Australian Broker Call *Extra* Edition – Apr 06, 2022

Daily Market Reports | Apr 06 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)

ANZ   CGC   CTD   DHG (2)   HLO   PPT   SHA   SM1 (2)   WEB  

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism - Overnight Price: $2.45

Jarden rates ((HLO)) as Initiation of coverage with Neutral (3) -

Jarden initiates coverage on the travel management sector, including Helloworld Travel, as recovery post-covid ramps up. The broker prefers companies with high corporate travel exposure over leisure, predicting less volatile recovery in corporate travel. 

The broker noted the Australian Federation of Travel Agents has predicted the coming six months will be the most challenging for the industry, as agents work to process the estimated $6bn in unused travel credits but gaining little in the way of revenue. 

Jarden is cautious on Helloworld Travel's outlook following the divestment of the Corporate division in mid-December, despite share price strength since then. Further, the broker expects Helloworld Travel will be most impacted by reduced commission fees.

The broker initiates with a Neutral rating and a target price of $2.46.

This report was published on March 30, 2022.

Target price is $2.46 Current Price is $2.45 Difference: $0.01
If HLO meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of minus 17.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.92.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 136.11.

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

PPT    PERPETUAL LIMITED

Wealth Management & Investments - Overnight Price: $32.38

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

Updating its coverage on Perpetual, Bell Potter notes the company's strong management team and clear strategic direction sets Perpetual apart from peers, and highlights the company has become more diverse in the last year. 

Acquisitions into Perpetual Private and Perpetual Corporate Trust in the last year have added revenue or service range to the company. 

The Buy rating is retained and the target price decreases to $42.80 from $44.30.

This report was published on April 4, 2022.

Target price is $42.80 Current Price is $32.38 Difference: $10.42
If PPT meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $39.61, suggesting upside of 22.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 218.00 cents and EPS of 266.50 cents.
At the last closing share price the estimated dividend yield is 6.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 267.1, implying annual growth of 97.9%.
Current consensus DPS estimate is 210.4, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 12.1.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 225.00 cents and EPS of 273.70 cents.
At the last closing share price the estimated dividend yield is 6.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 285.6, implying annual growth of 6.9%.
Current consensus DPS estimate is 220.8, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 11.3.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SHA    SHAPE AUSTRALIA CORPORATION LIMITED

Industrial Sector Contractors & Engineers - Overnight Price: $2.16

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

Moelis only initiated coverage on commercial fit-out specialist Shape Australia last month. This week the company announced the acquisition of Victoria-based modular construction business, KLMSA, for $10.7m.

KLMSA provides modern, modular building solutions for schools, early learning centres, government service buildings and multi-purpose sports pavilions.

Moelis argues the acquisition will enhance Shape Australia's offering and expertise. A strong balance sheet effectively implies more M&A might be on the horizon, suggests the broker.

Moelis has made small increases to forecasts while retaining its Buy rating and a target price of $2.49. 

This report was published on April 5, 2022.

Target price is $2.49 Current Price is $2.16 Difference: $0.33
If SHA meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 14.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.00.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 4.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.43.

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


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