Australian Broker Call *Extra* Edition – Oct 04, 2022

Daily Market Reports | Oct 04 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)

5GG   ADH   AIM   ALL   ANZ (2)   APC   ART   BEN (2)   BOE   BOQ   BSL   BXB   CBA (2)   CGC   CGS   CU6   DRO   FSF   GTK   HLS   IDX   IRE   MTO   NAB (2)   NST   OZL   PMV   PWH   SHL   SIG   STO   STX   TLX (2)   TPW   UNI   WBC (2)  

5GG    PENTANET LIMITED

Telecommunication - Overnight Price: $0.28

Bell Potter rates ((5GG)) as Buy (1) -

New pricing tiers launched by Pentanet for its NVIDIA's GeForce NOW cloud gaming service represent a transition into a monetisation phase for the company, according to Bell Potter. 

The broker highlights four price tiers, compared to the previous two improves accessibility of the service to customers unable or unwilling to pay for the premium tier. 

The Buy rating is retained and the target price decreases to $0.48 from $0.56.

This report was published on September 29, 2022.

Target price is $0.48 Current Price is $0.28 Difference: $0.2
If 5GG meets the Bell Potter target it will return approximately 71% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.33.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.67.

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

ADH    ADAIRS LIMITED

Furniture & Renovation - Overnight Price: $1.79

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

Jarden feels Adairs' omnichannel mix provides a hedge against a shift in consumer traffic and purchasing behaviour across channels and retains its Overweight rating.

The weaker consumer backdrop and supply chain disruption are allowed for in the current share price, according to the broker.

Should physical retail sales continue to recover as per recent data, and/or if freight rates continue to normalise, the analyst sees upside earnings risk. It's also thought greater visibility on discretionary consumer spending may provide a boost.

The target price slips to $3.22 from $3.28.

This report was published on September 27, 2022.

Target price is $3.22 Current Price is $1.79 Difference: $1.43
If ADH meets the Jarden target it will return approximately 80% (excluding dividends, fees and charges).
Current consensus price target is $2.73, suggesting upside of 43.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 20.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 11.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.3, implying annual growth of 11.1%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 9.9%.
Current consensus EPS estimate suggests the PER is 6.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 23.00 cents and EPS of 34.40 cents.
At the last closing share price the estimated dividend yield is 12.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.5, implying annual growth of 14.3%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 11.5%.
Current consensus EPS estimate suggests the PER is 5.7.

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

AIM    AI-MEDIA TECHNOLOGIES LIMITED

Commercial Services & Supplies - Overnight Price: $0.36

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

Ai-Media Technologies has successfully renewed its exclusive agreement with the Seven Network for an additional five years. Bell Potter reports the renewal will extend Seven Network's use of Ai-Media Technologies's offerings. 

As per the agreement, Seven Network will also purchase iCap Encode hardware at a cost of US$10,000 per encoder, and pay monthly captioning and equipment support fees. Bell Potter notes the agreement provides a recurring revenue stream for Ai-Media Technologies.

The Buy rating and target price of $0.70 are retained.

This report was published on September 30, 2022.

Target price is $0.70 Current Price is $0.36 Difference: $0.34
If AIM meets the Bell Potter target it will return approximately 94% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 72.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 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 45.00.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming - Overnight Price: $32.18

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

Goldman Sachs makes no material change to its forecasts for Aristocrat Leisure, following an investor day.

The broker notes some weakness in A&NZ operations due to weather and supply chain issues, though management stated customers have been well informed and none have been lost.

FY22 guidance was maintained in line with the outlook statement after 1H results.

Goldman Sachs retains its Buy rating and $43.00 target price.

This report was published on September 28, 2022.

Target price is $43.00 Current Price is $32.18 Difference: $10.82
If ALL meets the Goldman Sachs target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $42.71, suggesting upside of 31.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 63.00 cents and EPS of 176.00 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 163.1, implying annual growth of 27.3%.
Current consensus DPS estimate is 58.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 76.00 cents and EPS of 191.00 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 184.2, implying annual growth of 12.9%.
Current consensus DPS estimate is 69.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 17.6.

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

ANZ    AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Banks - Overnight Price: $22.77

Goldman Sachs rates ((ANZ)) as Neutral (3) -

Goldman Sachs believes value exists in the Australian Bank sector and raises its 12-month target prices by 1-2% across the board.

The broker believes profitability can be boosted by rate rises (particularly in the form of lower funding costs, albeit somewhat offset by higher costs), and increases its sector net interest margin (NIM) assumptions for FY24.

Goldman Sachs lifts its target price for ANZ Bank to $26.36 from $25.89 and retains its Neutral rating.

This report was published on September 28, 2022.

Target price is $26.36 Current Price is $22.77 Difference: $3.59
If ANZ meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $26.58, suggesting upside of 13.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 144.00 cents and EPS of 214.00 cents.
At the last closing share price the estimated dividend yield is 6.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 211.3, implying annual growth of -1.9%.
Current consensus DPS estimate is 141.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 150.00 cents and EPS of 215.00 cents.
At the last closing share price the estimated dividend yield is 6.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 219.3, implying annual growth of 3.8%.
Current consensus DPS estimate is 149.0, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((ANZ)) as Underweight (4) -

Jarden increases target prices slightly for the four major Australian banks to reflect the potential for stronger near-term margin expansion, as deposit pricing remains benign. Modestly lower credit growth forecasts provide a partial offset to EPS upgrades.

However, the broker feels this is "as good as it gets" for the banks, with FY24 earnings forecasts impacted by increased competition for mortgages and deposits, along with an increased level of provisioning.

Jarden maintains its Underweight rating for ANZ Bank and increases its target to $23.50 from $23.00.

This report was published on September 27, 2022.

Target price is $23.50 Current Price is $22.77 Difference: $0.73
If ANZ meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $26.58, suggesting upside of 13.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 145.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 6.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 211.3, implying annual growth of -1.9%.
Current consensus DPS estimate is 141.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 146.00 cents and EPS of 230.00 cents.
At the last closing share price the estimated dividend yield is 6.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 219.3, implying annual growth of 3.8%.
Current consensus DPS estimate is 149.0, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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