Australian Broker Call *Extra* Edition – Sep 24, 2021

Daily Market Reports | Sep 24 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)

AMA   ECF   EHE   GNG   HUB   IPD   JAN   JLG   LOV   MAD   MAH   MAQ   MND   MNF   MVP   NAN   NTO (2)   PSI   RDY   SLK   TRJ   UWL   WSA (2)   XRF  

EHE    ESTIA HEALTH LIMITED

Aged Care & Seniors - Overnight Price: $2.27

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

FY21 revealed another strong performance despite a challenging operating environment and, while occupancy could be under pressure over the first half of FY22, Moelis expects Estia Health will cope better than most industry participants.

The business has a strong management track record and well-established model of care. The balance sheet is also strong with around $244m in liquidity available.

Moelis estimates FY22 EBITDA of $81m and assumes average occupancy increases to 92.5% from 91.2%. The broker retains a Buy rating with a $2.94 target.

This report was published on August 24, 2021.

Target price is $2.94 Current Price is $2.27 Difference: $0.67
If EHE meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $2.33, suggesting upside of 2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.70 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 269.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.7.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 8.90 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 28.2%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 20.8.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting - Overnight Price: $1.81

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

Materially stronger second half margins led GR Engineering to a substantial beat in FY21 on record earnings. The company continued to deliver very impressive cash flow, Bell Potter notes.

On strong contracted revenue and a solid track record, the broker forecasts another earnings record in FY22. Ongoing commodity price
strength and new contract wins in oil & gas have the potential to lift longer-term estimates.

Buy retained, target rises to $1.85 from $1.60.

Target price is $1.85 Current Price is $1.81 Difference: $0.04
If GNG meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 14.00 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 7.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.97.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 10.00 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.61.

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

HUB    HUB24 LIMITED

Wealth Management & Investments - Overnight Price: $30.21

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

FY21 results included underlying EBITDA of $36.2m, ahead of expectations. Management is investing in growth with operating leverage expected to accelerate in FY22.

Shaw and Partners anticipates underlying EBITDA of $57m in FY22 and $72m in FY23 before a full $10m in annual synergies occurs from FY24 onwards.

The company has provided a platform funds under administration target of $63-70m for FY23. The broker continues to laud the market leading platform and growth prospects and reiterates a Buy rating. Target is raised to $31.11 from $30.00.

This report was published on August 25, 2021.

Target price is $31.11 Current Price is $30.21 Difference: $0.9
If HUB meets the Shaw and Partners target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $29.79, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 12.40 cents and EPS of 42.70 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 70.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.8, implying annual growth of 205.0%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 77.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 16.90 cents and EPS of 58.20 cents.
At the last closing share price the estimated dividend yield is 0.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.2, implying annual growth of 26.8%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 61.4.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices - Overnight Price: $0.11

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

FY21 results were better than Canaccord Genuity expected. Despite the restrictions caused by the pandemic, sales growth was at a record and total revenue was boosted by the contribution from the leases to AstraZeneca.

The broker notes a number of catalysts that could provide material upside risk in FY22 including lymphoedema and further progress on heart and renal failure applications.

The Buy rating and target price of $0.23 are retained.

The report was published on August 26, 2021.

Target price is $0.23 Current Price is $0.11 Difference: $0.12
If IPD meets the Canaccord Genuity target it will return approximately 109% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 15.71.

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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