Australian Broker Call *Extra* Edition – Apr 16, 2020

Daily Market Reports | Apr 16 2020

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)

ACF   AMA   APX   APZ   AVH   BGA   BOE   BRG (3)   CAJ   GMG   GNG   GPT   IPH   MNY   NAN   PBP   PGC   RFF   RHP   RWC   SHV   SSM   VVA   VVR   WGN  

ACF    ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services - Overnight Price: $0.26

Bell Potter rates ((ACF)) as Upgrade to Buy from Hold (1) -

Acrow Formwork and Construction Services delivered first-half results with operating profit of $5.5m and net profit of $2.4m, generated from revenue of $38.1m. The result was mostly in-line with Bell Potter’s expectations.

The company has not provided any formal guidance and is comfortable with market consensus which forecasts FY20 operating profit at $15.7m, notes Bell Potter. The broker expects a strong second half, driven by Uni-span earnings, improved Natform performance and momentum in work on the East Coast.

Believing the company to be sufficiently de-risked, Bell Potter upgrades the stock to Buy from Hold with target price at $0.34.

The report was published on March 04, 2020.

Target price is $0.34 Current Price is $0.26 Difference: $0.08
If ACF meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 1.90 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 7.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.91.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.30 cents and EPS of 5.30 cents.
At the last closing share price the estimated dividend yield is 8.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.91.

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

APZ    ASPEN GROUP

Real Estate - Overnight Price: $0.94

Taylor Collison rates ((APZ)) as Outperform (2) -

Customers receiving government support form a high part of Aspen Group’s earnings, with circa 70% of the group’s earnings coming from long term rentals with the remaining exposed to domestic tourism (and not international), notes broker Taylor Collison. The group delivered a strong first half result with operating profit up 55% to $3.66m.

Short stay accommodation proved the strongest contributor with the broker also noting the occupancy improvement increased to about 98% from 90% across the 84-properties portfolio in Perth. Redevelopment of Lindfield apartments is also well advanced and the broker expects to see valuation uplift at Lindfield through FY21.

Aspen management's FY20 earnings guidance of $0.0675-0.07 per share looks low, says the broker, especially given the strong first half result even with a -$500k drag from both Darwin and fire-affected trade respectively.

The broker expects EPS estimates to grow 45.1% and 24.6% in FY20 and FY21 respectively and has increased EPS forecast for FY20 to $0.0735. The broker rates the stock as Outperform with target price at $1.39.

The report was published on March 10, 2020.

Target price is $1.39 Current Price is $0.94 Difference: $0.45
If APZ meets the Taylor Collison target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 6.00 cents and EPS of 7.35 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.79.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 7.00 cents and EPS of 9.16 cents.
At the last closing share price the estimated dividend yield is 7.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.26.

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

BOE    BOSS RESOURCES LIMITED

Uranium - Overnight Price: $0.06

Canaccord Genuity rates ((BOE)) as Speculative Buy (1) -

Boss Resources, with the Honeymoon uranium project in Australia, is in an enviable position to meet renewed customer interest with utilities moving to fulfill un-contracted demand, states Canaccord Genuity.

The company has invested more than -$170m of sunk infrastructure capital and has all necessary permits along with several years of technical work in a definitive feasibility study released in January 2020, notes Canaccord Genuity. Further, the broker believes Boss Resources can restart the first stage of the project within a year for an initial capital outlay of -$35m. 

Canaccord Genuity comments that utilities have started to re-enter the market with more than 50% of the US needs to be re-contracted by 2023, providing upside potential to contract pricing.

The broker initiates coverage on the company with Speculative Buy and target price of $0.10.

The report was published on March 9, 2020.

Target price is $0.10 Current Price is $0.06 Difference: $0.04
If BOE meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 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 30.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 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 30.00.

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


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