Australian Broker Call *Extra* Edition – Nov 25, 2021

This story features AUSTRALIAN AGRICULTURAL COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: AAC

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   AFP   AMN   ARX   AX1 (2)   BSX   CAT (2)   COF   CTT   CWN   DDH   EHL (2)   ELO   EVN   FBU   JDO   JLG   LGL   MVF   NAN   NWC   RDY   SDV   TWE   WTC  

AAC    AUSTRALIAN AGRICULTURAL COMPANY LIMITED

Agriculture – Overnight Price: $1.51

Bell Potter rates ((AAC)) as Downgrade to Hold from Buy (3) –

Australian Agricultural Company's first half operating underlying earnings of $30m almost doubled Bell Potter's expectations. Revenue was flat year-on-year, but also a beat on the forecast, and the company marginally reduced net debt to exit the period at -$354.6m. 

With average wagyu pricing up 10% year-on-year, operating underlying earnings forecasts are upgraded 77%, 6% and 8% through to FY24. Looking ahead, herd rebuilding is expected to drive continued lower meat sale volumes through FY23 as previously guided. 

The rating is downgraded to Hold from Buy and the target price increases to $1.70  from $1.65.

This report was published on November 19, 2021.

Target price is $1.70 Current Price is $1.51 Difference: $0.19
If AAC meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 302.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 302.00.

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

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.80

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

First half revenue growth in all key regions has driven AFT Pharmaceuticals' revenue up 13.7%, with earnings before tax 25% ahead of Bell Potter's forecast. Notably, the company has a scheduled US FDA approval date in June 2022 for its Maxigesic tablets and Maxigesic IV.

The broker notes potential launch following approval is a major catalyst in FY23. With the Maxigesic tablets launching in four European countries in the first half, the treatment is now sold in 46 countries with an additional 50 yet to launch. 

Bell Potter reduces profit after tax -8% and -16% for FY22 and FY23 on research and development expenses. 

The Hold rating is retained and the target price increases to $4.80 from $4.70. 

This report was published on November 19, 2021.

Target price is $4.80 Current Price is $4.80 Difference: $0
If AFP meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.19.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.63 cents and EPS of 13.36 cents.
At the last closing share price the estimated dividend yield is 0.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.93.

This company reports in NZD. 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

AMN    AGRIMIN LIMITED

Agriculture – Overnight Price: $0.44

Bell Potter rates ((AMN)) as Buy (1) –

Agrimin's Mackay Potash Project is closer to delivering a net zero emission sulphate of potash product, with pre-development engineering determining 84% of project energy requirements can be met through wind and solar generation.

Bell Potter notes this implies potential sulphate of potash fertiliser will be produced at a carbon intensity of 138kg carbon equivalent per tonne, with further potential for emission reductions. Final investment decision is expected mid-2022. 

The  broker maintains the Mackay project has potential to deliver the world's lowest cost sulphate of potash supply. The Buy rating and target price of $0.97 are retained.

This report was published on November 19, 2021.

Target price is $0.97 Current Price is $0.44 Difference: $0.53
If AMN meets the Bell Potter target it will return approximately 120% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.89.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.00.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.15

Bell Potter rates ((ARX)) as Buy (1) –

While Aroa Biosurgery is yet to report full first half results, the company increased full-year guidance range to $34-37m. Bell Potter notes the range implies 60% year-on-year growth at the midpoint, and that first half revenue run rate suggests results at the top end of range. 

The broker upgrades FY22 revenue forecast by 8% and reduces estimated net loss by -20% in FY22 and -32% in FY23, continuing to expect profitability in FY24.

The Speculative Buy rating is retained and the target price decreases to $1.70 from $1.90.

This report was published on November 19, 2021.

Target price is $1.70 Current Price is $1.15 Difference: $0.55
If ARX meets the Bell Potter target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 63.89.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 82.14.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.61

Bell Potter rates ((AX1)) as Buy (1) –

Following an AGM update by Accent Group for the 18 weeks ended 31 October, Bell Potter increases its price target to $3.05 from $2.90.

Lockdown impacts impacted the broker's FY22 EPS estimate by -8.2%, though FY23/24 forecasts lift by 1% and 3% due to new store openings.

The company has $20m of additional stock, which the analyst sees as a competitive advantage given global supply chain issues. Management expects to open more than 120 stores in FY22 versus the previous target of more than 65.

This report was published on November 22, 2021.

Target price is $3.05 Current Price is $2.61 Difference: $0.44
If AX1 meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.79, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.30 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 3.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of -24.7%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 24.4.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 13.30 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of 48.6%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 16.4.

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

---

Jarden rates ((AX1)) as Buy (2) –

Following Accent Group's AGM trading update, Jarden lowers FY22 EPS estimates materially, while noting covid impacts are limited to the 1H. FY23/24 EPS estimates rise by circa 3% as a result of opening new stores, offset by lower gross margins from freight issues.

Management updated for the first 18 weeks trading in FY22. This revealed sales down -26% year-on-year, and a reduction of -700bps in gross margin resulting from seasonal clearance activity and an adverse online sales skew.

The target price rises to $3 from $2.90 on expected sales/store growth, and Jarden estimates a double-digit EPS compound annual growth rate. The Overweight rating is maintained.

This report was issued November 19, 2021.

Target price is $3.00 Current Price is $2.61 Difference: $0.39
If AX1 meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $2.79, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 9.10 cents and EPS of 10.90 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 23.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of -24.7%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 24.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.30 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of 48.6%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 16.4.

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

BSX    BLACKSTONE MINERALS LIMITED

New Battery Elements – Overnight Price: $0.58

Shaw and Partners rates ((BSX)) as Buy (1) –

Shaw & Partners says Blackstone Minerals' recapitalisation will de-risk the balance sheet, enabling it to finance the construction and commissioning of a pilot plant for the company's TaKhoa Refinery in Vietnam, as well as exploration, feasibility assessments and working capital.

The broker says the equity raising will increase the company's negotiation power on offtake and for downstream businesses and positions it well for battery materials.

Target price rises to $2. Buy rating retained.

This report was published on November 19, 2021.

Target price is $2.00 Current Price is $0.58 Difference: $1.42
If BSX meets the Shaw and Partners target it will return approximately 245% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.62.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.60.

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: $1.57

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

While Catapult Group International's first half results were largely in line with Bell Potter's expectations, the broker noted positive operating cash flow of US$6.6m was a nice surprise.

Share-based purchase consideration and acquisition costs not accounted for in forecasts impacted underlying earnings losses, but additional income, also not forecast, somewhat offset impacts for a net loss of -US$1.6m, around US$1m ahead of broker expectation. 

The Hold rating is retained and the target price decreases to $1.75 from $2.10.

This report was published on November 19, 2021.

Target price is $1.75 Current Price is $1.57 Difference: $0.18
If CAT meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 16.55 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.48.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 15.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.40.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
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 Group International reported a 43% annual contract value increase in the first half of FY22, alongside 13% revenue growth and 10% gross profit growth, and Canaccord Genuity notes continued strong short-to-medium term annual contract growth is expected.

The broker also noted subscription and recurring revenue growth, which now accounts for 86% of group revenue, as a key strength of the period. Forecasts through to FY24 are retained, but Canaccord Genuity notes the company has positioned itself as an industry leader. 

The Buy rating and target price of $3.00 are retained. 

This report was published on November 19, 2021.

Target price is $3.00 Current Price is $1.57 Difference: $1.43
If CAT meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.51.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.74.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $2.30

Moelis rates ((COF)) as Buy (1) –

After a period of research restriction on Centuria Office REIT, Moelis returns with an unchanged Buy rating and $2.52 target price. The broker expects a recovery in the leasing market post lockdowns and notes business confidence hit all-time highs in October.

The analyst believes the earnings base is highly sustainable and management's guidance for FY22 funds from operations (FFO) and dividends of 18cpu and 16.6cpu is achievable. Moreover, the dividend yield is among the highest in the sector.

This report was published in November 22, 2021.

Target price is $2.52 Current Price is $2.30 Difference: $0.22
If COF meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $2.48, suggesting upside of 7.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 16.60 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 7.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 23.0%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.00 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 7.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 3.3%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 12.2.

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

CTT    CETTIRE LIMITED

Apparel & Footwear – Overnight Price: $3.92

Bell Potter rates ((CTT)) as Buy (1) –

Cettire's latest trading update confirmed continued strong sales momentum. Bell Potter notes in the four months to November gross revenue and sales revenue were up 184% and 172% on the previous corresponding period respectively.

The company also revealed a direct brand partnership with Staff International for direct integration of licensed brand portfolio products. Sales growth drivers include further direct partnerships, as well as leveraging the Klarna partnership and range expansion. 

Sales forecasts are upgraded 12%, 29% and 32% through to FY24.

The Buy rating is retained and the target price increases to $5.00 from $3.10.

This report was published on November 19, 2021.

Target price is $5.00 Current Price is $3.92 Difference: $1.08
If CTT meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 653.33.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 980.00.

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

CWN    CROWN RESORTS LIMITED

Gaming – Overnight Price: $11.30

Jarden rates ((CWN)) as Downgrade to Neutral from Buy (3) –

Following a proposal from Blackstone to acquire Crown Resorts, Jarden lowers its rating to Neutral from Overweight on valuation grounds.

The downgrade comes after the target was lifted to $12.10 from $10.89 to reflect a 70:30 spilt between the $12.50 bid price and the analyst's valuation.

The broker feels the current share price discount captures the risk of the bid not being finalised or revised down.

This report was published on November 16, 2021.

Target price is $12.10 Current Price is $11.30 Difference: $0.8
If CWN meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $11.73, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.00 cents and EPS of minus 12.90 cents.
At the last closing share price the estimated dividend yield is 0.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.1, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 40.00 cents and EPS of 39.50 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.8, implying annual growth of N/A.
Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 27.7.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DDH    DDH1 LIMITED

Mining Sector Contracting – Overnight Price: $1.14

Bell Potter rates ((DDH)) as Buy (1) –

Following details of DDH1's 1Q operating metrics, Bell Potter estimates utilisation and revenue per rig are tracking ahead of expectations. However, supply chain issues and WA labour costs are thought to be suppressing the revenue benefits.

Ultimately, the analyst expects strong earnings growth into FY23 and a possible upgrade cycle as pandemic pressures ease in 2022. The broker also sees around 10-30cps upside on completion of the Swick mining Services ((SWK)) acquisition in January 2022.

The Buy rating is retained and the target price rises to $1.52 from $1.48.

This report was published on November 22, 2021.

Target price is $1.52 Current Price is $1.14 Difference: $0.38
If DDH meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.40 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 3.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.12.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.00 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.97.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.03

Bell Potter rates ((EHL)) as Buy (1) –

Emeco Holdings has reiterated its outlook for FY22, which Bell Potter notes guides to a marginally softer-than-expected first half outlook but strong growth across all segments in the second half. 

The broker explains tight WA labour markets and slow recovery in east coast rentals are driving the first half outlook. Positively, expect rental utilisation rates to approach pre-covid levels exiting FY22 and potential rental rate increases in 2022, offering forecast upside. 

The Buy rating and target price of $1.55 are retained. 

This report was published on November 19, 2021.

Target price is $1.55 Current Price is $1.03 Difference: $0.52
If EHL meets the Bell Potter target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.60 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.05.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.40 cents and EPS of 16.80 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.13.

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

---

Canaccord Genuity rates ((EHL)) as Buy (1) –

First half results proved in line with Canaccord Genuity's expectations and reiterated full-year guidance from Emeco Holdings, but commentary suggests continuing momentum and early positive signs for FY23 may drive potential longer-term upside. 

Operations are largely second half weighted and the company continues to benefit from a strong market position and demand boosted by commodity pricing. 

The broker estimates FY23 underlying earnings of $275m, but notes commentary seems to suggest potential upside. The Buy rating and target price of $1.51 are retained. 

This report was published on November 18, 2021.

Target price is $1.51 Current Price is $1.03 Difference: $0.48
If EHL meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.10 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.52.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 4.60 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.78.

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

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $5.30

Shaw and Partners rates ((ELO)) as Buy (1) –

Elmo Software has extended its loan facility with the Commonwealth Bank and converted the cash portion of the Webecpenses earn-out to equity.

Shaw and Partners views these developments positively, saying it allows investors' focus to shift to fundamentals rather than funding the company to break-even.

Buy rating and $8.50 target price retained.

This report was published on November 19, 2021.

Target price is $8.50 Current Price is $5.30 Difference: $3.2
If ELO meets the Shaw and Partners target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 50.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.54.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 35.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.85.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $4.04

Shaw and Partners rates ((EVN)) as Buy (1) –

Evolution Mining has made a -$1bn acquisition of its joint venture partner's stake in the Ernest Henry mine. Shaw and Partners believes this will lower all-in sustaining costs (AISC) and make the company one of the lowest cost gold producers in the world.

The analyst expects the transaction to be EPS, cash flow and net present value accretive. The acquisition will be funded via existing cash and a US$200m private placement in the US. Overall, the deal is thought to represent overwhelmingly compelling value.

The Buy rating and $4.70 target price are unchanged.

This report was published on November 22, 2021.

Target price is $4.70 Current Price is $4.04 Difference: $0.66
If EVN meets the Shaw and Partners target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $4.37, suggesting upside of 8.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 12.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -10.4%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 17.00 cents and EPS of 24.10 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.1, implying annual growth of 44.2%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 15.5.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $6.53

Jarden rates ((FBU)) as Neutral (3) –

The New Zealand Government intends to require the Commerce Commission to undertake a market study into residential building supplies. While Jarden feels no rational change to the industry is likely,  there's increased risk until the review is completed.

The broker retains its NZ$7.23 target price and Neutral rating.

This report was published on November 22, 2021.

Current Price is $6.53. Target price not assessed.
Current consensus price target is $8.40, suggesting upside of 28.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 28.23 cents and EPS of 44.78 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.6, implying annual growth of N/A.
Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY23:

Current consensus EPS estimate is 51.1, implying annual growth of 5.1%.
Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JDO    JUDO CAPITAL HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $2.26

Goldman Sachs rates ((JDO)) as Initiation of coverage with Neutral (3) –

Goldman Sachs initiates coverage on Judo Bank with a Neutral rating and $2.46 target price. The sole focus is to lend to small and medium enterprises (SME), while capital and treasury capabilities are thought to provide funding flexibility and scalability for growth.

Management sees its loan book growing to $15-20bn over time, and the analyst forecasts the business can reache steady profitability by FY25. Straightforward products delivered by tenured relationship bankers is considered a strength.

This report was published on November 23, 2021.

Target price is $2.46 Current Price is $2.26 Difference: $0.2
If JDO meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.11.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $7.29

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

Johns Lyng Group reaffirmed FY22 guidance at its AGM. Management noted a “very positive” start to FY22 and strong levels of work in hand that “promises to deliver well in FY22”.

The analyst sees ongoing favourable operating conditions and notes, from an insurance angle, the bureau of meteorology forecasts for a La Nina Alert, with potential flooding in the eastern states. Moreover, there's considered scope for accretive scrip-based acquisitions.

The target price increases to $6.60 from $5.80 and the Hold rating is unchanged.

This report was published on November 22, 2021.

Target price is $6.60 Current Price is $7.29 Difference: minus $0.69 (current price is over target).
If JLG meets the Bell Potter target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 11.70 cents.
At the last closing share price the estimated dividend yield is 0.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.31.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.10 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.75.

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

LGL    LYNCH GROUP HOLDING LIMITED

Agriculture – Overnight Price: $3.27

Jarden rates ((LGL)) as Buy (1) –

Jarden's key takeaway from commentary at Lynch Group Holdings' AGM concerns a potential momentum acceleration in China. The broker highlights new customers such as Walmart (with around 300 stores) are keen to expand.

Meanwhile in Australia, management believes customers won over during covid are being retained, with floral penetration increasing in supermarkets. No formal guidance was provided. 

Jarden maintains its Buy rating and $5.10 target price.

This report was published on November 18, 2021.

Target price is $5.10 Current Price is $3.27 Difference: $1.83
If LGL meets the Jarden target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 17.22 cents and EPS of 36.02 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.08.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 38.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.40.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MVF    MONASH IVF GROUP LIMITED

Healthcare services – Overnight Price: $0.93

Shaw and Partners rates ((MVF)) as Buy (1) –

Shaw and Partners assesses a strong AGM trading update, with assisted reproductive services (ARS) volumes ahead of the broker's forecast. Operating profit guidance for the 1H was a 3% beat versus the analyst's expectation. 

The broker likes the performance given disruptions from covid and despite greenfield investments, which typically weigh upon earnings. Management expects earnings and revenues will grow in the 2H22.

The broker maintains its Buy rating and $1.27 target price.

This report was published on November 22, 2021.

Target price is $1.27 Current Price is $0.93 Difference: $0.34
If MVF meets the Shaw and Partners target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $1.11, suggesting upside of 19.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 4.50 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.3, implying annual growth of -17.8%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 4.90 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 5.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.6, implying annual growth of 5.7%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.6.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.57

Canaccord Genuity rates ((NAN)) as Buy (1) –

Nanonsonics' AGM trading update reveals margin pressure arising from the sales mix, despite the company maintaining guidance.

Revenue rose in the September quarter, as did the number of installed units. Nanosonics reiterated the Endoscope launch is under review.

The broker increases estimates for operational expenditure, which combined with margin calculations and changes to FX assumptions, yields a -23.4% cut in earnings forecasts.

Canaccord Genuity lowers its target price to $7.42 from $7.66. Buy rating retained.

This report was published on November 22, 2021.

Target price is $7.42 Current Price is $5.57 Difference: $1.85
If NAN meets the Canaccord Genuity target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $6.12, suggesting upside of 9.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 174.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of 43.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 135.9.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 132.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of 63.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 83.1.

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

NWC    NEW WORLD RESOURCES LIMITED

Mining – Overnight Price: $0.08

Canaccord Genuity rates ((NWC)) as Buy (1) –

New World Resources has published a maiden JORC resource for the Arizona Antler Copper project – the highest grade undeveloped copper project on the ASX, notes Cannacord Genuity, and second copper deposit only to Sandfire Resources' ((SFR)) De Grussa.

The broker uses progress at De Grussa as a guide to expectations from Antler Copper. Cannacord also views the maiden resource as just an interim estimate given exploration continues.

Speculative Buy rating and $0.30 price target retained.

This report was published on November 22, 2021.

Target price is $0.30 Current Price is $0.08 Difference: $0.22
If NWC meets the Canaccord Genuity target it will return approximately 275% (excluding dividends, fees and charges).

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $3.63

Jarden rates ((RDY)) as Initiation of coverage with Overweight (2) –

Jarden initiates coverage on ReadyTech Holdings with an Overweight rating and $4.63 target price. The leading provider of education, employment, as well as government and justice software in Australia is considered to have solid long-term growth characteristics.

Effectively, the company is a people management software company. The analyst estimates a five year compound annual growth rate (CAGR) for revenue and EPS of 19% and 17%. It's thought growth should be mostly organic, coupled with M&A in key verticals.

Among risks, Jarden includes adverse regulation that could impact client IT budgets and increased competition from larger scale operators.

This report was published on November 22, 2021.

Target price is $4.63 Current Price is $3.63 Difference: $1
If RDY meets the Jarden target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 13.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.29.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 15.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.42.

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

SDV    SCIDEV LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.59

Canaccord Genuity rates ((SDV)) as Buy (1) –

Cannacord expects SciDev will end 2021 with renewed growth, despite a covid hit to the September quarter, and says the company is well positioned to pursue its strong pipeline of opportunities after its recent capital raising.

The company is an ESG water play, focusing on solutions to improve water sustainability for heavy industry with a largely recurring revenue base.

The broker notes the company is already profitable and growing exceptionally fast, and is building out its supply chain which should boost margins.

But the covid hit was more severe than the broker expected, and combined with the placement dilution, triggers a cut in the target price to $1.01 from $1.36. 

Buy rating retained in a nod to the huge environmental tailwinds in the industry.

This report was published on November 22, 2021.

Target price is $1.36 Current Price is $0.59 Difference: $0.77
If SDV meets the Canaccord Genuity target it will return approximately 131% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 147.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.05.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $11.94

Jarden rates ((TWE)) as Neutral (3) –

Jarden lifts FY23 EPS estimates by 5% for Treasury Wine Estates and feels two announcements point to a stronger position in the Americas. They were the acquisition of Franks Family Vineyard for -$432m, and the raising of $300m from commercial divestments.

For a number of reasons, including low expectations, the broker is becoming more positive on the company's outlook. The company is also considered set to benefit from the global reopening and a return of higher margin channels. 

The Neutral rating is unchanged and the target price rises to $11.60 from $10.80.

This report was published on November 18, 2021.

Target price is $11.60 Current Price is $11.94 Difference: minus $0.34 (current price is over target).
If TWE 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 $12.57, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 30.00 cents and EPS of 45.80 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.9, implying annual growth of 26.7%.
Current consensus DPS estimate is 28.4, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 27.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.6, implying annual growth of 22.1%.
Current consensus DPS estimate is 34.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 22.3.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $51.71

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

WiseTech Global reiterated guidance at its AGM. Bell Potter highlights commentary around the digital transformation, which has required logistics providers to fast-track integrated software such as CargoWise.

Management expects supply chain disruption, capacity constraints and new covid-19 strains in key markets will continue to impact. The broker is already at the upper-end of the FY22 revenue guidance range and makes no changes to forecasts.

However, Bell Potter's target price rises to $56.25 from $47.50 after adjusting for market movements and time creep. Moreover, the relative valuation has now attracted a greater premium, and the weighted average cost of capital (WACC) applied has decreased.

This report was published on November 22, 2021.

Target price is $56.25 Current Price is $51.71 Difference: $4.54
If WTC meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $39.13, suggesting downside of -24.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.10 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 0.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.9, implying annual growth of 41.0%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 110.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.60 cents and EPS of 61.30 cents.
At the last closing share price the estimated dividend yield is 0.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.4, implying annual growth of 41.6%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 77.9.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms