Australian Broker Call *Extra* Edition – Apr 08, 2022

Daily Market Reports | Apr 08 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)

ADH   AKE   ALL   ALU   BGA   EBR   EVN   GT1   IAG   IGO   MIN   NST   OZL   PNR   PNV (2)   PPT (2)   QUB   TPW   TUL  

PPT    PERPETUAL LIMITED

Wealth Management & Investments - Overnight Price: $32.61

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

According to Bell Potter, Perpetual's bid for Pendal Group ((PDL)) is effectively a merger proposal. The bid relies on a scheme arrangement where Pendal Group shareholders would receive one Perpetual share for every 7.5 shares as well as $1.67 per share.

Bell Potter considers the merger should make strategic sense and could be in the best interest of shareholders, and also noted Pendal Group's share price and negotiating position have improved following the offer. 

The Buy rating and target price of $42.80 are retained.

This report was published on April 6, 2022.

Target price is $42.80 Current Price is $32.61 Difference: $10.19
If PPT meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $39.61, suggesting upside of 21.5%(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 6.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 263.8, implying annual growth of 95.4%.
Current consensus DPS estimate is 213.2, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 12.4.

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 6.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.6, implying annual growth of 9.0%.
Current consensus DPS estimate is 225.7, implying a prospective dividend yield of 6.9%.
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


Jarden rates ((PPT)) as Underweight (4) -

Perpetual has made a takeover bid for Pendal Group ((PDL)) at an indicative value of $6.23 per share. Jarden notes Pendal Group has underperformed Perpetual by -35% in the last six months, offering Perpetual an opportunity to take advantage of share price weakness.

The broker notes the acquisition could be 20% accretive to Perpetual's twelve-month earnings per share, or 37% accretive including an anticipated $50m in cost synergies. Jarden also notes a deal would offer greater diversification benefits.

The Underweight rating and target price of $30.25 are retained.

This report was published on April 4, 2022.

Target price is $30.25 Current Price is $32.61 Difference: minus $2.36 (current price is over target).
If PPT 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 $39.61, suggesting upside of 21.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 202.10 cents and EPS of 243.50 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 263.8, implying annual growth of 95.4%.
Current consensus DPS estimate is 213.2, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 194.90 cents and EPS of 227.50 cents.
At the last closing share price the estimated dividend yield is 5.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.6, implying annual growth of 9.0%.
Current consensus DPS estimate is 225.7, implying a prospective dividend yield of 6.9%.
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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics - Overnight Price: $2.97

JP Morgan rates ((QUB)) as Overweight (1) -

JP Morgan reiterates is Overweight rating and $3.80 target price for Qube Holdings despite ongoing supply chain pressures at Australian ports, which may still take some time to unwind. Nonetheless, container volumes were considered to rebound strongly in February.

The analyst feels the company will ultimately benefit from increased consumer demand and strength in bulk commodities. Also, despite a planned off-market buyback, there's estimated to be capacity for acquisitions.

This report was published on April 7, 2022.

Target price is $3.80 Current Price is $2.97 Difference: $0.83
If QUB meets the JP Morgan target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $3.32, suggesting upside of 11.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 6.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 98.8%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 30.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 7.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 16.7%.
Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 26.5.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation - Overnight Price: $6.26

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

Jarden has met several listed and unlisted Australian furniture and homeware retailers and emerges with the following observations: supply chain challenges will persist during 2022; high freight costs and inventories will continue to pressure margins; views diverge on e-penetration; and furniture and homewares demand is holding up.

The broker says Temple & Webster's emerging categories growth and third-party inventory model should mitigate the risk of a slowdown in the B2C furniture and homewares markets and reduce supply chain pressures.

Inflation remains a risk. Overweight rating retained. Target price is $15.09. This compares with the last Jarden entry in the FNArena database in November of $15.81.

This report was published on April 2, 2022.

Target price is $15.09 Current Price is $6.26 Difference: $8.83
If TPW meets the Jarden target it will return approximately 141% (excluding dividends, fees and charges).
Current consensus price target is $12.26, suggesting upside of 95.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -43.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 94.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.8, implying annual growth of 33.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 71.1.

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

TUL    TULLA RESOURCES PLC

Gold & Silver - Overnight Price: $0.60

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

Tulla Resources and its joint-venture partner Pantoro ((PNR)) in the Norseman Gold Project have published an updated mineral resource and ore reserve for the Scotia deposit, increasing the mineral resource and ore reserve for the Scotia Mining Centre.

Bell Potter says the update delivers a 50% increase in contained gold compared with the October 2020 reserve and indicates a potential mine life of roughly nine years. 

Bell Potter expects first gold production in the September quarter. EPS forecasts rise 23% in FY23 and 10% in FY24 on lower depreciation and amortisation charges. 

Target price rises to $1.15 from $1.06. Speculative Buy rating retained.

This report was published on April 6, 2022.

Target price is $1.15 Current Price is $0.60 Difference: $0.55
If TUL meets the Bell Potter target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.52.

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


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