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Australian Broker Call *Extra* Edition – Sep 30, 2021

Daily Market Reports | Sep 30 2021

This story features AERIS RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: AIS

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)

AIS   APE   ASG   AVH   BGA   BRI   BWX   CSS   CSX   DDH   FLT   FWD   LME   LNK   MTO   MYX   PPE   PWR   QIP   WES   WHC  

AIS    AERIS RESOURCES LIMITED

Copper – Overnight Price: $0.16

Bell Potter rates ((AIS)) as Buy (1) –

The FY21 result was below Bell Potter's forecasts on higher corporate and transaction costs, as well as depreciation and amortisation related to the Cracow acquisition. However, there was thought to be strong growth across key metrics, in-line with market expectations.

The broker notes a transformational year after the Cracow aquisition. Earnings (EBITDA) margins increased to 37% in FY21 from 15% in FY20. Also, in-line with the analyst's forecasts, no dividend was declared.

Management outlined plans for significant investment in organic growth, with -$50m to be spent in FY22 establishing production from three new mining areas at the Tritton Copper Operations. Exploration spending is also being increased at Tritton and Cracow.

The Buy rating is unchanged and the target price falls to $0.23 from $0.255.

This report was published on August 30, 2021. 

Target price is $0.23 Current Price is $0.16 Difference: $0.07
If AIS meets the Bell Potter target it will return approximately 44% (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 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.64.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.64.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $14.74

Bell Potter rates ((APE)) as Buy (1) –

First half results were as expected by Bell Potter, and while the interim dividend of 20cps was below the forecast for 22.5cps, there was an unexpected special dividend of 8.4cps. This was due to the sale of the Daimler truck business.

Management said orders for new vehicles continued to exceed new deliveries in July and so far in August. This suggests to the analyst there has been little, if any, impact from lockdowns so far.

The broker upgrades its 2022 and 2023 forecasts by 2% and 4%, believing any lost profits will appear in the next year. The current tight supply means favourable operating conditions are expected to continue. The Buy rating and $18.75 target are unchanged.

This report was published on August 30, 2021.

Target price is $18.75 Current Price is $14.74 Difference: $4.01
If APE meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $18.35, suggesting upside of 24.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 53.40 cents and EPS of 126.90 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 11.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.6, implying annual growth of 90.4%.
Current consensus DPS estimate is 59.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 47.50 cents and EPS of 94.20 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.5, implying annual growth of -17.4%.
Current consensus DPS estimate is 57.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 16.3.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $2.60

Wilsons rates ((ASG)) as Overweight (1) –

Wilsons assesses a strong FY21 result, led by stronger new vehicle sales and significant margin expansion. Operating cash flow of $201m was above $134m (previous corresponding period) and the analyst's estimate of $156m. The final dividend was broadly in-line at 7cps.

Previous experience suggests to the analyst a strong retail bounce post lockdowns. Underlying demand is expected to remain strong throughout FY22 though new vehicle supply will continue to be constrained throughout FY22.

The Overweight rating and $3.09 target price are unchanged.

The report was published on August 30, 2021.

Target price is $3.09 Current Price is $2.60 Difference: $0.49
If ASG meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).

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

AVH    AVITA MEDICAL INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.89

Bell Potter rates ((AVH)) as Buy (1) –

Following FY21 results, Bell Potter notes the strong result from the June quarter appears to continue into the new financial year with even higher first quarter FY22 commercial revenue guidance.

The analyst highlights continued strong adoption of Recell in the US with label expansion in pediatric full-thickness burns and larger total body surface areas wounds. 

Around 50% of the company's largest accounts are in the southern states of the US and potential covid restrictions may pose a threat to ongoing revenue growth, cautions the broker. The Buy rating and $9.80 target price are unchanged.

This report was published on August 30, 2021.

Target price is $9.80 Current Price is $4.89 Difference: $4.91
If AVH meets the Bell Potter target it will return approximately 100% (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 0.00 cents and EPS of minus 121.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.02.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 106.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.58.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.27

Bell Potter rates ((BGA)) as Buy (1) –

FY21 underlying profit was 12.5% ahead of Bell Potter's expectations. The core performance was considered to be stronger than appearances as it included around -$18-19m in redundancy and other one-off costs.

No guidance was offered though mention was made of farmgate competition continuing into FY22. The analyst makes no material changes to forecasts and the target price of $6.35 and Buy rating are unchanged.

The broker highlights the acquisition of Lion Dairy & Drinks and targeted synergies are expected to drive a material step-change in returns over the next two years. Additionally, it's thought there will be reduced influence of commodity price movements in the business.

This report was published August 30, 2021.

Target price is $6.35 Current Price is $5.27 Difference: $1.08
If BGA meets the Bell Potter target it will return approximately 20% (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 25.20 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.91.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 16.00 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.62.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BRI    BIG RIVER INDUSTRIES LIMITED

Building Products & Services – Overnight Price: $2.06

CCZ Equities rates ((BRI)) as No Rating (-1) –

While FY21 revenue was in-line, underlying earnings (EBITDA) were around 10% above the CCZ Equities forecast, which in turn resulted in outperformance for underlying profit. A strong margin uplift across both distribution and manufacturing was thought to drive the result.

The analyst points out the rise in margin was built on both operating leverage and a supportive product mix which management expects to sustain through FY22. It's felt management must have confidence in providing FY22 revenue guidance ($335-$350m) at this early juncture.

While the broker materially upgrades forecasts no target price or rating is alluded to in the latest research update.

This report was published on August 24, 2021.

Current Price is $2.06. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 8.00 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.61.

Forecast for FY23:

CCZ Equities forecasts a full year FY23 dividend of 8.10 cents and EPS of 13.50 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.26.

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

BWX    BWX LIMITED

Household & Personal Products – Overnight Price: $4.90

Moelis rates ((BWX)) as Buy (1) –

BWX's FY21 revenue of $194m was up 3% on previous year results, underlying earnings of $34.5m were up 11.5% and profit after tax of $24.7m was up 21%.

The company announced the acquisition of a 50.1% stake in Go-To for $89m, which Moelis notes will add depth to the direct-to-consumer strategy. Moelis also highlights the launch of Sukin in Walmart USA is an early indicator of North American execution. 

While the company has not provided FY22 guidance, Moelis notes results will benefit from a full-year contribution from the Woolworths launch, Chemist Warehouse partnership and Flora & Fauna acquisition, increased direct-to-consumer penetration, and distribution gains. 

The Buy rating is retained and the target price increases to $6.05 from $5.61.

This report was published on August 30, 2021.

Target price is $6.05 Current Price is $4.90 Difference: $1.15
If BWX meets the Moelis target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.60 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.26.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.70 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.63.

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

CSS    CLEAN SEAS SEAFOOD LIMITED

Overnight Price: $0.54

Bell Potter rates ((CSS)) as Buy (1) –

Following FY21 results, Bell Potter reduces pricing growth assumptions to reflect extended covid restrictions in Australia, though raises the FY23 earnings (EBITDAS) forecast to reflect lower operating costs. The $0.80 target and Buy rating are unchanged.

Revenue rose 20% year-on-year reflecting a 31% volume uplift and a -8% movement in prices, points out the analyst. Meanwhile, the operating earnings loss was larger than forecast, reflecting higher than anticipated production costs.

This report was published on August 30, 2021.

Target price is $0.80 Current Price is $0.54 Difference: $0.26
If CSS meets the Bell Potter target it will return approximately 48% (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 0.00 cents and EPS of minus 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.61.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.00.

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

CSX    CLEANSPACE HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $1.38

Bell Potter rates ((CSX)) as Hold (3) –

After FY21 results, Bell Potter makes minor changes to forecasts, in-line with updated expense guidance from the company. However, the target price falls to $1.50 from $1.70 as a fourth quarter fall in earnings creates an element of uncertainty for the timing of recovery.

Additionally, the lack of clarity on the ongoing consumables revenue per unit of installed base adds risk, explains the analyst. Should order patterns not normalise (or if the base re-sets at a lower number), there's considered downside risk to the $1.20 per share range.

Bell Potter retains its Hold rating.

This report was published on August 30, 2021.

Target price is $1.50 Current Price is $1.38 Difference: $0.12
If CSX meets the Bell Potter target it will return approximately 9% (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 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.16.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.47.

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

DDH    DDH1 LIMITED

Mining Sector Contracting – Overnight Price: $1.16

Moelis rates ((DDH)) as Buy (1) –

DDH1's FY21 results were a solid beat on Moelis' forecasts, with underlying earnings of $74.6m an 8% increase on forecast and earnings before tax of $50.9m a 15% increase on forecast. 

While the company has not provided FY22 guidance, Moelis notes planned fleet expansion, to a total 106 rigs from 98, and an expected increase in utilisation and rates, implies continued strong growth. Potential upside to forecasts on utilisation and pricing outperformance. 

The Buy rating is retained and the target price increases to $1.65 from $1.63.

This report was published on August 30, 2021.

Target price is $1.65 Current Price is $1.16 Difference: $0.49
If DDH meets the Moelis target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.60 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.09.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.30 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 4.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.72.

Market Sentiment: 1.0
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: $21.22

Bell Potter rates ((FLT)) as Buy (1) –

The FY21 underlying net loss was broadly in-line with Bell Potter's expectation. No final dividend was declared. The broker highlights global  total transaction volume (TTV) was 26% of pre-covid levels in July, with Corporate at 41% and Leisure at 16%.

Management is targeting a FY22 return to monthly profitability for Corporate initially, and then Leisure. While the analyst downgrades FY23 profit (PBT) estimates by -4%, the FY24 forecast is upgraded by 18% due to confidence in volumes returning to Leisure. 

The broker retains its Buy rating and $20 price target and believes an earnings rebound will stem from the company’s strong brand equity, successful cost-out program and global sales network.

This report was published on August 30, 2021.

Target price is $20.00 Current Price is $21.22 Difference: minus $1.22 (current price is over target).
If FLT meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.09, suggesting downside of -19.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 25.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 83.22.

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:

Bell Potter forecasts a full year FY23 dividend of 40.00 cents and EPS of 63.30 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.52.

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 0.8%.
Current consensus EPS estimate suggests the PER is 28.3.

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

FWD    FLEETWOOD LIMITED

Infra & Property Developers – Overnight Price: $2.30

Moelis rates ((FWD)) as Buy (1) –

Fleetwood's FY21 results were largely in line with Moelis' forecasts with underlying earnings of $26.3m and profit after tax of $17.3m, compared to the broker's expected $26.0m and $17.5m. 

The company did not provide FY22 guidance, but the broker notes near term headwinds and a second half weighting to full-year results was implied. The broker downgrades FY22 underlying earnings by -12%. 

The Buy rating is retained and the target price increases to $3.26 from $3.16.

This report was published on August 30, 2021. 

Target price is $3.26 Current Price is $2.30 Difference: $0.96
If FWD meets the Moelis target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.90 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 6.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.47.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 22.10 cents and EPS of 22.10 cents.
At the last closing share price the estimated dividend yield is 9.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.41.

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

LME    LIMEADE, INC

Cloud services – Overnight Price: $0.64

Moelis rates ((LME)) as Buy (1) –

After a challenging first half, Limeade is confident on a seasonally stronger second half of FY21. Limeade reported six contract wins during the first half, expecting an increase in the second half, and reiterated full-year guidance. 

Moelis highlighted a reduction in pipeline to $156m, from $180m in March, but attributes some of this to the company narrowing its focus to large enterprise partnerships.

The Buy rating is retained and the target price decreases to $1.22 from $1.27. 

The report was published on August 30, 2021. 

Target price is $1.22 Current Price is $0.64 Difference: $0.58
If LME meets the Moelis target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.19.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.12 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.53.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LNK    LINK ADMINISTRATION HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $4.33

Goldman Sachs rates ((LNK)) as Neutral (3) –

Link Administration Holdings' profit after tax for FY21 of $113.2m was a -6% miss on Goldman Sachs' forecast, resulting in a final dividend of 5.5 cents per share, below the broker's expected 6.0 cents per share. 

Goldman Sachs notes group revenue in the second half was down -7% on the first half, but cash control was far stronger than expected and full-year expenses were down -4% on the previous year. 

With the company guiding to FY22 earnings before tax being largely flat on FY21, the broker has found guidance disappointing and a downgrade on previous commentary. 

The Neutral rating is retained and the target price decreases to $4.69 from $5.06. 

This report was published on August 26, 2021.

Target price is $4.69 Current Price is $4.33 Difference: $0.36
If LNK meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $5.21, suggesting upside of 20.3%(ex-dividends)
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 22.00 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of N/A.
Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.7, implying annual growth of 17.1%.
Current consensus DPS estimate is 13.2, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 16.2.

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

MTO    MOTORCYCLE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $2.93

Moelis rates ((MTO)) as Buy (1) –

Motorcycle Holdings delivered an FY21 result at the top end of the guidance range. Underlying earnings of $44.5m were a 61% increase on the previous year, and profit after tax of $28.3m was an 86% increase. Moelis notes the company continues to take market share. 

Despite no guidance for FY22, Moelis notes the company indicated an expectation that current demand levels would continue in the short to medium term. The broker also highlighted covid lockdowns would impact on FY22's first half results. 

The Buy rating is retained and the target price decreases to $3.54 from $3.63.

This report was published on August 30, 2021.

Target price is $3.54 Current Price is $2.93 Difference: $0.61
If MTO meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.40 cents and EPS of 28.90 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.14.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.10 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 5.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.35.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.28

Bell Potter rates ((MYX)) as Buy (1) –

Following FY21 results, to better reflect trading, Bell Potter determines that by excluding weaker US$ impacts, revenues in constant currency declined by a mere -3%. Gross profit margin across the group decreased by -100bps to 45%.

Management noted commercialisation opportunities for the recently launched Nextstellis. There is now 50% commercial coverage in place, of which 38% is unrestricted. The broker expects a realised selling price of US$90/woman/cycle, as per branded peers.

The analyst points out, the company remains comfortably inside debt covenants. The Buy rating is retained, with some significant wins for Nextstellis expected in the coming months. The price target eases to $0.52 from $0.56.

This report was published on August 30, 2021.

Target price is $0.52 Current Price is $0.28 Difference: $0.24
If MYX meets the Bell Potter target it will return approximately 86% (excluding dividends, fees and charges).
Current consensus price target is $0.31, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.0, 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 FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.9, 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 14.7.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PPE    PEOPLE INFRASTRUCTURE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $3.81

Moelis rates ((PPE)) as Upgrade to Buy from Hold (1) –

People Infrastructure's FY21 underlying earnings of $38m were a 33% year-on-year increase, while earnings per share of 26 cents marked an increase of 13%.

Looking ahead, Moelis' FY22 underlying earnings forecast of $43m reflects impacts of current lockdowns, as well as a boost from acquisitions, with the Techforce and Vision Surveys acquisitions expected to be $7.8m accretive to underlying earnings in FY22.

The broker notes People Infrastructure had $25m net debt at June, and a $50-70m capacity for further acquisition. It is the broker's view that the company is positioned for organic and acquisitive growth over a number of years. 

The rating is upgraded to Buy from Hold and the target price increases to $5.06 from $4.76. 

This report was published on August 30, 2021.

Target price is $5.06 Current Price is $3.81 Difference: $1.25
If PPE meets the Moelis target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 12.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.70.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 14.80 cents and EPS of 32.90 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.58.

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

PWR    PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

Overnight Price: $3.03

Jarden rates ((PWR)) as Buy (1) –

The FY21 result was materially stronger than consensus estimates, with profit (PBT) 68% ahead of the prospectus forecast. This resulted from strong demand along with supply that is thought set to continue to suffer from ongoing supply chain difficulties into 2022.

The analyst assumes guidance is light-on should deliveries remain resilient through the first half of FY22 and notes gross profit per vehicle remains robust. It's also believed M&A opportunities will present.

The broker makes minor forecast changes and raises its target price to $4.32 from $4.17. The Buy rating is unchanged.

This report was published on August 27, 2021. 

Target price is $4.32 Current Price is $3.03 Difference: $1.29
If PWR meets the Jarden target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 11.90 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.02.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.10 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 8.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.61.

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

QIP    QANTM INTELLECTUAL PROPERTY LIMITED

Legal – Overnight Price: $1.21

Bell Potter rates ((QIP)) as Buy (1) –

FY21 earnings (EBITDA) were in-line with Bell Potter's estimate and were primarily underpinned by strong growth in the Australian patents business. The broker makes no material changes to EPS forecasts and retains its $1.55 target price and Buy rating.

While management's transformation plan will potentially lift margins, in the meantime, an attractive fully franked yield is supported by an undemanding price earnings ratio valuation. An in-line final dividend of 3.4cps (fully franked) was declared.

This report was published on August 30, 2021.

Target price is $1.55 Current Price is $1.21 Difference: $0.34
If QIP meets the Bell Potter target it will return approximately 28% (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 7.60 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 6.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.86.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 7.80 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 6.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.63.

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

WES    WESFARMERS LIMITED

Apparel & Footwear – Overnight Price: $55.31

Jarden rates ((WES)) as Buy (2) –

FY21 earnings (EBIT) were 3% ahead of consensus estimates, driven by 100% earnings growth by Kmart group, explains Jarden. The $2 capital return was considered a highlight. The target price rises to $60 from $59 and the Overweight rating is retained.

The analyst points out year-to-date FY22 trading is mixed with Bunnings and Officeworks recording -4.7% and -1.5% year-on-year sales growth. Kmart/Target and Catch recorded -14.3% and -8.5% declines impacted by covid and store closures.

The company is well positioned to benefit from a reopening (trade/apparel) and capitalise on the marketplace/ecosystem opportunity, assures the analyst.

This report was published on August 27, 2021.

Target price is $60.00 Current Price is $55.31 Difference: $4.69
If WES meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $56.75, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 162.00 cents and EPS of 197.80 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 197.1, implying annual growth of -6.3%.
Current consensus DPS estimate is 200.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 28.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 172.00 cents and EPS of 212.10 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 213.7, implying annual growth of 8.4%.
Current consensus DPS estimate is 180.2, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.9.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $3.27

Goldman Sachs rates ((WHC)) as Buy (1) –

Whitehaven Coal's earnings proved a beat on Goldman Sachs' forecasts, at $205m compared to an estimated $201m, while underlying earnings of -$87m were a miss on the broker's -$79m. 

Looking ahead, the company is now pursuing less than $300m of net debt and has indicated a focus on capital returns over growth capital expenditure. The broker expects net debt to more than halve by the end of December, to $0.3bn. 

Guidance for FY22 is for largely flat coal production on lower unit costs and higher sustaining capital expenditure. Goldman Sachs lifts FY22 earnings per share forecasts by 4%, largely on lower unit costs. 

The Buy rating is retained and the target price increases to $2.80 from $2.10.

This report was published on August 26, 2021.

Target price is $2.80 Current Price is $3.27 Difference: minus $0.47 (current price is over target).
If WHC meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.11, suggesting downside of -5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.9, implying annual growth of N/A.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 5.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 5.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of -52.5%.
Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 11.7.

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

AIS APE ASG AVH BGA BRI BWX CSS CSX DDH FLT FWD LME LNK MTO MYX PPE PWR QIP WES WHC

For more info SHARE ANALYSIS: AIS - AERIS RESOURCES LIMITED

For more info SHARE ANALYSIS: APE - EAGERS AUTOMOTIVE LIMITED

For more info SHARE ANALYSIS: ASG - AUTOSPORTS GROUP LIMITED

For more info SHARE ANALYSIS: AVH - AVITA MEDICAL INC

For more info SHARE ANALYSIS: BGA - BEGA CHEESE LIMITED

For more info SHARE ANALYSIS: BRI - BIG RIVER INDUSTRIES LIMITED

For more info SHARE ANALYSIS: BWX - BWX LIMITED

For more info SHARE ANALYSIS: CSS - CLEAN SEAS SEAFOOD LIMITED

For more info SHARE ANALYSIS: CSX - CLEANSPACE HOLDINGS LIMITED

For more info SHARE ANALYSIS: DDH - DDH1 LIMITED

For more info SHARE ANALYSIS: FLT - FLIGHT CENTRE TRAVEL GROUP LIMITED

For more info SHARE ANALYSIS: FWD - FLEETWOOD LIMITED

For more info SHARE ANALYSIS: LME - LIMEADE, INC

For more info SHARE ANALYSIS: LNK - LINK ADMINISTRATION HOLDINGS LIMITED

For more info SHARE ANALYSIS: MTO - MOTORCYCLE HOLDINGS LIMITED

For more info SHARE ANALYSIS: MYX - MAYNE PHARMA GROUP LIMITED

For more info SHARE ANALYSIS: PPE - PEOPLEIN LIMITED

For more info SHARE ANALYSIS: PWR - PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

For more info SHARE ANALYSIS: QIP - QANTM INTELLECTUAL PROPERTY LIMITED

For more info SHARE ANALYSIS: WES - WESFARMERS LIMITED

For more info SHARE ANALYSIS: WHC - WHITEHAVEN COAL LIMITED