up in Asia.

Wilsons puts its Market Weight rating and $0.35 target under review, as well as earnings estimates.

This report was published on July 17, 2023.

Target price is $0.35 Current Price is $0.31 Difference: $0.04
If WSP meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 2.52.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 16.32.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $80.90

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

Jarden now factors in the upside from WiseTech Global’s contract wins and pricing power. The outlook is not as weak as initially expected and minimum volume contracts should help shield the company from freight volatility.

The broker lifts forecasts for its terminal year by 40%, driving a higher valuation. Target is raised to $84 from $60 and, as there is not enough upside in this for a Buy rating, an Overweight rating is reiterated.

Catalysts envisaged over the short term are likely to be positive and should help continue the share price momentum.

This report was published on July 13, 2023.

Target price is $84.00 Current Price is $80.90 Difference: $3.1
If WTC meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $73.54, suggesting downside of -9.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.90 cents and EPS of 64.90 cents.
At the last closing share price the estimated dividend yield is 0.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 124.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.6, implying annual growth of 18.3%.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 114.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 18.30 cents and EPS of 91.40 cents.
At the last closing share price the estimated dividend yield is 0.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 88.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.1, implying annual growth of 34.7%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 85.1.

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

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don’t have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.