Australian Broker Call *Extra* Edition – Sep 17, 2021

Daily Market Reports | Sep 17 2021

FNArena will be updating Special Editions of this Report in September dedicated to the August Reporting Season.

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)

ADH (2)   ADI   APZ   BSA   CDA (2)   CDP   CMM   COH   CQR   CWY   HT1   MMM   MXI   NCM   NWH (2)   OZL   PWH   S32   SGP   TRS   TWE   VTI  

ADH    ADAIRS LIMITED

Furniture & Renovation - Overnight Price: $3.91

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

Canaccord Genuity believes Adair's inline FY21 result benefited from a trading environment that favoured strong brands in the homewares category, while the online channel offset a year in which a third of all trading days were impacted by covid.

While Canaccord expects the eventual reopening on the East Coast to mirror underlying strength of trade in states like WA - where restrictions have been minor - the broker expects underlying pressure in gross margins to create lumpiness in inventory availability.

Compositionally, the broker expects slightly higher sales to be offset by a corresponding cut to gross margin.

Canaccord Genuity retains its Buy recommendation with the target price lowering to $4.60 from $4.70.

The report was published on August 20, 2021.

Target price is $4.60 Current Price is $3.91 Difference: $0.69
If ADH meets the Canaccord Genuity target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $4.57, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 20.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 5.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.6, implying annual growth of -10.9%.
Current consensus DPS estimate is 21.5, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 25.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 6.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.5, implying annual growth of 14.6%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 10.2.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((ADH)) as Buy (1) -

Adairs' FY21 result was largely in line with Jarden's expectations, with the company reporting a 29% year-on-year revenue increase to $499.8m and an 89% year-on-year underlying earnings increase to $119.6m 

Sales have decreased -11.7% in the first seven weeks of FY22, with lockdown impacting 40% of store trading days, but Jarden notes like-for-like sales adjusted for store closures were up 5.2%, suggesting underlying business continues to trade well.

The broker updates underlying earnings forecasts by -13% and -6% for FY22 and FY23 respectively, on labour costs and increased investment post-lockdown.

The Buy rating is retained and the target price decreases to $5.13 from $5.14. 

This report was published on August 21, 2021.

Target price is $5.13 Current Price is $3.91 Difference: $1.22
If ADH meets the Jarden target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $4.57, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 23.00 cents and EPS of 36.80 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.6, implying annual growth of -10.9%.
Current consensus DPS estimate is 21.5, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 26.00 cents and EPS of 41.90 cents.
At the last closing share price the estimated dividend yield is 6.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.5, implying annual growth of 14.6%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 10.2.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ADI    APN INDUSTRIA REIT

REITs - Overnight Price: $3.67

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

APN Industria REIT delivered FY21 funds from operations (FFO) of 19.9cps, up 3.1% year-on-year, with like-for-like net property income growth of 2.1%.

Due to favourable industrial leasing spreads and a lower than expected cost of debt, FY22 FFO guidance of 19.3cps came in ahead of Moelis' expectations.

Net tangible assets (NTA) increased 11% during the half, from $2.88 to $3.20, while gearing increased slightly to 31.6% following three recent acquisitions.

Hold rating is unchanged and the target increases to $3.41 from $3.12.

This report was issued on August 23, 2021.

Target price is $3.41 Current Price is $3.67 Difference: minus $0.26 (current price is over target).
If ADI meets the Moelis target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.30 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.02.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.60 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.48.

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


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