Australian Broker Call *Extra* Edition – Jun 30, 2022

Daily Market Reports | Jun 30 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)

4DX   5GG   AAC   AHX   APX   AUT   BWX   CAI   CAR   CMM   COE   CSL   CUP   DCN   EVN (3)   FWD   GCY   GOR   GOZ   HFR   HLA   IKE   LPD   MAD   MGV   MTS (2)   NST (2)   OGC   OZL (2)   PPG   PRU   RED   RMS   RRL (2)   RSG   SBM   SEG   SLR   SLX   TNT   VCX   VUL   WGX   XPN  

4DX    4DMEDICAL LIMITED

Medical Equipment & Devices - Overnight Price: $0.50

Bell Potter rates ((4DX)) as Buy (1) -

4DMedical has signed a three-year contract with Australia's largest medical imaging provider, I-MED, formalising its relationship.

Commercial details have not been disclosed but Bell Potter believes the revenue will be material and ups its revenue forecast from $2m for FY23 to $3.6m for FY24.

Speculative Buy rating retained. Target price rises to 65c form 63c.

This report was published on June 29, 2022.

Target price is $0.65 Current Price is $0.50 Difference: $0.15
If 4DX meets the Bell Potter target it will return approximately 30% (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 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.58.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.69.

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

5GG    PENTANET LIMITED

Telecommunication - Overnight Price: $0.28

Shaw and Partners rates ((5GG)) as Buy (1) -

Pentanet's Perth-based next-gen high-speed wireless network neXus has launched, with successful rollout key to Shaw and Partners' valuation of the company. The broker notes the network should provide support to additional customers in under-served areas.

Shaw and Partners highlights the commercial launch is in line with the company's timeframe,  and that the network provides a clear speed advantage over average fixed broadband speeds with neXus recording average maximum speeds of 607mbps download and 513mbps upload during beta testing.

The Buy rating and target price of $0.40 are retained.

This report was published on June 27, 2022.

Target price is $0.40 Current Price is $0.28 Difference: $0.12
If 5GG meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.73.

Forecast for FY23:

Shaw and Partners 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 20.00.

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

AAC    AUSTRALIAN AGRICULTURAL COMPANY LIMITED

Agriculture - Overnight Price: $2.21

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

Bell Potter notes the main driver of value in Australian Agricultural Co is the asset base, and given the strong contribution from the herd property and valuation in recent years, expects a recalibration in cattle prices is now on the cards.

Back at the water ranch, the broker says the company is better utilising its water asset in Northwest Queensland, and this asset offers value-add potential in coming years.

Meanwhile, the company is enjoying improved supply chain returns given ins flexibility in capital allocation, says the broker.

Rating is downgraded to Hold from Buy to reflect recent share-price strength. Target price rises to $2.35 from $2.15.

This report was published on June 28, 2022.

Target price is $2.35 Current Price is $2.21 Difference: $0.14
If AAC meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 122.78.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 170.00.

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

AHX    APIAM ANIMAL HEALTH LIMITED

Healthcare services - Overnight Price: $0.66

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

Apiam Animal Health has continued with its acquisition activity, with Shaw and Partners highlighting the company added $17m in annualised revenue through acquisition in the second half, off the back of a further $27m added in the first half.

The broker notes Apiam Animal Health spent $22.1m to acquire The Vet Practice, Victorian Equine Group and Romsey Veterinary Surgery. 

The broker highlights the latter two see Apiam further expand its portfolio in the racing area, with equine now accounting for 25% of group revenue.

The broker continues to see potential to double revenues to $300m by FY24 through organic expansion and further acquisition. The Buy rating is retained and the target price decreases to $1.04 from $1.26.

This report was published on June 29, 2022.

Target price is $1.04 Current Price is $0.66 Difference: $0.38
If AHX meets the Shaw and Partners target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.90 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 2.80 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

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

APX    APPEN LIMITED

IT & Support - Overnight Price: $5.86

Canaccord Genuity rates ((APX)) as Hold (3) -

Appen advised at its Technology Day that it plans to double revenue and raise margins by 2026, reports Canacord Genuity, through a four-pronged strategy: Grow, Automate, Expand and Evolve.

The broker seems to think the company wants to have its cake and eat it too, by promoting automation in some parts but emphasising human involvement in data training, while simultaneously improving gross margins through productivity.

Hold rating retained. Target price falls to $6.60 from $8.

This report was published on June 28, 2022.

Target price is $6.60 Current Price is $5.86 Difference: $0.74
If APX meets the Canaccord Genuity target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $6.43, suggesting upside of 12.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.08 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 0.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.4, implying annual growth of 17.8%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.09 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.1, implying annual growth of 7.4%.
Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 14.6.

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


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