Australian Broker Call *Extra* Edition – Nov 22, 2022

Daily Market Reports | Nov 22 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)

ABP   ALQ   AX1   BRG   CCX   ELD   EVN   FLT (2)   IDT   LIC   LOV   MGH   NST   UMG   UNI   WSP  

ABP    ABACUS PROPERTY GROUP

REITs - Overnight Price: $2.73

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

A new analyst from Shaw and Partners re-visits coverage of Abacus Property Group after a hiatius and sets a $3.17 target, down from $3.70.

The target falls after a general de-rating of peer multiples since last coverage and after applying higher discount rates to the REIT's cash flows.

The broker's investment thesis is unchanged: the stock offers investors exposure to a high-quality office portfolio, as well as the (still) fast-growing self storage market. Buy.

This report was published on November 16, 2022.

Target price is $3.17 Current Price is $2.73 Difference: $0.44
If ABP meets the Shaw and Partners target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.97, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 18.70 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of -69.7%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 17.80 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of -3.8%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 15.3.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers - Overnight Price: $12.15

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

Jarden feels the outlook for ALS Ltd isn't as negative as the share price may imply, with improving commodities pricing dynamics and recontracting initiatives positives. 

Less positively, the company warned flows look to be flat over the second half after increasing 17% in the first half.

Growth saw ALS Ltd deliver first half net profit ahead of its guidance range at $164.3m. Jarden forecasts net profits slightly ahead of the company's guidance midpoint. 

The Overweight rating is retained and the target price decreases to $12.65 from $13.00.

This report was published on November 15, 2022.

Target price is $12.65 Current Price is $12.15 Difference: $0.5
If ALQ meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $13.33, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 38.40 cents and EPS of 65.10 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.4, implying annual growth of 60.5%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 41.40 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.0, implying annual growth of 5.7%.
Current consensus DPS estimate is 39.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 18.1.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear - Overnight Price: $1.64

Goldman Sachs rates ((AX1)) as Initiation of coverage with Buy (1) -

Goldman Sachs predicts the Australian consumer in the age range 15-24 years will be a key beneficiary of the 5.2% minimum wage rise from July 1 this year. These consumers are 64% employed and allocate around 65% of their money to discretionary spending.

One of the broker's top retail picks to benefit from this increased spending is Accent Group, with around 80-85% of its customers in this age group bracket.

The company operates predominately in the footwear space with a growing apparel business. The combination of a distribution business, vertically owned brands, and a store network will likely increase gross margin through vertical integration, according to the broker.

The analyst also sees strong store roll-out potential over the next three years and forecasts a 35% EPS compound annual growth rate (CAGR) over this period.

A $2.20 target price is set. Buy.

This report was published on November 14, 2022.

Target price is $2.20 Current Price is $1.64 Difference: $0.565
If AX1 meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $1.86, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.20 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 6.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of 110.0%.
Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.40 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 6.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 9.0%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 12.3.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN