Australian Broker Call *Extra* Edition – Aug 15, 2022

Daily Market Reports | Aug 15 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)

ALG   AQZ   CCP   CCX   CGC   CGF   CLW (2)   CNI (2)   COL   CPU   EMN   EVN   GNC   HVN   IPD   MP1   NAB   OPY   PNI   PPE   REA  

CPU    COMPUTERSHARE LIMITED

Diversified Financials - Overnight Price: $23.35

Jarden rates ((CPU)) as Overweight (2) -

Computershare proved to the market just how significant the company's leverage is to higher interest rates, assesses Jarden, delivering a 2% FY22 earnings beat with an upgrade in FY23 to 55% earnings growth guidance, with higher margin income.

Headwinds from weaker transactional revenues and higher costs, with wages expected to rise 5% in FY23 are guided to be offset from the improved margin income.

Jarden considers the likelihood of further growth in the governance and corporate trust sectors from acquisitions as the balance sheet strengthens.

The broker's earnings forecasts are adjusted higher marginally and the target price rises to $27.65 from $26.05.

Overweight rating maintained.

This report was published on August 10, 2022.

Target price is $27.65 Current Price is $23.35 Difference: $4.3
If CPU meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $28.46, suggesting upside of 21.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 80.02 cents and EPS of 122.95 cents.
At the last closing share price the estimated dividend yield is 3.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.5, implying annual growth of N/A.
Current consensus DPS estimate is 95.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 102.11 cents and EPS of 154.35 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 147.2, implying annual growth of 16.4%.
Current consensus DPS estimate is 97.1, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 15.9.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EMN    EURO MANGANESE INC

New Battery Elements - Overnight Price: $0.39

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

Euro Manganese's feasibility study has updated on capital expenditure, pricing, costs and first-production dates. The study envisages a 25-year operation with post-tax net present value of $1.34bn, and internal rate of return of 22%.

Canaccord Genuity updates its model accordingly. A sharp rise in capital expenditure was to be expected given cost inflation, says the broker. First production is expected in 2027.

Buy rating retained. Target price falls to $1.15 from $1.30.

This report was published on August 9, 2022.

Target price is $1.15 Current Price is $0.39 Difference: $0.76
If EMN meets the Canaccord Genuity target it will return approximately 195% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.00.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver - Overnight Price: $2.72

JP Morgan rates ((EVN)) as Downgrade to Neutral from Overweight (3) -

JP Morgan downgrades its rating for Evolution Mining to Neutral from Overweight, following a Gold sector review.

With recession fears growing, the company is exposed to falling copper prices (around 25% of FY23 revenue), with a flow-on impact to all-in sustaining costs (AISC). Hence, Northern Star Resources ((NST)), with the greatest gold exposure, is the preferred sector pick.

The company reports FY22 results on August 18, and the analyst forecasts underlying earnings (EBITDA) of $893m, profit of $270m and a 2cps final dividend. The $3.00 target is unchanged.

This report was published on August 9, 2022.

Target price is $3.00 Current Price is $2.72 Difference: $0.28
If EVN meets the JP Morgan target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $2.77, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 5.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of -28.7%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 5.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of 23.6%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 15.3.

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

GNC    GRAINCORP LIMITED

Agriculture - Overnight Price: $8.10

Wilsons rates ((GNC)) as Market Weight (3) -

Despite an upgrade to FY22 guidance by GrainCorp, Wilsons lowers its target price to $8.29 from $8.80 after adjusting its various valuation methodologies.

While the spread on domestic versus global grain prices has reverted from extreme levels earlier in 2022, the broker increases its FY23 earnings (EBITDA) forecast by 20% on higher contracted grain sales volumes and slightly better Agribusiness margins.

The analyst’s forecasts for FY24 and beyond are unchanged. The Market Weight rating is maintained.

This report was published on August 11, 2022.

Target price is $8.29 Current Price is $8.10 Difference: $0.19
If GNC meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $9.65, suggesting upside of 19.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 54.00 cents and EPS of 173.70 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 170.2, implying annual growth of 179.2%.
Current consensus DPS estimate is 85.9, implying a prospective dividend yield of 10.6%.
Current consensus EPS estimate suggests the PER is 4.8.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 44.00 cents and EPS of 84.70 cents.
At the last closing share price the estimated dividend yield is 5.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 98.5, implying annual growth of -42.1%.
Current consensus DPS estimate is 53.8, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 8.2.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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