Australian Broker Call *Extra* Edition – Oct 12, 2021

Daily Market Reports | Oct 12 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)

4DX   ALX   AMA (2)   ANP   AWC   AZS   BRG   BWX   BXB   CAI   COE   DCN   DGO   DOC   EVS   FMG   GNC   MFG   MQG   NWH   OBL   PNR   RMD   S32   SFR   TIE   TLS   TNE   TTM   UWL  

4DX    4DMEDICAL LIMITED

Medical Equipment & Devices - Overnight Price: $1.30

Bell Potter rates ((4DX)) as Upgrade to Buy from Hold (1) -

4Medical has announced iMed as its Australian clinical pilot program partner for the XV Lung Ventilation Analysis Software. The trial will commence Phase 2, expanding out of Victoria. 

Bell Potter notes the decision to expand the trial to further sites suggests clinicians are gaining benefits from the technology and the system is likely integrating well with the normal radiology practice workflows. 

The broker highlights an announcement of a commercial supply arrangement for the above mentioned software will be a catalyst for the stock.

The rating is upgraded to Buy from Hold and the target price increases to $2.00 from $1.80.

The report was published on September 8, 2021.

Target price is $2.00 Current Price is $1.30 Difference: $0.7
If 4DX meets the Bell Potter target it will return approximately 54% (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 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.64.

Forecast for FY23:

Bell Potter forecasts a full year FY23 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 76.47.

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

ALX    ATLAS ARTERIA

Infrastructure & Utilities - Overnight Price: $6.40

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

While the current share price is trading in-line with Jarden's price target, the broker maintains its Overweight rating for the potential benefits from a post-covid European traffic recovery. The dividend yield is also considered attractive.

Moreover, the analyst feels a potential acquisition or participation in major road maintenance projects in France may allow for an extension of the concession term for APRR. It's thought an increase in tariff by way of compensation is also possible.

Also, Jarden believes media reports suggesting a candidate in the next French presidential elections plans to nationalise French motorways is likely positive. The broker points to a rally in an APPR co-investor's share price after the reports. 

The Overweight rating and $7 target price are retained.

This report was published on September 9, 2021.

Target price is $7.00 Current Price is $6.40 Difference: $0.6
If ALX meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $6.72, suggesting upside of 5.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 31.00 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.2, implying annual growth of N/A.
Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 39.00 cents and EPS of 39.90 cents.
At the last closing share price the estimated dividend yield is 6.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.7, implying annual growth of 45.6%.
Current consensus DPS estimate is 39.0, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 12.0.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AMA    AMA GROUP LIMITED

Automobiles & Components - Overnight Price: $0.47

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

AMA Group has announced a debt restructure and $150m capital raising. Moelis notes this will reduce net debt to $81.5m from $173.3m, and allows headroom for the company to weather further covid impacts which are expected to continue into the first half of FY22.  

Despite this, the company's medium term revenue and margins targets imply an expected strong recovery, and AMA Group noted there was a quick volume recovery following the easing of restrictions in 2020. 

The rating is upgraded to Buy from Hold and the target price decreases to $0.57 from $0.75. 

This report was published on September 13, 2021.

Target price is $0.57 Current Price is $0.47 Difference: $0.1
If AMA 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 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 470.00.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.50 cents and EPS of 1.60 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.37.

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


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

In a bid to address balance sheet concerns, AMA Group has announced a $150m capital raising and debt facility restructure. Wilsons notes this should also enhance liquidity to address covid impacts and provide a platform for growth for the company.

The broker also highlighted that challenging operational conditions continue, and while management is targeting margin improvement, the broker awaits evidence in this area. Wilsons updates FY22 sales forecasts by -7% and underlying earnings by -16%. 

The Market Weight rating is retained and the target price decreases to $0.41 from $0.47. 

This report was published on September 13, 2021.

Target price is $0.41 Current Price is $0.47 Difference: minus $0.06 (current price is over target).
If AMA meets the Wilsons target it will return approximately minus 13% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.22.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.36.

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

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.22

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

As per FDA feedback, Antisense Therapeutics' ATL1102 treatment will undergo a nine month non-clinical toxicology study, having been refused an exemption from the study. This is consistent with FDA requirements for the drug class. 

Wilsons notes there is low risk of new adverse events in this trial given the treatment has completed two prior six month toxicology studies. 

The Overweight rating and target price of $0.63 are retained. 

This report was published on September 8, 2021.

Target price is $0.63 Current Price is $0.22 Difference: $0.41
If ANP meets the Wilsons target it will return approximately 186% (excluding dividends, fees and charges).
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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.00.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 73.33.

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

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina - Overnight Price: $2.15

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

Shaw and Partners has considered three events impacting upon alumina supply at present. The analyst reminds us of 2018-19 supply disruption when the alumina price more than doubled.

The broker retains its Buy rating for Alumina Ltd and sets its target price at $2.20.

This research was published on September 10, 2021.

Target price is $2.20 Current Price is $2.15 Difference: $0.05
If AWC meets the Shaw and Partners target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $1.91, suggesting downside of -15.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 10.50 cents and EPS of 7.18 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 29.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of N/A.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 9.30 cents and EPS of 9.17 cents.
At the last closing share price the estimated dividend yield is 4.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.2, implying annual growth of 21.4%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 22.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AZS    AZURE MINERALS LIMITED

Mining - Overnight Price: $0.30

Euroz Hartleys rates ((AZS)) as Speculative Buy (2) -

Euroz Hartleys is encouraged by the the tenor and consistency of assay results from VC-07 East at the company's Andover nickel/copper project in the Pilbara. A maiden mineral resource estimate is expected in early 2022.

The analyst notes the company remains well funded, with $30m in cash at 30 June 2021. The broker retains its $0.75 target price and Speculative Buy rating.

This report was published on September 13, 2021.

Target price is $0.75 Current Price is $0.30 Difference: $0.45
If AZS meets the Euroz Hartleys target it will return approximately 150% (excluding dividends, fees and charges).

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


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