Australian Broker Call *Extra* Edition – Dec 05, 2022

Daily Market Reports | Dec 05 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)

AHL   ASG   BUB   CAI   CCX   CKF   EML   ERD   FPH   GTK   HLS   IDX   IPG (2)   LGL   SMP   STO   WDS  

AHL    ADRAD HOLDINGS LIMITED

Overnight Price: $1.15

Bell Potter rates ((AHL)) as Initiation of coverage with Buy (1) -

Given Adrad has a strong manufacturing/warehouse footprint and a low price earnings multiple, Bell Potter commences coverage with a Buy rating. A 12-month target price of $1.70 is set.

The company, which operates in A&NZ and SE Asia, specialises in the design, manufacture, importation and distribution of heat transfer solutions for the automotive and industrial markets.

The Aftermarket segment manufactures, imports and distributes radiators and other heat exchange products. The Original Equipment division designs and manufactures OEM industrial radiators and cooling solutions for high end applications.

The analyst likes Adrad's long track record and strong customer relationships.

This report was published on November 29, 2022.

Target price is $1.70 Current Price is $1.15 Difference: $0.555
If AHL meets the Bell Potter target it will return approximately 48% (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 4.00 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.24.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 5.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.68.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components - Overnight Price: $1.98

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

Autosports Group has guided to first half profit before tax of $48-50m, a 10.6% beat to Jarden's assumptions. Underpinning guidance is new vehicle demand continuing to outstrip supply and used car demand benefiting from new vehicle supply gap. 

According to Jarden, the market remains under supplied by -20%, but the company expects new vehicle supply to improve over FY23, and that gross profit margins increase given revenue mix. 

The Overweight rating is retained and the target price increases to $3.81 from $3.62.

This report was published on November 28, 2022.

Target price is $3.81 Current Price is $1.98 Difference: $1.83
If ASG meets the Jarden target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 19.90 cents and EPS of 33.10 cents.
At the last closing share price the estimated dividend yield is 10.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.98.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.50 cents and EPS of 29.10 cents.
At the last closing share price the estimated dividend yield is 8.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.80.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy - Overnight Price: $0.32

Wilsons rates ((BUB)) as Market Weight (3) -

Bubs Australia has confirmed trading conditions continue to deteriorate and now guides to December-half revenue being steady on the previous corresponding, despite the strong jump in September-quarter gross revenue.

Wilsons considers competition, particularly in the Chinese market, and operational hiccups as the company enters new markets, to be the main culprits.

The broker says further swings, either up or down, remain likely.

The broker cuts sales forecasts -44% in FY23; and -25% in FY24.

Market Weight retained. Target price falls to 30c a share from 68c.

This report was published on November 29, 2022.

Target price is $0.30 Current Price is $0.32 Difference: minus $0.02 (current price is over target).
If BUB meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 320.00.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.00.

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

CAI    CALIDUS RESOURCES LIMITED

Gold & Silver - Overnight Price: $0.35

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

Calidus Resources has cited the same labour issues impacting across the West Australian mining industry as a key driver of its first quarter performance. Production from the Warrawoona project of 12,800 ounces was a miss to Canaccord Genuity's anticipated 18,000 ounces, despite the company ramping up production since its first gold pour in May. 

The site suffered excessive mining dilution as a result of suboptimal blasting and mining practices, but Calidus Resources has implemented  initiatives to address this. Canaccord Genuity factors an additional 10% mine dilution over the next two years into its outlook. 

The Speculative Buy rating is retained and the target price decreases to $0.75 from $0.85. 

This report was published on November 29, 2022.

Target price is $0.75 Current Price is $0.35 Difference: $0.395
If CAI meets the Canaccord Genuity target it will return approximately 111% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.50.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.96.

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


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