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

Daily Market Reports | Dec 03 2021

This story features CENTURIA INDUSTRIAL REIT, and other companies. For more info SHARE ANALYSIS: CIP

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $31.16

Jarden rates ((FPH)) as Downgrade to Neutral from Overweight (3) –

Jarden reports stronger-than-expected interim metrics from Fisher and Paykel Healthcare Corporation, with revenue tracking -1% on the previous comparable period and after-tax profit -2%. 

The broker notes the delta variant slowed the path to normalisation for Hospital demand, but there are indicators of the beginning of normalisation and elevated hospital hardware revenue is not expected to continue.

The rating is downgraded to Neutral from Overweight and the target price increases to NZ$34.00 from NZ$33.00. 

This report was published November 25, 2021.

Current Price is $31.16. Target price not assessed.
Current consensus price target is $34.00, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 36.70 cents and EPS of 63.80 cents.
At the last closing share price the estimated dividend yield is 1.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.6, implying annual growth of N/A.
Current consensus DPS estimate is 38.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 46.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 37.64 cents and EPS of 56.74 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.1, implying annual growth of -3.7%.
Current consensus DPS estimate is 41.9, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 47.9.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GTK    GENTRACK GROUP LIMITED

Software & Services – Overnight Price: $1.77

Shaw and Partners rates ((GTK)) as Buy (1) –

Gentrack's FY21 result outpaced guidance and Shaw & Partners estimates on several metrics.

Win rates improved, FY22 and FY24 targets were maintained despite challenging conditions; only $29m of revenue was exposed to UK B2C energy retailers, and financial oversight was strong, despite nine customer insolvencies.

Shaw & Partners notes Gentrack appears to be weathering the retail collapse in the UK and suspects the nadir may have been reached.

Buy rating (high risk) and $3.35 target price retained.

This report was published on November 26, 2021.

Target price is $3.35 Current Price is $1.77 Difference: $1.58
If GTK meets the Shaw and Partners target it will return approximately 89% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 125.44.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 9.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.44.

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

IFM    INFOMEDIA LIMITED

Automobiles & Components – Overnight Price: $1.45

Bell Potter rates ((IFM)) as Buy (1) –

Infomedia has again reiterated a full-year revenue guidance range of $117-123m, and Bell Potter continues to forecast revenue of $119m which the broker notes is within range but towards the lower end. 

The broker highlighted Infomedia's annual recurring revenue at the end of FY21 of $112m including SimplePart, did support company revenue guidance. Bell Potter expects organic growth momentum from the first half to drive strong growth in the second half. 

The Buy rating and target price of $2.00 are retained.

This report was published on November 26, 2021.

Target price is $2.00 Current Price is $1.45 Difference: $0.55
If IFM meets the Bell Potter target it will return approximately 38% (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 4.50 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.58.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.00 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.01.

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

KLS    KELSIAN GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $6.38

Canaccord Genuity rates ((KLS)) as Buy (1) –

Cannacord Genuity spies a 50%-plus total shareholder return for Kelsian Group Limited, following the recent share price retreat.

The broker likes the strong revenue visibility, the company's excellent contract retention, clean cash flow and easy gearing.

Cannacord expects news prior to January 1 could prove a catalyst and spies growing demand in the resource transport space and a prolonged peak summer for Marine and tourism.

Buy rating retained, the broker believe weakness reflects negative perception towards missed catalysts. Target price falls to $9.62 from $9.94.

This report was published on November 29, 2021.

Target price is $9.62 Current Price is $6.38 Difference: $3.24
If KLS meets the Canaccord Genuity target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $9.12, suggesting upside of 42.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 17.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.7, implying annual growth of 94.7%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 21.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.8, implying annual growth of 24.0%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 15.3.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LBY    LAYBUY GROUP HOLDINGS, LIMITED

Business & Consumer Credit – Overnight Price: $0.22

Bell Potter rates ((LBY)) as Buy (1) –

Early issues with the Laybuy App Exclusives program saw Laybuy Group Holdings identify increased instances of fraud among new retailers, which Bell Potter notes drove an increase in its second quarter default rate to 3.0% of gross merchandise value, from 2.2%. 

Despite this, the company reported 60% year-on-year growth in the first half in gross merchandise value, customers and revenue. Commentary pointed to being on track for full-year gross merchandise value of NZ$1.0bn, implying second half improvement. 

The Buy rating is retained and the target price decreases to $0.85 from $1.20.

This report was published on November 25, 2021.

Target price is $0.85 Current Price is $0.22 Difference: $0.63
If LBY meets the Bell Potter target it will return approximately 286% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.86.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.01.

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

LGL    LYNCH GROUP HOLDING LIMITED

Agriculture – Overnight Price: $3.35

Jarden rates ((LGL)) as Buy (1) –

Lynch Holdings reiterates guidance at its annual general meeting (about 10% ahead of prospectus).

Jarden says China remains on track, margins remain strong, and flags a 51.7% projected return in the medium term as the China business grows.

Buy rating retained. Target price steady at $5.10.  

This report was published on November 26, 2021.

Target price is $5.10 Current Price is $3.35 Difference: $1.75
If LGL meets the Jarden target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 17.23 cents and EPS of 36.06 cents.
At the last closing share price the estimated dividend yield is 5.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.29.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 38.97 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.60.

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

MYD    MYDEAL.COM.AU LIMITED

Retailing – Overnight Price: $0.83

Taylor Collison rates ((MYD)) as Initiation of coverage with Speculative Buy (1) –

Taylor Collison initiates coverage on MyDeal.com.au with a Speculative Buy rating and a $1 target price. The Australian eCommerce marketplace with a focus on household goods collects circa 15% commission on each sale.

Held in inventory and providing healthy margins is the company's own Private Label and other 3rd party brands on the website, explains the analyst. These are collectively known as in-stock brands.

In-line with peer Temple & Webster Group ((TPW)), the broker anticipates in-stock brands will represent 25% of gross transaction value (GTV), up from 4% in FY21.

This report was published on November 25, 2021.

Target price is $1.00 Current Price is $0.83 Difference: $0.17
If MYD meets the Taylor Collison target it will return approximately 20% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 83.00.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.00.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $3.28

Taylor Collison rates ((OBL)) as Initiation of coverage with Outperform (2) –

Taylor Collison initiates coverage on litigation funder Omni Bridgeway with an Outperform rating. The broker feels FY21 displayed global diversification benefits, with Asia and Canada combining for 17% of new commitments, and Australian class actions only 11.4%.

Litigation funding is the financing of legal expenses (often non-recourse) in exchange for a share of proceeds recovered if the matter is successful.

Assuming historical win rates are maintained, the analyst expects repeatable profitability from FY23 onwards. It's thought improved investor understanding over time will lead to a re-rate in the earnings multiple of the business.

This report was published on November 22, 2021.

Current Price is $3.28. Target price not assessed.
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 14.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.47.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 0.00 cents and EPS of 37.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.86.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $4.30

Bell Potter rates ((PFP)) as Buy (1) –

Propel Funeral Partners has executed binding sales agreements for three new businesses that Bell Potter notes will see the company expand presence in Perth, and enter the metro markets of Geelong in Victoria and New Plymouth in New Zealand. 

Total purchase cost is $6.9m, with the potential acquisitions collectively generating $3.4m in revenue in their most recent financial year from more than 500 funerals. Transactions should complete in the second or third quarter of FY22.

With death volumes below trend throughout FY20 and FY21, Bell Potter highlights Propel Funeral Partners should benefit from volume normalisation. 

The Buy rating is retained and the target price increases to $5.00 from $4.90. 

This report was published on November 25, 2021.

Target price is $5.00 Current Price is $4.30 Difference: $0.7
If PFP meets the Bell Potter target it will return approximately 16% (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 10.80 cents and EPS of 13.50 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.85.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 12.40 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.56.

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

PPM    PEPPER MONEY LIMITED

Business & Consumer Credit – Overnight Price: $2.00

Goldman Sachs rates ((PPM)) as Buy (1) –

Strong origination growth has driven Pepper Money to upgrade full-year profit after tax guidance to $135-138m, which Goldman Sachs notes is up from its initial public offering prospectus forecast of $120.7m. 

The broker increases earnings per share forecasts 2.1%, 7.2% and 7.6% for FY21, FY22 and FY23 and notes Pepper Money continues to be well-positioned to benefit from housing market strength. 

The Buy rating is retained and the target price increases to $3.56 from $3.47.

This report was published on November 25, 2021. 

Target price is $3.56 Current Price is $2.00 Difference: $1.56
If PPM meets the Goldman Sachs target it will return approximately 78% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 6.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.45.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.88.

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

UNI    UNIVERSAL STORE HOLDINGS LIMITED

Apparel & Footwear – Overnight Price: $7.50

Evans and Partners rates ((UNI)) as Positive (1) –

Universal Store Holdings's trading update broadly met Evans & Partners forecasts. 

Management advised online growth as a top strategic initiative and will double marketing spend this year. 

The broker admires the company's superior online traffic growth relative to peers (online channel growth accelerated 43% in the first eight weeks of FY22 trading), despite lower promotional spend.

Earnings forecasts rise 5% to 7% across FY22-FY24.

Positive rating and $10.40 target price retained; the broker noting higher gross margins, and strong store rollouts. The company is one of the broker's top picks the small caps retail space.

This report first published on November 27, 2021.

Target price is $10.40 Current Price is $7.50 Difference: $2.9
If UNI meets the Evans and Partners target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Evans and Partners forecasts a full year FY22 dividend of 24.50 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.43.

Forecast for FY23:

Evans and Partners forecasts a full year FY23 dividend of 39.60 cents and EPS of 56.60 cents.
At the last closing share price the estimated dividend yield is 5.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.25.

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

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

For more info SHARE ANALYSIS: CIP - CENTURIA INDUSTRIAL REIT

For more info SHARE ANALYSIS: COH - COCHLEAR LIMITED

For more info SHARE ANALYSIS: DTC - DAMSTRA HOLDINGS LIMITED

For more info SHARE ANALYSIS: ERD - EROAD LIMITED

For more info SHARE ANALYSIS: GTK - GENTRACK GROUP LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: KLS - KELSIAN GROUP LIMITED

For more info SHARE ANALYSIS: LBY - LAYBUY GROUP HOLDINGS, LIMITED

For more info SHARE ANALYSIS: LGL - LYNCH GROUP HOLDING LIMITED

For more info SHARE ANALYSIS: MYD - MYDEAL.COM.AU LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: PPM - PEPPER MONEY LIMITED

For more info SHARE ANALYSIS: TPW - TEMPLE & WEBSTER GROUP LIMITED

For more info SHARE ANALYSIS: UNI - UNIVERSAL STORE HOLDINGS LIMITED