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

This story features ALS LIMITED, and other companies. For more info SHARE ANALYSIS: ALQ

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $22.02

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

Ahead of FY22 results on May 25, Fisher & Paykel Healthcare updated revenue guidance, which was a -3-4% miss versus Wilsons expectation.

While covid continues, the analyst notes impacts have lessened as the omicron strain has reduced the demand for the company’s ventilators. Also, the Northern Hemisphere is experiencing a relatively mild season of influenza due to mask wearing.

In addition, elevated freight costs are eating into management's FY22 gross margin forecast. While under review, the broker's Overweight rating and $35.50 target price are maintained for now.

This report was published on March 24, 2022.

Target price is $35.50 Current Price is $22.02 Difference: $13.48
If FPH meets the Wilsons target it will return approximately 61% (excluding dividends, fees and charges).
Current consensus price target is $27.00, suggesting upside of 22.6%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 37.69 cents and EPS of 65.59 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.7, implying annual growth of N/A.
Current consensus DPS estimate is 35.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 31.6.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 38.64 cents and EPS of 67.09 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.5, implying annual growth of -20.4%.
Current consensus DPS estimate is 36.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 39.7.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $1.00

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

Wilsons points out hybrid schooling conditions have accelerated Janison Education's push into the Consumer market with the launch of Direct-To-Parent. This provides an opportunity for increased subscriptions and diversification of end-customers (Parents vs Schools).

In addition, the opportunity should provide increased operating leverage, explains the analyst. Conservative estimates suggest the annual recurring revenue uplift could be 7-9% compared to the broker's current forecast.

More negatively, the group and the OECD have switched off potential revenues from the contract for Russia as an international platform provider. However, another contract with schools via the Australian National Catholic Education Commission is expected to be an offset.

The Overweight rating is retained and the target slips to $1.41 from $1.44.

This report was published on March 24, 2022.

Target price is $1.41 Current Price is $1.00 Difference: $0.41
If JAN meets the Wilsons target it will return approximately 41% (excluding dividends, fees and charges).
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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.57.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.71.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $53.95

Jarden rates ((JBH)) as Upgrade to Underweight from Sell (2) –

A strong 3Q trading update by JB Hi-Fi was driven by an acceleration in sales and steady/growing gross margins and cost leverage, explains Jarden.

The broker feels the result was a product of both good management and a favourable trading environment. For the third upgrade in six months, the analyst lifts normalised EPS forecasts by 9-10% for FY22 and FY23.

Demand is expected to moderate and competition will increase, requiring further investment, cautions the analyst. The Underweight rating is maintained and the target rises to $50 from $49.

This report was published on March 25, 2022.

Target price is $50.00 Current Price is $53.95 Difference: minus $3.95 (current price is over target).
If JBH meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $57.65, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 284.00 cents and EPS of 433.90 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 415.6, implying annual growth of -5.7%.
Current consensus DPS estimate is 270.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 247.00 cents and EPS of 378.90 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 374.5, implying annual growth of -9.9%.
Current consensus DPS estimate is 241.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.4.

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

JHG    JANUS HENDERSON GROUP PLC

Wealth Management & Investments – Overnight Price: $46.32

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

In what Bell Potter believes is good news for Janus Henderson, the young and high-achieving Ali Dibadj is to become the new ceo, effective by the end of June.

However, the analyst cautions that some key person risk now arises, as some internal candidates have been overlooked in the appointment process.

The Buy rating and $69 target price are maintained.

This report was published on March 25, 2022.

Target price is $69.00 Current Price is $46.32 Difference: $22.68
If JHG meets the Bell Potter target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $56.33, suggesting upside of 21.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 273.12 cents and EPS of 562.47 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 616.7, implying annual growth of N/A.
Current consensus DPS estimate is 212.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 7.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 270.42 cents and EPS of 557.06 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 8.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 628.2, implying annual growth of 1.9%.
Current consensus DPS estimate is 260.3, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 7.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NAB    NATIONAL AUSTRALIA BANK LIMITED

Banks – Overnight Price: $31.91

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

In a reflection of National Australia Bank's strong balance sheet, according to Bell Potter, the bank announced a share buy-back of up to $2.5bn.

The broker increases its price target to $34.50 from $32.50 mainly due to higher forecasts for net interest income and other banking income, which is offset to some extent by higher estimated credit impairment charges. The Buy rating is unchanged.

This report was published on March 25, 2022.

Target price is $34.50 Current Price is $31.91 Difference: $2.59
If NAB meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $31.99, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 137.00 cents and EPS of 204.00 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 203.7, implying annual growth of 5.5%.
Current consensus DPS estimate is 143.5, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 143.00 cents and EPS of 213.00 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 224.0, implying annual growth of 10.0%.
Current consensus DPS estimate is 156.2, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.2.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

The intention by National Australia Bank to conduct a $2.5bn on-market share buyback exceeds Goldman Sachs' current forecast by $1.5bn.

As a result, the broker's FY22-24 EPS estimates increase by 0.4%, 1.3% and 1.4%, respectively, and its target rises to $32.21 from $31.33. A buyback of $2bn of stock over the course of the 2H is now assumed, and then $500m over the 1H of FY23.

The Buy rating is maintained.

This report was published on March 25, 2022.

Target price is $32.21 Current Price is $31.91 Difference: $0.3
If NAB meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $31.99, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 146.00 cents and EPS of 206.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 203.7, implying annual growth of 5.5%.
Current consensus DPS estimate is 143.5, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 156.00 cents and EPS of 213.00 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 224.0, implying annual growth of 10.0%.
Current consensus DPS estimate is 156.2, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.2.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.00

Moelis rates ((PLT)) as Buy (1) –

To align with Plenti Group's upgraded FY22 revenue guidance, Moelis increases FY22 cash profit to just over $1m. Upgraded guidance implies to the analyst more than $2.2m cash profit in the 2H versus previous guidance for $1m.

The analyst highlights an inflection point for operating leverage, as the loan book now exceeds $1.25bn and quarterly originations pass the $300m run-rate.

A new corporate debt facility also provides funding flexibility, according to Moelis, as the group moves towards positive free cash flow generation (estimated in FY24).

The target price slips to $1.68 from $1.72 and the Buy rating is maintained.

This report was published on March 24, 2022.

Target price is $1.68 Current Price is $1.00 Difference: $0.68
If PLT meets the Moelis target it will return approximately 68% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.70.

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

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

Following Plenti Group's 2H trading update, Wilsons notes loan book growth met expectations and is encouraged that the group expects to be cash profitable for the full financial year to March 31.

The analyst notes the group has drawn down $18m (no cap on drawdowns) from a new corporate debt facility, which may be further drawn down as the loan book grows. It's felt this capability removes any potential equity raise concerns.

The Overweight rating and $2.10 target are unchanged.

This report was published on March 24, 2022.

Target price is $2.10 Current Price is $1.00 Difference: $1.1
If PLT meets the Wilsons target it will return approximately 110% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.76.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.03.

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.

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.

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