Australian Broker Call *Extra* Edition – May 10, 2022

Daily Market Reports | May 10 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)

ALL   CTP   KGN   MGR   MQG   NAB   NTO   NWS   PBH   REA   RMD   RRL (2)   RSG   RTR   VCX  

RSG    RESOLUTE MINING LIMITED

Gold & Silver - Overnight Price: $0.31

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

Resolute Mining has delivered March quarter production of 82,000 ounces at an all-in sustaining cost of US$1,383 per ounce, a beat on Canaccord Genuity's expected 72,000 ounces at US$1,679 per ounce. The broker noted an additional 9,000 ounces recovered from gold in circuit drove the result, which would otherwise be largely in line.

With company management commenting on improved operational performance at its Syama project, Canaccord Genuity expects the site can deliver material quarterley gold production increases and sustain free cash flow moving forward.

The broker anticipates the company could reach net cash by the June quarter FY23. The Buy rating is retained and the target price decreases to $0.95 from $1.10.

This report was published on April 28, 2022.

Target price is $0.95 Current Price is $0.31 Difference: $0.64
If RSG meets the Canaccord Genuity target it will return approximately 206% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.36 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.79.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.72 cents and EPS of 4.08 cents.
At the last closing share price the estimated dividend yield is 8.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.60.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RTR    RUMBLE RESOURCES LIMITED

Mining - Overnight Price: $0.36

Bell Potter rates ((RTR)) as Initiation of coverage with Buy (1) -

Bell Potter initiates coverage on Western Australian minerals exploration company, Rumble Resources. The company is focused on exploring zinc, lead and silver base metal systems at its Earaheedy project, having identified 12km of mineralisation to date. 

The broker anticipates coming years will see Rumble Resources outline and de-risk a large, valuable mining operation. While Bell Potter assumes Earaheedy could offer 4m tonnes per annum over a 20 year lifespan, the company's portfolio also includes exposure to gold, base metals and lithium. 

Bell Potter initiates with a Buy rating and a target price of $0.60.

This report was published on May 2, 2022.

Target price is $0.60 Current Price is $0.36 Difference: $0.24
If RTR meets the Bell Potter target it will return approximately 67% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.20.

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

VCX    VICINITY CENTRES

REITs - Overnight Price: $1.79

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

Goldman Sachs noted that Vicinity Centres 3Q FY22 showed sales up 11.2% and portfolio visitations reached 76% of pre-covid levels up from 55% in the Q1 FY22.

The broker noted Vicinity Centres reported 186 leasing deals completed with 74% of the new leasing deals having a 5% fixed annual rental escalation. Occupancy level remained flat at 98.2%.

Vicinity Centres reaffirmed its FY22 earnings guidance of 11.8-12.6c, and with improving visitation data and cash collection rates Goldman Sachs comments the REIT is well positioned with balance sheet gearing of 26%, $1.8bn of liquidity and 80% of the debt hedged.

Risks to the broker's forecasts and price target include a weaker-than-expected retail sales environment and development pipeline execution.

The Buy rating is unchanged and the target price is $2.01.

This report was published on May 5, 2022.

Target price is $2.01 Current Price is $1.79 Difference: $0.22
If VCX meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $1.93, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.7, implying annual growth of N/A.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 13.7%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.5.

Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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