Australian Broker Call *Extra* Edition – Sep 27, 2021

Daily Market Reports | Sep 27 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)

APA   BVS (2)   CWP   FLT   FWD   HMC (2)   IEL   LOV   MAH   MHJ   MPL   NSR   PPC   PRU   PTM   RMS   SKC   SLK   WTC  

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments - Overnight Price: $3.20

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

Bravura Solutions is guiding to mid-teen profit after tax growth in FY22. Goldman Sachs expects results to be somewhat weighted to the second half, but less pronounced than in FY21.

The broker notes company guidance is a -2% miss on consensus forecasts at the mid-point. Goldman Sachs updates earnings per share forecasts by -1.9% and -5.5% for FY22 and FY23, implying a 12% three-year earnings per share compound annual growth rate. 

The Buy rating is retained and the target price decreases to $3.70 from $3.90.

This report was published on August 25, 2021. 

Target price is $3.70 Current Price is $3.20 Difference: $0.5
If BVS meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.33.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.82.

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


Jarden rates ((BVS)) as Underweight (2) -

FY21 profit for Bravura Solutions was a slight beat versus Jarden's expectation, and at the low-end of consensus forecasts. The second half had -$6m of cost reductions, as well as a period of higher capitalisation, explains the analyst.

Wealth Management was the main driver of a lift in revenues from the first half to the second, with the start of the Aware Super contract and contributions from the Delta acquisition.

Guidance implies to the broker earnings reductions into FY22 relative to an annualised second half performance. Jarden raises its target price to $2.95 from $2.87 and maintains its Underweight rating.

This report was published on August 25, 2021.

Target price is $2.95 Current Price is $3.20 Difference: minus $0.25 (current price is over target).
If BVS meets the Jarden target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.40 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.33.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 10.70 cents and EPS of 15.50 cents.
At the last closing share price the estimated dividend yield is 3.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.

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

CWP    CEDAR WOODS PROPERTIES LIMITED

Infra & Property Developers - Overnight Price: $6.15

Euroz Hartleys rates ((CWP)) as Buy (1) -

Cedar Woods Properties' FY21 profit after tax of $32.8m was a 61% increase on FY20 results, and a beat on the $32.0m guidance provided in April. 

Euroz Hartleys highlighted presales of $478m imply strong fourth quarter sales compared to $426m at the end of the third quarter. It is the broker's view the significant earnings increase delivered in FY21 will continue into FY22 and FY23.

Cedar Woods is Buy rated with a target price of $8.10.

This report was published on August 26, 2021.

Target price is $8.10 Current Price is $6.15 Difference: $1.95
If CWP meets the Euroz Hartleys target it will return approximately 32% (excluding dividends, fees and charges).

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism - Overnight Price: $19.79

JP Morgan rates ((FLT)) as Underweight (5) -

JP Morgan increases its price target to $14 from $12.50 after FY21 results eased concerns around liquidity and the impacts of the A&NZ lockdowns. Client wins during the pandemic have the analyst more confident on the corporate segment.

Assuming a -$35m cash burn, the broker estimates liquidity to early 2023. Management plans to grow online total transaction volume (TTV) to $3.6bn, which implies to JP Morgan growth of 2.6x.

This report was published on August 27, 2021.

Target price is $14.00 Current Price is $19.79 Difference: minus $5.79 (current price is over target).
If FLT meets the JP Morgan target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $17.09, suggesting downside of -13.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 71.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -51.3, implying annual growth of N/A.
Current consensus DPS estimate is -0.7, implying a prospective dividend yield of -0.0%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 60.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.1, implying annual growth of N/A.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 26.4.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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