Australian Broker Call *Extra* Edition – Nov 17, 2021

Daily Market Reports | Nov 17 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)

360   ABY   ACL   CXO   DGL   ELD (3)   JAN   NTO   OPY   RHC   SLC   SLH   XRO  

360    LIFE360, INC

Software & Services - Overnight Price: $13.60

Bell Potter rates ((360)) as Buy (1) -

After the recent listing by US competitor Nextdoor, Bell Potter feels a higher multiple should be ascribed to Life360. This is because the company generates most of its revenue via higher-quality subscription versus Nextdoor's advertising-based model.

This point has added resonance when one contemplates Life360 intends listing in the US sometime next year. Taking into account factors including Nexdoor's multiples, market movements and time creep, the analyst raises the price target to $14.75 from $12.50.

The Buy rating is unchanged.

This report was published on November 16, 2021.

Target price is $14.75 Current Price is $13.60 Difference: $1.15
If 360 meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
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 minus 20.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 66.69.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 86.31.

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

ABY    ADORE BEAUTY GROUP LIMITED

Household & Personal Products - Overnight Price: $4.65

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

Sustaining momentum, Adore Beauty Group has reaffirmed a strong outlook for FY22 and previous guidance. Shaw and Partners highlighted first quarter revenue growth was up 25% on the previous corresponding period, and active customer growth up 25%. 

The broker also noted revenue upgrades for the year were likely depending on performance following Christmas in the third and fourth quarters. Despite being the category leader, Shaw and Partners expects continued market share gains and long-term growth. 

The Buy rating and target price of $6.00 are retained.

This report was published on November 15, 2021.

Target price is $6.00 Current Price is $4.65 Difference: $1.35
If ABY meets the Shaw and Partners target it will return approximately 29% (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 132.86.

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 87.74.

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

ACL    AUSTRALIAN CLINICAL LABS LIMITED

Healthcare services - Overnight Price: $4.28

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

Australian Clinical Labs will acquire Medlab Pathology for $70m, with Goldman Sachs noting $60m will be paid upfront while an additional $5m will be paid on completion of 2022 and the remaining $5 will be subject to revenue retention targets. 

Australian Clinical Labs expects synergies of at least $10m over 18-24 months. Given Medlab Pathology's NSW and Queensland market share, where the company is relatively underweight, the broker notes the strategic transaction should drive growth in focus regions. 

The Buy rating and target price of $5.90 are retained. 

This report was published on November 15, 2021. 

Target price is $5.90 Current Price is $4.28 Difference: $1.62
If ACL meets the Goldman Sachs target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 65.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.58.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 29.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.76.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CXO    CORE LITHIUM LIMITED

New Battery Elements - Overnight Price: $0.56

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

Canaccord Genuity initiates on Core Lithium, a company focused on development of the Finniss Lithium project, an expected 174,000 tonne per annum spodumene concentrate operation with an eight-year mine life and all-in sustaining cost per tonne of US$441. 

The broker notes plans to commission the project in the second half of FY22 would make Core Lithium one of a few new spodumene concentrate sources globally, allowing the company to capitalise on high pricing given market tightness. 

Further, the project is well-located for transportation access, construction and easier processing, and there is upside exploration risk. 

The broker initiates with a Speculative Buy rating and a target price of $0.70. 

This report was published on November 14, 2021. 

Target price is $0.70 Current Price is $0.56 Difference: $0.14
If CXO meets the Canaccord Genuity target it will return approximately 25% (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 0.00 cents and EPS of 0.00 cents.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.00.

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


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN