Australian Broker Call *Extra* Edition – Apr 07, 2022

Daily Market Reports | Apr 07 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)

CIP   CPU   DEG   DGO   IAG   MYX   NAN   PDL   PDN   PPT   SRG  

CIP    CENTURIA INDUSTRIAL REIT

REITs - Overnight Price: $3.89

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

While Centuria Industrial REIT has demonstrated strong performance in recent years, Shaw and Partners considers there is remaining upside as high demand for industrial assets is expected to continue through 2022. 

The broker posits the coupling of a record low 1.3% national vacancy rate in the second half of 2021 and strong investment volumes in that year indicate likely rental growth and investor demand that should positively impact on valuations.

Centuria Industrial REIT's $4.0bn portfolio has a 99.2% occupancy rate, and the broker predicts funds from operations of 18.3c per unit and dividends of 17.3c per unit in the current financial year, equating to a 94.5% payout ratio. 

The Buy rating is retained and the target price increases to $4.30 from $4.10.

This report was published on April 5, 2022.

Target price is $4.30 Current Price is $3.89 Difference: $0.41
If CIP meets the Shaw and Partners target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.21, suggesting upside of 8.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of -84.5%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 21.4.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 18.00 cents and EPS of 19.50 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 19.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.2, implying annual growth of 5.5%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 20.3.

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials - Overnight Price: $25.22

Jarden rates ((CPU)) as Overweight (2) -

Jarden expects Computershare will benefit from improving US mortgage service trends. The broker anticipates margins to rebound in the coming financial year as refinancing slows and foreclosures recommence amid higher margin income. 

Despite likely margin improvement ahead, Jarden notes reaching its 12-14% return on invested capital target will be challenging for Computershare, with the broker forecasting an 8% long-term return. 

The Overweight rating is retained and the target price increases to $24.00 from $23.55.

This report was published on April 5, 2022.

Target price is $24.00 Current Price is $25.22 Difference: minus $1.22 (current price is over target).
If CPU meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $23.92, suggesting downside of -5.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 64.92 cents and EPS of 77.09 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 32.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.8, implying annual growth of N/A.
Current consensus DPS estimate is 57.1, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 33.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 64.92 cents and EPS of 114.15 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 22.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.0, implying annual growth of 37.7%.
Current consensus DPS estimate is 68.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 24.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DEG    DE GREY MINING LIMITED

Gold & Silver - Overnight Price: $1.21

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

De Grey Mining's top shareholder DGO Gold ((DGO)) has backed a takeover offer from Gold Road Resources ((GOR)) for a consideration of two Gold Road Resources shares for every DGO Gold share, implying $3.49 per DGO Gold share. 

Bell Potter consider's DGO Gold's 14.4% holding in De Grey Mining to be its prime asset, and a likely motivator behind the takeover bid.

The broker notes this could indicate Gold Road Resources intends to make a play for De Grey Mining and its 9.0m ounce Mallina gold project. 

The Buy rating is retained and the target price decreases to $1.72 from $1.74. 

This report was published on April 5, 2022.

Target price is $1.72 Current Price is $1.21 Difference: $0.51
If DEG meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).

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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