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Australian Broker Call *Extra* Edition – Dec 06, 2021

Daily Market Reports | Dec 06 2021

This story features AUSSIE BROADBAND LIMITED, and other companies. For more info SHARE ANALYSIS: ABB

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)

ABB   CCP   CKF   CQR   ERD   FPH   HCW   HUB   NST   NWL   OBL   PPG   SMP   SND   TSI   YOJ   Z2U  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $5.02

JP Morgan rates ((ABB)) as Overweight (1) –

After Aussie Broadband confirmed its commitment to acquire Over The Wire Holdings ((OTW)), JP Morgan assumes the transaction will be -5% dilutive for net present value. The consideration is $5.75 a share with various options for cash or equity.

Not only is the company raising equity below the broker's valuation, but the acquired assets will have slower earnings growth. Despite the lower valuation, the transaction is estimated to be 8% EPS accretive by the second year, not including synergies.

Overweight rating is maintained. Target price slips to $6.20 from $6.50.

This report was published on December 3, 2021.

Target price is $6.20 Current Price is $5.02 Difference: $1.18
If ABB meets the JP Morgan target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 80.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.27.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.90.

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

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $31.63

Canaccord Genuity rates ((CCP)) as Hold (3) –

Credit Corp has struck a debt-funded deal to buy Thorn Group's ((TGA)) Radio Rentals for $60m and management upgrades profit guidance.

Cannacord Genuity says the deal will improve domestic debt purchase volumes at a time when credit card balances and arrears are declining. 

The broker says the company still has $300m in the kitty for further deals, which it considers to be the main upside catalyst. EPS forecasts rise 1.2% in FY22; and 2.7% in FY23.

Hold rating retained, target price rises to $33.25 from $28.80. 

This report was published on December 1, 2021.

Target price is $33.25 Current Price is $31.63 Difference: $1.62
If CCP meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $35.60, suggesting upside of 14.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 77.00 cents and EPS of 144.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 142.3, implying annual growth of 8.7%.
Current consensus DPS estimate is 75.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 90.00 cents and EPS of 168.00 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.6, implying annual growth of 13.6%.
Current consensus DPS estimate is 83.3, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.2.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $13.18

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

Collins Foods' first-half result outpaced Cannacord Genuity's forecasts, posting a good margin performance in Europe, reasonable comps for KFC Australia, and progress on store rollouts globally.

EPS forecasts rise 3% in FY22 and 1% in FY23.

Target price rises to $14.85 from $14.10. Buy rating retained.

The report was published on December 1, 2021.

Target price is $14.85 Current Price is $13.18 Difference: $1.67
If CKF meets the Canaccord Genuity target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $14.53, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 28.00 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.9, implying annual growth of 76.6%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 25.7.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 31.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of 9.4%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 23.4.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $4.11

JP Morgan rates ((CQR)) as Neutral (3) –

Charter Hall Retail REIT has lifted EPS guidance to no less than 28.2cpu from prior guidance of 27.8-28.2cpu, and DPS of no less than 24.3cps from 23.9-24.3cps. 

JP Morgan adjusts its forecasts not only for the revised guidance but also for the -$50m acquisition of a 49% stake in an Ampol ((ALD))
Fuel & Convenience Retail Centre portfolio.

Neutral rating and $4 target price are retained.

This report was published on December 2, 2021.

Target price is $4.00 Current Price is $4.11 Difference: minus $0.11 (current price is over target).
If CQR meets the JP Morgan target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.18, suggesting upside of 1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 24.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 5.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of -44.8%.
Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 27.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.1, implying annual growth of 3.6%.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 14.2.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $4.68

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

EROAD's first-half underlying earnings (EBITDA) slightly missed Bell Potter's estimate, due mainly to higher Corporate expenses. The broker reduces its underlying EPS estimates and lowers its target price to $5.95 from $6.05.

Buy rating retained. 

The analyst points out it's only early stages in expanding the platform offering and enterprise sales initiatives in North America and Australia. The recent Coretex acquisition is expected to accelerate this process in 2022.

This report was published on November 30, 2021.

Target price is $5.95 Current Price is $4.68 Difference: $1.27
If ERD meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.85 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 552.54.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 115.67.

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: $30.81

Wilsons rates ((FPH)) as Overweight (1) –

Wilsons concedes that it is hard to maintain confidence in Fisher & Paykel Healthcare Corporation's short-term outlook but says the long growth runway for high-flow nasal cannula technology outside of ICU settings should benefit the company beyond covid impacts. 

The company reported a 45% beat to Wilsons' forecast in hospital hardware sales in the first half, driving a 14% beat in profit after tax. 

Overweight rating retained. Target price rises to $35.50 from $35.00.

This report was published on November 26, 2021.

Target price is $35.50 Current Price is $30.81 Difference: $4.69
If FPH meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $34.00, suggesting upside of 10.2%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 37.64 cents and EPS of 65.49 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.7, 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 45.6.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 38.58 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.2, implying annual growth of -3.7%.
Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 47.3.

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

HCW    HEALTHCO HEALTHCARE & WELLNESS REIT

Overnight Price: $2.22

Goldman Sachs rates ((HCW)) as Initiation of coverage with Buy (1) –

Goldman Sachs has initiated coverage on HealthCo Healthcare & Wellness REIT with a Buy rating and has added the company to its Conviction List.

HealthCo holds a portfolio of Australian healthcare and wellness assets, mainly in the eastern states.

The broker's $2.56 target price implies a 22% total return and Goldman Sachs admires the company's balance sheet, external growth opportunities in the growing Australian market, and relatively secure income stream.

The broker believes the company offers an enticing mix of defence and offence and is underpinned by key mega trends: an ageing population, technological advancement; increased government expenditure and increasing consumption of health-related services. 

Target price is $2.56 Current Price is $2.22 Difference: $0.34
If HCW meets the Goldman Sachs target it will return approximately 15% (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 7.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.40.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 8.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.67.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $27.59

JP Morgan rates ((HUB)) as Underweight (5) –

JP Morgan had previously allowed in its forecasts for HUB24's termination of its cash deposit agreements with ANZ Bank ((ANZ)) from December 1, 2022.

Separately, takeover target Class Ltd ((CL1)) should help diversify the company's business model but will require more investment, cautions the broker.

The analyst notes 1QFY22 custody funds under administration (FUA) grew to $45bn, up 9% quarter-on-quarter but believes such strong numbers will be needed to justify the valuation in the face of margin compression. 

Underweight rating and $26 target price are retained.

This report was published on December 1, 2021.

Target price is $26.00 Current Price is $27.59 Difference: minus $1.59 (current price is over target).
If HUB meets the JP Morgan target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $34.01, suggesting upside of 27.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 19.10 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 0.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.7, implying annual growth of 235.7%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 62.4.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 26.20 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 0.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.8, implying annual growth of 35.4%.
Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 46.1.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $8.81

JP Morgan rates ((NST)) as Overweight (1) –

Northern Star Resources has provided funding (convertible bond) to Osisko Mining in Canada and has secured an exclusive right to negotiate a 50/50 joint venture on the Windfall development project. If the bond is converted, 9.9% of Windfall would be acquired.

JP Morgan feels the opportunity to set up the Windfall project from the outset likely presents positive upside, compared with the frustrations of introducing Australian mining methods for the Pogo gold mine in Alaska.

Overweight rating and $11 target price retained.

This report was published on December 2, 2021.

Target price is $11.00 Current Price is $8.81 Difference: $2.19
If NST meets the JP Morgan target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $11.86, suggesting upside of 30.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 26.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of -73.5%.
Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 29.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 31.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.2, implying annual growth of 5.9%.
Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 28.2.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $15.19

JP Morgan rates ((NWL)) as Neutral (3) –

JP Morgan notes 1QFY22 custody funds under administration (FUA) grew to $52bn, up 10% quarter-on-quarter but says such strong numbers will be needed to justify the valuation given margin compression. 

After the RBA has opened the door for a rate rise prior to 2024, the analyst believes the group will take advantage of initial rate rises (up to 50 basis points) before passing it on to its users.

Neutral rating and $14.50 target price are retained.

This report was published on December 1, 2021.

Target price is $14.50 Current Price is $15.19 Difference: minus $0.69 (current price is over target).
If NWL meets the JP Morgan target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.97, suggesting upside of 19.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 21.00 cents and EPS of 27.00 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 56.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 17.5%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 56.6.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 24.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 1.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.7, implying annual growth of 19.6%.
Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 47.3.

Market Sentiment: 0.6
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: $3.23

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

Omni Bridgeway's AGM update reveals a good year-to-date performance and good earnings potential from its investments.

Fund 1 is outpacing Goldman Sachs' estimates and the broker expects it will generate cash sooner than forecast.

The broker says that if the company's investments were sold today, they would bring between $470m and $1bn, compared with a market capitalisation, less cash and receivables, of $663m.

Omni Bridgeway boasts a comfortable capital position, some of which could be returned to shareholders or fund growth, says the broker.

Buy rating is retained. Target price inches up to $5.35 from $5.30.

This report was published on November 30, 2021. 

Target price is $5.35 Current Price is $3.23 Difference: $2.12
If OBL meets the Goldman Sachs target it will return approximately 66% (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 4.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.53.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 33.00 cents and EPS of 131.00 cents.
At the last closing share price the estimated dividend yield is 10.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.47.

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

PPG    PRO-PAC PACKAGING LIMITED

Overnight Price: $0.19

Shaw and Partners rates ((PPG)) as Downgrade to Hold from Buy (3) –

After allowing for a 10:1 share consolidation, Shaw and Partners lowers its target price to $2.32 from $3.00 after a trading update by Pro-Pac Packaging. The broker also lowers its rating to Hold from Buy and awaits further evidence of more normal trading conditions.

Cost pressures and operational effects overshadowed revenue growth in the core Flexibles business, and first-half profit guidance missed the broker's estimate.

The analyst is waiting to assess the impact of company-instituted price increases upon the customer base, as well as the future direction of freight, resin and labour costs.

This report was published on November 30, 2021.

Target price is $2.32 Current Price is $0.19 Difference: $2.13
If PPG meets the Shaw and Partners target it will return approximately 1121% (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 3.40 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 17.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.11.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 7.00 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 36.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.08.

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

SMP    SMARTPAY HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.75

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

After reviewing first-half results for Smartpay, and assessing that October trading suggests a strong outlook, Shaw and Partners lifts its target price to $1.20 from $1.15. Buy rating retained.

The analyst estimates the Australian business alone is worth more than the company’s entire valuation (the New Zealand business is estimated to be worth $0.30/share).

When taking into account covid lockdowns, the broker says operating leverage is emerging. Gross margins came in at 64.6%, 1.5% ahead of Shaw and Partners estimate of 63.1%.

This report was published on November 30, 2021.

Target price is $1.20 Current Price is $0.75 Difference: $0.45
If SMP meets the Shaw and Partners target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 46.88.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.48 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.54.

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

SND    SAUNDERS INTERNATIONAL LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.93

CCZ Equities rates ((SND)) as Buy (1) –

Saunders International has secured its largest contract to date, a $165m deal with Crowley Solutions for the design and construction management of a US Defence fuel-storage facility. CCZ Equities says the risk of inflated costs is low given pricing is largely locked in. 

CCZ expects 25% of project revenue in FY22, 60% in FY23 and 15% in FY24, and the broker raises EPS forecasts 10.5%, 27.3% and 14.9% respectively. 

Target price rises to $1.10 from $0.95. Buy retained.

This report was published on November 22, 2021.

Target price is $1.10 Current Price is $0.93 Difference: $0.17
If SND meets the CCZ Equities target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.80 cents and EPS of 3.90 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.85.

Forecast for FY23:

CCZ Equities forecasts a full year FY23 dividend of 3.30 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.74.

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

TSI    TOP SHELF INTERNATIONAL HOLDINGS LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.57

Canaccord Genuity rates ((TSI)) as Initiation of coverage with Buy (1) –

Cannacord Genuity initiates coverage on Top Shelf International Holdings with a Buy rating and $2.51 target price.

The broker says the company is strategically well positioned in the "scale craft" category and cites a large attainable market, open to disruption by local and differentiated brands.

The broker notes the company has a proven track record of execution, more than doubled sales in FY21 to $20m, and boasts several growth levers, including: premiumisation; maturation; provenance; and a recently launched vodka brand.

The company is well positioned in the agave spirit market, which is experiencing supply constraints given the long plant maturation period.

Target price is $2.51 Current Price is $1.57 Difference: $0.94
If TSI meets the Canaccord Genuity target it will return approximately 60% (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 minus 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.24.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.63.

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

YOJ    YOJEE LIMITED

Software & Services – Overnight Price: $0.17

CCZ Equities rates ((YOJ)) as No Rating (-1) –

CCZ Equities initiates coverage on Singapore-based logistics company Yojee. The broker notes Yogee is targeting a rollout of 126 revenue-generating hubs in 19 Australia-Pacific countries in the next three years to support expansion requests from three clients. 

As clients continue to expand contracts, CCZ says Yojee is positioned to capitalise on a $43.5m addressable revenue base by FY25, implying a 158% four-year revenue compound annual growth rate. Expansion in other regions offers upside risk.

Target price is 45c. No rating provided.

This report was published on November 25, 2021. 

Target price is $0.45 Current Price is $0.17 Difference: $0.28
If YOJ meets the CCZ Equities target it will return approximately 165% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.29.

Forecast for FY23:

CCZ Equities forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.50.

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

Z2U    ZOOM2U TECHNOLOGIES LIMITED

Overnight Price: $0.39

Shaw and Partners rates ((Z2U)) as Buy (1) –

Shaw and Partners considers Zoom2U Technologies' AGM trading update points to encouraging second-quarter progress.

Buy rating and $0.65 target price are retained, the broker having recently initiated coverage.

The Zoom2U platform recently signed Best & Less as a customer and is working on trial opportunities with large customers. Meanwhile, the Locate2u platform has signed Bing Lee as a second enterprise customer and now has more than 100 subscribers.

This report was published on November 30 , 2021.

Target price is $0.65 Current Price is $0.39 Difference: $0.26
If Z2U meets the Shaw and Partners target it will return approximately 67% (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 minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.25.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.50.

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

ABB ALD ANZ CCP CKF CL1 CQR ERD FPH HCW HUB NST NWL OBL OTW PPG SMP SND TGA TSI YOJ Z2U

For more info SHARE ANALYSIS: ABB - AUSSIE BROADBAND LIMITED

For more info SHARE ANALYSIS: ALD - AMPOL LIMITED

For more info SHARE ANALYSIS: CCP - CREDIT CORP GROUP LIMITED

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: CL1 - CLASS LIMITED

For more info SHARE ANALYSIS: CQR - CHARTER HALL RETAIL REIT

For more info SHARE ANALYSIS: ERD - EROAD LIMITED

For more info SHARE ANALYSIS: HCW - HEALTHCO HEALTHCARE & WELLNESS REIT

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LIMITED

For more info SHARE ANALYSIS: NWL - NETWEALTH GROUP LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: OTW - OVER THE WIRE HOLDINGS LIMITED

For more info SHARE ANALYSIS: PPG - PRO-PAC PACKAGING LIMITED

For more info SHARE ANALYSIS: SMP - SMARTPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: SND - SAUNDERS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: TGA - THORN GROUP LIMITED

For more info SHARE ANALYSIS: TSI - TOP SHELF INTERNATIONAL HOLDINGS LIMITED

For more info SHARE ANALYSIS: YOJ - YOJEE LIMITED

For more info SHARE ANALYSIS: Z2U - ZOOM2U TECHNOLOGIES LIMITED