Australian Broker Call *Extra* Edition – July 6, 2022

0

Daily Market Reports | 1:15 p.m.

Additional reporting on changes in recommendation, valuation, forecast and opinion for stocks listed on the ASX.

In addition to The Australian Broker Call Report, which is published and updated daily (Monday to Friday), FNArena has now added The Australian Broker Call *Extra* Edition, with additional sources of research and listed stock information on the ASX, also expanding the number of stocks that make up the FNArena universe.

A key difference is that the *Extra* edition will not be updated daily, but simply “regularly” based on the availability of appropriate quality content. As such, the *Extra* edition attempts to bridge the gap between daily updates via the Australian broker’s call report and ad-hoc news, which is not always timely for investors eager for the next information update.

Investors using the *Extra* edition as a source of data for their own market research should therefore take into account that information after publication may not be up to date, or wait for a further update by the team of FNArena journalists.

Similar to The Australian Broker Call Report, this *Extra* edition includes concise but limited reviews of recently published research by stock brokers and other experts, which should be viewed as information regarding likely market behavior rather than advice on the titles 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 from identified sources. Readers should check the full text of the recommendations and consult with a licensed adviser before making any investment decision.

The copyright of this report belongs to the publisher. Readers will not copy, transmit or distribute this report to anyone else. For more vital information on the sources included, see the bottom of this report.

COMPANIES MENTIONED IN THIS ISSUE

Click on a symbol for quick access.
The number next to the symbol represents the number of brokers covering it for this report – (if more than 1)

ALL CCX DGL FBU FFX A INA MGH NST OPY SLA SUN WGO

SLA SILK LASER AUSTRALIA LIMITED

Health Services – Overnight Price: $2.09

Shaw and Partners Rates ((SLA)) as Cover Initiation with Purchase (1) –

Shaw and Partners is launching coverage on Silk Laser Australia, one of Australia’s largest non-surgical aesthetic networks with 121 clinics and over 414,000 active clients.

The broker notes in its last trading update in May, the company made annual profits in excess of $20 million. Compared to revenues of $6.2 million across 52 clinics in fiscal year 2020, Shaw and Partners points out that average revenues per clinic increased from $119,000 to $165,000.

Among a number of key growth drivers for the business, Shaw and Partners expects Silk Laser Australia to benefit from the “lipstick effect” in the inflationary environment, which sees consumers willing to spend for low-cost luxury goods during economic downturns.

The broker initiates with a buy quote and a target price of $2.80.

This report was published on July 4, 2022.

The target price is $2.80 The current price is $2.09 Difference: $0.71
Whether ALS achieves the Shaw and Partners goal, it will earn approximately 34% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY22:

Shaw and Partners expects a full year EX22 dividend of 0.00 cents and EPS of 3:70 p.m. cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 1:31 p.m..

Forecast for FY23:

Shaw and Partners expects a full year EX23 dividend of 0.00 cents and EPS of 9:20 p.m. cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 9.86.

Market Sentiment: 0.5
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

SUN SUNCORP GROUP LIMITED

Insurance – Overnight Price: $10.81

Jarden rates ((SUN)) as overweight (2) –

Suncorp Group continues to move towards a 10%-12% Group Underlying Margin in FY23 on the back of higher bond yields. Jarden expects premium rate momentum to pick up, offsetting rising reinsurance costs and rising catastrophe budgets.

The FY22 disaster forecast is unchanged at $1.1 billion, but the company’s FY23 budget is $50 million to $100 million higher than forecast, and the company has no more disclosed reinsurance costs, notes the broker.

EPS forecast drops -1.9% for FY22 and -2.2% for FY23. The target price drops to $12.60 from $13. Note of overweight retained.

This report was published on July 4, 2022.

The target price is $12.60 The current price is $10.81 Difference: $1.79
Whether SUN reaches Jarden’s goal, he will return approximately 17% (excluding dividends, fees and charges).
The current consensus price target is $13.49suggesting the reverse of 24.6%(excluding dividends)
The company’s fiscal year ends in June.

Forecast for FY22:

Jarden plans a full year EX22 dividend of 55.00 cents and EPS of 64.50 cents.
At the last closing price, the estimated dividend yield is 5.09%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 16.76.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 65.5which implies an annual growth of -19.0%.
The current DPS consensus estimate is 56.4implying a prospective dividend yield of 5.2%.
The current consensus estimate of EPS suggests that PER is 16.5.

Forecast for FY23:

Jarden plans a full year EX23 dividend of 78.00 cents and EPS of 91.30 cents.
At the last closing price, the estimated dividend yield is 7.22%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 11.84.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 88.4which implies an annual growth of 35.0%.
The current DPS consensus estimate is 69.6implying a prospective dividend yield of 6.4%.
The current consensus estimate of EPS suggests that PER is 12.3.

Market Sentiment: 0.7
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

WGO WARREGO ENERGY LIMITED

Nat Gas – Night price: $0.13

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

Warrego Energy reports that the West Erregulla 3 project has been deepened, revealing a 60m gross gas column in the Kingia sandstone, and no gas-water contact.

That said, the broker is concerned about the project’s upside reserve.

Holding rating and target price of 22c retained.

This report was published on July 4, 2022.

The target price is $0.22 The current price is $0.13 Difference: $0.09
Whether WGO reaches the Canaccord Genuity target, it will earn approximately 69% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity plans a full year EX22 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is minus 26.00.

Forecast for FY23:

Canaccord Genuity plans a full year EX23 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is minus 21.67.

All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources


The full story is for FNArena subscribers only. To read the full story and enjoy a two week free trial to our service REGISTER HERE

If you’ve already had your free trial, why not sign up as a paid subscriber? CLICK HERE

Share.

About Author

Comments are closed.