Australian Broker Call *Extra* Edition – Dec 03, 2021

Daily Market Reports | Dec 03 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)

CIP   COH   DTC   ERD   FPH   GTK   IFM   KLS   LBY   LGL   MYD   OBL   PFP   PPM   UNI  

CIP    CENTURIA INDUSTRIAL REIT

REITs - Overnight Price: $3.67

Shaw and Partners rates ((CIP)) as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on the ASX's largest pure industrial REIT, Centuria Industrial REIT, with a Buy rating and $4.10 target price. The income-focused REIT is active in leasing and repositioning, and is willing to undertake selective developments.

The analyst explains the core strategy is to focus on Easter seaboard infill markets, which are in demand from the growth in eCommerce. These markets are by necessity close to transport infrastructure and large population bases.

The broker notes new development land is less available in highly congested Metro locations, which has the benefit of lowering the risk of new supply.

This report was published on November 29, 2021.

Target price is $4.10 Current Price is $3.67 Difference: $0.43
If CIP meets the Shaw and Partners target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.95, suggesting upside of 7.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 17.50 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 4.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.6, implying annual growth of -84.2%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 18.20 cents and EPS of 19.10 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.3, implying annual growth of 3.8%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 19.0.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

COH    COCHLEAR LIMITED

Medical Equipment & Devices - Overnight Price: $214.05

Jarden rates ((COH)) as Overweight (2) -

US labour shortages may weigh on Cochlear, says Jarden, after the publication of US Healthcare jobs data.

Job vacancies hit 20-year highs at 7.8%; as did the number of those exiting the industry.

Otherwise, Jarden expects the company to post an impressive recovery, pending covid.

Overweight rating is retained and the target price eases to $258.20 from $267.10.

This report was published on November 29, 2021.

Target price is $258.20 Current Price is $214.05 Difference: $44.15
If COH meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $224.75, suggesting upside of 5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 295.10 cents and EPS of 421.50 cents.
At the last closing share price the estimated dividend yield is 1.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 420.0, implying annual growth of -15.4%.
Current consensus DPS estimate is 312.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 51.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 373.30 cents and EPS of 533.30 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 492.1, implying annual growth of 17.2%.
Current consensus DPS estimate is 379.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 43.5.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services - Overnight Price: $0.40

Wilsons rates ((DTC)) as Downgrade to Underweight from Overweight (5) -

Wilsons Equity Research downgrades Damstra Holdings to Underweight from Overweight after the company downgraded guidance.

There was little inspiration in the result: revenue was downgraded -14% and margins -22.5% to -25%.

Newmont is expected to supply no revenue contribution, suggesting organic growth will prove an uphill battle, and the company guided to minimal new business growth. 

Contract wins could change the picture but for now, the broker is folding. Target  price falls to 38c from $1.77.

This report was published on November 29, 2021.

Target price is $0.38 Current Price is $0.40 Difference: minus $0.02 (current price is over target).
If DTC meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.76.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.

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

ERD    EROAD LIMITED

Transportation & Logistics - Overnight Price: $4.69

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

Eroad's FY22 first-half result met Cannacord Genuity and consensus forecasts, and the company reiterates guidance with pre-released annualised recurring sales performing well.

Growth was impacted by North American driver shortages and supply-chain constraints, delaying pipeline conversion, but management expects a recovery in FY23.

Management plants to close the Coretex purchase on December 1, which is expected to improve the conversion picture, although covid could kybosh that.

Earnings estimates ease -2%, -10% and -6% across FY22, FY23 and FY24.

Broker retains a Buy rating, noting the NZ business remains highly profitable and says valuation should improve when the US business recovers.

This report was published on November 29, 2021.

Current Price is $4.69. Target price not assessed.
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 minus 2.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 207.71.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 146.61.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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