Australian Broker Call *Extra* Edition – Dec 09, 2022

Daily Market Reports | Dec 09 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)

C79   GPT   HLA   IGO   IMU   MAP   MTS   ORI   PMV   PNV   PPG   PXA   RWC   TPW (2)   WDS  

C79    CHRYSOS CORP. LIMITED

Overnight Price: $3.14

Shaw and Partners rates ((C79)) as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on Chrysos. According to the broker Chrysos' proprietary PhotonAssay represents a technological leap which is transforming the gold assaying business, with the company reporting rapid uptake to date.

The company has 49 units under contract for deployment by 2025, which equates to 8% of the total addressable market. The company's revenue base underpins Shaw and Partners' 87% compound annual growth rate assumption to FY25.

The broker initiates with a Buy rating and a target price of $5.40.

This report was published on December 6, 2022.

Target price is $5.40 Current Price is $3.14 Difference: $2.26
If C79 meets the Shaw and Partners target it will return approximately 72% (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 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 73.02.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 174.44.

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

GPT    GPT GROUP

Infra & Property Developers - Overnight Price: $4.33

Jarden rates ((GPT)) as Underweight (4) -

In the lead up to February results, Jarden reiterates its Underweight rating for GPT Group on concern consensus forecasts are too high. It’s felt the company has few ways to offset the material headwind from higher interest rates. 

The target rises to $4.55 from $4.40 on higher funds management income and a roll forward of the broker’s financial model. The higher target reflects rental growth in Logistics and Retail, partially offset by lower values in Office. 

A lack of funds from operations (FFO) growth over the next 4-5 years suggests current multiples are unattractive, explains Jarden. A high level of maintenance and incentive capex is also expected to weigh.

This report was published on December 1, 2022.

Target price is $4.55 Current Price is $4.33 Difference: $0.22
If GPT meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $4.70, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 25.80 cents and EPS of 32.60 cents.
At the last closing share price the estimated dividend yield is 5.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.1, implying annual growth of -56.6%.
Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 23.70 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.5, implying annual growth of -1.9%.
Current consensus DPS estimate is 25.1, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 13.7.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HLA    HEALTHIA LIMITED

Healthcare services - Overnight Price: $1.08

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

Having guided to annualised earnings above $40m at the beginning of the fiscal year, Healthia reports underlying earnings of $13.4m for the five months to the end of November. According to Shaw and Partners this reflects a deceleration from the end of August which the broker attributes to a slower October and covid impacts. 

Erring on the side on conservatism, Shaw and Partners lowers its full year underlying earnings assumptions to $37.6m from $40.1m, anticipating a return to more normalised trading conditions in the second half. 

The Buy rating is retained and the target price decreases to $2.50 from $2.64.

This report was published on December 5, 2022.

Target price is $2.50 Current Price is $1.08 Difference: $1.42
If HLA meets the Shaw and Partners target it will return approximately 131% (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 3.80 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.13.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 4.10 cents and EPS of 10.30 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.49.

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

IGO    IGO LIMITED

Nickel - Overnight Price: $14.89

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

A fire at IGO's Nova project looks to impact on processing for at least four weeks. Despite the company's nickel business accounting for just 20%, Jarden notes Nova remains a high margin asset. 

As such, the broker estimates the outage could equate to an earnings per share loss of more than -6 cents in the current fiscal year, and driven a -4 cent downgrade to the broker's valuation. Jarden assumes a resumption of operations in February.

The Overweight rating is retained and the target price decreases to $16.55 from $16.59.

This report was published on December 6, 2022.

Target price is $16.55 Current Price is $14.89 Difference: $1.66
If IGO meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $15.11, suggesting upside of 1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 22.00 cents and EPS of 177.80 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 197.4, implying annual growth of 351.7%.
Current consensus DPS estimate is 41.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 7.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 41.00 cents and EPS of 216.20 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 179.1, implying annual growth of -9.3%.
Current consensus DPS estimate is 72.0, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 8.3.

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

IMU    IMUGENE LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.18

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

Imugene has completed three significant preclinical studies to progress development of its onCARlytics technology in combination with CD19 CAR-T assets, with studies aimed at harnessing the success of CAR-T therapy to treat solid cancers. 

Bell Potter finds the data to present a compelling case to support further investigation of various combinations. The broker expects the company may seek to meet with the FDA in the coming year to discuss clinical advancement of these programs. 

The Buy rating is retained and the target price decreases to $0.35 from $0.36.

This report was published on December 2, 2022.

Target price is $0.35 Current Price is $0.18 Difference: $0.165
If IMU meets the Bell Potter target it will return approximately 89% (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 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.83.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.83.

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


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