Australian Broker Call *Extra* Edition – Oct 06, 2021

Daily Market Reports | Oct 06 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)

5GN   ABP   AND   AVN   BUB   CHC   CHZ   CQR   CRW   DGL   DXS   ECF   GMG   GPT   HDN   IGO   LRK   MGR   MMI   MTS   NUC   OBM   OLL   OML   PBH   QML   REG   RMC   RRL (2)   SCG   SCP   SDV   SFR   SGP   SSG   TCL   TLS   TPG   UMG   VCX   XRF   YOJ   ZBT  

NUC    NUCHEV PTY LIMITED

Dairy - Overnight Price: $0.65

Wilsons rates ((NUC)) as Market Weight (3) -

Nuchev's FY21 results broadly met expectations. No explicit guidance was provided. The company is intent on building its brand equity, and expanding business in Australia and China.

Wilsons spies an incremental opportunity in the reformulated goat infant formula, which will include human milk oligosaccharides.

Sales forecasts and gross margins are largely unchanged.

Market Weight rating retained. Target price falls $0.56 from $0.57.

This report was published on September 1, 2021.

Target price is $0.56 Current Price is $0.65 Difference: minus $0.09 (current price is over target).
If NUC meets the Wilsons target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 14.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.58.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.80.

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

OBM    ORA BANDA MINING LIMITED

Gold & Silver - Overnight Price: $0.10

Euroz Hartleys rates ((OBM)) as No Rating (-1) -

The weekly performance of gold production has improved at Daveyhurst and FY22 guidance for 80,800 ounces has been maintained. Euroz Hartleys notes handling issues at the plant have improved amid harder ore feed and a better performance from the crusher screen.

The broker expects the company will need to build cash reserves given flow is tight and there is little margin for error. If not additional funding could be required. 

Euroz Hartleys is reviewing its $0.45 price target and rating.

This report was published on September 2, 2021.

Current Price is $0.10. Target price not assessed.

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

OLL    OPENLEARNING LIMITED

Education & Tuition - Overnight Price: $0.11

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

Canaccord Genuity reports benefits from OpenLearning's shift to usage-based pricing are taking time to play out, but expects receipts and revenue growth in the third quarter, thanks partly to the third UNSW Transition Program intake.

The broker expects lower near-term earnings, but believes OpenLearning is well positioned to capitalise on growing demand for online education and reskilling. 

Speculative Buy rating is retained. Target price eases to $0.39 from $0.43.

This report was published on September 1, 2021.

Target price is $0.39 Current Price is $0.11 Difference: $0.28
If OLL meets the Canaccord Genuity target it will return approximately 255% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.67.

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

OML    OOH!MEDIA LIMITED

Out of Home Advertising - Overnight Price: $1.76

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

Jarden is positive about the outlook for oOh!media, believing the company offers one of the best avenues to obtain direct leverage to the domestic economic recovery.

Management has signaled its client base is more responsive to engaging during lockdowns in 2021 than it was in 2020.

The company is still considering the best approach to programmatic trading but agrees this is an incremental opportunity.

Jarden retains a Buy rating and $2.04 target.

This report was published on September 2, 2021.

Target price is $2.04 Current Price is $1.76 Difference: $0.28
If OML meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.59, suggesting downside of -8.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 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 176.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, 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 58.0.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 5.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of 160.0%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 22.3.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming - Overnight Price: $10.00

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

Bell Potter transfers coverage to another analyst with a change in the investment thesis. The broker is still positive on the outlook, attracted to the large opportunity in sports wagering in both the US and Canada. PointsBet also has a key difference in that it owns its own IT platform.

The main changes are increases in revenue forecasts and also in forecast losses. The broker now forecasts a greater EBITDA loss in FY22 relative to FY21 which is finally reduced in FY24. Breakeven is expected in FY25.

Speculative Buy rating retained. Target is reduced to $13.75 from $20.10.

This report was published on September 1, 2021.

Target price is $13.75 Current Price is $10.00 Difference: $3.75
If PBH meets the Bell Potter target it will return approximately 38% (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 108.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.23.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 107.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.31.

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

QML    QMINES LIMITED

Overnight Price: $0.41

Shaw and Partners rates ((QML)) as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on QMines with a Buy rating and $0.69 target. The company owns the Mount Chalmers project, north-east of Rockhampton, Queensland. This is an historic copper/gold mine that operated until 1982.

The company is exploring for additional mineralisation near the existing open pit and has advanced targets at Woods Shaft, Botos and Mount Warminster.

QMines also has the Silverwood, Warroo and Herries Range projects south-west of Brisbane which are at an earlier stage.

This report was published on September 2, 2021.

Target price is $0.69 Current Price is $0.41 Difference: $0.28
If QML meets the Shaw and Partners target it will return approximately 68% (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 24.12.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.62.

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

REG    REGIS HEALTHCARE LIMITED

Aged Care & Seniors - Overnight Price: $2.00

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

Regis Healthcare's FY21 full-year underlying earnings of $73.5m proved a -10% miss on Moelis' forecasts, thanks to $7.1m in expenses related to employee underpayments.

But the broker maintains the faith, forecasting underlying earnings of $147m for FY22.

Despite remaining historically low, average occupancy for Regis Healthcare increased during the second half to 89.6%. FY22 forecasts suggest a 1.5 percentage point improvement in average occupancy to 90.5%. 

Buy rating retained. Target price increases to $2.56 from $2.23.

This report was published on September 1, 2021. 

Target price is $2.56 Current Price is $2.00 Difference: $0.56
If REG meets the Moelis target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $2.27, suggesting upside of 17.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.90 cents and EPS of 49.50 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 4.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 26.7%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 23.1.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.70 cents and EPS of 51.90 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of 26.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.3.

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

RMC    RESIMAC GROUP LIMITED

Banks - Overnight Price: $1.94

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

Resimac's FY21 underlying net profit hit the top of guidance. Wilsons expects some compression in margins over the short term but operating leverage should provide a meaningful offset over the medium term.

The broker believes the -15% discount to peers is unwarranted and retains an Overweight rating.

Ultimately, Wilsons believes Resimac should trade at a premium because it has the largest residential loan book amid growth opportunities in the ABS acquisition. Target is raised to $3.90 from $3.80.

This report was published on September 1, 2021.

Target price is $3.90 Current Price is $1.94 Difference: $1.96
If RMC meets the Wilsons target it will return approximately 101% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 8.80 cents and EPS of 29.40 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.60.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 9.80 cents and EPS of 32.70 cents.
At the last closing share price the estimated dividend yield is 5.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.93.

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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