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

This story features ALCIDION GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: ALC

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  

ALC    ALCIDION GROUP LIMITED

Healthcare services – Overnight Price: $0.27

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

Alcidion Group has announced the acquisition of Vocera Communications from medical device company Stryker for a purchase price of $3.09bn. Canaccord Genuity notes this follows the acquisition of athenahealth and Cerner in November and December respectively. 

Canaccord Genuity notes data integration appears to remain key to Alcidion Group's acquisitional activity, with integration of Silverlink patient administration software into its existing platform intended to provided a best of breed electronic patient record for customers. 

The Buy rating and target price of $0.35 are retained. 

This report was published January 7, 2022.

Target price is $0.35 Current Price is $0.27 Difference: $0.08
If ALC meets the Canaccord Genuity target it will return approximately 30% (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 0.00 cents.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.00.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $3.27

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

Capricorn Metals has updated the market on its Mt Gibson Gold Project, confirming the company's development decision is targeted for the final quarter of 2022.

The company acquired this project in July last year for a total consideration of $39.6m, comprising of $25.6m in cash and $14m in scrip.

Analysts at Canaccord Genuity suggest the rapid construction, commissioning and ramp-up at Karlawinda highlights the quality of the management team at Capricorn Metals and as such they view the development timeline outlined for the Mt Gibson Gold Project as readily achievable.

Canaccord Genuity rates the stock as Buy with a price target of $3.50.

This report was released on January 12, 2022.

Target price is $3.50 Current Price is $3.27 Difference: $0.23
If CMM meets the Canaccord Genuity target it will return approximately 7% (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 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 29.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.28.

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

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $32.82

Goldman Sachs rates ((RMD)) as Neutral (3) –

Goldman Sachs retains a $37.20 target price and Neutral rating in response to the Annual Healthcare CEOs Unscripted Conference.

Supply-chain challenges are likely to place a brake on growth, despite scope for the extension of tailwinds into 2022 from a competitor recall. The company still expects a material improvement in the fourth quarter of 2022.

Management expects rising distribution costs will continue to pressure margins; and new diagnoses and the SaaS portfolio are meeting expectations.

This report was published on January 7, 2021. 

Target price is $37.20 Current Price is $32.82 Difference: $4.38
If RMD meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $39.10, suggesting upside of 18.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 22.67 cents and EPS of 88.01 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 37.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.3, implying annual growth of N/A.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 37.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 21.34 cents and EPS of 89.35 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.9, implying annual growth of 16.5%.
Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 32.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $12.08

Goldman Sachs rates ((TWE)) as Neutral (3) –

Treasury Wine Estates has purchased Frank Family Vineyards – a luxury brand in California.

While appreciating the opportunities to expand into the luxury space, Goldman Sachs is less certain about the potential for margin accretion for wine used in lower margin brands.

Earnings (EBITDA) estimates rise 1.7% and 3.8%. 

Meanwhile, the broker expects a below-market performance from Treasury Wine's brand portfolio and spies headwinds in China.

Neutral rating retained. Target price is revised to $11.80.

This report was published on January 8, 2021.

Target price is $11.80 Current Price is $12.08 Difference: minus $0.28 (current price is over target).
If TWE meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.45, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 31.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.3, implying annual growth of 27.8%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 27.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 35.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of 22.6%.
Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 22.5.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $2.28

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

Whispir has signed a three-year contract with Singtel in a deal that Shaw considers to be a material positive catalyst for Whispir's Asian business and that significantly de-risks the company.

The broker says the $1.3m contract should be viewed as the "bare minimum" and excludes likely transactional revenue which Shaw expects will grow strongly as the contract progresses.

Shaw says the full impact of the deal has yet to be reflected in the share price, and notes several Whispir directors have recently been purchasing stock.

Whispir remains one of the broker's top picks. Buy rating retained. Target price steady at $4.85.

This report was published on January 11, 2021.

Target price is $4.85 Current Price is $2.28 Difference: $2.57
If WSP meets the Shaw and Partners target it will return approximately 113% (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 17.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.26.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 18.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.26.

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

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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.

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