Australian Broker Call *Extra* Edition – Nov 24, 2022

Daily Market Reports | Nov 24 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)

AAC   CAJ   CAT (2)   CQR   CTT   CXL   EHL   MNY (2)   NSR   RRL   WPR  

AAC    AUSTRALIAN AGRICULTURAL COMPANY LIMITED

Agriculture - Overnight Price: $1.75

Bell Potter rates ((AAC)) as Upgrade to Buy from Hold (1) -

First half operating earnings from Australian Agricultural Co have come in ahead of Bell Potter's expectations at $38.3m. Operating earnings have risen 28% year-on-year and revenue 15%. 

The company is yet to provide full year guidance, but did reiterate that a strong rebound in food service continues across key markets. 

Bell Potter has updated its operating earnings forecasts 11%, -10% and -4% through to FY25, accounting for higher grain pricing in later years.

The rating is upgraded to Buy from Hold and the target price decreases to $2.15 from $2.35.

This report was published on November 18, 2022.

Target price is $2.15 Current Price is $1.75 Difference: $0.4
If AAC meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.33.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services - Overnight Price: $0.30

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

Capitol Health has reported an expectedly solid trading update year-to-date. Revenue has declined -1.8% year-on-year, cycling off 9.7% growth in the previous comparable period. 

Shaw and Partners assumes first half profit will be marginally below the previous comparable period, but anticipates a material increase in the second half.

Near-term trading remains constrained but Shaw expects growth ahead, particularly given the company is undertaking recruitment to lift its workforce by 10%.

The Buy rating is retained and the target price decreases to $0.43 from $0.48.

This report was published on November 17, 2022.

Target price is $0.43 Current Price is $0.30 Difference: $0.125
If CAJ meets the Shaw and Partners target it will return approximately 41% (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 0.80 cents and EPS of 1.30 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.46.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 1.30 cents and EPS of 1.90 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.05.

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

CAT    CATAPULT GROUP INTERNATIONAL LIMITED

Medical Equipment & Devices - Overnight Price: $0.87

Bell Potter rates ((CAT)) as Hold (3) -

Despite Catapult International reporting 11% first half revenue growth to US$41.6m, the company missed the mark for Bell Potter which had assumed US$43.6m. Annual contract value rose 13% to $66.2m, but was also a -7% miss to the broker's assumption. 

Following the first half, the company has downgraded its annual contract value guidance from at least 20% growth to 20% constant currency growth. Bell Potter accordingly lowers its revenue forecasts -3%, -6% and -7% through to FY25. 

The Hold rating is retained and the target price decreases to $0.90 from $1.00.

This report was published on November 18, 2022.

Target price is $0.90 Current Price is $0.87 Difference: $0.03
If CAT meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 23.88 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.64.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 13.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.61.

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


Canaccord Genuity rates ((CAT)) as Buy (1) -

Catapult International's first half results were largely in line with Canaccord Genuity's expectations, with the company delivering constant currency annual contract value of US$70m. 

The company reiterated it expects to achieve full year annual contract value growth above 20%, which represents a sizeable step up in the second half. Canaccord Genuity expects achieving this will see Catapult International reach a free cash flow breakeven in FY24. 

The Buy rating is retained and the target price decreases to $1.50 from $2.00.

This report was published on November 18, 2022.

Target price is $1.50 Current Price is $0.87 Difference: $0.63
If CAT meets the Canaccord Genuity target it will return approximately 72% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.34.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.44 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.33.

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


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