Australian Broker Call *Extra* Edition – April 29, 2022

Daily Market Reports | 10:00 AM

Additional reporting on changes in recommendation, valuation, forecast and opinion for stocks listed on the ASX.

In addition to The Australian Broker Call Report, which is published and updated daily (Monday to Friday), FNArena has now added The Australian Broker Call *Extra* Edition, with additional sources of research and listed stock information on the ASX, also expanding the number of stocks that make up the FNArena universe.

A key difference is that the *Extra* edition will not be updated daily, but simply “regularly” based on the availability of appropriate quality content. As such, the *Extra* edition attempts to bridge the gap between daily updates via the Australian broker’s call report and ad hoc news, which is not always timely for investors eager for the next information update.

Investors using the *Extra* edition as a source of data for their own market research should therefore take into account that information after publication may not be up to date, or wait for a further update by the team of FNArena journalists.

Similar to The Australian Broker Call Report, this *Extra* edition includes concise but limited reviews of recently published research by stock brokers and other experts, which should be viewed as information regarding likely market behavior rather than advice on the titles 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 from identified sources. Readers should check the full text of the recommendations and consult with a licensed adviser before making any investment decision.

The copyright of this report belongs to the publisher. Readers will not copy, transmit or distribute this report to anyone else. For more vital information on the sources included, see the bottom of this report.

COMPANIES MENTIONED IN THIS ISSUE

Click on a symbol for quick access.
The number next to the symbol represents the number of brokers covering it for this report – (if more than 1)

ARX ​​BOE BPT (2) CAI CCX COD CV1 LOT MCR MIN (2) MMM NUF OZL (2) PCK PDN PEN PLT PPT PRU PYG S32 SOM UMG WHC WSP

ARX ​​AROA BIOSURGERY LIMITED

Pharmaceuticals and Biotech/Life Sciences – Overnight Price: $0.85

Canaccord Genuity ((ARX)) purchase rate (1) –

Canaccord Genuity is impressed with FY22 results that beat forecasts and forecasts, as headwinds from the pandemic at times limited access to hospitals and doctors.

The broker looks forward to potential catalysts for near-term momentum, including quarterly sales updates and the announcement or release of new supporting clinical data. Buy rating held with a target of $1.80.

This report was published on April 26, 2022.

The target price is $1.80 The current price is $0.85 Difference: $0.95
Yes ARX reaches the Canaccord Genuity target, it will earn approximately 112% (excluding dividends, fees and charges).
The company’s fiscal year ends in March.

Forecast for FY23:

Canaccord Genuity plans a full year EX23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is minus 60.71.

Forecast for FY24:

All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

UMG UNITED MALT GROUP LIMITED

Agriculture – Overnight price: $4.05

Bell Potter rates ((UMG)) as Hold (3) –

The company released a comparable EBITDA guidance for FY22 of $103 million to $128 million, which compares to Bell Potter’s previous guidance of $140 million.

The variation stems from high barley supply costs, delayed sales due to supply chain disruptions and slower realization of processing benefits.

As a result, the broker is lowering the net profit forecast by -23% for FY22 and -6% for FY23. Holding rating and $4.35 target unchanged.

This report was published on April 26, 2022.

The target price is $4.35 The current price is $4.05 Difference: $0.3
Yes UMG meets Bell Potter’s goal, he will return approximately 7% (excluding dividends, fees and charges).
The current consensus price target is $4.61suggesting the reverse of 13.7%(excluding dividends)
The company’s financial year ends in September.

Forecast for FY22:

Bell Potter plans a full year EX22 dividend of 6.50 cents and EPS of 12:00 p.m. cents.
At the last closing price, the estimated dividend yield is 1.60%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 33.75.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 13.9which implies an annual growth of 201.5%.
The current DPS consensus estimate is 9.7implying a prospective dividend yield of 2.4%.
The current consensus estimate of EPS suggests that PER is 29.1.

Forecast for FY23:

Bell Potter plans a full year EX23 dividend of 11:50 a.m. cents and EPS of 9:70 p.m. cents.
At the last closing price, the estimated dividend yield is 2.84%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 18.66.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 25.8which implies an annual growth of 85.6%.
The current DPS consensus estimate is 16.4implying a prospective dividend yield of 4.0%.
The current consensus estimate of EPS suggests that PER is 15.7.

Market Sentiment: 0.8
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

WHC WHITEHAVEN COAL LIMITED

Charcoal – Nightly Price: $4.96

Shaw and Partners ((WHC)) tariffs as Buy (1) –

Shaw and Partners is seeing a record average coal price of $315/t in the March quarter, noting that Whitehaven Coal is generating plenty of cash relative to costs. The company reported an upgrade of the JORC reserve to 380 tonnes.

The broker suggests record coal prices and record cash flow, while a return to net cash should mean the stock price is heading towards stellar levels.

While ESG headwinds and investor reluctance may prevent a rise in the share price to this extent, Shaw and Partners believes that $4.50 is still too low. The target is raised to $6.25. Purchase note retained.

This report was published on April 21, 2022.

The target price is $6.25 The current price is $4.96 Difference: $1.29
Yes WHC achieves the Shaw and Partners goal, it will earn approximately 26% (excluding dividends, fees and charges).
The current consensus price target is $5.70suggesting the reverse of 14.9%(excluding dividends)
The company’s fiscal year ends in June.

Forecast for FY22:

Shaw and Partners expects a full year EX22 dividend of 46.00 cents and EPS of 132.00 cents.
At the last closing price, the estimated dividend yield is 9.27%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 3.76.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 145.9which implies an annual growth of N / A.
The current DPS consensus estimate is 42.4implying a prospective dividend yield of 8.5%.
The current consensus estimate of EPS suggests that PER is 3.4.

Forecast for FY23:

Shaw and Partners expects a full year EX23 dividend of 81.00 cents and EPS of 163.00 cents.
At the last closing price, the estimated dividend yield is 16.33%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 3.04.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 136.9which implies an annual growth of -6.2%.
The current DPS consensus estimate is 49.2implying a prospective dividend yield of 9.9%.
The current consensus estimate of EPS suggests that PER is 3.6.

Market Sentiment: 0.8
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

WSP WHISPIR LIMITED

Cloud Services – Nightly Price: $1.25

Wilsons rates ((WSP)) as overweight (1) –

Whispir confirmed it is on track to meet FY22 guidelines. Australia is back to normal while the company reported that Asia and North America are showing signs of pulling out.

Wilsons expects the FY23 SingTel contract to make a significant financial contribution. The broker maintains an overweight rating and reduces the target to $3.05 from $3.92.

This report was published on April 28, 2022.

The target price is $3.05 The current price is $1.25 Difference: $1.8
Yes FSSF reaches Wilsons goal, he will return approximately 144% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY22:

Wilsons plans a full year EX22 dividend of 0.00 cents and EPS of less than 1:30 p.m. cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is minus 9:40 a.m..

Forecast for FY23:

Wilsons plans a full year EX23 dividend of 0.00 cents and EPS of minus 11:40 a.m. cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is minus 10.96.

Market Sentiment: 1.0
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources


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