Australian Broker Call *Extra* Edition – Jan 12, 2022

Daily Market Reports | Jan 12 2022

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   CMM   HLA   HT1   PPG   RMD   TWE   WSP  

HLA    HEALTHIA LIMITED

Healthcare services - Overnight Price: $2.40

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

Healthia has acquired several optometry and physiotherapy businesses, causing Shaw and Partners to upgrade earnings (EBITDA) estimates 2% to 4.5% across FY22 and FY23.

The company has now deployed $16m of its $20m capital-spending target and the broker expects Healthia is well placed to exceed this by end FY22, creating upside risk to earnings.

Shaw notes the company is trading at a strong discount to peers despite boasting stronger leverage to growth, and expects this gap will close.

The broker reports plenty of upside catalysts, including further acquisitions, international expansion, consensus upside, and head office and revenue synergies.

Target price rises to $3.08 from $2.94. Buy rating retained.

This report was published on January 11, 2021. 

Target price is $3.08 Current Price is $2.40 Difference: $0.68
If HLA meets the Shaw and Partners target it will return approximately 28% (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 6.00 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 6.80 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.

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

HT1    HT&E LIMITED

Out of Home Advertising - Overnight Price: $2.06

Canaccord Genuity rates ((HT1)) as Buy (1) -

Canccord Genuity has described HT&E as a formidable radio operator following completion of the company's Grant Broadcasters acquisition, as management guides to annual revenue synergies of $20m through advertisers seeking simple marketing solutions.

The broker now includes the highly accretive acquisition in forecasts, lifting forecast revenue growth to 44% and 45% in FY22 and FY23 respectively and growth in underlying earnings to 56% and 57% for the same years.

The Buy rating is retained and the target price increases to $3.05 from $2.70.

This report was published on January 6, 2021.

Target price is $3.05 Current Price is $2.06 Difference: $0.99
If HT1 meets the Canaccord Genuity target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $2.11, suggesting upside of 2.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 7.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of N/A.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 9.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 34.3%.
Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.5.

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

PPG    PRO-PAC PACKAGING LIMITED

Paper & Packaging - Overnight Price: $1.41

Moelis rates ((PPG)) as Buy (1) -

Omicron challenges have increased freight cost and resin prices, and caused shipping delays, facility closures and staff shortages for Pro-Pac packaging.

Moelis reduces profit forecasts accordingly but most estimates are steady, the broker expecting a return to normal. 

Buy rating retained after the recent share price retreat, but the broker cuts its target price to $1.84 from $2.50 to reflect the challenges.

This report was published on January 11, 2021.

Target price is $1.84 Current Price is $1.41 Difference: $0.43
If PPG meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 3.80 cents and EPS of 8.90 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.84.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

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


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