Australian Broker Call *Extra* Edition – Apr 28, 2022

This story features ALUMINA LIMITED, and other companies. For more info SHARE ANALYSIS: AWC

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)

ANP   AWC   FMG   IGO   MP1   NST   PSQ   SFR   TLX   UBI   WHC  

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.11

Taylor Collison rates ((ANP)) as Outperform (2) –

The company has announced a 1-for-20 bonus offer of new options to eligible shareholders, exerciseable at $0.48. The options are expected to help fund the continuation of the upcoming trial of ATL1102 in non-ambulant DMD beyond the planned futility analysis.

Taylor Collison points out the company still faces a shortfall of -$14m in funding of the first stage of the phase IIb/III trial and is considering a range of funding options. Target is unchanged at $0.27. Outperform.

This report was published on April 14, 2022.

Target price is $0.27 Current Price is $0.11 Difference: $0.16
If ANP meets the Taylor Collison target it will return approximately 145% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.00.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.50.

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

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $1.74

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

Shaw and Partners makes an aggregate 3-8% upgrade to its commodity price forecasts. Thermal coal is up 47%, aluminium 9% and gold 2%.

Buy rating retained. Alumina Ltd target is reduced to $2.26 from $2.40.

This report was published on April 26, 2022.

Target price is $2.26 Current Price is $1.74 Difference: $0.52
If AWC meets the Shaw and Partners target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $2.07, suggesting upside of 19.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 9.49 cents and EPS of 9.36 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.7, implying annual growth of N/A.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 9.4%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY23:

Current consensus EPS estimate is 14.5, implying annual growth of -18.1%.
Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 8.9%.
Current consensus EPS estimate suggests the PER is 12.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $20.10

Shaw and Partners rates ((FMG)) as Hold (3) –

Shaw and Partners makes an aggregate 3-8% upgrade to its commodity price forecasts. Thermal coal is up 47%, aluminium 9% and gold 2%.

Hold maintained for Fortescue Metals. Target is raised to $16.90 from $15.00.

This report was published on April 26, 2022.

Target price is $16.90 Current Price is $20.10 Difference: minus $3.2 (current price is over target).
If FMG meets the Shaw and Partners target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.52, suggesting downside of -12.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 412.80 cents and EPS of 379.85 cents.
At the last closing share price the estimated dividend yield is 20.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 277.9, implying annual growth of N/A.
Current consensus DPS estimate is 195.7, implying a prospective dividend yield of 9.7%.
Current consensus EPS estimate suggests the PER is 7.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 214.67 cents and EPS of 195.82 cents.
At the last closing share price the estimated dividend yield is 10.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 231.4, implying annual growth of -16.7%.
Current consensus DPS estimate is 160.6, implying a prospective dividend yield of 8.0%.
Current consensus EPS estimate suggests the PER is 8.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IGO    IGO LIMITED

Nickel – Overnight Price: $12.95

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

Shaw and Partners makes an aggregate 3-8% upgrade to its commodity price forecasts. Thermal coal is up 47%, aluminium 9% and gold 2%.

IGO's target is raised to $14.00 from $11.20. Buy maintained.

This report was published on April 26, 2022.

Target price is $14.00 Current Price is $12.95 Difference: $1.05
If IGO meets the Shaw and Partners target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $14.08, suggesting upside of 8.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 18.00 cents and EPS of 48.50 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.2, implying annual growth of 132.7%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 24.00 cents and EPS of 75.10 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 208.9, implying annual growth of 271.7%.
Current consensus DPS estimate is 97.5, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 6.2.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $8.88

Goldman Sachs rates ((MP1)) as Buy (1) –

Goldman Sachs considers the lower-than-expected growth in the March quarter stemmed from operational impacts and the shifting to the partner channel as this has taken more time in training and integration.

Once the issues are resolved both the direct and indirect channels should be able to deliver a return to growth, the broker adds.

Despite burning -$16m in cash during the quarter, the broker assesses Megaport still has sufficient to reach its breakeven target. Buy rating is reiterated. Target is reduced to $13.10, down -34%.

This report was published on April 26, 2022.

Target price is $13.10 Current Price is $8.88 Difference: $4.22
If MP1 meets the Goldman Sachs target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $15.19, suggesting upside of 71.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -23.4, 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:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -9.9, 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: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $9.66

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

Shaw and Partners makes an aggregate 3-8% upgrade to its commodity price forecasts. Thermal coal is up 47%, aluminium 9% and gold 2%.

Northern Star Resources' Buy rating is maintained. Target is raised to $12.80 from $12.00.

This report was published on April 26, 2022.

Target price is $12.80 Current Price is $9.66 Difference: $3.14
If NST meets the Shaw and Partners target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $12.53, suggesting upside of 29.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 20.00 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.1, implying annual growth of -72.9%.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.1.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 22.00 cents and EPS of 50.60 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.9, implying annual growth of 21.9%.
Current consensus DPS estimate is 29.1, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 25.5.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $2.29

Wilsons rates ((PSQ)) as Upgrade to Overweight from Market Weight (1) –

Pacific Smiles has reported an -8% decline in patient fees in the March quarter compared with the prior corresponding quarter and a -12.2% decline on the same centres basis.

This reflects the impacts of the pandemic and flooding in Queensland and NSW, partially offset by the opening of new practices.

Nevertheless, Wilsons believes the impacts are abating and a return to sustained like-for-like growth is anticipated. Wilsons upgrades to Overweight from Market Weight. Target is adjusted to $2.62 from $2.80.

This report was published on April 21, 2022.

Target price is $2.62 Current Price is $2.29 Difference: $0.33
If PSQ meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 152.67.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 5.40 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.74.

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

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $5.20

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

Shaw and Partners makes an aggregate 3-8% upgrade to its commodity price forecasts. Thermal coal is up 47%, aluminium 9% and gold 2%.

Buy rating retained for Sandfire Resources. Target is reduced to $7.70 from $7.80.

This report was published on April 26, 2022.

Target price is $7.70 Current Price is $5.20 Difference: $2.5
If SFR meets the Shaw and Partners target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $7.32, suggesting upside of 40.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 10.00 cents and EPS of 49.80 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.1, implying annual growth of N/A.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 7.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 0.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of -52.3%.
Current consensus DPS estimate is 14.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 15.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.33

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

Wilsons notes first quarter sales of Illuccix still reflect pre-commercial activity at nominal pricing and activity should increase in the second quarter. Sales were $1.9m, derived from 4200 doses.

Novartis has also launched its prostate cancer therapy, Pluvicto, in a few centres which should be a driver for Illuccix over the coming year, the broker suggests.

Overweight rating and target price of $8.50 are retained.

This report was published on April 22, 2022.

Target price is $8.50 Current Price is $4.33 Difference: $4.17
If TLX meets the Wilsons target it will return approximately 96% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.76.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.85.

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

UBI    UNIVERSAL BIOSENSORS, INC

Medical Equipment & Devices – Overnight Price: $0.70

Sequoia rates ((UBI)) as Buy (High Risk) (1) –

Universal Biosensors has announced positive results for the first cohort of blood samples tested using its device and new three-electrode test strips.

Management describes the results as "extremely promising" despite the small sample size. Results from two more cohorts are expected during the current half-year.

The company has also announced a $20m non-renounceable rights issue at $0.77, fully underwritten by shareholder Viburnum Funds, along with a $6m placement.

Sequoia lowers forecasts to allow for higher R&D and increased shares on issue. Buy, High Risk rating maintained. Target is reduced to $1.34 from $1.83.

This report was published on April 22, 2022.

Target price is $1.34 Current Price is $0.70 Difference: $0.64
If UBI meets the Sequoia target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.28.

Forecast for FY23:

Sequoia forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.50.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $4.64

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

Shaw and Partners observes a record average coal price of $315/t in the March quarter, noting Whitehaven Coal is generating a lot of cash relative to costs. The company has reported a JORC reserve upgrade to 380mt.

The broker suggests record coal prices and record cash flow, amid a return to net cash should mean the share price heads to stellar levels.

While ESG headwinds and investor reticence may preclude a hike in the share price to that extent, Shaw and Partners believes $4.50 is still too low. Target is raised to $6.25. Buy rating retained.

This report was published on April 21, 2022.

Target price is $6.25 Current Price is $4.64 Difference: $1.61
If WHC meets the Shaw and Partners target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $5.70, suggesting upside of 22.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 46.00 cents and EPS of 132.00 cents.
At the last closing share price the estimated dividend yield is 9.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.9, implying annual growth of N/A.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 9.1%.
Current consensus EPS estimate suggests the PER is 3.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 81.00 cents and EPS of 163.00 cents.
At the last closing share price the estimated dividend yield is 17.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.9, implying annual growth of -6.2%.
Current consensus DPS estimate is 49.2, implying a prospective dividend yield of 10.6%.
Current consensus EPS estimate suggests the PER is 3.4.

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

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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.

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