Australian Broker Call *Extra* Edition – Jul 09, 2021

Daily Market Reports | Jul 09 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)

ACL   ANP   APT   APX   ASX   BEN   CAR   CHC   DMP   ELD   ELO   EML   EVO   JHX   JLG (2)   LGL   MNF   ORR   PBH   PGC   PLL   PME   PPS   PRN   QAN   REH   SYD   TGR   UBI   WHC  

ACL    AUSTRALIAN CLINICAL LABS LIMITED

Healthcare services - Overnight Price: $3.48

Goldman Sachs rates ((ACL)) as Buy (1) -

Goldman Sachs left a meeting with Australian Clinical Labs management incrementally encouraged on the near-term earnings trajectory, and believes the company is well positioned to execute on further growth opportunities, both organically and through M&A.

Longer-term, the broker believes it is prudent to assume a sharp tapering of covid testing volumes. Goldman Sachs is currently modelling a decline from 33.0% in FY21 to 24.8% in FY22, which equates to earnings margins of 20.0% and 10.4% respectively.

Buy rating and a target price of $4.80 both maintained. 

This report was published on June 10, 2021. 

Target price is $4.80 Current Price is $3.48 Difference: $1.32
If ACL meets the Goldman Sachs target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 42.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.29.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 2.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.47.

Market Sentiment: 0.0
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: $0.21

Taylor Collison rates ((ANP)) as Speculative Buy (2) -

Taylor Collison believes FDA feedback to the design of the proposed Phase IIb/III trial of ATL1102 in non-ambulant DMD patients is positive for the US development plans for ATL1102.

However, the broker also believes Antisense Therapeutics' main focus continues to be on the planned European Phase IIb trial, which aims to commence recruitment in fourth quarter FY21.

The company expects to receive feedback from European Medicines Agency on its Paediatric Investigation Plan for ATL1102 in the coming weeks, which the broker notes will allow it to finalise the trial design.

Outperform rating and target price of $0.27 both retained.

This report was published on June 7, 2021.

Target price is $0.27 Current Price is $0.21 Difference: $0.06
If ANP meets the Taylor Collison target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.09.

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

APT    AFTERPAY LIMITED

Business & Consumer Credit - Overnight Price: $123.65

Jarden rates ((APT)) as Initiation of coverage with Buy (1) -

Jarden initiates coverage on Afterpay, noting the company benefits from a first mover advantage with plenty of room for growth.

Jarden notes the buy now pay later market is large, but largely fully penetrated in Australia and New Zealand, overly competitive in the US, and Afterpay is facing a strong competitor in Klarna in Europe. Many buy now pay later companies are exploring loyalty affiliate marketing programs and pay anywhere cards to expand their product offerings. 

Jarden highlights the key drivers of Afterpay earnings will be market share gain and increasing repeat customer transactions. The broker also notes the company has potential to monetise its growing e-commerce advertising marketplace. 

Afterpay is Jarden's preferred buy now pay later stock pick. Jarden initiates coverage with a Buy rating and target price of $120.00.

This report was published on June 11, 2021. 

Target price is $120.00 Current Price is $123.65 Difference: minus $3.65 (current price is over target).
If APT meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $124.47, suggesting upside of 6.0%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is -19.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Current consensus EPS estimate is 26.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 436.5.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APX    APPEN LIMITED

IT & Support - Overnight Price: $12.80

Bell Potter rates ((APX)) as Hold (3) -

To account for a change in reporting currency from AUD to USD, Bell Potter is now forecasting underlying earnings for Appen of US$84.7m in 2021, consistent with the guidance range of US$83-89m.

The broker is also forecasting a large earnings skew to the second half this year with forecast underlying earnings in first half/second half FY2021 of US$32.8m/US$51.9m, consistent with the guidance of “a heavy weighting in underlying earnings to second half FY21".

The broker retains a Hold rating and lowers the target to $13.50 from $14.25 due to a lack of catalysts in the short term.

This report was released on June 11, 2021.

Target price is $13.50 Current Price is $12.80 Difference: $0.7
If APX meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $20.97, suggesting upside of 69.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 10.00 cents and EPS of 48.30 cents.
At the last closing share price the estimated dividend yield is 0.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.2, implying annual growth of 18.4%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 25.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.00 cents and EPS of 54.90 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.1, implying annual growth of 26.2%.
Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 20.0.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ASX    ASX LIMITED

Wealth Management & Investments - Overnight Price: $76.38

JP Morgan rates ((ASX)) as Neutral (3) -

Statistics for May indicate to JP Morgan derivatives have bottomed, as yield curve control has stabilised volumes at what seems a temporary lower step. While cash market value traded showed declines, as expected, versus a year ago, listings held up, notes the analyst.

The Neutral rating is unchanged. The broker changes earnings modestly, and the target price increases to $71.53 from $70.38.

This report was published on June 8, 2021.

Target price is $71.53 Current Price is $76.38 Difference: minus $4.85 (current price is over target).
If ASX meets the JP Morgan target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $71.54, suggesting downside of -5.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 215.00 cents and EPS of 239.00 cents.
At the last closing share price the estimated dividend yield is 2.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 246.4, implying annual growth of -4.3%.
Current consensus DPS estimate is 223.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 30.6.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 223.00 cents and EPS of 248.00 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 251.0, implying annual growth of 1.9%.
Current consensus DPS estimate is 225.2, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 30.1.

Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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