Australian Broker Call *Extra* Edition – Jul 23, 2021

Daily Market Reports | Jul 23 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)

360   A2M   ABP   ABR   AHX   AMS   ANP   ASG   CAT   CKF (3)   CLW   CMM   COE   CRW   CVN   CYC   FSF   GCY   GOR (2)   GTN   HRL   IEL (2)   IGO   INR   IPH   IPL   JLG   KMD (2)   LBY   MGH   MPL   MTS   NAN (2)   ORA   OTW   PEN   PLL   RFG   RHP   RMC   RXL   VEE  

CLW    CHARTER HALL LONG WALE REIT

REITs - Overnight Price: $4.88

JP Morgan rates ((CLW)) as Overweight (1) -

Charter Hall Long Wale REIT and Abacus Property Group ((ABP)) have each acquired a 33.3% interest in the Myer Bourke Street mall
for a combined $270m at a passing yield of 6.1%.

JP Morgan sees this as an attractive acquisition of one of the best retail sites in Melbourne, which has a long-term lease and offers mixed-use and rental upside optionality.

The REIT also announced the acquisition of a distribution centre in Carole Park, Brisbane, for $83m and a Bunnings-anchored property for $49m, bringing total acquisitions to $267m.

The acquisitions are being debt-funded and are around 2% earnings accretive for Charter Hall Long Wale REIT, explains the analyst. JP Morgan maintains its Overweight rating and $5.70 target price.

This report was published on July 2, 2021.

Target price is $5.70 Current Price is $4.88 Difference: $0.82
If CLW meets the JP Morgan target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $5.15, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 28.10 cents and EPS of 30.60 cents.
At the last closing share price the estimated dividend yield is 5.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.2, implying annual growth of 2.9%.
Current consensus DPS estimate is 29.2, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 16.8.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 30.60 cents and EPS of 32.10 cents.
At the last closing share price the estimated dividend yield is 6.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of 6.2%.
Current consensus DPS estimate is 30.9, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 15.9.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver - Overnight Price: $1.85

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

Having viewed Capricorn Metals stated goal of first gold in the June quarter FY21 as an ambitious target, Cannaccord Genuity sees the company's ability to meeting the deadline as nothing short of impressive.

The broker believes Capricorn's ability to reach its target of first gold by June quarter FY21 - with 386oz of gold poured on-site on 30 June 2021 - highlights the quality management team driving the ramp-up of the project, plus the high calibre of on-site staff and contractors the company has employed.

The broker maintains both the Buy rating and the $2.15 target price.

This report was published on July 1, 2021.

Target price is $2.15 Current Price is $1.85 Difference: $0.3
If CMM meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.61.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

COE    COOPER ENERGY LIMITED

Crude Oil - Overnight Price: $0.24

Jarden rates ((COE)) as Buy (2) -

Cooper Energy announced FY21 production of 2.6mmboe, below the prior guidance range of 2.7-2.9mmboe. The miss stemmed from the owner of the Iona gas plant, Lochard Energy, prioritising storage withdrawal over processing.

Production challenges driven by third-party gas plants have been an ongoing issue for the company and Jarden welcomes the steps being taken to resolve this in the Otway with the move to the company's Athena plant from Iona.

The broker retains an Overweight rating and $0.32 target.

This report was published on July 1, 2021.

Target price is $0.32 Current Price is $0.24 Difference: $0.08
If COE meets the Jarden target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $0.35, suggesting upside of 46.7%(ex-dividends)
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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.2, 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:

Jarden forecasts a full year FY22 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 120.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, 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 40.0.

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

CRW    CASHREWARDS LIMITED

Hardware & Equipment - Overnight Price: $0.93

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

Cashrewards and ANZ Bank ((ANZ)) have announced a strategic partnership to launch Cashrewards Max.

Moelis views the announcement as a material achievement for Cashrewards and the growth trajectory for the business in the medium to long-term.

The broker has adjusted estimates to capture the scale-up of ANZ member base resulting in a 30% increase to FY23 earnings estimates, and the subsequent years.

The broker also notes the scope for material upgrades to estimates should ANZ take-up rate be higher than expected and expects to see early indications of this during October-December of calendar year 2021.

The Buy rating is retained. Target price is $2.70.

This report was published on July 5, 2021. 

Target price is $2.70 Current Price is $0.93 Difference: $1.77
If CRW meets the Moelis target it will return approximately 190% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 32.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.89.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 25.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.59.

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

CVN    CARNARVON PETROLEUM LIMITED

Crude Oil - Overnight Price: $0.27

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

Dorado's operator Santos ((STO)) has formally announced that the development has entered front-end-engineering and design with a target of project sanction by mid-2022.

Canaccord Genuity believes this is a major milestone for the project, and based on current estimates Dorado - of which Carnarvon Petroleum controls 20% - will have bottom quartile operating costs (US$5.0/bbl), capex of US$2.0bn, and peak production of 75-100kbbl/d.

Canaccord values Carnarvon's share of Dorado at $560m which the broker has risked at 85% for the Stage 1 liquids development and 50% for Stage 2.

Given the location of Dorado and the running room available, the broker believes an argument can be mounted that this is a 'top-end of the range resource'.

The Buy rating is unchanged, and the price target increases to $0.44 from $0.42.

This report was issued on June 29, 2021.

Target price is $0.44 Current Price is $0.27 Difference: $0.17
If CVN meets the Canaccord Genuity target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.00.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CYC    CYCLOPHARM LIMITED

Medical Equipment & Devices - Overnight Price: $1.66

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

The issuance of a Complete Response Letter to Cyclopharm's Technegas New Drug Application was not anticipated by Bell Potter, but the broker notes that the company now has a a finite list of shortcomings and recommendations. 

Bell Potter points out the response is surprising given the raw material for Technegas, Technetium-99m, is widely used and approved for diagnostic imaging in the US. The broker notes the company has the in-house expertise to respond to the majority of the information requested. 

The rating is downgraded to Hold from Buy and the target price decreases to $1.90 from $3.40.

This report was published on June 29, 2021.

Target price is $1.90 Current Price is $1.66 Difference: $0.24
If CYC meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.00 cents and EPS of minus 8.80 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.86.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.00 cents and EPS of minus 6.00 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.67.

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

FSF    FONTERRA SHAREHOLDERS FUND

Dairy - Overnight Price: $3.60

Jarden rates ((FSF)) as Upgrade to Neutral from Underweight (3) -

Jarden reports that since Fonterra announced a potential capital restructuring, Fonterra Shareholders Fund has come under pressure. 

The broker expects further detail before a capital structure is finalised, but the outcome is currently uncertain with restricted trading a prospect. 

Jarden notes improvement in Fonterra Shareholders' performance in FY20 and FY21, but retains a cautious stance on the company. It is the view of the broker that transparency in the business is an issue impacting accountability and confidence. 

The rating is upgraded to Neutral and the target price decreases to $3.89 from $4.85. 

This report was published on June 28, 2021.

Target price is $3.89 Current Price is $3.60 Difference: $0.29
If FSF meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 14.89 cents and EPS of 29.13 cents.
At the last closing share price the estimated dividend yield is 4.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.36.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 13.03 cents and EPS of 26.34 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.67.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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