Australian Broker Call *Extra* Edition – Nov 23, 2022

Daily Market Reports | Nov 23 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 (2)   ALL (2)   APM   AX1   BOE   CBA (2)   CSL   DGL   DXI   FLT   HCW   IPL   PGH   SDR   SEK   TLX   TPW   UMG   WSP  

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation - Overnight Price: $5.19

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

Jarden points out volumes for home furnishings have historically remained resilient during housing downturns.

The broker sees potential medium-term growth opportunities for Temple & Webster from M&A activity. Management has highlighted trade and commercial (B2B) and technology businesses as potential targets.

After raising its weighted average cost of capital (WACC) assumptions, Jarden reduces its target to $5.06 from $5.42. Neutral.

This report was published on November 16, 2022.

Target price is $5.06 Current Price is $5.19 Difference: minus $0.13 (current price is over target).
If TPW meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.64, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of -24.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 69.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of 32.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 52.4.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UMG    UNITED MALT GROUP LIMITED

Agriculture - Overnight Price: $3.21

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

According to Bell Potter, United Malt reported better than expected FY22 results with the softer results from distribution offset by a more robust contribution from the processing business.

Post the results, earnings forecasts are adjusted by -7% for FY23 and -6% for FY24 and the broker views the FY22 problems as seasonal not structural.

Buy rating remains in place. Target raises to $4.05 from $3.90.

This report was published on November 16, 2022.

Target price is $4.05 Current Price is $3.21 Difference: $0.84
If UMG meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.79, suggesting upside of 18.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 6.50 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.1, implying annual growth of N/A.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 10.50 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 104.0%.
Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.6.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WSP    WHISPIR LIMITED

Cloud services - Overnight Price: $0.56

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

Whispir has announced a plan to terminate around 80 roles in its product team in an attempt to deliver around -$14.3m in annualised cost savings and target cash flow positivity by the 4Q of FY23. The direct sales team is unaffected.

While pleased about the pathway to break even, Shaw and Partners lowers its long-term revenue growth forecasts due to the reduction in headcount. Management, on the other hand, believes the plan doesn't impede long-term growth aspirations.

On valuation grounds, Shaw maintains its Buy rating, while the target falls to $1.70 from $2.00 on lower longer-term cashflow forecasts.

This report was published on November 16, 2022.

Target price is $1.70 Current Price is $0.56 Difference: $1.135
If WSP meets the Shaw and Partners target it will return approximately 201% (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 minus 16.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.51.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.79.

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


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