Australian Broker Call *Extra* Edition – May 11, 2022

Daily Market Reports | May 12 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)

ABB   ALK   AMP   AR1   ARB   ARU   AX1   BCB   BCI   BUB   CTD   CXL   FBU   FFX   FLT   FMG   FZO   HLS   IDX   IGO   ILU   IMA   JHG   JRV   KGN   MOZ   NIC (2)   NUC   OGC   RED   RMD   SBM   SFR (2)   SHL   SLA   SYA   UBI   WGX  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication - Overnight Price: $4.04

JP Morgan rates ((ABB)) as Overweight (1) -

JP Morgan maintains its longer-term investment view and Overweight rating for Aussie Broadband despite a slightly disappointing trading update. FY22 subscriber guidance was lowered due to Origin Energy's ((ORG)) white label customers churning before being transferred.

Management lowered the top end of full year subscription guidance to 580-585k from 580-590k.

Also, there were increased connectivity virtual circuit (CVC) usage costs charged by the NBN, explains the broker. The target price falls to $6.80 from $7.00.

This report was published on May 3, 2022.

Target price is $6.80 Current Price is $4.24 Difference: $2.56
If ABB meets the JP Morgan target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.67.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.19.

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

ALK    ALKANE RESOURCES LIMITED

Gold & Silver - Overnight Price: $0.95

Bell Potter rates ((ALK)) as Buy (1) -

March quarter results for Alkane Resources outperformed Bell Potter's forecast though FY22 guidance was unchanged. The target price rises to $1.15 from $1.10 due to the broker's increased gold price forecasts and a minor upgrade to the FY22 production estimate.

Timing of the initial Boda mineral resource estimate was delayed due to covid-related staff shortages of external service providers, explains the analyst.

Meanwhile, Bell Potter expects the government approvals process to complete for the Tomingley Gold Extension project by mid-2022. Buy.

This report was published on April 29, 2022.

Target price is $1.15 Current Price is $0.96 Difference: $0.19
If ALK meets the Bell Potter target it will return approximately 20% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.84.

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

AMP    AMP LIMITED

Insurance - Overnight Price: $1.16

Jarden rates ((AMP)) as Neutral (3) -

With the sale proceeds of AMP's international infrastructure equity business exceeding Jarden's expectation, the broker increases its buyback assumption to $1bn from $700m previously. The target price rises to $1.30 from $1.20.

Management has confirmed the majority of cash proceeds will be returned to shareholders, with further upside over time from earn-outs.

Nonetheless, the analyst retains a Neutral rating as significant cost-out execution risks and competitive pressures weigh on its core Australian Wealth Management and Bank divisions.

This report was published on April 29, 2022.

Target price is $1.30 Current Price is $1.16 Difference: $0.14
If AMP meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $1.11, suggesting downside of -4.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.0, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 6.00 cents and EPS of 9.50 cents.
At the last closing share price the estimated dividend yield is 5.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of 22.9%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 2.1%.
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

AR1    AUSTRAL RESOURCES AUSTRALIA LIMITED

Copper - Overnight Price: $0.23

Petra Capital rates ((AR1)) as Buy (1) -

Petra Capital increases its target price for Austral Resources Australia to $0.47 from $0.45 on upward revisions to near-term copper cathode output. The output derives from the company's Mt Kelly copper oxide solvent-extraction/electrowinning plant.

The analyst highlights an aggressive 12-month exploration program which aims to expand the company's existing resource of around 420,000t of contained copper. Buy retained.

The March quarter saw operations commence at the new Anthill Mine.

This report was published on April 29, 2022.

Target price is $0.47 Current Price is $0.21 Difference: $0.26
If AR1 meets the Petra Capital target it will return approximately 124% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.56.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.84.

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


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