Australian Broker Call *Extra* Edition – Jan 20, 2021

Daily Market Reports | Jan 20 2021

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)

ALU   ANP   AQR   BGA   CSX   CUP   ELO   ENN   GDF   IRI   LYL   MFG   PMV   PSQ   PXS  

ALU    ALTIUM LIMITED

Hardware & Equipment - Overnight Price: $28.75

Bell Potter rates ((ALU)) as Upgrade to Hold from Sell (3) -

With the recent fall in share price, Altium is no longer considered overvalued and Bell Potter upgrades its rating to Hold from Sell.

Altium's unaudited revenue figure for the first half, at circa US$89.6m, was -3% below the year prior. The company blamed covid conditions in the US and Europe and challenging economic conditions.

The company did reiterate its FY21 guidance with the expectation of a stronger second half with growth in the Americas, China and NEXUS. 

The biggest risks to the stock, according to the broker, stem from covid and the tense political situation in the US negatively impacting customer behaviour.  

The target price has decreased to $31.25 from $32.50.

This report was published on January 13, 2021.

Target price is $31.25 Current Price is $28.75 Difference: $2.5
If ALU meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $34.23, suggesting upside of 19.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 57.57 cents and EPS of 55.84 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.5, implying annual growth of N/A.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 56.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 66.21 cents and EPS of 63.90 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.2, implying annual growth of 11.3%.
Current consensus DPS estimate is 50.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 51.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.25

Wilsons rates ((ANP)) as Initiation of coverage with Overweight (1) -

Wilsons initiates coverage on Antisense Therapeutics with an Overweight rating and price target of $0.57.

Antisense is a clinical-stage biopharmaceutical company focused on antisense drugs for rare diseases. The company's primary asset -ATL1102 - is being developed for treating Duchenne muscular dystrophy, a genetic disease affecting boys causing severe muscle wastage leading to premature death.

The company is planning a Phase II study in Europe with ATL1102 in the second half.

This report was published on December 16, 2020.

Target price is $0.57 Current Price is $0.25 Difference: $0.32
If ANP meets the Wilsons target it will return approximately 128% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.35.

Forecast for FY22:

Wilsons 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 25.00.

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

AQR    APN CONVENIENCE RETAIL REIT

REITs - Overnight Price: $3.49

Moelis rates ((AQR)) as Buy (1) -

APN Convenience Retail REIT has completed the pending acquisition of 12 service stations for a total consideration of -$75.3m.

This transaction leads to a 14.5% increase in portfolio size with the weighted average lease expiry (WALE) increasing to 16.4 years from 11.1 for the existing assets.

Moelis views the REIT as a compelling investment proposition, with the recent share price underperformance providing a particularly attractive entry point.

The REIT has a reasonable prospect of entering the ASX300 index in 2021, states Moelis and retains its Buy rating with the target price rising slightly to $4.08 from $4.07.

This report was published on January 7, 2021.

Target price is $4.08 Current Price is $3.49 Difference: $0.59
If AQR meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 22.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 6.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.86.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 23.30 cents and EPS of 23.50 cents.
At the last closing share price the estimated dividend yield is 6.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.85.

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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