Australian Broker Call *Extra* Edition – Nov 16, 2021

Daily Market Reports | Nov 16 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)

BOE   BRG   DSK (2)   GNC (2)   GPR   HPG   JAN   LTR   M7T   NEA   PPH   RHC   SSG   XRO (3)  

GPR    GEOPACIFIC RESOURCES LIMITED

Gold & Silver - Overnight Price: $0.23

Shaw and Partners rates ((GPR)) as Downgrade to Hold from Buy (3) -

Inclement weather, increased PNG covid cases and poor execution have led to delays to the development of Geopacific Resources' Woodlark Island gold project. All non-essential activities on the site will be deferred until the first half 2022.

Shaw and Partners has subsequently downgraded to Hold from Buy and is now reviewing its forecasts pending an update on funding, development capital and a revised schedule for Woodlark expected in early 2022.

To that end FNArena has removed prior earnings and dividend forecasts and target price.

Current Price is $0.23. Target price not assessed.

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

HPG    HIPAGES GROUP HOLDINGS LIMITED

Online media & mobile platforms - Overnight Price: $4.09

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

Goldman Sachs adjusts FY22 assumptions to reflect further clarity on revenue and margin expectations for hipages Group for FY22. The Buy rating is retained and the target price increases to $4.95 from $4.90.

The broker sees an opportunity to capture a greater share of gross merchandise value (GMV) among its tradie base by focusing on larger trade businesses.

Moreover, expansion beyond maintenance, repairs and renovation could include areas such as property management, retail, insurance and community/government work, suggests the analyst.

This report was published on November 11, 2021.

Target price is $4.95 Current Price is $4.09 Difference: $0.86
If HPG meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.17.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition - Overnight Price: $1.23

Taylor Collison rates ((JAN)) as Initiation of coverage with Speculative Buy (1) -

Taylor Collison initiates coverage on Janison Education Group with a Speculative Buy rating and $1.38 target price. The company has partnered with the OECD to digitally deliver the Programme for International Student Assessment (PISA) test globally.

The analyst also feels the continued digital roll-out of the International Competitions Assessments for Schools (ICAS) assessment should underpin strong medium-term revenue growth.

As a result of low variable costs, the broker envisages increasing margins, once revenue climbs from assessment products. Taylor Collison believes the core IP, named the Insights assessment platform, is now a world leader, particularly in servicing school clients.

This report was published on November 5, 2021.

Target price is $1.38 Current Price is $1.23 Difference: $0.15
If JAN meets the Taylor Collison target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.12 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 109.82.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.00.

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements - Overnight Price: $1.65

Bell Potter rates ((LTR)) as Speculative Buy (1) -

Liontown Resources 100% owns the Kathleen Valley lithium project and has released a definitive feasibility study (DFS). Also released, was a scoping study on integrating a downstream lithium hydroxide refining capability.

Bell Potter notes the company is now developing a significantly larger project, building spodumene concentrate production towards 700ktpa in the long term, from initial levels of around 500ktpa.

The broker notes the next steps include project permitting, offtake agreements, front-end engineering and design (FEED) and financing ahead of the final investment decision (FID) by mid-2022.

Bell Potter retains a Speculative Buy rating and raises the target to $2.15 from $1.33.

This report was published on November 12, 2021.

Target price is $2.15 Current Price is $1.65 Difference: $0.5
If LTR meets the Bell Potter target it will return approximately 30% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 412.50.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 206.25.

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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