Australian Broker Call *Extra* Edition – Apr 29, 2022

Daily Market Reports | Apr 29 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)

ARX   BOE   BPT (2)   CAI   CCX   COD   CV1   LOT   MCR   MIN (2)   MMM   NUF   OZL (2)   PCK   PDN   PEN   PLT   PPT   PRU   PYG   S32   SOM   UMG   WHC   WSP  

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.85

Canaccord Genuity rates ((ARX)) as Buy (1) -

Canaccord Genuity is impressed with FY22 results which beat forecasts and guidance, considering the headwinds from the pandemic at times limited the access to hospitals and physicians.

The broker is keenly awaiting potential catalysts for near-term momentum, including quarterly sales updates and the announcement or publication of new and supportive clinical data. Buy rating retained along with a $1.80 target.

This report was published on April 26, 2022.

Target price is $1.80 Current Price is $0.85 Difference: $0.95
If ARX meets the Canaccord Genuity target it will return approximately 112% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.71.

Forecast for FY24:

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

UMG    UNITED MALT GROUP LIMITED

Agriculture - Overnight Price: $4.05

Bell Potter rates ((UMG)) as Hold (3) -

The company has issued like-for-like EBITDA guidance for FY22 of $103-128m which compares to Bell Potter's prior forecast of $140m.

The variation stems from elevated barley procurement costs, delayed sales from supply chain disruptions and slower realisation of transformation benefits.

As a result, the broker downgrades net profit forecast by -23% for FY22 and -6% for FY23. Hold rating and $4.35 target unchanged.

This report was published on April 26, 2022.

Target price is $4.35 Current Price is $4.05 Difference: $0.3
If UMG meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.61, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.50 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of 201.5%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 29.1.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.50 cents and EPS of 21.70 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 18.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.8, implying annual growth of 85.6%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.7.

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

WHC    WHITEHAVEN COAL LIMITED

Coal - Overnight Price: $4.96

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 $4.96 Difference: $1.29
If WHC meets the Shaw and Partners target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $5.70, suggesting upside of 14.9%(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 9.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.76.

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 8.5%.
Current consensus EPS estimate suggests the PER is 3.4.

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 16.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.04.

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 9.9%.
Current consensus EPS estimate suggests the PER is 3.6.

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

WSP    WHISPIR LIMITED

Cloud services - Overnight Price: $1.25

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

Whispir has confirmed it is on track to meet FY22 guidance. Australia is returning to normal while the company has signalled Asia and North America are showing signs of traction.

Wilsons expects the SingTel contract in FY23 to make a meaningful financial contribution. The broker retains an Overweight rating and reduces the target to $3.05 from $3.92.

This report was published on April 28, 2022.

Target price is $3.05 Current Price is $1.25 Difference: $1.8
If WSP meets the Wilsons target it will return approximately 144% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 13.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.40.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 11.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.96.

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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