Australian Broker Call *Extra* Edition – Apr 04, 2022

This story features COMET RIDGE LIMITED, and other companies. For more info SHARE ANALYSIS: COI

An additional news report on the recommendation, valuation, forecast and opinion changes 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)

COI   PPS   QUB   SGM   SIG   STN   TAH   TWE   UWL (2)  

COI    COMET RIDGE LIMITED

NatGas – Overnight Price: $0.18

Bell Potter rates ((COI)) as Buy (1) –

Comet Ridge has received the necessary government approvals for its acquisition of a 30% stake in the Mahalo gas project. Joint venture documentation with Santos ((STO)) is underway with completion expected in the June quarter according to Bell Potter.

With production tests of the Mahalo North wells expected, the broker notes Comet Ridge will solidify its position with appraisal of the project's gas production. 

The Buy rating is retained and the target price increases to $0.25 from $0.19.

This report was published on April 1, 2022.

Target price is $0.25 Current Price is $0.18 Difference: $0.07
If COI meets the Bell Potter target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.71.

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: $0.70

Shaw and Partners rates ((PPS)) as Buy (1) –

Praemium has announced changes to its management team, including a new CEO and COO, as the last step in its future growth strategy, but Shaw and Partners notes the appointment of new management suggests Netwealth Group's ((NWL)) bid is no more.

The apparent cessation of the bid drives the broker to remove its 30% premium, resulting in a target price decline. Elsewhere, high costs have impacted on first half results and full year guidance, and the broker anticipates market reaction is likely negative.

The Buy rating is retained and the target price decreases to $1.30 from $1.70.

This report was published on March 30, 2022.

Target price is $1.30 Current Price is $0.70 Difference: $0.6
If PPS meets the Shaw and Partners target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 350.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.78.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $3.11

Jarden rates ((QUB)) as Buy (1) –

Jarden notes Australian container volume movements remain robust, with movements in February only -6.4% below all-time peak levels in October 2020.

Despite this statistic, the broker stays conservative on its Qube Holdings' forecasts as inventory rebuilds at retailers begin to slow. Additionally, the impact of contributions from prior-year acquisitions in the container division is diminishing.

The Buy rating and $3.65 target price are retained.

This report was published on March 30, 2022.

Target price is $3.65 Current Price is $3.11 Difference: $0.54
If QUB meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $3.32, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 8.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 98.8%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 32.4.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 16.7%.
Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 27.8.

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

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $21.56

Jarden rates ((SGM)) as Buy (1) –

Despite Sims highlighting (at its investor day) the benefits from higher ferrous and non-ferrous commodity prices in March, and noting intake volumes remain solid, Jarden doesn't raise its above-consensus forecasts. The Buy rating and $23 target price are retained.

The broker points out China will lift scrap metal imported to 343m tonnes by 2030 from 248m tonnes in 2020, and has been increasing the amount of scrap imported from countries such as Japan.

As a result of this move by China, the analyst sees an opportunity for Sims to increase exports to Asian countries that used to import Japanese scrap.

This report was published on March 30, 2022.

Target price is $23.00 Current Price is $21.56 Difference: $1.44
If SGM meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $20.68, suggesting downside of -4.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 75.70 cents and EPS of 255.70 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.8, implying annual growth of 118.1%.
Current consensus DPS estimate is 74.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 8.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 69.00 cents and EPS of 229.90 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 181.7, implying annual growth of -27.0%.
Current consensus DPS estimate is 56.2, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 11.9.

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

SIG    SIGMA HEALTHCARE LIMITED

Health & Nutrition – Overnight Price: $0.53

Shaw and Partners rates ((SIG)) as Buy (1) –

Sigma Healthcare has closed out its financial year with revenue of $3.45bn, up 1.3% on the previous comparable period, and gross profit of $112.5m, down -19.7% on the previous comparable period. Shaw and Partners notes revenue was stronger than expected. 

The company benefited from strong first half sales growth, but was challenged in the second half as the ERP implementation drove a loss of sales. Noting the delay in efficiencies gained from the ERP, the broker adjusts forecasts and increases FY25 earnings. 

The Buy rating and target price of $0.60 are retained.

This report was published on March 30, 2022.

Target price is $0.60 Current Price is $0.53 Difference: $0.07
If SIG meets the Shaw and Partners target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $0.51, suggesting downside of -4.2%(ex-dividends)
The company's fiscal year ends in January.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 2.30 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.2, implying annual growth of N/A.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 2.50 cents and EPS of 2.90 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is N/A, 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.

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

STN    SATURN METALS LIMITED

Gold & Silver – Overnight Price: $0.38

Shaw and Partners rates ((STN)) as Buy (1) –

Results from bottle roll tests at Saturn Metals' Apollo Hill ore project delivered an 81% recovery rate, offering potential for low cost processing. Shaw and Partners notes test results pave the way for a resource upgrade, as material considered waste could be leached. 

The broker expects Saturn Metals will release a substantial resource upgrade in coming weeks, following not only the test results but also twelve months of drilling. The company has identified mineralised prospects in a major geological corridor extending from Apollo Hill.

The Buy rating and target price of $0.87 are retained. 

This report was published on March 30, 2022.

Target price is $0.87 Current Price is $0.38 Difference: $0.49
If STN meets the Shaw and Partners target it will return approximately 129% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.55.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.83.

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $5.50

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

With The Lottery Corporation to commence trading as a separately listed entity on the ASX as of May 24, Tabcorp has provided detail on its forthcoming demerger booklet, with Goldman Sachs largely noting positives from company commentary. 

The company reiterated it considers the demerger the most certain path to maximising shareholder value, allowing each business to adopt a more focused profile, and Goldman Sachs is also of the view that the demerger is in the best interest of shareholders. 

At its current share price, Goldman Sachs feels investors are effectively paying for the lottery business and receiving the additional free benefit of the wagering and media business as a value add. 

The Buy rating is retained and the target price increases to $6.20 from $6.00. 

This report was published on April 1, 2022.

Target price is $6.20 Current Price is $5.50 Difference: $0.7
If TAH meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $5.79, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 15.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 39.6%.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 32.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.70 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of 23.3%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 25.9.

Market Sentiment: 0.8
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 – Overnight Price: $11.57

Jarden rates ((TWE)) as Buy (2) –

Jarden reiterates its $13 target for Treasury Wine Estates and sees upside for the Treasury Premium Brands division. There's considered to be potential for expansion into China and scope for a Chinese Penfolds product (as per press speculation).

The company remains a key Overweight rating for the broker due to low expectations. In addition, Treasury Wine Estates is seen as a reopening play, and a beneficiary of an improving global supply/demand dynamic, as well as inflation.

The medium-term operating backdrop for the company is the most favourable in recent years, according to the analyst.

This report was published on March 30, 2022.

Target price is $13.00 Current Price is $11.57 Difference: $1.43
If TWE meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $13.34, suggesting upside of 15.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 30.00 cents and EPS of 45.80 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.2, implying annual growth of 27.5%.
Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.00 cents and EPS of 56.70 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of 24.0%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 21.1.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.75

Bell Potter rates ((UWL)) as Downgrade to Hold from Buy (3) –

Bell Potter considers it unlikely that Uniti Group will receive a better offer than the $5.00 per share bid from the Morrison-Brookfield consortium, and that the Uniti Group board is unlikely to recommend a better offer if it would incur payment of the $5m exclusivity fee.

The broker expects a binding offer to be made in coming weeks, prior to the end of the exclusivity period. 

The rating is downgraded to Hold from Buy and the target price of $5.00 is retained.

This report was published on April 1, 2022.

Target price is $5.00 Current Price is $4.75 Difference: $0.25
If UWL meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.18.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.50 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 0.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.45.

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

---

Jarden rates ((UWL)) as Buy (1) –

Jarden increases its target price to $5.00 from $4.39 for Uniti Group to align with the bid from HRL Morrison & Co and Brookfield Infrastructure Group.

Even though the Connect Consortium has a competing bid at the same price, Uniti Group finds certain terms and conditions too restrictive and chooses not to engage.

Jarden maintains its Buy rating.

This report was published on March 30, 2022.

Target price is $5.00 Current Price is $4.75 Difference: $0.25
If UWL meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.18.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.26.

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 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.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

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.

Click to view our Glossary of Financial Terms