Australian Broker Call *Extra* Edition – Nov 03, 2021

Daily Market Reports | Nov 03 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)

AAC   AD8   BMT   BWX   BXB   CQR   ELO   GPT   HUB   IGL   LME   MMI   MP1   NCK   NWL   OLL   PFP   RFG (2)   RMS (2)   SCP (3)   SOV   TIE   TLX   TPW   VUL   Z1P  

AAC    AUSTRALIAN AGRICULTURAL COMPANY LIMITED

Agriculture - Overnight Price: $1.57

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

Cattle and meat prices are flowing through and Bell Potter updates forecasts. The cattle index has closed the first half 17% higher.

The broker notes an upward move in cattle values lifts the value of live cattle sales as well as the value of the trading herd on the company's balance sheet.

The broker believes improving operating conditions are yet to be fully reflected in the share price. Buy rating retained. Target is raised to $1.65 from $1.55.

This report was published on October 19, 2021.

Target price is $1.65 Current Price is $1.57 Difference: $0.08
If AAC meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.77.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 314.00.

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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment - Overnight Price: $8.82

Shaw and Partners rates ((AD8)) as Buy (1) -

Shaw and Partners retains its Buy rating and $12 target following 1Q results by Audinate Group. The broker expects the impact from the industry-wide silicon chip shortage will be felt most directly in the 3Q though believes the long-term growth trajectory is unchanged.

The analyst judges that FY22 revenue is dependent upon several factors including the easing of chip supply constraints and the ability of the company to accelerate work to release the next generation Brooklyn III.

FY22 will also rely upon the capacity of the company's contract manufacturer to meet expected 4Q demand, explains the broker.

This report was published on October 19, 2021.

Target price is $12.00 Current Price is $8.82 Difference: $3.18
If AD8 meets the Shaw and Partners target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $11.25, suggesting upside of 27.6%(ex-dividends)
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 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 232.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.2, 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 N/A.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 551.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, 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 441.0.

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: $0.59

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 $0.77 Current Price is $0.59 Difference: $0.18
If BMT meets the Petra Capital target it will return approximately 31% (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 590.00.

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 39.33.

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

BWX    BWX LIMITED

Household & Personal Products - Overnight Price: $4.69

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

Canaccord Genuity believes organic earnings growth should be supported for BWX through FY22 and FY23. The recent acquisitions of Flora & Fauna in May and a 50.1% stake in Go-To is thought to provide additional growth drivers.

Despite a higher growth rate and superior margins to peers, the analyst points to the company's lower multiples and increases the price target to $5.62 from $5.15. The Buy rating is unchanged.

This report was published on October 20, 2021.

Target price is $5.62 Current Price is $4.69 Difference: $0.93
If BWX meets the Canaccord Genuity target it will return approximately 20% (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 4.80 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.31.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 6.30 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.33.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics - Overnight Price: $10.20

Jarden rates ((BXB)) as Downgrade to Neutral from Buy (3) -

Revenue momentum in the first quarter was strong with growth of 9%. Jarden notes the result revealed an acceleration in the growth rate for the CHEP Americas business albeit decelerating growth in the EMEA business.

Revenue guidance for FY22 is modestly increased to growth of 6-7%. Jarden expects the first half will contribute the majority of growth, as initiatives to pass through costs boost revenue.

The broker upgrades to Neutral from Underweight given the underperformance in the shares. Target is reduced to $11.14 from $11.60.

This report was published on October 19, 2021.

Target price is $11.14 Current Price is $10.20 Difference: $0.94
If BXB meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $12.60, suggesting upside of 23.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 32.60 cents and EPS of 48.23 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.4, implying annual growth of N/A.
Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.45 cents and EPS of 51.01 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.7, implying annual growth of 9.6%.
Current consensus DPS estimate is 34.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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