Australian Broker Call *Extra* Edition – Nov 19, 2021

Daily Market Reports | Nov 19 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)

ABP   AD8   ALQ   ALX   APE (2)   BST   CCX   CWN   ELD   EML   FWD   GOR   HLA   HT1   HTG   IMM   JHG   MOZ   MSB   NUF   PLT   PNR   PNV   RFF   RHC   SGR   TNE   UWL  

ABP    ABACUS PROPERTY GROUP

REITs - Overnight Price: $3.55

Moelis rates ((ABP)) as Initiation of coverage with Buy (1) -

Moelis initiates coverage on Abacus Property Group, noting the REIT offers exposure to a large, high quality storage portfolio which includes the $1.8bn Storage King banner.

Storage is a key investment focus for the company, acquiring $575m in storage assets in FY21 and $113m in the first quarter of FY22. Moelis expects this to continue be a target growth area as the company looks to deploy excess balance sheet capacity. 

Additionally, an office portfolio largely focused on the Sydney CBD provides relatively stable income. Limited material expiries provide favourable exposure given metro offices are expected to outperform those in the CBD near-term.

The broker initiates with a Buy rating and a target price of $3.75.

This report was published on September 17, 2021.

Target price is $3.75 Current Price is $3.55 Difference: $0.2
If ABP meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.42, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 20.10 cents.
At the last closing share price the estimated dividend yield is 4.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of -63.3%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.00 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 3.3%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.9.

Market Sentiment: 0.0
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: $9.58

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

Critical component shortages appear set to continue to impact Audinate Group, with suppliers VTech and Avnet both guiding to raw material shortages and increasing backlogs impacting on ability to meet demand.

Shaw and Partners notes supply issues are expected to persist well into 2022, but remains positive on Audinate Group's longer-term trajectory as global trade reopens.

The Buy rating and target price of $12.00 are retained.

This report was published on November 17, 2021.

Target price is $12.00 Current Price is $9.58 Difference: $2.42
If AD8 meets the Shaw and Partners target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $11.25, suggesting upside of 19.6%(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 252.11.

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 598.75.

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 470.5.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers - Overnight Price: $13.03

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

Having delivered first half profit after tax 2% above the top of its guidance range and Jarden's forecast, ALS provided full-year guidance of $242-252. Noting guidance is potentially underwhelming, Jarden notes the company faces a balance of risks in the second half.

To the upside Jarden notes potential for continued strong demand and pricing increases, but to the downside this could be offset by higher deprecation and amortisation and higher consumables inflation. FY22 earnings per share forecast increases 1.2%.

The rating is downgraded to Neutral from Overweight and the target price increases to $13.25 from $13.20.

This report was published on November 17, 2021.

Target price is $13.25 Current Price is $13.03 Difference: $0.22
If ALQ meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $13.60, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 30.80 cents and EPS of 50.30 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.9, implying annual growth of 45.1%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 33.70 cents and EPS of 55.30 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.2, implying annual growth of 10.2%.
Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.9.

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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