Australian Broker Call *Extra* Edition – Sep 07, 2022

Daily Market Reports | Sep 07 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)

A2M (3)   ABB   ABY (2)   ADA   AHX   APM   BVS   CUV   DOC   FMG (2)   GDC   HAS   HLO   HLS   IDX (2)   IPD (2)   JLG   LFG   LOV   M7T   MHJ   MIN   MTO   NST (2)   NTO (5)   NXT (2)   OCL   OZL (2)   PME   PNV   PPT   RMC   RMS   RUL   SYM (2)   TYR   WPR (2)   XRF  

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services - Overnight Price: $0.79

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

A slight miss against Bell Potter's forecast for FY22 normalised profit for Adacel Technologies resulted from lower-than-estimated Systems revenue, while Services revenue was close to in line.

FY23 guidance for earnings (EBITDA) of between US$6.7-7.2m was below the analyst's original forecasts for US$7.4m, as management plans to accelerate investments in product functions and features. Increased spending on business development is also expected.

To align with guidance, the analyst downgrades FY23 and FY24 profit (PBT) forecasts by -13% and -4%, respectively, and the target falls to $1.15 from $1.30. The Buy rating is maintained.

This report was published on August 30, 2022.

Target price is $1.15 Current Price is $0.79 Difference: $0.36
If ADA meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 8.36 cents and EPS of 6.69 cents.
At the last closing share price the estimated dividend yield is 10.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.81.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 6.50 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 8.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

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: $0.75

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

Apiam Animal Health's FY22 result broadly met Shaw and Partners's forecasts thanks to a strong exit from June 30, plus contributions from acquisitions and improved industry conditions.

The broker notes investment was solid, laying the foundations for FY23 earnings growth; improved free cash flow; and margin expansion through greater operating leverage.

The broker estimates the company will double revenues to $300m through the rollout of clinics, acquisitions, and organic growth.

EPS forecasts rise 8% in FY23; 1% in FY24; and 9% in FY25. Buy rating retained. Target price rises 3% to $1.06.

This report was published on August 30, 2022.

Target price is $1.06 Current Price is $0.75 Difference: $0.31
If AHX meets the Shaw and Partners target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1.80 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 1.80 cents and EPS of 6.10 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.30.

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

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare - Overnight Price: $3.09

Goldman Sachs rates ((APM)) as Buy (1) -

Goldman Sachs assesses a strong maiden full year FY22 result for APM Human Services International, with the core operations performing ahead of expectations. 

While profits were impacted by a -$6.7m covid-related loss from the recently acquired allied health businesses, this business is expected to rapidly return to profitability.

Management implied the profit (NPATA) range for FY23 will be between $188-195m, pretty much in line with the broker’s $191.1m forecast.

The analyst forecasts a 16% EPS compound annual growth rate (CAGR) over FY22-25, which is partly supported by the ramp-up of the  new Workforce Australia contract and upside from the disability employment services (DES) contract.

The Buy rating and $4.20 target price are maintained.

This report was published on August 30, 2022.

Target price is $4.20 Current Price is $3.09 Difference: $1.11
If APM meets the Goldman Sachs target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 13.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.88.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments - Overnight Price: $1.46

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

Jarden points out Bravura Solutions reported FY22 results at the lower end of the guidance range.

With little guidance the broker considers the outlook based on the "base case numbers" as not very upbeat, while greater employee numbers and rising R&D failing to be reflected in revenue growth.

The Wealth Management segment a key focus for Jarden is also deteriorating despite acquisitions and improved functions.

Earnings forecasts by the analyst are reduced by -29.8% and -24.1% for FY23 and FY24.

The Buy rating is retained and the target lowered to $2.50 from $2.55.

This report was published on August 30, 2022.

Target price is $2.50 Current Price is $1.46 Difference: $1.04
If BVS meets the Jarden target it will return approximately 71% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.60 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.78.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 6.70 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.04.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $19.60

Moelis rates ((CUV)) as Hold (3) -

Clinuvel Pharmaceuticals' result delivered no surprises to Moelis, reporting 37% year-on-year revenue growth but a -16% net profit decline.

The broker attributed the decline to significantly higher than expected tax costs, offsetting strong revenue and operating expenditure control.

The broker notes the rollout of Scenesse continues to drive topline growth, anticipating its revenue contribution increased 98% on the previous year. Moelis anticipates muted growth in Europe in the coming year. 

The Hold rating is retained and target price decreases to $17.56 from $23.14.

This report was published on August 30, 2022.

Target price is $17.56 Current Price is $19.60 Difference: minus $2.04 (current price is over target).
If CUV meets the Moelis target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.50 cents and EPS of 86.80 cents.
At the last closing share price the estimated dividend yield is 0.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.58.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 8.20 cents and EPS of 91.10 cents.
At the last closing share price the estimated dividend yield is 0.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.51.

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


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