Australian Broker Call *Extra* Edition – Nov 10, 2021

Daily Market Reports | Nov 10 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)

A2M   ACL   AMC   AZJ   BET   CBR   CDA   COE   DGL   EOS   EXP   FCL   FFX   FZO   LGP   MPL   NCK   NHF   NTO   ORA   PDN   PFP   PGH   PGL   PLL   PWR (2)   SLA   TOY   UBI   VHT   YOJ  

PWR    PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

Automobiles & Components - Overnight Price: $3.37

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

Peter Warren Automotive Holdings September-quarter performance outpaced Jarden's forecasts thanks to a strong performance from Queensland.

Management guides to an increase in FY22 first-half profit of 14% to 21% above prospectus estimates, assuming no more lockdowns or supply-chain disruption.

The broker expects strengthening demand in the face of supply constraints will likely drive further EPS upgrades and raises its FY22 EPS forecasts 10%, which is above updated guidance.

Target price rises to $4.38 from $4.32. Buy rating retained.

This report was published on October 26, 2021. 

Target price is $4.38 Current Price is $3.37 Difference: $1.01
If PWR meets the Jarden target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 11.90 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.37.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.10 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 7.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.91.

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


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

Peter Warren Automotive Holdings' September-quarter trading update pleased Moelis, management upgrading first-half guidance to 14% to 21% above prospectus forecasts (including AASB16 accounting changes).

The broker says guidance implies 18% to 25% growth on the previous corresponding period - not too shabby given NSW was in lockdown for the entire quarter.

The company witnessed some supply constraints but margins strengthened and, provided lockdowns end and no nasty supply-chain disruptions occur, management guides to a strong second half. Management has also announced M&A aspirations, and the broker notes the balance sheet is sufficient and the company is securing a $98m leveraged loan.

Buy rating retained. Target price is $4.75.

This report was published on October 26, 2021.

Target price is $4.75 Current Price is $3.37 Difference: $1.38
If PWR meets the Moelis target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.60 cents and EPS of 29.30 cents.
At the last closing share price the estimated dividend yield is 5.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.50.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.20 cents and EPS of 25.30 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.32.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services - Overnight Price: $4.56

Jarden rates ((SLA)) as Initiation of coverage with Buy (1) -

Jarden initiates on Silk Laser Australia, the second largest corporate owned clinic network in Australia following the recent acquisition of Australian Skin Clinics. Despite 45% of clinics not currently operational due to covid restrictions, clinic rollout is expected to drive growth. 

The broker expects a targeted 10 Australian and 4 New Zealand clinic openings each year for five years, alongside cross-sell and up-sell opportunities, will drive a 23% earnings per share compound annual growth rate over said five years. 

Strong demand is expected when clinics reopen, with Jarden estimating 9% like-for-like growth in the second half of FY22. Additionally, the broker notes the acquisition of Australian Skin Clinics is expected to boost earnings per share by more than 20%.

The broker initiates with a Buy rating and a target price of $6.32.

This report was published on October 28, 2021.

Target price is $6.32 Current Price is $4.56 Difference: $1.76
If SLA meets the Jarden target it will return approximately 39% (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 15.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.04.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 27.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.46.

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

TOY    TOYS 'R' US ANZ LIMITED

Retailing - Overnight Price: $0.18

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

Canaccord genuity sees a highly prospective growth avenue following Toys''R''Us ANZ's announcement it will run the digital and physical retail commerce for Toys”R”Us and Babies”R”Us in the  UK. 

Before even including the babies industry, the analyst estimates a 1% market share in the UK toy market equates to $60m in revenue and $15m in gross profit. Management expects to launch online sales to UK consumers over the “next several months”.

Canaccord Genuity retains its Buy rating and increases its target price to $0.25 from $0.20.

This report was published on October 28, 2021.

Target price is $0.25 Current Price is $0.18 Difference: $0.07
If TOY meets the Canaccord Genuity target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 180.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

UBI    UNIVERSAL BIOSENSORS, INC

Medical Equipment & Devices - Overnight Price: $0.77

Petra Capital rates ((UBI)) as Buy (1) -

Universal Biosensors' recent updates show Sentia (a medical-grade diagnostics device for winemakers) sales surpassed $1m, in line with guidance.

Recent distribution agreements boost the broker's confidence that its medium-term earnings forecasts will be easily met.

Petra expects the company will experience strong, sustained profit increases for several years, thanks to revenue growth combined with operating leverage.

Buy rating and $1.20 target price retained.

This report was published on October 26, 2021.

Target price is $1.20 Current Price is $0.77 Difference: $0.43
If UBI meets the Petra Capital target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Petra Capital forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.81.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.81.

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

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices - Overnight Price: $1.17

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

Volpara Health Technology's September-quarter trading update met Bell Potter's expectations, thanks to strong organic annual recurring revenues and cash receipts. Net cash burn for the quarter was -NZ$3.1m, leaving NZ$25m to hand.

The company signed the largest single deal in its history and its US customer-base revenue profile suggest plenty of room to expand, says the broker.

The broker downgrades FY22 and FY23 revenue forecasts -7% and -12% to reflect a likely revenue reduction on new contract wins, albeit in line with guidance. 

Buy rating and $1.60 target price retained. 

This report was published on October 26, 2021.

Target price is $1.60 Current Price is $1.17 Difference: $0.43
If VHT meets the Bell Potter target it will return approximately 37% (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 4.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.93.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.72.

This company reports in NZD. 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

YOJ    YOJEE LIMITED

Software & Services - Overnight Price: $0.18

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

Euroz Hartleys notes the September quarter was a difficult one for Yojee given covid restrictions impacting on usual activities, and the company reported revenue was down -7%  and cash receipts were down -8% for the quarter. 

Despite the difficult metrics for the quarter, the broker notes the company did record enterprise client addition growth, and launched Yojee Labs. 

It is the broker's view that the larger market opportunity remains a larger part of Yojee's story than a difficult quarter, and looks to the company's continued growth and expansion into Europe.

The Speculative Buy rating and target price of $0.50 are retained.

This report was published on October 27, 2021.

Target price is $0.50 Current Price is $0.18 Difference: $0.32
If YOJ meets the Euroz Hartleys target it will return approximately 178% (excluding dividends, fees and charges).

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.


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