Australian Broker Call *Extra* Edition – Aug 16, 2022

Daily Market Reports | Aug 16 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)

ACL   AQZ   ARF (2)   ARX   BRG   CBA (2)   CGC   CNI (2)   CSL   DXI   GNC   LOT   MGR   MNY   MYX   NCZ   NIC   NUF   OFX   QBE   SBM   UBI  

NUF    NUFARM LIMITED

Agriculture - Overnight Price: $5.32

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

Bell Potter raises its FY22 profit estimate for Nufarm by around 3% to reflect stronger peer reporting and a lower Australian dollar in the first half of 2022.

Beyond FY22, the analyst still expects a normalisation in European and North American conditions, and initial contributions from Carinata and Omega-3 (ingredient in aquaculture feed) to support higher earnings.

Nufarm's Carinata is a sustainable low carbon biofuel feedstock. The target rises to $6.75 from $6.65 and the Buy rating is unchanged.

This report was published on August 12, 2022.

Target price is $6.75 Current Price is $5.32 Difference: $1.43
If NUF meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $6.87, suggesting upside of 29.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 8.00 cents and EPS of 33.20 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.1, implying annual growth of 137.5%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 9.00 cents and EPS of 36.50 cents.
At the last closing share price the estimated dividend yield is 1.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of -11.6%.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 16.7.

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

OFX    OFX GROUP LIMITED

Diversified Financials - Overnight Price: $2.63

Wilsons rates ((OFX)) as Overweight (1) -

Wilsons considers the 1Q23 results for OFX Group as a "beat" and better than expectations, noting Firma reported stronger growth.

The broker is looking to the July/August trading update for confirmation of the better than anticipated results to upgrade earnings forecasts.

Of note, corporate performance has remained firm and there are some changes in consumer uses to Travel from Overseas Property, the broker observes.

The Overweight rating is retained and the target price decreases to $3.05 from $3.06.

This report was published on August 12, 2022.

Target price is $3.05 Current Price is $2.63 Difference: $0.42
If OFX meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 12.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.87.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 13.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.34.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance - Overnight Price: $12.07

Jarden rates ((QBE)) as Buy (1) -

Jarden views the QBE Insurance 1H22 earnings results as positive and adjusted earnings were better than expectations and consensus.

The broker points strong growth in written premiums and a lower expense ratio, while the North American operations posted underwriting profits ex-Crop, indicating the turnaround seems in place. 

Broker earnings forecasts are adjusted 14.4% for FY22 and 2.8% for FY23.

The Buy rating is maintained and QBE Insurance remains the broker's top pick in the General Insurance sector, on valuation grounds with the target price raised to $17 from $16.

This report was published on August 11, 2022.

Target price is $17.00 Current Price is $12.07 Difference: $4.93
If QBE meets the Jarden target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $15.72, suggesting upside of 30.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 75.03 cents and EPS of 81.42 cents.
At the last closing share price the estimated dividend yield is 6.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.7, implying annual growth of N/A.
Current consensus DPS estimate is 54.7, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 100.04 cents and EPS of 142.42 cents.
At the last closing share price the estimated dividend yield is 8.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.5, implying annual growth of 80.6%.
Current consensus DPS estimate is 98.8, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 8.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SBM    ST. BARBARA LIMITED

Gold & Silver - Overnight Price: $1.06

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

Shaw and Partners notes St. Barbara's Atlantic Gold has received an important regulatory permit that will allow operations to continue into FY23. The broker highlights the approval will allow construction to commence in coming weeks.

With further clarity around Atlantic Gold's FY23 production, St. Barbara has released guidance for the coming year, pointing to gold production of 280-315,000 ounces at an all in sustaining cost of $2,050-2,150 per ounce.

The Buy rating and target price of $1.80 are retained.

This report was published on August 11, 2022.

Target price is $1.80 Current Price is $1.06 Difference: $0.74
If SBM meets the Shaw and Partners target it will return approximately 70% (excluding dividends, fees and charges).
Current consensus price target is $1.16, suggesting upside of 9.7%(ex-dividends)
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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 48.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.7, implying annual growth of 22.7%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 39.3.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBI    UNIVERSAL BIOSENSORS INC

Medical Equipment & Devices - Overnight Price: $0.30

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

Short-term issues across each of Universal Biosensors's three divisions caused delays in delivery and saw the company deliver a miss on Canaccord Genuity's first half expectations. 

Universal Biosensors reported revenue of $3.1m, compared to the broker's anticipated $3.3m. Combined with a gross profit miss of -17% and operating expenditure miss of -7.5%, an earnings loss of -$7.5m exceeded Canaccord Genuity's forecast by -$0.9m.

The broker is anticipating a more positive second quarter as issues resolve, but has taken a more cautious approach with forecasts. Revenue and gross profit estimates decrease -10% while operating expenditure increases 11% in FY22.

The Speculative Buy rating is retained and the target price decreases to $0.67 from $0.72.

This report was published on August 11, 2022.

Target price is $0.67 Current Price is $0.30 Difference: $0.37
If UBI meets the Canaccord Genuity target it will return approximately 123% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.61.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.79.

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


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