Australian Broker Call *Extra* Edition – Apr 20, 2022

Daily Market Reports | Apr 20 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)

5EA   APE   ASG   BET   BOQ   CAR   GDG   GEM   HUB   IFL   INA (2)   JHG   MFG   NWL   OCL   PDL   PPT   PTM   PWR   RDY   RHC   TNE   WTC   XRO   XTE  

BET    BETMAKERS TECHNOLOGY GROUP LIMITED

Gaming - Overnight Price: $0.65

Sequoia rates ((BET)) as Initiation of coverage with Buy (1) -

Sequoia initiates coverage on business-to-business wagering technology and data company Betmakers Technology with a Buy rating and $0.77 target price.

The company is not a wagering company. It provides software and related technologies to racing authorities, racetrack owners,
sporting rights holders and wagering operators globally, explains the analyst.

The analyst believes the June 2021 acquisition of Sportech's US tote and digital assets delivered critical mass in revenue, customers and operations. In addition, the transaction significantly lifted exposure to the high-growth US gaming market.

Sequoia notes the company is actively seeking acquisitions which could add further upside.

This report was published on April 19, 2022.

Target price is $0.77 Current Price is $0.65 Difference: $0.12
If BET meets the Sequoia target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 325.00.

Forecast for FY23:

Sequoia forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.22.

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

BOQ    BANK OF QUEENSLAND LIMITED

Banks - Overnight Price: $7.94

Goldman Sachs rates ((BOQ)) as Buy (1) -

Following 1H results for Bank of Queensland, Goldman Sachs adjusts its cash EPS forecasts by 8.0%, -1.5% and -4.5%, respectively, driven by lower estimates for interest earnings assets and lower net interest margins. 

More positively, there was a partial offset due to lower forecast expenses and bad and doubtful debts, explains the analyst. The target price falls to $9.34 from $9.84.

The Buy rating is maintained due to a positive cost performance and continued delivery of ME Bank synergies. In addition, there was considered to be ongoing strong above-system volume growth, supplemented by benefits from a transition to digital platforms.

This report was published on April 19, 2022.

Target price is $9.34 Current Price is $7.94 Difference: $1.4
If BOQ meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $9.73, suggesting upside of 22.5%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 45.00 cents and EPS of 73.00 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.7, implying annual growth of 13.1%.
Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 47.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 5.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.0, implying annual growth of 1.7%.
Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 10.3.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components - Overnight Price: $20.13

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

As automotive sales are in the discretionary sector of the economy most impacted by the household wealth effect, Jarden decides to review auto-exposed stocks. This comes as potential headwinds loom from rising interest rates, petrol prices and inflation more generally.

The broker expects a counterbalance to these headwinds in Australia from pent-up demand, a strong pipeline of pre-sales and ongoing supply constraints. It's thought any demand weakness may either not occur or at least be delayed.

As Carsales are in an investment phase, the broker sees better relative value elsewhere across its wider coverage of the ASX. Upside risks are thought to include stronger results from Trader Interactive and stronger international markets penetration, with less investment.

The Underweight rating and $21.40 target price are maintained.

This report was published on April 14, 2022.

Target price is $21.40 Current Price is $20.13 Difference: $1.27
If CAR meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $24.00, suggesting upside of 19.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 51.40 cents and EPS of 64.20 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.6, implying annual growth of 28.4%.
Current consensus DPS estimate is 54.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 29.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 57.20 cents and EPS of 71.50 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.7, implying annual growth of 16.4%.
Current consensus DPS estimate is 64.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 25.6.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments - Overnight Price: $1.68

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

Following Generation Development's March quarter update, Moelis maintains its Buy rating and lifts its target price to $2.02 from $1.90 to reflect an increased valuation for the annuities business.

The broker points out the launch of the new investment-linked annuities product adds a significantly growing division alongside Investment Bonds and Lonsec Group.

For Lonsec Group, the analyst estimates the  platform for Lonsec Investment Solutions has hit scale with more than $3bn in funds under management (FUM).

This report was published on April 19, 2022.

Target price is $2.02 Current Price is $1.68 Difference: $0.34
If GDG meets the Moelis target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.00 cents and EPS of 2.90 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.93.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 2.00 cents and EPS of 4.10 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.98.

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


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN