Australian Broker Call *Extra* Edition – Nov 01, 2021

Daily Market Reports | Nov 01 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)

ABY (2)   BMT   BOQ   BPT   BUB   CAR   CKF (2)   COE   CYG   DOC   ELD   FZO (2)   GDF   HLA   HMY   HUB   IMA   LPD   MNY   MOZ   MYD   OSH   PFP (2)   PLT (3)   RMS   SMP   STO   SXY   TPW   TWE   WHC   WPL  

ABY    ADORE BEAUTY GROUP LIMITED

Household & Personal Products - Overnight Price: $4.70

Jarden rates ((ABY)) as Buy (1) -

Jarden notes Adore Beauty Group's first quarter revenue increased 25% on the previous corresponding period, a result the broker notes is particularly impressive given the company was cycling off a growth rate of more than 100% for the same quarter in FY21.

The broker expects 16.2% revenue growth for the first half of FY22, but expects this forecast is conservative and that a first half skew is likely with the reopening of stores expected to impact on revenue growth rate. 

The company has commented that it continues to reinvest for future growth, continuing to scale its mobile app, expand range, invest in its podcast, and has a private label set to launch in the third quarter. 

The Buy rating and target price of $5.70 are retained.

This report was published on October 17, 2021.

Target price is $5.70 Current Price is $4.70 Difference: $1
If ABY meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 106.82.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 87.04.

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


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

Shaw and Partners leaves its forecasts, Buy rating and $6 target price unchanged, despite a "very positive and upbeat" 1Q trading update from Adore Beauty Group. Revenue rose 25% on the previous corresponding period.

The broker hints at potential upgrades if momentum continues though this is dependent on 3Q and 4Q performance given comparisons will be made to elevated previous corresponding periods.

This report was published on October 15, 2021.

Target price is $6.00 Current Price is $4.70 Difference: $1.3
If ABY meets the Shaw and Partners target it will return approximately 28% (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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 134.29.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 88.68.

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

BMT    BEAMTREE HOLDINGS LIMITED

Healthcare services - Overnight Price: $0.57

Petra Capital rates ((BMT)) as Initiation of coverage with Buy (1) -

Petra Capital initiates coverage on health-technology company Beamtree with a Buy rating and 77c target price.

The broker views Beamtree as an under-appreciated Medtech company with an attractive global footprint; admires the defensive recurring revenue streams embedded in critical infrastructure (management guides to $50mm annual recurring revenue over five years); and spies appealing end-markets.

Petra notes the company is well on track to achieve revenue targets, is already profitable, and enjoys software leverage in an attractive industry.

The company has made three acquisitions and still has sufficient funds for the product development cycle, says the broker. Beamtree offers a three-year compound average rate of 68% and trades at a discount to peers.

This report was published on October 19, 2021.

Target price is $77.00 Current Price is $0.57 Difference: $76.43
If BMT meets the Petra Capital target it will return approximately 13409% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 570.00.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.

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

BOQ    BANK OF QUEENSLAND LIMITED

Banks - Overnight Price: $8.80

Goldman Sachs rates ((BOQ)) as Buy (1) -

Bank of Queensland's FY21 result outpaced Goldman Sachs' forecasts, thanks to a higher-than-expected bad and doubtful debt benefit.

The broker tinkers with EPS forecasts and the target price eases to $10.02 from $10.09.

Buy rating retained, Goldman Sachs noting higher costs will be directed into supporting volumes and that higher pre-provision operating profit should drive shareholder value (offering a total shareholder return of 13% over a year).

Management expects the bank will continue to grow above system and ME Bank is forecast to be running near system by January 1.

This report was published on October 13, 2021.

Target price is $10.02 Current Price is $8.80 Difference: $1.22
If BOQ meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $10.45, suggesting upside of 19.2%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 45.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.3, implying annual growth of 11.0%.
Current consensus DPS estimate is 46.7, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 47.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 5.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.2, implying annual growth of 2.6%.
Current consensus DPS estimate is 50.3, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 11.5.

Market Sentiment: 0.9
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: $1.40

Jarden rates ((BPT)) as Buy (1) -

Jarden strategists increase Brent oil price assumptions to US$80/bbl from US$70/bbl for the remainder of 2021. Also, estimates are raised to US$75/bbl and US$70/bbl for FY22 and FY23 onwards, from the original US$65/bl.

The broker's long-term forecast spot Japan-Korea Marker LNG price rises to US$9.50/mmbtu from US$8/mmbtu.

Jarden maintains its Buy rating for Beach Energy and raises its target price to $1.75 from $1.60.

This is largely due to the positive impact of the higher oil and LNG price forecasts, explains the analyst. However, higher oil prices also positively impact price assumptions for condensate and LPG, extracted from the gas stream at many of the company's gas fields.

Target price is $1.75 Current Price is $1.40 Difference: $0.35
If BPT meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 16.7%(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 21.60 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.48.

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 7.5.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 2.00 cents and EPS of 17.90 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.82.

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 8.5.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy - Overnight Price: $0.52

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

Bubs Australia's September-quarter activities and cash-flow report sharply outpaced Bell Potter's forecasts thanks mainly to gains in the infant nutrition business.

Revenue romped ahead and brand investment and product manufacturing costs fell, resulting in an improved net cash position.

The broker raises EPS forecasts 36% in FY22; 41% in FY23 and 40% in FY24.

Bell Potter upgrades to Buy, Speculative Risk, citing better secular trade flows to China, brand traction and opportunities from indirect distribution channels.

Target price rises to 65c from 46c.

This report was published on October 14, 2021.

Target price is $0.65 Current Price is $0.52 Difference: $0.13
If BUB meets the Bell Potter target it will return approximately 25% (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 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 30.59.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.67.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components - Overnight Price: $24.66

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

Following the lifting of restrictions, Goldman Sachs reinstates its rating for Carsales.Com at Neutral, after incorporating the acquisition of Trader Interactive into forecasts; believing it will take time for the company to monetise its digital marketplace strategy.

The broker says revenues, volumes, and costs are travelling well and notes tax exemptions should drive a 6% accretion in FY22 and 7% in FY23.

EPS forecasts rise 2% and 6% after accounting for the acquisition. Target $26.40.

This report was published on October 16, 2021. 

Target price is $26.40 Current Price is $24.66 Difference: $1.74
If CAR meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $24.32, suggesting downside of -3.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 56.00 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.2, implying annual growth of 29.6%.
Current consensus DPS estimate is 54.7, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 37.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 64.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.1, implying annual growth of 13.0%.
Current consensus DPS estimate is 63.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 32.8.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco - Overnight Price: $12.80

Jarden rates ((CKF)) as Buy (1) -

Collins Foods has provided updates on Europe and Australia, with Jarden noting a strong development pipeline for the Australian KFC business, with 12 additional stores expected to open in FY22, while Europe offers a strong platform for growth. 

The broker highlighted strong execution on the recently signed Netherlands corporate franchise agreement is likely to lead to other opportunities. The agreement should also allow Collins Foods to more actively deploy initiatives proven successful in Australia.

The Buy rating and target price of $13.31 are retained. 

This report was issued October 14, 2021.

Target price is $13.31 Current Price is $12.80 Difference: $0.51
If CKF meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $13.93, suggesting upside of 8.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 15.00 cents and EPS of 45.50 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.4, implying annual growth of 53.6%.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 29.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 17.30 cents and EPS of 51.60 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.7, implying annual growth of 12.2%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 26.5.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Wilsons rates ((CKF)) as Overweight (1) -

At Collins Foods' investor day, Wilsons notes commentary was largely about the recently-signed corporate franchise agreement with Yum! Brands and the acquisition of a further nine stores. The analyst now has greater confidence from the increased scale and management.

Moreover, growth in e-commerce sales for KFC Australia was seen as a positive and the broker lifts its target price to $15.30 from $13.15 and retains the Overweight rating.

This report was published on October 15, 2021.

Target price is $15.30 Current Price is $12.80 Difference: $2.5
If CKF meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $13.93, suggesting upside of 8.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 24.00 cents and EPS of 48.10 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.4, implying annual growth of 53.6%.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 29.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 29.00 cents and EPS of 55.70 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.7, implying annual growth of 12.2%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 26.5.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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