Australian Broker Call *Extra* Edition – Oct 13, 2021

Daily Market Reports | Oct 13 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)

ALG   ALL   BXB   CCX   CTM   CYM   DSE   ELD   HDN   HPI   IMD   MCP   PAN   PDI (2)   PGL   PLY   PNR   S2R   TIE   TOY   TUL  

CTM    CENTAURUS METALS LIMITED

Nickel - Overnight Price: $1.03

Canaccord Genuity rates ((CTM)) as Spec Buy (1) -

A new discovery of high-grade nickel has been made at the Tigre prospect, within the broader Jaguar Nickel Sulphide project in Brazil. Elsewhere at the same Jaguar project, first drilling at the Leao prospect has intersected a shallow mineralised zone.

Canaccord Genuity retains its Speculative Buy rating and $1.35 price target and notes the company is well funded with over $18m in
cash at the end of the June quarter.

This report was published on September 10, 2021.

Target price is $1.35 Current Price is $1.03 Difference: $0.32
If CTM meets the Canaccord Genuity target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 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 64.38.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.22.

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

CYM    CYPRIUM METALS LIMITED

Copper - Overnight Price: $0.19

Euroz Hartleys rates ((CYM)) as Spec Buy (2) -

Subject to feasibility study outcomes, Euroz Hartleys notes open pit mining could commence mid-2022 at the Nifty Copper project. There's considered potential for first copper production late in the second half of 2022, and full production levels are expected by early 2023.

News flow from the project is likely to increase in the coming months, with first assays from recently completed drilling due soon, explains the analyst.

The Speculative buy rating and $0.70 target price are maintained.

This report was issued September 14, 2021.

Target price is $0.70 Current Price is $0.19 Difference: $0.51
If CYM meets the Euroz Hartleys target it will return approximately 268% (excluding dividends, fees and charges).

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

DSE    DROPSUITE LIMITED

Cloud services - Overnight Price: $0.20

Shaw and Partners - Cessation of coverage All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ELD    ELDERS LIMITED

Agriculture - Overnight Price: $12.37

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

Noting higher livestock and wool activity in the fourth quarter of FY21, as well higher-than-expected livestock starting prices for FY22, Bell Potter has increased profit after tax forecasts for Elders by 1% and 2% for FY22 and FY23 respectively. 

Year to date, the broker notes cattle turnoff is up 21% on the previous year, and while lamb turnoff is down -2% there has been a notable strengthening in lamb pricing and volume over the second half of FY21. Wool volumes are up 33%, but 58% for the second half. 

The Buy rating and the target price of $13.75 are retained.

This report was published on September 15, 2021.

Target price is $13.75 Current Price is $12.37 Difference: $1.38
If ELD meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $13.15, suggesting upside of 6.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 40.00 cents and EPS of 90.00 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.9, implying annual growth of 10.2%.
Current consensus DPS estimate is 41.3, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 40.00 cents and EPS of 72.60 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.1, implying annual growth of -0.9%.
Current consensus DPS estimate is 45.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 14.2.

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

HDN    HOMECO DAILY NEEDS REIT

REITs - Overnight Price: $1.57

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

Jarden raises its target to $1.70 from $1.65 after HomeCo Daily Needs REIT upgraded its FY22 distribution guidance to 8.25cpu from 8cpu. This comes after the acquisition of six retail centres for -$222m, partly funded via a fully underwritten placement for $88.3m.

The placement issue price is $1.61/unit. Management expects the overall transaction will be 3% accretive to FY22 funds from operations (FFO) per share.

Jarden reiterates its Overweight rating.

This report was published on September 13, 2021.

Target price is $1.70 Current Price is $1.57 Difference: $0.13
If HDN meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 8.30 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of 51.1%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 8.60 cents and EPS of 9.20 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 17.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of 5.8%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 17.3.

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

HPI    HOTEL PROPERTY INVESTMENTS LIMITED

Infra & Property Developers - Overnight Price: $3.42

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

It is Goldman Sachs view that Hotel Property Investments' latest acquisitive activity proves its ability to acquire assets in a competitive market, but notes investors may be concerned by a comparatively high pro forma gearing. 

The company announced the acquisition of the Edward Lake Hotel pub for -$28m, and has paid -$38.8m to major tenant Queensland Venture Company to standardise lease terms. The company is also in advanced stages on an additional $7.9m acquisition. 

The Neutral rating is retained and the target price decreases to $3.27 from $3.28. 

The report was published on September 14, 2021.

Target price is $3.27 Current Price is $3.42 Difference: minus $0.15 (current price is over target).
If HPI meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.29.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.87.

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


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