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

Daily Market Reports | Oct 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)

360   A4N   AMP   APM   BST   CAR   CGF   CPU   EVN   FBU   FZO   HDN   HUB   IAG   IFL   IGO   IKE   IMD   JHG   JIN   MFG   MPL   NHF   NST   NTO   NWL   OZL   PAR   PDL   PPT   PTM   QAL   QBE   RFF   RHC   SFR   SM1   SUN   TLC   TLS   TPG  

360    LIFE360 INC

Software & Services - Overnight Price: $5.20

Goldman Sachs rates ((360)) as Initiation of coverage with Buy (1) -

Goldman Sachs initiates coverage on Life360, estimating the company has exposure to a global total addressable market of US$12bn. The broker believes Life360 has opportunity to expand its product offerings, increase average revenue per paying circle and increase payer conversion. 

Heading into its typically strongest quarter, the company is also preparing for the launch of Tile which the broker expects can improve subscriber penetration, pricing and retention through an integrated Life360 and Tile membership. 

The broker initiates with a Buy rating and a target price of $7.50.

This report was published on October 4, 2022.

Target price is $7.50 Current Price is $5.20 Difference: $2.3
If 360 meets the Goldman Sachs target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 26.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.48.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 14.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.00.

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

A4N    ALPHA HPA LIMITED

Aluminium, Bauxite & Alumina - Overnight Price: $0.45

Bell Potter rates ((A4N)) as Buy (1) -

Alpha HPA is aiming to supply high-purity alumina (HPA) at a purity of greater than 99.99%  to the lithium ion battery and light emitting diode (LED) manufacturing sectors.

To that end, the company has announced mechanical completion and commencement of commissioning at its HPA First Project Stage 1 precursor production facility (PPF).

As a result, management expects delivery of first reagents mid-this month for the ramp-up of aluminium precursor production and sales later in the December quarter.

The broker lists a number of value catalysts to be announced over the next two quarters, including initial sales and cash flow from the Stage 1 PPF. 

The target rises to $0.95 from $0.90 and the Buy rating is unchanged.

This report was published on October 5, 2022.

Target price is $0.95 Current Price is $0.45 Difference: $0.5
If A4N meets the Bell Potter target it will return approximately 111% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.91.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.38.

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

AMP    AMP LIMITED

Wealth Management & Investments - Overnight Price: $1.17

Jarden rates ((AMP)) as Neutral (3) -

A tough quarter for equity markets has seen Jarden issue negative mark to market earnings revisions across its wealth platforms and asset managers coverage. Downgrades were highest for those with elevated cost-to-income ratios relative to peers, and lowest for those with more diversified earnings. 

Revisions were fairly minor for AMP, which Jarden expects to be insulated from higher cash returns. The broker does see ongoing return challenges across the company's bank and advice segments.

The Neutral rating is retained and the target price decreases to $1.15 from $1.20.

This report was published on October 4, 2022.

Target price is $1.15 Current Price is $1.17 Difference: minus $0.02 (current price is over target).
If AMP meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.05, suggesting downside of -8.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 13.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 9.88 cents and EPS of 7.81 cents.
At the last closing share price the estimated dividend yield is 8.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -21.4%.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 17.4.

Market Sentiment: -0.3
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: $3.36

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

APM Human Services International has entered into a binding agreement to purchase Equus Workforce Solutions for $153m. As noted by Goldman Sachs, with Equus reporting earnings of $32m in FY22 the purchase price equates to 4.8x earnings and 20.5x net profit.

Equus generates 75% of revenues from its employment services operations, and utilising Federal funding schemes for key long-life programs has delivered an 11% compound annual growth rate between 2020 and FY22. 

The broker expects the acquisition to improve APM's North American revenue contribution from 16% to 37%. The Buy rating and target price of $4.20 are retained.

This report was published on September 29, 2022.

Target price is $4.20 Current Price is $3.36 Difference: $0.84
If APM meets the Goldman Sachs target it will return approximately 25% (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 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

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 3.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.92.

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


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