Australian Broker Call *Extra* Edition – Dec 05, 2019

Daily Market Reports | Dec 05 2019

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)

ATU   AVH   CAJ   CMA   CMP   COI   EML   GGG   IDX   MMI   PCK   PEX   PNV   SMR   TNE   WTC  

ATU    ATRUM COAL LIMITED

Coal - Overnight Price: $0.30

Shaw and Partners rates ((ATU)) as Initiation of coverage with Buy (1) -

Atrum Coal is developing the Elan hard coking coal project in Canada. Shaw and Partners anticipates first production in late 2023.

The southern part of the project is adjacent to the Grassy Mountain coal project. Atrum Coal is around two years behind Grassy Mountain but is following the same development pathway and this is potentially a larger project, the broker notes.

Shaw and Partners initiates coverage with a Buy rating and $0.80 target.

This report was first published December 3, 2019.

Target price is $0.80 Current Price is $0.30 Difference: $0.5
If ATU meets the Shaw and Partners target it will return approximately 167% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Shaw and Partners forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.34.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.64.

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

AVH    AVITA MEDICAL LTD

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.60

Wilsons rates ((AVH)) as Initiation of coverage with Market Weight (3) -

Wilsons initiates coverage with a Market Weight rating and $0.60 target. The company currently is commercialising RECELL for the treatment of severe burns. Future applications of the product include the treatment of other wounds and trauma.

Wilsons is enthusiastic but tempers this with the knowledge of a very aggressive, albeit necessary, cost investment, which makes a break-even point difficult to ascertain.

This report was published on December 4, 2019.

Target price is $0.60 Current Price is $0.60 Difference: $0
If AVH meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.50.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 66.67.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services - Overnight Price: $0.24

Wilsons rates ((CAJ)) as Initiation of coverage with Market Weight (3) -

The radiology service provider has the leadership and capital structure to capture some material tailwinds, Wilsons suggests. Capitol Health owns and operates a network of 66 radiology clinics in Victoria, Western Australia and Tasmania.

The broker believes the current valuation reflects the turnaround risks appropriately and offers the most potential upside among listed peers.

Wilsons initiates coverage with a Market Weight rating and $0.24 target.

This report was published on December 4, 2019.

Target price is $0.24 Current Price is $0.24 Difference: $0
If CAJ meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 1.10 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.14.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 1.20 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

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

CMA    CENTURIA METROPOLITAN REIT

REITs - Overnight Price: $3.15

Shaw and Partners rates ((CMA)) as Hold (3) -

The company has increased its occupancy level to 99.9% from 98.4% as a result of leasing activity since June 2019. Despite this, guidance is unchanged.

Shaw and Partners believes management is being conservative and increases FY20 and FY21 estimates for earnings by 0.6% and 1.3%, respectively.

Centuria Metropolitan has entered into a new 10-year lease agreement with the Western Australian government, which will now occupy the entire building at 144 Stirling Street, Perth.

The broker expects a solid valuation uplift on the asset as a result of this deal. Hold rating maintained. Target rises to $3.08 from $3.02.

This report was first published on December 4, 2019.

Target price is $3.08 Current Price is $3.15 Difference: minus $0.07 (current price is over target).
If CMA meets the Shaw and Partners target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.87, suggesting downside of -8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 17.80 cents and EPS of 19.10 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of 16.6%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 18.20 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 5.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of 2.6%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 16.2.

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


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