Australian Broker Call *Extra* Edition – Apr 28, 2022

Daily Market Reports | Apr 28 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)

ANP   AWC   FMG   IGO   MP1   NST   PSQ   SFR   TLX   UBI   WHC  

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $4.33

Wilsons rates ((TLX)) as Overweight (1) -

Wilsons notes first quarter sales of Illuccix still reflect pre-commercial activity at nominal pricing and activity should increase in the second quarter. Sales were $1.9m, derived from 4200 doses.

Novartis has also launched its prostate cancer therapy, Pluvicto, in a few centres which should be a driver for Illuccix over the coming year, the broker suggests.

Overweight rating and target price of $8.50 are retained.

This report was published on April 22, 2022.

Target price is $8.50 Current Price is $4.33 Difference: $4.17
If TLX meets the Wilsons target it will return approximately 96% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.76.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.85.

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

UBI    UNIVERSAL BIOSENSORS, INC

Medical Equipment & Devices - Overnight Price: $0.70

Sequoia rates ((UBI)) as Buy (High Risk) (1) -

Universal Biosensors has announced positive results for the first cohort of blood samples tested using its device and new three-electrode test strips.

Management describes the results as "extremely promising" despite the small sample size. Results from two more cohorts are expected during the current half-year.

The company has also announced a $20m non-renounceable rights issue at $0.77, fully underwritten by shareholder Viburnum Funds, along with a $6m placement.

Sequoia lowers forecasts to allow for higher R&D and increased shares on issue. Buy, High Risk rating maintained. Target is reduced to $1.34 from $1.83.

This report was published on April 22, 2022.

Target price is $1.34 Current Price is $0.70 Difference: $0.64
If UBI meets the Sequoia target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.28.

Forecast for FY23:

Sequoia forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.50.

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

WHC    WHITEHAVEN COAL LIMITED

Coal - Overnight Price: $4.64

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

Shaw and Partners observes a record average coal price of $315/t in the March quarter, noting Whitehaven Coal is generating a lot of cash relative to costs. The company has reported a JORC reserve upgrade to 380mt.

The broker suggests record coal prices and record cash flow, amid a return to net cash should mean the share price heads to stellar levels.

While ESG headwinds and investor reticence may preclude a hike in the share price to that extent, Shaw and Partners believes $4.50 is still too low. Target is raised to $6.25. Buy rating retained.

This report was published on April 21, 2022.

Target price is $6.25 Current Price is $4.64 Difference: $1.61
If WHC meets the Shaw and Partners target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $5.70, suggesting upside of 22.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 46.00 cents and EPS of 132.00 cents.
At the last closing share price the estimated dividend yield is 9.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.9, implying annual growth of N/A.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 9.1%.
Current consensus EPS estimate suggests the PER is 3.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 81.00 cents and EPS of 163.00 cents.
At the last closing share price the estimated dividend yield is 17.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.9, implying annual growth of -6.2%.
Current consensus DPS estimate is 49.2, implying a prospective dividend yield of 10.6%.
Current consensus EPS estimate suggests the PER is 3.4.

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


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