Australian Broker Call *Extra* Edition – Apr 14, 2021

Daily Market Reports | Apr 14 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)

AFP   AIZ   AQZ   AX1   BRG   CCX   CDA (2)   CMM   CNU   CSX   CWY (2)   DMP   IPL   JBH   JHG   LOV   MFG (2)   MOZ   NXT   PAN   PDL   PEX   PMV   PPT   PTM   QAN   SUL   SYD   TNK   TPW   UWL   XRO  

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $3.82

Bell Potter rates ((AFP)) as Downgrade to Hold from Buy (3) -

Bell Potter has downgraded AFT Pharmaceuticals to Hold from Buy and the target price is reduced to $4.31 from $5, after the company issued a material downgrade to FY21 guidance.

The underperformance relative to guidance is due to a series of delays in the commercialisation of Maxigesic in offshore markets. These include licensing deals (which drive up front milestone income) and product launches for Maxigesic tablets and Maxigesic IV.

Despite the disappointment, the broker continues to expect healthy EPS growth in FY21 due to a reduction in finance costs. Also, the core business in Australia and New Zealand is trading in-line with expectation.

This report was published on April 6, 2021.

Target price is $4.31 Current Price is $3.82 Difference: $0.49
If AFP meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 6.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.03.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.59 cents and EPS of 7.83 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.77.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AIZ    AIR NEW ZEALAND LIMITED

Transportation & Logistics - Overnight Price: $1.66

Jarden rates ((AIZ)) as Initiation of coverage with Sell (5) -

Despite amendments to the terms of Air New Zealand's Crown loan facility, the company has announced it will still undertake a capital raise, with the date being pushed back from June to September. 

Air New Zealand's loan has increased to NZ$1.5bn from NZ$900m with lower rates of interest, allowing for sufficient cash flow until the delayed capital raise. 

Jarden forecasts that a raise of NZ$1.2bn would be required to repay debt and provide sufficient capital. Sell rating is retained with the target price remaining at NZ$1.15. 

This report was published on April 12, 2021. 

Current Price is $1.66. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2954.88 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.06.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 438.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.38.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics - Overnight Price: $4.56

Wilsons rates ((AQZ)) as Market Weight (3) -

While somewhat of a formality, Wilsons acknowledges the significant milestone resulting from the regulatory approval of the Civil Aviation Safety Authority (CASA) to commence commercial operations with the Embraer E190 aircraft.

This follows an intense six-month program of aircraft and spare parts acquisition, maintenance, training and regulatory and compliance checks, explains the broker.

First commercial services are scheduled for 10th April 2021 and the previously announced wet lease services to be provided to Qantas ((QAN)) will commence on 25th May 2021 with three aircraft. The Market Weight rating and $4.58 target are unchanged.

This report was published on April 6, 2021.

Target price is $4.58 Current Price is $4.56 Difference: $0.02
If AQZ meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $5.27, suggesting upside of 15.5%(ex-dividends)
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 23.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.9, implying annual growth of 30.7%.
Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 17.70 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.1, implying annual growth of 18.3%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.8.

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

CDA    CODAN LIMITED

Hardware & Equipment - Overnight Price: $17.21

Canaccord Genuity rates ((CDA)) as Buy (1) -

Canaccord Genuity assesses the recent acquisition of  US-based Zetron Inc. is very complementary to Codan’s existing Critical Communications division. Zetron is a provider of critical communications systems for the rural and regional first responder market.

Including the recently announced acquisition of Domo Tactical Communications (DTC), the broker expects a material change from injecting new capabilities, scale, greater distribution and a broader platform for growth into Communications.

The target price rises to $17.10 from $16.60 with the Buy rating retained. The -US45m acquisition of Zetron is to be funded by existing cash and debt.

This report was published on March 6, 2021.

Target price is $17.10 Current Price is $17.21 Difference: minus $0.11 (current price is over target).
If CDA meets the Canaccord Genuity target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 26.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.47.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 33.00 cents and EPS of 66.00 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 26.08.

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


Moelis rates ((CDA)) as Hold (3) -

Moelis expects the acquisition of the US-based critical communications business called Zetron will be around 5% accretive to the FY22 earnings forecast. The target price lifts to $15.81 from $14.86 and the Hold rating is maintained.

The business appears to the broker complimentary to the company’s existing critical communications offering. The combined businesses will form an end-to-end solution targeting public sector customers across suburban/rural areas, primarily in North America.

This report was published on April 6, 2021.

Target price is $15.81 Current Price is $17.21 Difference: minus $1.4 (current price is over target).
If CDA meets the Moelis target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 28.50 cents and EPS of 53.60 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.11.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 33.70 cents and EPS of 63.30 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.19.

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


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