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

This story features AI-MEDIA TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: AIM

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)

AIM   CDP   DDH   ECF   ENN   EOS   IMM   LME   OLL   PCK   PTM   QAN   RHC   TAH   TSI   WAF  

AIM    AI-MEDIA TECHNOLOGIES LIMITED

Commercial Services & Supplies – Overnight Price: $0.59

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

Bell Potter has transferred coverage of Ai-Media Technologies to another analyst, resulting in broad changes.

Ai-Media's December first-half result appears to have pleased the broker but guidance was subdued and the broker upgrades operating expenditure assumptions to account for sales and marketing spend. Bell Potter sharply downgrades FY22-FY24 earnings (EBITDA) forecasts -93%, -66% and -55%. 

The broker remains positive about the company's prospects and admires its positioning relative to global structural changes, such as: increased media consumption and regulation for localised content; the scalability of the company's iCap network; and Ai-Media's transition from its service-focused legacy business towards software as a service (SAAS) products.

Buy rating retained but the target price falls to 90c from $1.50.

This report was published on March 8, 2022.

Target price is $0.90 Current Price is $0.59 Difference: $0.31
If AIM meets the Bell Potter target it will return approximately 53% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.07.

Forecast for FY23:

Bell Potter forecasts a full year FY23 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 65.56.

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

CDP    CARINDALE PROPERTY TRUST

REITs – Overnight Price: $4.55

Moelis rates ((CDP)) as Buy (1) –

Moelis notes Carindale Property Trust continues to demonstrate improvement, with the company reporting funds from operations of $12.9m in the first half. Annual retails sales up 6.0% on 2020 levels and in-line with pre-covid results from FY18 and FY19. 

The broker notes the company appears to have sustained minimal impact from covid in the first half, and no impact is anticipated moving forward. Moelis considers Carindale Property Trust a standout investment opportunity at its current valuation. 

The Buy rating is retained and the target price increases to $6.21 from $5.58.

This report was published on March 7, 2022.

Target price is $6.21 Current Price is $4.55 Difference: $1.66
If CDP meets the Moelis target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 25.00 cents and EPS of 37.20 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.23.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 26.00 cents and EPS of 38.10 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.94.

Market Sentiment: 1.0
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: $1.02

Moelis rates ((DDH)) as Buy (1) –

Moelis reinstates its coverage of DDH1 noting the company delivered a solid first half outcome given a challenging supply and labour environment. Earnings of $42.8m were up 27% on the previous comparable period despite a direct -$3m covid impact. 

The Swick Mining Services acquisition, completed in February, offers DDH1 access to 72 rigs and 625 skilled labourers, with the broker suggesting this is a sizeable advantage in the constrained labour market. Moelis expects acquisition synergies and favourable market conditions to drive strong growth.

Moelis reinstates coverage with a Buy rating and a target price of $1.89.

This report was published on March 6, 2022.

Target price is $1.89 Current Price is $1.02 Difference: $0.87
If DDH meets the Moelis target it will return approximately 85% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.00 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 4.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.19.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 6.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.85.

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

ECF    ELANOR COMMERCIAL PROPERTY FUND

REITs – Overnight Price: $1.08

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

Following 1H results for Elanor Commercial Property Fund, Shaw and Partners likes the positive performance of the portfolio, value-add
opportunities and the fund's relative valuation.

The current capitalisation rate also offers the potential for further valuation uplift, according to the broker.

Management reaffirmed FY22 funds from operations (FFO) guidance of 10.8cps and distribution guidance of 9.4cps.

The Buy rating and $1.35 target are retained.

This report was published on March 8, 2022.

Target price is $1.35 Current Price is $1.08 Difference: $0.27
If ECF meets the Shaw and Partners target it will return approximately 25% (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 9.40 cents and EPS of 10.80 cents.
At the last closing share price the estimated dividend yield is 8.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 9.70 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 8.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.73.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $2.05

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

Shaw and Partners sees an ever-improving growth outlook for the ‘active’ real estate fund manager Elanor Investors Group and raises its target price to $2.90 from $2.70. Buy.

At 1H results, the group outlined plans to potentially grow gross funds under management (FUM) by $1bn per year. This compares to the current FUM of circa $2.5bn. Given management's strong track record, the broker believes the target is achievable.

The analyst expects a strong 2H recovery in income from the Hotel Fund and/or further transaction income.

This report was published on March 8, 2022.

Target price is $2.90 Current Price is $2.05 Difference: $0.85
If ENN meets the Shaw and Partners target it will return approximately 41% (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 17.30 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 8.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.77.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 16.70 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 8.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.08.

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

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $1.65

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

Electro Optic Systems Holdings full year result was largely in line with Canaccord Genuity's forecasts with revenue of $212m up 18% on the previous comparable period.

Spending for the SpaceLink project reached $37m in FY21, including $16m in capital expenditure, and the company has guided to a $24m spend in the coming year. Selection and contract awards for satellites are expected in April, and could be a material catalyst, the broker suggests.

Share price decline following results release was likely an impact of withheld financial guidance for the coming year and Canaccord Genuity expects guidance will be provided following improved clarity of contract awards and expenditure. 

The Speculative Buy rating is retained and the target price decreases to $3.50 from $6.30.

This report was published on March 1, 2022.

Target price is $3.50 Current Price is $1.65 Difference: $1.85
If EOS meets the Canaccord Genuity target it will return approximately 112% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 27.50.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.36

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

Bell Potter has transferred coverage of Immutep to a new analyst, resulting in broad changes.

The broker admires the company's track record of developing partnerships in trials and and gaining commercial deals with top-tier pharmaceutical companies; and its progress on clinical trials, believing it has some "well-placed starting blocks".

Speculative Buy rating retained. Target price falls to 60c from $1.00.

This report was published on March 8, 2022.

Target price is $0.60 Current Price is $0.36 Difference: $0.24
If IMM meets the Bell Potter target it will return approximately 67% (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 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.78.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.59.

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

LME    LIMEADE, INC

Cloud services – Overnight Price: $0.36

Shaw and Partners rates ((LME)) as Initiation of coverage with Buy (1) –

Shaw and Partners believes not a lot has to go right for investors to double their money on an investment in Limeade, given low current multiples.

The broker initiates coverage on the provider of software (for immersive employee well-being and engagement) with a Buy rating and $0.70 target.

The company, which has enterprise customers in North America, Europe and the APAC region, is an important ecosystem partner in Microsoft's “well-being” offering, according to the analyst.

Shaw notes the TINYpulse acquisition (July 2021) is performing strongly and above expectations.

This report was published on March 8, 2022.

Target price is $0.70 Current Price is $0.36 Difference: $0.34
If LME meets the Shaw and Partners target it will return approximately 94% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.67 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.35.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.61.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OLL    OPENLEARNING LIMITED

Education & Tuition – Overnight Price: $0.08

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

Canaccord Genuity notes OpenLearning ended FY21 on a soft note, with enrolments for the University of New South Wales' September and November Transition Programs disappointing expectations. Platform revenue for the year grew 170%, gross sales grew 45%. 

Costs increased to -$8.3m from -$6.8m in the previous year, but included -$2.1m for growth initiative investment. Expect program enrolments to increase in the coming year as the international student market normalises and demand for tertiary education services increases. 

The Speculative Buy rating is retained and the target price decreases to $0.26 from $0.36.

This report was published on March 1, 2022.

Target price is $0.26 Current Price is $0.08 Difference: $0.18
If OLL meets the Canaccord Genuity target it will return approximately 225% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.67.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.00.

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

PCK    PAINCHEK LIMITED

Medical Equipment & Devices – Overnight Price: $0.04

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

PainChek continues to target a completion of contracted bed migration by the end of June, with more than half of contracted beds now onboarded. Canaccord Genuity notes covid continues to impact on this process and expects the company will miss the target date. 

Annual recurring revenue for onboarded beds grew 19% to $3.1m. The broker expects projected annual recurring revenue to differ from actual results on a delayed project timeline. Expect more clarity on revenue base and growth momentum at the end of FY22. 

The Speculative Buy rating is retained and the target price decreases to $0.14 from $0.24. 

This report was published on March 1, 2022.

Target price is $0.14 Current Price is $0.04 Difference: $0.1
If PCK meets the Canaccord Genuity target it will return approximately 250% (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 minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $2.09

Bell Potter rates ((PTM)) as Sell (5) –

Platinum Asset Management's December first-half result missed consensus, and the company's recent monthly funds under management (FUM) outflows only slightly disappointed Bell Potter.

But the broker takes the opportunity to mark to market and cuts FY22 FUM forecasts -6.2%

Earnings (EBITDA) forecasts fall -3.2% in FY22, -9.8% in FY23 and -11.1% for FY24.

The broker upgrades to Hold from Sell. Target price falls to $1.90 from $2.08.

This report was published on March 8, 2022.

Target price is $1.90 Current Price is $2.09 Difference: minus $0.19 (current price is over target).
If PTM meets the Bell Potter target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.52, suggesting upside of 18.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 20.00 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 9.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of -23.3%.
Current consensus DPS estimate is 20.3, implying a prospective dividend yield of 9.6%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 17.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 8.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.4, implying annual growth of -5.6%.
Current consensus DPS estimate is 19.7, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 10.4.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $4.52

Jarden rates ((QAN)) as Buy (1) –

Jarden looks past persisting covid pressures to consider Qantas Airways' international recovery as the airline looks to ramp up capacity. High fuel costs are a major risk to earnings potential, with Jarden assuming a conservative 36% fuel cost increase in FY23.  

The airline could benefit from a 44% seat share gain in travel to North America following the exit of Virgin from international operations, and has potential to capture further demand in Europe with non-stop flights while Asian regions remain covid restricted. 

Compared to offshore peers, Qantas retains a strong balance sheet, effective fuel hedging program and has invested more then $400m in recover of its international division. Look for international capacity to reach 78% of FY19 levels in FY23, before exceeding in FY24. 

The Buy rating and target price of $6.20 are retained.

This report was published on March 7, 2022.

Target price is $6.20 Current Price is $4.52 Difference: $1.68
If QAN meets the Jarden target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $5.87, suggesting upside of 27.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of minus 74.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -77.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 10.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of N/A.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 12.8.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $60.60

Jarden rates ((RHC)) as Buy (1) –

Ramsay Health Care owns 52.79% of Ramsay Sante, which via a subsidiary has offered to acquire the shares of GHP Specialty Care. While the transaction would be funded from Ramsay Sante's debt, the facilities used are non-recourse to the parent, explains Jarden.

The $81.50 target and Buy rating are retained. The broker makes no changes to forecasts given the transaction has not completed and is largely immaterial.

This report was published on March 7, 2022.

Target price is $81.50 Current Price is $60.60 Difference: $20.9
If RHC meets the Jarden target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $69.68, suggesting upside of 16.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 158.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 170.3, implying annual growth of -11.8%.
Current consensus DPS estimate is 124.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 35.3.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 251.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.4, implying annual growth of 51.1%.
Current consensus DPS estimate is 157.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.3.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $4.90

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

Jarden initiates on Tabcorp Holdings ahead of the company's planned demerger of its Lotteries and Keno and Wagering and Gaming businesses in June. 

The broker finds the market valuation of the Wagering and Gaming business too heavily discounted, and believes Tabcorp Holdings is not receiving its share of sports, exotic and micro-betting turnover. Renegotiation of state licenses could help reverse poor trends. 

The broker initiates with an Overweight rating and a target price of $5.75.

This report was published on March 7, 2022.

Target price is $5.75 Current Price is $4.90 Difference: $0.85
If TAH meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $5.79, suggesting upside of 17.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 14.00 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.1, implying annual growth of 38.8%.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 28.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 15.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of 24.0%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 23.3.

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

TSI    TOP SHELF INTERNATIONAL HOLDINGS LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.54

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

The onboarding of Coles Group ((COL)) as a distributor from March offers Top Shelf International a wide platform to sell the more than 550,000 litres of whisky coming to maturation in the next year. Canaccord Genuity notes the partnership derisks operations. 

Coles Group will stock NED and Grainshaker brand products at 806 and 815 locations respectively, and the broker sees potential for both whisky and vodka sales growth to benefit.

Largely preannounced first half results included revenue growth of 57% on the previous comparable period and an earnings loss of -$6.8m given investment. 

The Speculative Buy rating is retained and the target price decreases to $2.44 from $2.51. 

This report was published on February 28, 2022.

Target price is $2.44 Current Price is $1.54 Difference: $0.9
If TSI meets the Canaccord Genuity target it will return approximately 58% (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 minus 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.40.

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

WAF    WEST AFRICAN RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.23

Shaw and Partners rates ((WAF)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on West African Resources.The company holds 90% each of the Sanbrado gold project and the recently acquired Kiaka gold project, with Sanbrado providing a stable financial platform for operations and growth.

Kiaka, one of a few fully permitted gold projects in West Africa, offers production growth and price leverage over a more than 15 year mine life. The broker expects West African Resources can deliver shareholder value with Kiaka given a record of operational execution. 

The company is targeting gold production of 400,000 ounces per annum by 2025

The broker initiates with a Buy rating and a target price of $1.47.

This report was published on March 7, 2022.

Target price is $1.47 Current Price is $1.23 Difference: $0.24
If WAF meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 26.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.68.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 20.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.12.

Market Sentiment: 1.0
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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