Australian Broker Call *Extra* Edition – Oct 26, 2021

Daily Market Reports | Oct 26 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)

BML   BPT   BSX (2)   CRN   CYM   DTC (2)   DUB   EVN   GDF   GNX   GOR   IDX   IKE   IRE   LM8   NWS   PLY   PME   WHC  

BML    BOAB METALS LIMITED

Mining - Overnight Price: $0.38

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

Shaw and Partners reports that results from Boab Metals' Sorby Hills Lead Silver Project has confirmed  mineralisation has extended beyond the existing resource. The broker expects a resource upgrade later in 2021.

Further, Shaw and Partners notes the Sorby Hills project is likely to become larger following results. The broker estimates the addition of crushing and milling capacity to the project could increase the value of Boab Metals' share to $202m from $168m. 

The Buy rating and target price of $1.02 are retained. 

This report was published on September 30, 2021.

Target price is $1.02 Current Price is $0.38 Difference: $0.64
If BML meets the Shaw and Partners target it will return approximately 168% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.67.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.67.

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: $1.45

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

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

A company presentation highlights 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 to $1.60 from $1.50.

This report was published on September 28, 2021.

Target price is $1.60 Current Price is $1.45 Difference: $0.15
If BPT meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 12.7%(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 1.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.06.

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 7.7.

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 1.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.67.

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 1.6%.
Current consensus EPS estimate suggests the PER is 8.8.

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

BSX    BLACKSTONE MINERALS LIMITED

New Battery Elements - Overnight Price: $0.66

Canaccord Genuity rates ((BSX)) as Initiation of coverage with Spec Buy (1) -

Canaccord Genuity initiates coverage on Blackstone Minerals with a Speculative Buy rating and $1.10 target price. The company is developing the Ta Khoa nickel project located in the western Son La province of Vietnam.

A  pre feasability study (PFS) is expected in the December quarter to confirm scale and operational metrics. The company is also developing downstream refining capacity to produce cathode precursor for the lithium-ion battery supply chain.

While the analyst assigns no value at this stage, development of additional downstream processing stages (2-4) has the potential to add around $0.90/share per stage.

This report was published on October 4, 2021.

Target price is $1.10 Current Price is $0.66 Difference: $0.44
If BSX meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).

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


Euroz Hartleys rates ((BSX)) as Initiation of coverage with Speculative Buy (2) -

Euroz Hartleys initiates coverage on Blackstone Minerals, noting the company intends to develop an integrated nickel project in Northern Vietnam to produce battery grade nickel cobalt manganese.

A preliminary pre-feasability study has outlined capital expenditure of -US$491m and a refinery front end throughput of 400,000 tonnes per annum to produce 86,000 tonnes per annum nickel cobalt manganese at an all-in cost of US$11,997 per tonne. 

The broker notes current spot prices on nickel cobalt manganese are around US$19,300 per tonne.The broker estimates a base case net present value of $490m, but notes a downstream refinery partner could cause a significant re-rate. 

The broker initiates with a Speculative Buy rating and a target price of $1.00.

This report was published on September 24, 2021.

Target price is $1.00 Current Price is $0.66 Difference: $0.34
If BSX meets the Euroz Hartleys target it will return approximately 52% (excluding dividends, fees and charges).

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

CRN    CORONADO GLOBAL RESOURCES INC

Coal - Overnight Price: $1.40

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

For the second half of 2021, Bell Potter upgrades its price estimates for thermal coal by 37% and premium hard coking coal by 71%, while upgrades for 2022 are 29% and 27%. It's believed Coronado Global Resources is undergoing a de-gearing phase.

The analyst expects this will enable shareholder distributions for the company to resume in 2022. The Buy rating is unchanged and the broker lifts its target price to $1.40 from $1.20.

This report was published on October 1, 2021.

Target price is $1.40 Current Price is $1.40 Difference: $0
If CRN meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.74, suggesting upside of 25.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 30.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 6.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 21.76 cents and EPS of 30.12 cents.
At the last closing share price the estimated dividend yield is 15.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.2, implying annual growth of 10.4%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 6.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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