Australian Broker Call *Extra* Edition – Jul 29, 2021

Daily Market Reports | Jul 29 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)

ADA   AIM   AND   ARB   AUT   BMN   CMM   CXL   FLT   IMM   INA   LDX   MLG   NUF   NXT   PLT (2)   PNV   QUB   S2R   SHV (2)   STN   TSI   TWE   VEA   WBC   WEB   XRO   YFZ  

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services - Overnight Price: $1.02

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

Bell Potter updates FY21 forecasts for the 0.76m shares unexpectedly bought back in the second half, and also now assumes a further 0.5m shares are bought back in the first half FY22 forecast.

The broker continues to forecast FY22 profit (PBT) growth of 10%, and believes that the contract wins announced by Adacel Technologies in the second half support the growth outlook.

With only minor adjustments to its forecasts, Bell Potter maintains its Buy rating and $1.25 target price.

This report was published on July 14, 2021.

Target price is $1.25 Current Price is $1.02 Difference: $0.23
If ADA meets the Bell Potter target it will return approximately 23% (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 5.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 4.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 5.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

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

AIM    AI-MEDIA TECHNOLOGIES LIMITED

Commercial Services & Supplies - Overnight Price: $0.91

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

While Bell Potter's earnings forecasts and $1.40 price target remain unchanged, a positive view is predicated on the ability to monetise the industry-leading platform and deliver margin expansion at scale.

The broker currently forecasts gross margins to expand by 13 basis points between 1H21 to 2H22, and believes bias to the upside still remains.

Growth in the Live Enterprise product, which carries the highest gross margin, presents upside to the analyst's current margin assumptions in the company’s core business. Bell Potter retains its Buy rating.

This report was published on July 14, 2021.

Target price is $1.40 Current Price is $0.91 Difference: $0.49
If AIM meets the Bell Potter target it will return approximately 54% (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 minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.89.

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

AND    ANSARADA GROUP LIMITED

Software & Services - Overnight Price: $1.52

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

Net new customers added by Ansarada Group during the fourth quarter reflected 8% sequential growth, which exceeded Moelis's  estimates by circa 15%. International revenue was $4.5m, up 30% on the previous corresponding period (pcp).

Tenders annual contract value (ACV) also rose 31% on the pcp, while revenue exhibited 17% growth on the pcp. The analyst notes higher revenue visibility for FY22, with deferred revenue 76% higher versus the pcp, due largely to annual subscription uptake.

The broker's Buy rating and the target price of $1.94 are maintained.

This report was published on July 14, 2021.

Target price is $1.94 Current Price is $1.52 Difference: $0.42
If AND meets the Moelis target it will return approximately 28% (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 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.19.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 116.92.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components - Overnight Price: $44.80

Wilsons rates ((ARB)) as Overweight (1) -

ARB Corp has confirmed FY21 unaudited sales of $623m, which implies second half FY21 growth of 46%, which is significantly stronger than the 22% growth in the first-half.

The result is consistent with Wilsons' view of increased demand from channels and categories associated with new vehicles.

Following the result, the broker reiterates the view that recent developments in the USA market present ARB with sufficient commercial relevance to consider complementing its wholesale operations with a retail store network.

Wilsons forecasts imply group organic sales compound annual growth rate at 10% in the four years to FY23, which compares to 8% over the prior decade.

The Overweight rating is retained and the target price increases to $48.40 from $47.80.

This report was published on July 15, 2021.

Target price is $48.40 Current Price is $44.80 Difference: $3.6
If ARB meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $44.16, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 60.00 cents and EPS of 137.70 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.5, implying annual growth of 90.1%.
Current consensus DPS estimate is 66.1, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 32.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 63.00 cents and EPS of 115.10 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.4, implying annual growth of -7.4%.
Current consensus DPS estimate is 71.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 35.4.

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

AUT    AUTECO MINERALS LIMITED

Gold & Silver - Overnight Price: $0.12

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

Auteco has announced a 71% increase in its Pickle Crow resource to 1.7m ounces following a 45,000m drilling program.

The company has reported an inferred maiden resource of 240,000 ounces at 3.7 grams of gold per tonne in the adjacent banded iron formation, which is expected to grow with further drilling. Shaw and Partners notes Auteco may be able to develop the entire project via an open cut with decline to an underground operation if this proves amenable to open pit mining.

Shaw and Partners initiation price was set based on an upgrade to 1.4m ounces, but Auteco Minerals has exceeded that expectation. The Buy rating is retained and the target price increases to $0.21 from $0.18. 

This report was published on July 19, 2021.

Target price is $0.21 Current Price is $0.12 Difference: $0.09
If AUT meets the Shaw and Partners target it will return approximately 75% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 17.14.

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

BMN    BANNERMAN RESOURCES LIMITED

Uranium - Overnight Price: $0.14

Shaw and Partners rates ((BMN)) as Hold (3) -

Following Bannerman Resources' June quarter update, Shaw and Partners awaits the completed Pre-Feasability Study for the Namibian Etango Uranium Project in early August. 

Shaw and Partners notes uranium markets continued to tighten in the quarter, but Bannerman Resources is a highly leveraged play given the 95% owned Etango project is lower grade but higher volume compared to peers. 

The Hold rating and target price of $0.14 are retained.

This report was published on July 13, 2021.

Target price is $0.14 Current Price is $0.14 Difference: $0
If BMN meets the Shaw and Partners target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 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 70.00.

Forecast for FY22:

Shaw and Partners 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 70.00.

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


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