Australian Broker Call *Extra* Edition – Oct 20, 2021

Daily Market Reports | Oct 20 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)

BOE   BTH   CIP   CLW   CTP   CXL   DXS   FMG   FSF   IAG   KMD   LEP   PVS   SUN   TNE   WBC  

BOE    BOSS ENERGY LIMITED

Uranium - Overnight Price: $0.33

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

Canaccord Genuity maintains its Speculative Buy rating and lifts its target to $0.36 from $0.23 after incorporating into forecasts significant resources outside the initial Honeymoon restart area. Also, the broker lifts its long-term uranium price forecast to US$65/lb. 

The analyst feels the previously acquired 1.25mlbs of physical uranium at US$30.5/lb has de-risked commissioning and financing risk. It's also felt Honeymoon is the leading development in Australia.

The broker notes the spot uranium price is still well below the incentive price required for necessary mine restarts.

This report was published on September 22, 2021.

Target price is $0.36 Current Price is $0.33 Difference: $0.03
If BOE meets the Canaccord Genuity target it will return approximately 9% (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 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 330.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.00.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services - Overnight Price: $1.20

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

After the Brainshark acquisition, Canaccord Genuity likes Bigtincan Holdings' increased size and scale, along with increased liquidity due to the high free-float and potential for index inclusion.

Management's FY22 guidance is for core business annual recurring revenue (ARR) to increase by 25% organically (constant currency) and exceed $66m.

The broker lifts FY22-FY24 ARR forecasts by 80%, 67% and 57% respectively, and raises its target price to $2 from $1.65. The Buy rating is maintained.  Brainshark is a market leading sales coaching, learning and readiness platform headquartered in Boston, US.

This report was published on September, 2021.

Target price is $2.00 Current Price is $1.20 Difference: $0.8
If BTH meets the Canaccord Genuity target it will return approximately 67% (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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.00.

Forecast for FY22:

Canaccord Genuity 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 70.59.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs - Overnight Price: $3.68

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

Centuria Industrial REIT is set to acquire an additional eight industrial assets at a combined price of $351.3m, and may continue acquisitive activity having identified a potential additional $100m in assets.

The acquisition improves Centuria Industrial REIT's total portfolio occupancy to 97.3%, and is expected to be earnings neutral to FY22 funds from operations although Jarden notes if further acquisitive activity is fully debt funded it could be earnings accretive.

The Lisbon St asset offers 8.4 hectares of land in a prime last mile location in Jarden's view. The Overweight rating and target price of $4.10 are retained. 

This report was published on September 23, 2021.

Target price is $4.10 Current Price is $3.68 Difference: $0.42
If CIP meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $3.96, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -84.6%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 17.80 cents and EPS of 19.10 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 19.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 4.4%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 19.5.

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

CLW    CHARTER HALL LONG WALE REIT

REITs - Overnight Price: $4.90

JP Morgan rates ((CLW)) as Overweight (1) -

JP Morgan reduces its target price to $5.60 from $5.80. This comes after the REIT and a Charter Hall Group ((CHC) managed trust, on behalf of Hostplus, have offered to acquire 100% of ALE Property Group ((LEP) for an implied price of $5.88 per share.

This price comprises $3.67 of cash and 0.408 Charter Hall Long Wale REIT securities per ALE Property Group security. The broker estimates the transaction is around -4% earnings dilutive on an annualised basis.

The analyst lifts FY22-FY24 earnings forecasts by around 1%, factoring in the acquisition of two recently acquired Industrial assets completed this month, and holds-off on updating for the transaction above.

This report was published on September 21, 2021.

Target price is $5.60 Current Price is $4.90 Difference: $0.7
If CLW meets the JP Morgan target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $5.34, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 31.30 cents and EPS of 31.30 cents.
At the last closing share price the estimated dividend yield is 6.39%.
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 31.2, implying annual growth of -72.5%.
Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 32.90 cents and EPS of 32.90 cents.
At the last closing share price the estimated dividend yield is 6.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.1, implying annual growth of 2.9%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 15.3.

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

CTP    CENTRAL PETROLEUM LIMITED

NatGas - Overnight Price: $0.14

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

Higher realised oil and gas prices coupled with cost reduction measures were key factors to Central Petroleum's FY21 results, according to Bell Potter, with the company reporting a 5% increase in underlying earnings to total $26.1m. 

Looking ahead, the company plans to ramp up exploration in FY22 to target brownfield and greenfield reserve growth. This includes a drill program commencing at Palm Valley and Dingo in 2021, and a seismic survey to take place at Zevon in 2022. 

It is Bell Potter's view that the company is positioned to grow gas reserves and production.

The Buy rating is retained and the target price decreases to $0.20 from $0.23.

This report was published on September 23, 2021.

Target price is $0.20 Current Price is $0.14 Difference: $0.06
If CTP meets the Bell Potter target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.50.

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


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN