Australian Broker Call *Extra* Edition – Apr 06, 2021

Daily Market Reports | Apr 06 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)

AMA   ATU   AVN   BCB   FLT   IAG   KZA   LEG   LOT   NWS   OPY   PBH   PEN   PNV   PWG   QUB   SDV   SHV   SLA   SVM   TIE  

AMA    AMA GROUP LIMITED

Automobiles & Components - Overnight Price: $0.58

Bell Potter rates ((AMA)) as Buy (1) -

Bell Potter downgrades forecast earnings after assuming a shortage of both staff and parts at present which is negatively impacting both top line revenue and margins, due to a lower number of repairs. The broker forecasts FY21 reported profit (NPAT) around breakeven.

The analyst deduced a shortage after a review of job vacancy ads over the past weeks on sites such as Seek ((SEK)) and Jora. The grounding of the Suez Canal container ship may also cause further disruption in a tight global market for new vehicle parts.

The Buy rating is unchanged and the target lowered to $0.85 from $0.95.

This report was published on March 31, 2021.

Target price is $0.85 Current Price is $0.58 Difference: $0.27
If AMA meets the Bell Potter target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.43.

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

ATU    ATRUM COAL LIMITED

Coal - Overnight Price: $0.06

Shaw and Partners rates ((ATU)) as Buy (1) -

Shaw and Partners outlines the company will either need the 1976 Coal Policy repealed (again) or require an exemption, after the Alberta government has re-instated the Policy. This prohibits open-cut mining on its mining leases.

While the news is undoubtedly negative, the broker feels the -70% fall in the share price to just 7.4 cents on the recommencement of trading looks like a major overreaction. Buy rating maintained and target reduces to $0.30 from $1.05.

The analyst says the company will now focus all attention on the consultation process and has halted work on the pre-feasibility study. There was a cash position of $4.9m at 15 March 2021 and management is implementing a range of cost reduction measures.

This report was first published March 29, 2021.

Target price is $0.30 Current Price is $0.06 Difference: $0.24
If ATU meets the Shaw and Partners target it will return approximately 400% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.61.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 2.50.

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

AVN    AVENTUS GROUP

REITs - Overnight Price: $2.88

Moelis rates ((AVN)) as Downgrade to Sell from Buy (5) -

Moelis believes Aventus Group is well positioned to benefit from cap rate compression and subsequent net tangible assets (NTA) uplift.

Like-for-like growth across the sector has also been unprecedented and tenants have continued to benefit from strong government stimulus and increased consumer spending in the household and lifestyle segments.

However, the analyst views the above positives as being more than priced into the current share price and downgrades the rating to Sell from Buy and maintains the $2.77 target.

This report was released on March 29, 2021.

Target price is $2.77 Current Price is $2.88 Difference: minus $0.11 (current price is over target).
If AVN meets the Moelis target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.92, suggesting upside of 1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.30 cents and EPS of 19.10 cents.
At the last closing share price the estimated dividend yield is 6.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 83.5%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.00 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 4.2%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.6.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BCB    BOWEN COKING COAL LTD

Coal - Overnight Price: $0.06

Euroz Hartleys rates ((BCB)) as Speculative Buy (1) -

Euroz Hartleys highlights Bowen Coking Coal's ongoing drilling campaign at the Broadmeadow East Coking Coal project has recently focused upon extension to the main Leichardt seam beyond the southern extent to the measured resource boundary.

Discussions remain on-going in relation to access to third party infrastructure in order to fast-track development of the project and to minimise initial capital requirements, explains the broker.

This project, acquired in September 2020, is just one of a pipeline of quality projects being developed by the company, according to the analyst. Speculative Buy with a target of $0.18.

This report was published on February 12, 2021.

Target price is $0.18 Current Price is $0.06 Difference: $0.12
If BCB meets the Euroz Hartleys target it will return approximately 200% (excluding dividends, fees and charges).

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


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