Australian Broker Call *Extra* Edition – Sep 14, 2022

Daily Market Reports | Sep 14 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)

CAU   DRE   DSK   GNC (2)   GSS   HLA   IGO   IMD   IMR   JIN   KED   MMI   NOL   NTO   PPS   PXA   SBM   SPK   SPL   TNT  

SPK    SPARK NEW ZEALAND LIMITED

Telecommunication - Overnight Price: $4.82

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

Spark New Zealand produced a solid FY22 result, Jarden suggests, with FY23 guidance representing a solid step-up on FY22 and indicating the company continues to generate a 2.5-3.0% compound annual growth rate.

Spark's track record and compositional changes provide operating earnings confidence and the balance sheet also de-risks dividend, the broker notes. TowerCo opens up flexibility while operating earnings continue their modest growth path.

Jarden returns from restriction with an Overweight rating, lifting its target to NZ$5.26 from NZ$4.69.

This report was published on September 2, 2022.

Current Price is $4.82. Target price not assessed.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SPL    STARPHARMA HOLDINGS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.58

Bell Potter rates ((SPL)) as Re-Initiation of coverage with a Speculative Buy (1) -

Bell Potter re-initiates coverage of Starpharma with a Speculative Buy rating and $1.00 target price.

The company aims to commercialise the science of dendrimers, which are capable of ‘piggybacking’ a drug of interest through the body and delivering it to the targeted cells.

Starpharma has three revenue-generating over the counter products (non-pharmaceutical) approved for sale in a number of countries, though no approved pharmaceutical-grade dendrimer product has made it to market.

While around -$220m in accumulated losses have been incurred since 1996, notes the analyst, Astra Zeneca has signed a multiproduct licence with the company.

This licence is to develop and commercialise two novel Astra Zeneca oncology compounds, with potential to deliver Starpharma $124m in milestone payments, along with royalties.

This report was published on September 7, 2022.

Target price is $1.00 Current Price is $0.58 Difference: $0.42
If SPL meets the Bell Potter target it will return approximately 72% (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 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.20.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.87.

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

TNT    TESSERENT LIMITED

IT & Support - Overnight Price: $0.11

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

FY22 operating earnings (EBITDA) for Tesserent were broadly in line with the estimate by Shaw and Partners.

Regarding the integration of acquisitions, management noted the Rivium business (enterprise security) almost tripled FY20 turnover levels, and earnings for the Airloom business (managed services) were 60% higher compared to September 2020.

While no FY23 guidance was provided, the broker points out organic growth and margins remain strong. 

Shaw and Partners' Buy rating is maintained, while the target price eases to $0.22 from $0.25 on -2-3% lower earnings across the forecast period.

This report was published on September 1, 2022.

Target price is $0.22 Current Price is $0.11 Difference: $0.11
If TNT meets the Shaw and Partners target it will return approximately 100% (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 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.22.

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


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