Australian Broker Call *Extra* Edition – Nov 14, 2022

Daily Market Reports | 11:16 AM

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)

5GG   AMC   CIP   CLU   GOZ   IGO   JDO   LRK   OBL   ORG   PMV   PXA   RMD   SPL   TPG  

5GG    PENTANET LIMITED

Telecommunication – Overnight Price: $0.29

Bell Potter rates ((5GG)) as Speculative Buy (1) –

Bell Potter lowers its target for Pentanet to 44c from 48c following a relatively flat 1Q update, impacted by a slower subscription uptake as the network performance was interrupted for the neXus rollout.

The company is attempting to bring a world-first mesh network to market, the broker comments.

The broker still assumes a successfully-scaled rollout for that network and cloud gaming services, and maintains its Speculative Buy rating. 

The analyst points to an improvement in operating cash outflows improving to -$1.0m (from -$1.9m in the 4Q of FY22), following a cut back in corporate and staff costs.

This report was published on November 1, 2022.

Target price is $0.44 Current Price is $0.29 Difference: $0.15
If 5GG meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 11.15.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 18.13.

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

AMC    AMCOR PLC

Paper & Packaging – Overnight Price: $17.37

Jarden rates ((AMC)) as Downgrade to Underweight from Neutral (4) –

Jarden cuts its earnings per share forecasts for Amcor on concerns that price and volume expectations may prove unrealistic. The broker’s assumptions decline -2.7% and -3.4% respectively for FY23 and FY24. 

Despite sings of improving materials availability and a deteriorating volume environment, Amcor continues its inventory build and expects non-material price increases can continue through FY23. Jarden remains cautious that this could see guidance prove ambitious by the third quarter. 

The rating is downgraded to Underweight from Neutral and the target price decreased to $17.05 from $17.50.

This report was published on November 3, 2022.

Target price is $17.05 Current Price is $17.37 Difference: minus $0.32 (current price is over target).
If AMC meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $18.05, suggesting upside of 2.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 67.60 cents and EPS of 111.24 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 118.6, implying annual growth of N/A.
Current consensus DPS estimate is 72.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 70.17 cents and EPS of 118.51 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 122.5, implying annual growth of 3.3%.
Current consensus DPS estimate is 74.1, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 14.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $2.93

Moelis rates ((CIP)) as Buy (1) –

Centuria Industrial REIT’s September-quarter appears to have met Moelis’ forecasts and the broker says strength in re-leasing spreads evidences continued market strength, as does limited supply and strong demand.

Buy rating retained. Target price falls to $3.69 from $3.88 to reflect cap-rate expansion.

This report was published on October 31, 2022.

Target price is $3.69 Current Price is $2.93 Difference: $0.76
If CIP meets the Moelis target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.32, suggesting upside of 8.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of -72.0%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 16.10 cents and EPS of 17.50 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 16.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 1.2%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 18.0.

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

CLU    CLUEY LIMITED

Education & Tuition – Overnight Price: $0.51

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

A solid first quarter from Cluey, according to Bell Potter, with revenue up 52% on the previous comparable period to $12.0m, student sessions up 42% to a record 175,000, and new students up 52% to 11,300. 

The company remains focused on conserving cash and reaching profitability, and Bell Potter assumes less investment in growth levers moving forward, likely resulting in slower new student and session growth. 

The Buy rating is retained and the target price decreases to $0.90 rom $1.10.

This report was published on November 2, 2022.

Target price is $0.90 Current Price is $0.51 Difference: $0.395
If CLU meets the Bell Potter target it will return approximately 78% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 11.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 4.51.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 10.98.

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