Australian Broker Call *Extra* Edition – Oct 04, 2021

Daily Market Reports | Oct 04 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)

ALU   ASG (2)   AVA   BEX   CAA   CDA   CLX   CWN   DSK   EGG   EOS   FMG   HLA   HLO   HLS (2)   IGO   JYC   LBL   LDX   MTO   NXS   PAN   PBH   PDN   PWR   QUB   RCL   SHJ   SHV   TPW (2)   VMT   WPR  

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components - Overnight Price: $2.50

Jarden rates ((ASG)) as Overweight (2) -

FY21 benefitted from demand coinciding with strong margins as a result of supply constraints. Gross profit was up 27.5%. Going forward, Jarden notes the order book is robust and gross profit per vehicle is still growing.

Current lockdowns will impact trading yet demand remains resilient and deliveries are only delayed. So after a subdued month in September the broker suspects investors will look to buy the re-opening.

Overweight maintained. Target is raised to $3.15 from $3.05. This report was published on August 30, 2021.

Target price is $3.15 Current Price is $2.50 Difference: $0.65
If ASG meets the Jarden target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 13.70 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.92.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.20 cents and EPS of 20.30 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.32.

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


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

Driven by forecast earnings upgrades after FY21 results, Wilsons lifts its target price to $3.33 from $3.09. The Overweight rating is unchanged. 

For more detail, refer to the FNArena summary of the August 30, 2021 research report from Wilsons .

This report was published on August 31,2021.

Target price is $3.33 Current Price is $2.50 Difference: $0.83
If ASG meets the Wilsons target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 13.70 cents and EPS of 27.30 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.16.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 11.40 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.92.

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

AVA    AVA RISK GROUP LIMITED

Hardware & Equipment - Overnight Price: $0.48

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

FY21 results revealed revenue was up 41% and operating earnings (EBITDA) up 116%. Revenue was in line with recently provided guidance.

The main note of interest for Canaccord Genuity was the accompanying update on capital management, which will mean a total of $40.2m is returned to shareholders via a $39.2m special dividend and $1m on-market buyback.

This stems from the recent divestments of the services division which means the company is now a pure technology offering in data analytics for critical assets.

No specific FY22 guidance was provided. Buy rating retained. Target rises to $0.60 from $0.58.

The report was published on August 31, 2021.

Target price is $0.60 Current Price is $0.48 Difference: $0.12
If AVA meets the Canaccord Genuity target it will return approximately 25% (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 1.20 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.48.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 1.50 cents and EPS of 3.20 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 15.00.

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

BEX    BIKEEXCHANGE LIMITED

Sports & Recreation - Overnight Price: $0.18

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

BikeExchange has released FY21 results, highlighting underlying earnings of $5.9m and revenue of $5.6m, up 50% on FY20 results. Shaw and Partners notes the company continues to invest in growth, including increased marketing spend.

The company has had a strong start to FY22, and the broker is forecasting a 55% revenue increase for the year. Shaw and Partners expects likely acquisitive growth in FY22, and a move towards a more ecommerce focused business.

The Buy rating and target price of $0.33 are retained. 

This report was published on August 30, 2021.

Target price is $0.33 Current Price is $0.18 Difference: $0.15
If BEX meets the Shaw and Partners target it will return approximately 83% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.59.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.36.

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

CAA    CAPRAL LIMITED

Aluminium, Bauxite & Alumina - Overnight Price: $7.80

Taylor Collison rates ((CAA)) as Outperform (2) -

Taylor Collison notes the tailwinds driving Capral's strong results, including record industrial volumes and strong residential housing demand, are unlikely to subside in the near-term, as the company reported it's best first half results in 20 years. 

The company reported underlying earnings of $15.7m in the first half, and Capral has upgraded full year guidance again to $31-33m. The broker expects this guidance range to prove conservative.

The Outperform rating is retained and no price target has been provided.

This report was published on August 26, 2021.

Current Price is $7.80. Target price not assessed.
The company's fiscal year ends in December.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 70.00 cents and EPS of 183.50 cents.
At the last closing share price the estimated dividend yield is 8.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.25.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 70.00 cents and EPS of 209.50 cents.
At the last closing share price the estimated dividend yield is 8.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.72.

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

CDA    CODAN LIMITED

Hardware & Equipment - Overnight Price: $12.45

Moelis rates ((CDA)) as Upgrade to Buy from Hold (1) -

Moelis believes the relatively flat organic growth outlook suggested for FY22 at the FY21 results is priced in and points out Codan has a five-year track record of beating its conservative outlook.

The broker estimates at least $5m in organic earnings is achievable largely because of incremental sales from the new GPX6000 gold detector.

Moreover, the company holds a dominant global market position in metal detection and has defensible IP amid modest competition.

The broker acknowledges the impact of CEO Donald McGurk's retirement but believes the business is now in its strongest-ever position in terms of product and distribution. Rating is upgraded to Buy from Hold with the target steady at $17.12.

This report was published on September 29, 2021.

Target price is $17.12 Current Price is $12.45 Difference: $4.67
If CDA meets the Moelis target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 34.60 cents and EPS of 62.70 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.86.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 38.80 cents and EPS of 70.50 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.66.

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

CLX    CTI LOGISTICS LIMITED

Transportation & Logistics - Overnight Price: $0.92

Euroz Hartleys rates ((CLX)) as Buy (2) -

Strong revenue growth occurred in transport volumes in FY21 with results ahead of expectations. The couriers and security business has experienced reductions in revenue as a result of the pandemic.

Euroz Hartleys notes positive margin improvements were partially offset by wage inflation, site relocation costs and ongoing issues with interstate linehaul services.

The business cash flow and a final 2c dividend was declared bringing the total for the year to 4c, ahead of expectations. The broker maintains a Speculative Buy rating with a target of $0.94 under review.

This report was published on August 31, 2021.

Current Price is $0.92. Target price not assessed.

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

CWN    CROWN RESORTS LIMITED

Gaming - Overnight Price: $9.30

Goldman Sachs rates ((CWN)) as Neutral (3) -

FY21 results were "messy", Goldman Sachs asserts while broadly in line at the revenue level. A better earnings performance was boosted by profit on the disposal of apartments.

The broker notes the company is no longer in discussions with Oaktree regarding the revised proposal.

The final report from the Victorian Royal Commission is expected by October 15 and the Perth Casino Royal Commission by March 4 2022. Goldman Sachs retains a Neutral rating and $10.35 target.

This report was published on August 30, 2021.

Target price is $10.35 Current Price is $9.30 Difference: $1.05
If CWN meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $11.93, suggesting upside of 26.3%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is -7.4, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Current consensus EPS estimate is 41.6, implying annual growth of N/A.
Current consensus DPS estimate is 47.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 22.7.

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


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