Australian Broker Call *Extra* Edition – Oct 21, 2021

Daily Market Reports | Oct 21 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)

ADA   GUD   MND   NWC   NWS   PDN   PLT   PMV (2)   SFR   TLX (2)   VEE   WBC   WZR  

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services - Overnight Price: $1.28

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

With a $1.50 target price exceeding the prevailing share price by more than 15%, Bell Potter upgrades its rating to Buy from Hold. The announcement of a share buy-back program and a positive update at the AGM in November are considered potential share price catalysts.

Elsewhere, management announced the extension of the company's largest services contract for another 12 years.

This report was published on September 24, 2021.

Target price is $1.50 Current Price is $1.28 Difference: $0.22
If ADA meets the Bell Potter target it will return approximately 17% (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 6.00 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.55.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 6.50 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.07.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components - Overnight Price: $11.26

Wilsons rates ((GUD)) as Upgrade to Overweight from Market Weight (1) -

Wilsons upgrades its rating to Overweight from Market Weight and slightly eases its target price to $11.80 from $11.85. It's thought the recent share price fall, due to the potential impact of cost pressure across raw materials and freight, is overdone.

The analyst believes the company will raise prices in the second half, in a supportive environment for doing so. Wilsons forecasts earnings (EBIT) will fall -6% in FY23 and FY24, and assumes a FY22 price increase, offset by elevated raw material and freight costs.

This report was published on September 24, 2021.

Target price is $11.80 Current Price is $11.26 Difference: $0.54
If GUD meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $12.81, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 59.00 cents and EPS of 73.60 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.7, implying annual growth of 12.9%.
Current consensus DPS estimate is 59.4, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 65.00 cents and EPS of 80.70 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.1, implying annual growth of 9.8%.
Current consensus DPS estimate is 61.1, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.6.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting - Overnight Price: $10.08

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

Monadelphous Group has highlighted its FY21 has been defined by a less-productive labour force. Despite the company expanding its workforce by 2,102 workers in the year, per-head productivity was down as access to skilled or specialised labour outside WA was cut off. 

Despite utilising cheaper labour, Jarden noted during the second half of the year the company's revenue per employee decreased but costs were not significantly impacted as more time was required to complete projects, causing noticeable margin headwinds. 

The broker expects this impact will continue into the first half of FY22, but notes margin headwinds persisting beyond the first half is a key risk to investment. 

The Overweight rating and target price of $11.80 are retained. 

This report was published on September 23, 2021.

Target price is $11.80 Current Price is $10.08 Difference: $1.72
If MND meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $10.97, suggesting upside of 5.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 54.90 cents and EPS of 63.70 cents.
At the last closing share price the estimated dividend yield is 5.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.6, implying annual growth of -4.2%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 63.40 cents and EPS of 73.20 cents.
At the last closing share price the estimated dividend yield is 6.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.5, implying annual growth of 29.2%.
Current consensus DPS estimate is 52.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 16.8.

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

NWC    NEW WORLD RESOURCES LIMITED

Mining - Overnight Price: $0.09

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

Canaccord Genuity believes the recent drilling reports from New World Resources regarding the Antler Copper project in Arizona are high grade. The analyst expects a maiden JORC resource next month.

The Speculative Buy rating and $0.30 price target are maintained.

This report was published on September 22, 2021.

Target price is $0.30 Current Price is $0.09 Difference: $0.21
If NWC meets the Canaccord Genuity target it will return approximately 233% (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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