Australian Broker Call *Extra* Edition – Dec 07, 2023

Daily Market Reports | Dec 07 2023

An additional news report on the recommendation, valuation, forecast and opinion changes and updates 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)

BOE   CDA (2)   DRE   ERD (2)   FPH (2)   GTK   HVN   MAQ   MAY   MYX   NEU   NXD   PBH   RHC   SLC   SMR   TPW (2)  

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $5.86

Canaccord Genuity rates ((MYX)) as Hold (3) -

Mayne Pharma's October trading update was in line with Canaccord Genuity's forecasts. Consistent revenue and profit improvements across Women’s Health and Dermatology are noted, along with a clear pathway for improvement in International.

In the financial year so far, sales rose by  27.5% compared to the prior four months, and more materially when compared to the previous corresponding period. A gross margin improvement to 57% (from 49% in the 1Q) was also notable, in the broker's view.

While still early days, the required consistency to improve investor confidence is underway, and expansion of the buyback highlights to the broker management's conviction in improved underlying value.

Hold and $3.80 target retained.

This report was published on December 1, 2023.

Target price is $3.80 Current Price is $5.86 Difference: minus $2.06 (current price is over target).
If MYX meets the Canaccord Genuity target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $16.05

Wilsons rates ((NEU)) as Overweight (1) -

Wilsons highlights the importance of demonstrated clinical safety and acceptable tolerability of Neuren Pharmaceuticals' NNZ-2591 product in patients with neuro-development disorders.

The broker considers these safety and tolerance factors will be the most material de-risking point for the company in the next 12 months.

The analysts note the first (of four) Phase II studies is due in December evaluating NNZ-2591, initially in Phelan McDermid Syndrome.

The Overweight rating and target price of $22.79 are retained.

This report was published on November 29, 2023.

Target price is $22.79 Current Price is $16.05 Difference: $6.74
If NEU meets the Wilsons target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 120.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.34.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 31.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.28.

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

NXD    NEXTED GROUP LIMITED

Education & Tuition - Overnight Price: $0.70

Petra Capital rates ((NXD)) as Buy (1) -

Petra Capital believes short-term negative sentiment around NextEd Group is likely to prove transient, and maintains a belief in the company's long-term potential, based on substantial growth opportunities.

While gaining little information from the group's recent AGM, the broker was impressed by the facilities during a tour of the Pitt Street campus. The 24 classrooms were mostly full, reports the analyst.

The Buy rating and $1.00 target are unchanged.

This report was published on November 30, 2023.

Target price is $1.00 Current Price is $0.70 Difference: $0.3
If NXD meets the Petra Capital target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.82.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming - Overnight Price: $0.75

Jarden rates ((PBH)) as Buy (1) -

Following PointsBet Holdings AGM, and confirmation that its Fanatics deal is on track for completion in the third quarter, Jarden, despite no specific update from the company on a second capital, expects a return of 40 cents per share will be made after sale closure.

The company has engaged a third party to undertake a Board review to determine if corporate governance remains fit for purpose, with the intentional that findings and implemented change will accompany completion of the Fanatics sale.

The Buy rating and target price of 94 cents are retained.

This report was published on November 28, 2023.

Target price is $0.94 Current Price is $0.75 Difference: $0.19
If PBH meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.71.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.71.

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


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN