Australian Broker Call *Extra* Edition – Aug 05, 2022

Daily Market Reports | Aug 05 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)

AIM   ALC   ARU   AUT   AZY   BGL   BRB   BTH   CEL   CLU (2)   CMM   DEG   GSS   HFR   HPG   IDX   IGO   KSN   MAD   MCR (2)   MGV   MIN   MQG   MZZ   OKU   ORR   PDI   RIO   RRL   RXL   SBM   STX   TIE   TTM   TUL   VUL  

AIM    AI-MEDIA TECHNOLOGIES LIMITED

Commercial Services & Supplies - Overnight Price: $0.31

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

Ai-Media Technologies' June-quarter revenue fell short of Bell Potter and guidance, possibly due to external delays to technology refits, speculates the broker.

Gross margins held above 50% for FY22 and the company finished the year with a cash balance of $15.2m.

Bell Potter lowers revenue forecasts and raises gross margin assumptions.

Target price falls to 70c from 90c. Buy rating retained. 

This report was published on July 28, 2022.

Target price is $0.70 Current Price is $0.31 Difference: $0.39
If AIM meets the Bell Potter target it will return approximately 126% (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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.76.

Forecast for FY23:

Bell Potter forecasts a full year FY23 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 51.67.

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

ALC    ALCIDION GROUP LIMITED

Healthcare services - Overnight Price: $0.17

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

Canaccord Genuity highlights a good 4Q22 reported result for Alcidion Group with revenues coming in-line with forecasts with a better than expected bottom line.

The company anticipates positive EBITDA earnings for FY22 and with contracted revenues in place of $28.3 and $2.9m in renewals, the broker expects Alcidion Group to be earnings positive in FY23. 

Canaccord Genuity points out the favourable macro tailwinds from the ongoing digitalisation of contracts in the UK health market with 20% of the NHS trusts still working on pen and paper systems.

A Buy rating is maintained and the price target is raised to 20c from 16c based on adjusted valuation multiples.

This report was published on July 28, 2022.

Target price is $0.20 Current Price is $0.17 Difference: $0.03
If ALC meets the Canaccord Genuity target it will return approximately 18% (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 minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.67.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

ARU    ARAFURA RESOURCES LIMITED

Rare Earth Minerals - Overnight Price: $0.32

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

Bell Potter reviews its forecasts for Arafura Resources having pushed first-production forecasts out to the September 2025 quarter.

Speculative Buy rating retained. Target price falls to 56c from 60c.

This report was published on July 29, 2022.

Target price is $0.56 Current Price is $0.32 Difference: $0.24
If ARU meets the Bell Potter target it will return approximately 75% (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 2.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.84.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.48 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.20.

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

AUT    AUTECO MINERALS LIMITED

Gold & Silver - Overnight Price: $0.05

Canaccord Genuity rates ((AUT)) as Speculative Buy (1) -

A genuine explosion in costs for the gold mining industry, ranging from diesel, steel and drilling to freight and labour, has led to a general re-modeling and review of the ASX-listed sector by the team of analysts at Canaccord Genuity.

On average, reports the team, price targets have been reduced by -24% as projections for operational costs and capex needed to be revised upwards.

Speculative Buy rating retained for Auteco Minerals while the new price target of 18c compares with 26c previously.

This report was published on July 28, 2022.

Target price is $0.18 Current Price is $0.05 Difference: $0.13
If AUT meets the Canaccord Genuity target it will return approximately 260% (excluding dividends, fees and charges).

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

AZY    ANTIPA MINERALS LIMITED

Mining - Overnight Price: $0.04

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

Antipa Minerals has triggered the dilute-drawdown provision of the Citadel JV with Rio Tinto ((RIO)), realising a $0.5m payment and the JV stake reducing to between 31-32% from 35%, notes Shaw and Partners.

The broker considers the sell down as sensible allowing the company to focus on the 100% owned Minyari Dome Project which is considered a potential feed source for Newcrest's ((NCM)) Telfer operations.

The Buy rating and target price at 8.2c are maintained.

This report was published on July 28, 2022.

Target price is $0.08 Current Price is $0.04 Difference: $0.042
If AZY meets the Shaw and Partners target it will return approximately 105% (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 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.83.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.74.

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


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