Australian Broker Call *Extra* Edition – Oct 25, 2021

Daily Market Reports | Oct 25 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)

ACL   ADI   AQR   BML   BPT (2)   CIP   DTC   FWD   GDC   GEN   LTR   MMM   MNF   OPY   PMV   RDY (2)   RZI   SFR   SM1   UBN   WGX  

AQR    APN CONVENIENCE RETAIL REIT

REITs - Overnight Price: $3.47

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

APN Convenience Retail REIT has finalised its $55m equity raising and deployed the funds to buy two more service stations (Ampol's Warrego leased asset and Mobil's Dubbo leased asset) at an average weighted average lease expiry (WALE) of 11.7 years in ine with the balance of the REIT's portfolio.

Moelis notes company guidance implies a FY22 dividend yield of 6.5%, making APN the highest yielding long-WALE REIT on the ASX, yet the lowest price in income terms.

The broker appreciates the defensive nature of service stations, pointing to margin resilience during the covid lockdowns, which in turn illustrates the pricing power of the fuel retailer.

Moelis' restrictions on rating have been lifted and the broker returns with a Buy rating and $4 target price.

This report was published on September 29, 2021.

Target price is $4.00 Current Price is $3.47 Difference: $0.53
If AQR meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 22.90 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 23.60 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.

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

BML    BOAB METALS LIMITED

Mining - Overnight Price: $0.37

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

After recent assay results from the Phase 5 drilling program at 75%-owned Sorby Hills, Euroz Hartleys maintains its Speculative Buy for Boab Metals and sets a $0.80 price target.

The analyst expects an updated resource in the fourth quarter of 2021, feeding into the definitive feasability study (DFS) due in the first quarter of 2022, and the final investment decision (FID) in the following quarter.

Euroz Hartleys notes management is already in discussions with Federal government agencies to provide debt financing for the project development.

This report was published on September 28, 2021.

Target price is $0.80 Current Price is $0.37 Difference: $0.43
If BML meets the Euroz Hartleys target it will return approximately 116% (excluding dividends, fees and charges).

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

BPT    BEACH ENERGY LIMITED

Crude Oil - Overnight Price: $1.38

Canaccord Genuity rates ((BPT)) as Upgrade to Spec Buy from Hold (1) -

Canaccord Genuity upgrades Beach Energy to Speculative Buy (the broker exercising caution given previous disappointments) from Hold and the target price to $1.60 from $1.35.

A company presentation reveals a shift in focus from the disappointing Western Flank (oil) to gas; and the broker perceives Beach Energy's agreement to take out the entirety of Waitsia Stage 2 as a watershed; Otway drillilng met expectations, and the company reports exploration success at Endeavour.

Management is reviewing its capital management options and the broker welcomes discipline on this front.

This report was published on September 29, 2021.

Target price is $1.60 Current Price is $1.38 Difference: $0.22
If BPT meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 36.2%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.00 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -12.7%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 8.7.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((BPT)) as Upgrade to Buy from Neutral (1) -

Jarden upgrades Beach Energy to a Buy from Neutral to reflect its rising exposure to the tightening gas market.

A company presentation reports the company is switching its focus from oil (Western Flank) to its gas projects; that the gas outlook is strong; and that group production is set to rise sharply. 

Beach Energy reiterates guidance; points to further drilling in the Perth Basin and Otway; and exploration drilling for oil on the Western Flank.

The company is weighing capital management options, such as off-market buybacks, boasting $500m in franking credits and low peak gearing at less than 10%, reports Jarden.

Target price rises t $1.60 from $1.50.

This report was published on September 28, 2021.

Target price is $1.60 Current Price is $1.38 Difference: $0.22
If BPT meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 2.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 36.2%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 2.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -12.7%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 8.7.

Market Sentiment: 0.7
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