Australian Broker Call *Extra* Edition – Mar 29, 2022

Daily Market Reports | Mar 29 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)

ALQ   APE   EQT   FPH   JAN   JBH   JHG   NAB (2)   PLT (2)  

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers - Overnight Price: $13.04

Jarden rates ((ALQ)) as Buy (2) -

Jarden estimates 28% upside to consensus earnings (EBIT) for ALS can be achieved by FY25, if return on invested capital (ROIC) begins to align to that of comparable offshore peers. It's felt ROIC expansion has been limited by the covid slowdown and a business mix shift.

In addition, a hypothetical divestment of the 'non-core' Industrial division (that has lower returns) could also drive an improvement in overall returns, explains the broker. The division comprises a small proportion of overall group earnings and valuation.

Jarden maintains its Overweight rating and $13.80 target price.

This report was published on March 25, 2022.

Target price is $13.80 Current Price is $13.04 Difference: $0.76
If ALQ meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $13.65, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 33.00 cents and EPS of 54.10 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.0, implying annual growth of 48.1%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 35.00 cents and EPS of 58.10 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.9, implying annual growth of 11.1%.
Current consensus DPS estimate is 34.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.1.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components - Overnight Price: $13.64

Bell Potter rates ((APE)) as Buy (1) -

Bell Potter makes no changes to forecasts for Eagers Automotive following its sale of the Bill Buckle Auto Group, preferring to wait for a potential acquisition in the near-term that may provide an offset.

Meanwhile, the broker updates each valuation used to determine its target price for market movements and the passage of time. As a result the target falls by -3% to $16.75. The Buy rating is maintained.

This report was published on March 25, 2022.

Target price is $16.75 Current Price is $13.64 Difference: $3.11
If APE meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $17.86, suggesting upside of 30.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 47.50 cents and EPS of 102.70 cents.
At the last closing share price the estimated dividend yield is 3.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.0, implying annual growth of -15.4%.
Current consensus DPS estimate is 65.3, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 47.50 cents and EPS of 87.90 cents.
At the last closing share price the estimated dividend yield is 3.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.5, implying annual growth of -9.0%.
Current consensus DPS estimate is 61.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.1.

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

EQT    EQT HOLDINGS LIMITED

Diversified Financials - Overnight Price: $26.05

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

Shaw and Partners initiates coverage of independent financial services provider EQT Holdings with a Buy rating and $37 target. The company operates in Australia, the UK and Ireland providing trustee and related services to a number of corporate and private clients.

The broker expects benefits from ongoing growth and increasing regulatory complexity of the domestic financial services sector. The company's trusted brands are also expected to result in market share gains, and there's further potential upside from the UK and Ireland.

As an independent, specialist trustee EQT Holdings also aims to be a leading player in all aspects of trusteeship. 

However, the analyst cautions over any sustained volatility in investment markets. This could weigh on sentiment and net flows for the company as a portion of funds under management, administration and supervision (FUMAS) is linked to those markets.

This report was published on March 25, 2022.

Target price is $37.00 Current Price is $26.05 Difference: $10.95
If EQT meets the Shaw and Partners target it will return approximately 42% (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 99.00 cents and EPS of 123.90 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.03.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 111.00 cents and EPS of 138.70 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.

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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