Brokers

Australian Broker Call *Extra* Edition – Jun 06, 2022

Daily Market Reports | 12:15 PM

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)

ADT   ALG   AMA   AND   APX (2)   BHP   BML   BUB (2)   BWX   CAT   CMM   COF   CXL   DEG   ERD   GPR   HXL   IMM   LBL   MGH   MGV   MMI   RCL   RIC   SHV (2)   SMP   SRG  

ADT    ADRIATIC METALS PLC

Gold & Silver – Overnight Price: $2.40

Canaccord Genuity rates ((ADT)) as Speculative Buy (1) –

Adriatic Metals has updated on its activities and expects to commence underground mining on the lower decline at Vares in Bosnia and work on the upper decline will start by the end of the current quarter.

While Bosnia is not directly connected to the European grid and energy costs have not yet been affected, the company is looking at more renewable opportunities to offset expected cost increases in the future.

The project is set to produce 9.2m ounces of silver equivalent for an all-in sustainable cost of US$7.77/oz over a 10-year life of mine at the Rupice deposit. Canaccord Genuity retains a Speculative Buy rating with a $4.25 target.

This report was published on May 30, 2022.

Target price is $4.25 Current Price is $2.40 Difference: $1.85
If ADT meets the Canaccord Genuity target it will return approximately 77% (excluding dividends, fees and charges).

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

ALG    ARDENT LEISURE GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.40

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

Assuming the sale of Main Event is completed and there is a $0.95 share distribution, Ardent Leisure is now expected to retain around $153m in cash.

Ultimately, Canaccord Genuity deems the theme park assets to be scarce, strategic and positioned for a strong turnaround in earnings.

The broker retains a Buy rating and raises the target to $1.71 from $1.65.

This report was published on May 31, 2022.

Target price is $1.71 Current Price is $1.40 Difference: $0.31
If ALG meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 EPS of minus 8.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 17.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 140.00.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.18

Canaccord Genuity rates ((AMA)) as Hold (3) –

AMA Group will need to navigate a challenging backdrop amid a slow recovery in repair volumes, Canaccord Genuity asserts.

Furthermore, the company has a “clearly onerous” pricing agreement for the Capital Smart repair operation which is not due for renegotiation until June 2023.

Guidance is for EBITDA in FY22 of $12-17m, FY23 of $70-90m and FY24 of $120-140m. The broker makes material (negative) changes to its estimates for FY22 and FY23 while modestly upgrading FY24. Hold rating retained. Target is reduced to $0.32 from $0.45.

This report was published on June 1, 2022.

Target price is $0.32 Current Price is $0.18 Difference: $0.14
If AMA meets the Canaccord Genuity target it will return approximately 78% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 EPS of minus 5.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 3.60.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of minus 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 18.00.

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

AND    ANSARADA GROUP LIMITED

Software & Services – Overnight Price: $1.74

Canaccord Genuity rates ((AND)) as Initiation of coverage with Buy (1) –

After moving to a subscription-based pricing model in 2018, Ansarada Group has experienced a 24% two-year subscription revenue increase that now accounts for 82% of group revenue.

Canaccord Genuity considers this a profitable, high-growth business with a strong balance sheet and initiates coverage with a Buy rating and $3 target.

Virtual  data rooms have become a necessary solution to handle the increased volume of data and complexity of transactions in a secure manner and is projected to grow to US$3.2bn by 2026.

This report was published on May 31, 2022.

Target price is $3.00 Current Price is $1.74 Difference: $1.26
If AND meets the Canaccord Genuity target it will return approximately 72% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 EPS of minus 6.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 29.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 174.00.

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


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