Australian Broker Call *Extra* Edition – Jan 19, 2022

This story features CITY CHIC COLLECTIVE LIMITED, and other companies. For more info SHARE ANALYSIS: CCX

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)

ANP   CCX (2)   CEL   CIP   FFX   GDG   HUB   PDL   PPS   RVR  

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.18

Wilsons rates ((ANP)) as Overweight (1) –

Wilsons is predicting a FY26 Europe launch for Antisense Therapeutics' ATL1102 treatment following a final positive opinion on its Phase 3 trial from the European Medicines Agency, leaving the under review Clinical Trial Application the final hurdle to market.

While the Phase 3 trial can proceed, the broker flags additional funding may be required to reach study completion. The company also plans to interact regularly with the FDA throughout the trial to harmonise clinical data between Europe and the US and add value. 

The Overweight rating and target price of $0.57 are retained.

This report was published on January 18, 2022.

Target price is $0.57 Current Price is $0.18 Difference: $0.39
If ANP meets the Wilsons target it will return approximately 217% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.50.

Forecast for FY23:

Wilsons 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 45.00.

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

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $5.14

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

Despite a trading update from City Chic Collective suggesting first half underlying earnings will be a slight miss on Canaccord Genuity's expectations, expected sales of $178m are well ahead with strong comparable sales across all regions.

Underlying earnings were impacted by a loss of -27% of total trading days in the half due to covid impacts, but the broker does expect some easing of these pressure in the second half.

The Buy rating is retained and the target price decreases to $7.30 from $7.50.

This report was published on January 14, 2022.

Target price is $7.30 Current Price is $5.14 Difference: $2.16
If CCX meets the Canaccord Genuity target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $6.09, suggesting upside of 18.5%(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 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.2, implying annual growth of 37.6%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 38.9.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 35.6%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 28.7.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((CCX)) as Buy (2) –

City Chic Collective delivered strong online growth in the Australia New Zealand and US regions in the second half of 2021, with Jarden noting the Australia & New Zealand region reported 40% online growth. 

The broker highlighted a weaker cash flow metric was the major concern from City Chic Collective's update, but notes this is the result of an inventory build undertaken by the company to circumvent potential supply chain issues and is a strategic investment. 

Revenue forecasts increase 5% for FY22 and FY23 each. The Overweight rating is retained and the target price increases to $6.73 from $6.72.

This report was published on January 14, 2022.

Target price is $6.73 Current Price is $5.14 Difference: $1.59
If CCX meets the Jarden target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $6.09, suggesting upside of 18.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.2, implying annual growth of 37.6%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 38.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 7.00 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 35.6%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 28.7.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CEL    CHALLENGER EXPLORATION LIMITED

Gold & Silver – Overnight Price: $0.30

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

Challenger Exploration has reported encouraging results from the first drillhole at its El Guayabo project. Canaccord Genuity notes data suggests a potential large offering of copper and gold and silver mineralisation. 

The company has also recorded a new record for the best intercept at Hualilan, and the broker expects resource offerings at the site will meet expectations with a resource update expected in the first half. 

The Speculative Buy rating and target price of $0.60 are retained.

This report was published on January 13, 2022.

Target price is $0.60 Current Price is $0.30 Difference: $0.3
If CEL meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.90

Moelis rates ((CIP)) as Hold (3) –

Centuria Industrial REIT has acquired six assets at a price of $132.4m. Moelis notes while the acquisitions are relatively attractive given income profile or value add opportunity, the purchase leaves earnings largely unchanged and is approximately 1% annually accretive.

Notably, the acquisition includes a five unit development site in Campbellfield purchased for $37.7m, and with an estimated completion value of $104m.

The Hold rating is retained and the target price increases to $4.08 from $4.04.

This report was published on January 17, 2022.

Target price is $4.08 Current Price is $3.90 Difference: $0.18
If CIP meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.95, suggesting upside of 1.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.4, implying annual growth of -84.4%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.00 cents and EPS of 18.90 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.2, implying annual growth of 4.3%.
Current consensus DPS estimate is 18.5, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 20.3.

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

FFX    FIREFINCH LIMITED

Gold & Silver – Overnight Price: $0.74

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

Firefinch has delivered an in-line December quarter production, with the Morila mine project reported production of 11,100 ounces of gold a 2% beat on Canaccord Genuity's forecast

Looking ahead, Morila operations will transition to satellite in 2022, with the Super Pit also coming back online in the second half of the year. The broker forecasts annual production of 110,700 ounces at an all-in sustaining cost of $1,531 per ounce. 

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

This report was published on January 17, 2022.

Target price is $1.55 Current Price is $0.74 Difference: $0.81
If FFX meets the Canaccord Genuity target it will return approximately 109% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.33.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $1.52

Moelis rates ((GDG)) as Buy (1) –

Generation Development Group reported record Investment Bond inflows in the second quarter of $184m, bringing total funds under management to $2.1bn, and Moelis notes strong advisor engagement growth is in line with 25% growth in active advisors in FY21.

Given better than expected inflows the broker has increased profit after tax 8% to $4.8m, noting second quarter performance reflects step change for Generation Development Group's core investment bond business. 

The Buy rating is retained and the target price increases to $1.71 from $1.51.

This report was published on January 17, 2022.

Target price is $1.71 Current Price is $1.52 Difference: $0.19
If GDG meets the Moelis target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.00 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.46.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 2.00 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.19.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $26.85

Jarden rates ((HUB)) as Upgrade to Neutral from Underweight (3) –

A strong equity market over the second quarter of FY22 supports an upgraded outlook on Hub24 from Jarden. The broker anticipates strong near term platform net flows and inflows of $11.8bn, $11.1bn and $10.2bn for FY22, FY23 and FY24 respectively. 

Earnings per share forecasts are updated 1.5%, 2.3% and 3.6% for FY22, FY23 and FY24 on an expected increasing interest rate in later years.

The Neutral rating is retained and the target price increases to $28.85 from $27.75.

This report was published on January 8, 2022.

Target price is $28.85 Current Price is $26.85 Difference: $2
If HUB meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $34.01, suggesting upside of 26.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 19.40 cents and EPS of 42.70 cents.
At the last closing share price the estimated dividend yield is 0.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.7, implying annual growth of 235.7%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 62.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 27.20 cents and EPS of 60.20 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.8, implying annual growth of 35.4%.
Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 46.5.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $5.36

Jarden rates ((PDL)) as Buy (1) –

Pendal Group has reported December quarter outflows totaling -$6.8bn, but Jarden notes the company had already warned of -$5.1bn related to European mandates. 

While worse than expected, Jarden highlights outflows were weighted to lower margin products, and reiterates Pendal Group appears cheap compared to peers. Earnings per share estimates decrease -0.2% and -3.7% for FY22 and FY23.

The Buy rating is retained and the target price decreases to $8.70 from $9.10.

This report was published on January 14, 2022.

Target price is $8.70 Current Price is $5.36 Difference: $3.34
If PDL meets the Jarden target it will return approximately 62% (excluding dividends, fees and charges).
Current consensus price target is $7.78, suggesting upside of 45.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 22.50 cents and EPS of 56.50 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.8, implying annual growth of -0.3%.
Current consensus DPS estimate is 44.7, implying a prospective dividend yield of 8.3%.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 29.50 cents and EPS of 56.60 cents.
At the last closing share price the estimated dividend yield is 5.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.0, implying annual growth of 4.2%.
Current consensus DPS estimate is 46.8, implying a prospective dividend yield of 8.7%.
Current consensus EPS estimate suggests the PER is 9.9.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $1.43

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

A strong December quarter for Praemium has driven funds under administration to $27.2bn, a notable increase from funds under administration of $20.4bn in the same quarter in FY21 as noted by Canaccord Genuity.

The broker notes improved net inflows, which have driven funds under administration uplift, are reflective of Praemium's investment in its platform offering. Canaccord Genuity is now forecasting full year funds under administration of $28.8bn for FY22 and $32.3bn for FY23.

The Buy rating is retained and target price of $1.85 are retained.

This report was published on January 18, 2022.

Target price is $1.85 Current Price is $1.43 Difference: $0.42
If PPS meets the Canaccord Genuity target it will return approximately 29% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.67.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.67.

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

RVR    RED RIVER RESOURCES LIMITED

Industrial Metals – Overnight Price: $0.21

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

The installation of necessary ground supports at Red River Resources' Thalanga project has impacted production, driving a -42% quarter-on-quarter production decrease and a miss on Canaccord Genuity's forecast. 

Elsewhere, following cessation of mining at Hillgrove in the September quarter, the company has sold 780 ounces of remaining recovered gold, beating the broker's forecast by 51%, and plant refit is underway.

Additionally, the company reported a $9m net cash beat despite a royalty dispute settlement payment of -$19.94m paid in the quarter. Red River Resources accessed $11.1m from an available debt facility, expecting to repay -$2.8m per quarter over the next year.

The Speculative Buy rating and target price of $0.40 are retained.

This report was published on January 15, 2022.

Target price is $0.40 Current Price is $0.21 Difference: $0.19
If RVR meets the Canaccord Genuity target it will return approximately 90% (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 0.00 cents.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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

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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.

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