Australian Broker Call *Extra* Edition – Aug 04, 2022

Daily Market Reports | Aug 04 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   ARX (2)   AVC   BIO   CMM   CV1   EM2   FCL   GNC   JAN   MAD   MLD   NTO (2)   ORG   OZL   PBH   PDN   PEN   PLT   PPH   PPT   PRU   RRL (2)   S32   SGR   WSP   XPN   ZIP  

AND    ANSARADA GROUP LIMITED

Software & Services - Overnight Price: $1.89

Moelis rates ((AND)) as Upgrade to buy from Hold (1) -

Ansarada Group's June-quarter trading update appears to have met Moelis' expectations.

But the broker downgrades FY23 sales to reflect a slowdown in mergers and acquisitions while noting organic growth is on the up.

Moelis admires the company's proven tender track record; improved revenue quality, diversity and visibility; and the free-cash-flow positive position of $22m.

Upgrade to Buy from Hold. Target price falls to $1.92 from $2.27 to reflect the cut to FY23 sales forecasts and the general sector de-rating.

This report was published on July 29, 2022.

Target price is $1.92 Current Price is $1.89 Difference: $0.03
If AND meets the Moelis target it will return approximately 2% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 67.50.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 171.82.

Market Sentiment: 1.0
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: $0.87

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

Aroa Biosurgery's June-quarter trading update appears to have satisfied Bell Potter, the company maintaining revenue guidance, contingent on TELA Bio guidance, and holding a cash balance of NZ$55.4m.

Active Myriad accounts rose 32% to 95. Speculative Buy rating retained. Target price eases to $1.35 from $1.45.

This report was published on July 26, 2022.

Target price is $1.35 Current Price is $0.87 Difference: $0.48
If ARX meets the Bell Potter target it will return approximately 55% (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 minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.06.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 145.00.

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


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

Aroa Biosurgery's June-quarter result pleased Canaccord Genuity, and the company retained FY23 revenue and margin guidance.

The broker appreciates the company's strong balance sheet and commercial execution, and Aroa remains one of the broker's top MedTech picks.

Canaccord Genuity considers guidance to be conservative and suspects FX tailwinds, a covid recovery and strong patient backlog could deliver an upgrade, pending growth in Myriad and Tela.

Buy rating retained. Target price is steady at $1.50.

This report was published on July 26, 2022.

Target price is $1.50 Current Price is $0.87 Difference: $0.63
If ARX meets the Canaccord Genuity target it will return approximately 72% (excluding dividends, fees and charges).

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

AVC    AUCTUS INVESTMENT GROUP LIMITED

Wealth Management & Investments - Overnight Price: $1.10

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

Auctus Investment's June-quarter result pleased Canaccord Genuity, thanks to record cash receipts.

Assets under management rose sharply due to a second tranche raise for the Luxury Escapes Fund and an increase in the gross asset valuation of the US Student Housing REIT.

Buy rating and $1.15 target price retained.

This report was published on July 26, 2022.

Target price is $1.15 Current Price is $1.10 Difference: $0.05
If AVC meets the Canaccord Genuity target it will return approximately 5% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.67.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.00.

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


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