Australian Broker Call *Extra* Edition – May 03, 2022

Daily Market Reports | May 03 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)

AND   ANZ   ARX   CMM   EDV   EML (2)   LME   NTO   PBH   RHC   RMD   SDR   UMG  

AND    ANSARADA GROUP LIMITED

Software & Services - Overnight Price: $1.90

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

Ansarada Group's March-quarter trading update pleased Moelis, and the company finished the quarter with net cash of $21.1m and free cash flow of $0.1m.

Revenue slipped during the quarter but the broker expects the company will log record revenue in the June quarter.

Moelis appreciates the company's track record, its cash position and its subscription pricing model.

Hold rating retained. Target price is $2.27.

This report was published on April 27, 2022.

Target price is $2.27 Current Price is $1.90 Difference: $0.37
If AND meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.17.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.36.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ANZ    AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Banks - Overnight Price: $27.30

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

ANZ Bank announced its first half after-tax profits will be impacted by a number of large items, amounting to -$32m.

Goldman Sachs has revised down the full-year EPS forecast by -2% in 2022 and -1.1% in 2023. The price target has moved to $32.51 from $32.74.

The broker says potential downside risks to forecasts come from lending competition and potential impact on net interest margins as well as from macro-economic headwinds from slowing growth in Australia/NZ/Asia.

The Buy-rating is maintained.

This report was published on April 29, 2022.

Target price is $32.51 Current Price is $27.30 Difference: $5.21
If ANZ meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $29.45, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 145.00 cents and EPS of 205.10 cents.
At the last closing share price the estimated dividend yield is 5.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 201.1, implying annual growth of -7.4%.
Current consensus DPS estimate is 144.0, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 155.00 cents and EPS of 225.20 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 222.8, implying annual growth of 10.8%.
Current consensus DPS estimate is 157.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 12.3.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.85

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

Aroa Biosurgery's FY22 reported revenue was a 7.4% beat versus Wilsons forecast. As no disclosure was provided at the product level, it's estimated OviTex/PRS sales to US partner TELA Bio made strong 2H contributions.

The analyst awaits FY22 results on May 24 though anticipates the 2H22 performance may lead to modest upgrades to the FY23 forecast. Growth in MYRIAD and the launch of SYMPHONY is expected to boost the US business in FY23.

The Overweight rating and $1.75 price target is maintained.

This report was published on April 27, 2022.

Target price is $1.75 Current Price is $0.85 Difference: $0.9
If ARX meets the Wilsons target it will return approximately 106% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.42.

Forecast for FY24:

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver - Overnight Price: $4.08

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

In the March quarter Capricorn Metals produced 31.8koz at an all-in-sustaining cost (AISC) of $1,086/oz, a slight beat versus Canaccord Genuity's forecast. Management expects to achieve the top-end of the unchanged FY22 guidance range of 110-120koz.

After a roll forward of the broker's valuation model and updating for the 3Q result, the analyst lowers the target price to $4.20 from $4.25.

The broker highlights the company remains on track for a September quarter updated resource and maiden reserve for the recently acquired Mt Gibson gold project.

This report was published on April 27, 2022.

Target price is $4.20 Current Price is $4.08 Difference: $0.12
If CMM meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.11.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.75.

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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