Australian Broker Call *Extra* Edition – Nov 30, 2021

Daily Market Reports | Nov 30 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)

ALC   AMS   ARX   BVS (2)   DRR   FPH   IGL   NIC   QML   SKO   TNE   VHT   WPR  

AMS    ATOMOS LIMITED

Consumer Electronics - Overnight Price: $1.12

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

A market update from Atomos has implied that despite supply chain issues, the company's first half revenue will likely be more than $40.0m, which Shaw and Partners notes is up 22% year-on-year, with full year revenue flagged to exceed $95.0m. 

The company's top products the Ninja V and the Ninja V+, which represent 50% of sales, are not expected to be disrupted by supply chain issues through to June 2022. The broker notes potential upside to estimates given benefit from holiday sales and FY22 launches. 

Revenue estimates increase 3.6%, 0.1% and 0.1% through to FY24, while post research and development underlying earnings decrease -11.9%, -2.7% and -1.6% for the same time period.

The Buy rating is retained and the target price decreases to $1.95 from $2.00. 

This report was published on November 24, 2021.

Target price is $1.95 Current Price is $1.12 Difference: $0.83
If AMS meets the Shaw and Partners target it will return approximately 74% (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 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.73.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $1.13

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

Canaccord Genuity initiates coverage on medical device company Aroa Biosurgery, which it describes as a disruptive force to the $4bn wound care and global soft tissue repair market with potential for $0.20 per share upside not yet included in valuation. 

According to the broker, Aroa's extracellular matrix platform combines the best of cheaper, higher risk synthetic materials and more expensive, lower risk biologics for soft tissue repair mesh that is over 95% biological with a 35% cost advantage on peers. 

The broker initiates with a Buy rating and a target price of $1.80.

This report as published on November 24, 2021.

Target price is $1.80 Current Price is $1.13 Difference: $0.67
If ARX meets the Canaccord Genuity target it will return approximately 59% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.36.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 80.71.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments - Overnight Price: $2.51

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

Bravura Solutions has reiterated guidance for mid-teens profit growth in FY22, which tallies with comments made previously at FY21 results, points out Goldman Sachs.

The analyst highlights a transition away from traditional contracts, with large upfront implementation costs, towards consumption-based contracts. This is expected to deliver a more stable earnings mix over the life of the contracts.

Goldman Sachs retains its Buy rating and $3.70 target price.

This report was published on November 24, 2021.

Target price is $3.70 Current Price is $2.51 Difference: $1.19
If BVS meets the Goldman Sachs target it will return approximately 47% (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 10.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.73.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 12.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.76.

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


Jarden rates ((BVS)) as Buy (2) -

Despite reaffirmation of FY22 guidance by Bravura Solutions, Jarden would like to see visibility for growing revenues.

While there has been a return to growth, the analyst notes this is largely due to the annualised benefits of a cost-out program and elevated capitalisation.

The broker points out management commentary is relatively unchanged from that at FY21 results. The Underweight rating is unchanged and the target price falls to $2.65 from $2.95. 

This report was published on November 24, 2021.

Target price is $2.65 Current Price is $2.51 Difference: $0.14
If BVS meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.30 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.73.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 10.60 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41.

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


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