Australian Broker Call *Extra* Edition – November 1, 2022

Daily Market Reports | 11:25 a.m.

Additional reporting on the 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 an input source for their own stock market research should therefore take into account that the 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 stockbrokers 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)

ABC ALL AT1 BHP BID BIO BKW BLD BPT BTN CGS CHN COE CSR CV1 DCN EOS FWD HRL IAG JIN LBY MLD MVP NST OLL OPY ORG OVN PBH PCK PDL PPT PYG QBE RCL RVR SGR SKC SPT SUN SXY TAH TLC UBI UWL VTI WHC (2 ) WSA

ABC ADBRI LIMITED

Building Products and Services – Nightly Price: $1.57

Jarden rates ((ABC)) as Neutral (3) –

Jarden assesses Australian building materials companies noting that a number of macroeconomic headwinds such as energy and transport inflation could continue to weigh on earnings in the near term.

Jarden cuts earnings forecast (excluding property) for Adbri by -26.8% for FY22 and -22.1% for FY23, with dividend estimates lowered by -28.5% and -15, 6% over the same respective period.

The analyst also cut Adbri’s land sales and development value to $382m from $550m, with Jarden removing Batesford Quarry from projected net present value, due to delayed rezoning issues.

A neutral rating is retained and the target is lowered to $1.90.

This report was published on October 19, 2022.

The target price is $1.90 The current price is $1.57 Difference: $0.325
Whether ABC reaches Jarden’s goal, he will return approximately 21% (excluding dividends, fees and charges).
The current consensus price target is $1.55suggesting the disadvantage of -3.2%(excluding dividends)
The company’s fiscal year ends in December.

Forecast for FY22:

Jarden plans a full year EX22 dividend of 7:40 a.m. cents and EPS of 5:00 p.m. cents.
At the last closing price, the estimated dividend yield is 4.70%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 9.26.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 14.0which implies an annual growth of -21.7%.
The current DPS consensus estimate is 7.0implying a prospective dividend yield of 4.4%.
The current consensus estimate of EPS suggests that PER is 11.4.

Forecast for FY23:

Jarden plans a full year EX23 dividend of 9.70 cents and EPS of 6:20 p.m. cents.
At the last closing price, the estimated dividend yield is 6.16%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 8.65.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 16.7which implies an annual growth of 19.3%.
The current DPS consensus estimate is 8.1implying a prospective dividend yield of 5.1%.
The current consensus estimate of EPS suggests that PER is 9.6.

Market Sentiment: 0.0
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

EVERYTHING Aristocrat Leisure Limited

Game – Night Price: $36.31

Goldman Sachs rate ((ALL)) as Buy (1) –

Goldman Sachs’ most preferred sub-segment for domestic gambling is lotteries, followed by casinos, with betting being the least preferred.

Lotteries are the least elastic in consumer discretionary spending, due to a low ticket price and high return opportunity, the analyst says.

The broker believes that Aristocrat Leisure offers the most diverse growth opportunity among its research coverage and maintains its buy rating. The target is set at $42.50, down from $43.00 previously.

The company holds one of the top three spots in US slot machine sales, has a strong digital game offering, and is in the early stages of its planned entry into the US iGaming market. United, says Goldman Sachs.

This report was published on October 14, 2022.

The target price is $42.50 The current price is $36.31 Difference: $6.19
Whether EVERYTHING reached the Goldman Sachs target, it will return approximately 17% (excluding dividends, fees and charges).
The current consensus price target is $42.71suggesting the reverse of 17.6%(excluding dividends)
The company’s fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year EX22 dividend of 64.00 cents and EPS of 178.10 cents.
At the last closing price, the estimated dividend yield is 1.76%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 8:39 p.m..

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 163.2which implies an annual growth of 27.4%.
The current DPS consensus estimate is 58.5implying a prospective dividend yield of 1.6%.
The current consensus estimate of EPS suggests that PER is 22.2.

Forecast for FY23:

Goldman Sachs forecasts a full year AF23 dividend of 75.00 cents and EPS of 190.20 cents.
At the last closing price, the estimated dividend yield is 2.07%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 19.09.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 186.7which implies an annual growth of 14.4%.
The current DPS consensus estimate is 70.9implying a prospective dividend yield of 2.0%.
The current consensus estimate of EPS suggests that PER is 19.4.

Market Sentiment: 1.0
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources

At 1 ATOMO DIAGNOSTICS LIMITED

Medical equipment and devices – Nightly price: $0.06

Canaccord Genuity – Termination of Coverage

This report was published on October 14, 2022.

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

BHP BHP GROUP LIMITED

Bulk – Overnight Price: $37.36

Shaw and Partners ((BHP)) tariffs on purchase (1) –

BHP Group’s results for the September quarter pleased Shaw and Partners and the advice was reiterated. No update was provided on the offer of Oz Minerals ((OZL)).

Meanwhile, during a recent site visit, BHP underscored the value of its people and its culture as building blocks of value maintenance, but labor issues and weather conditions got in the way. always proved difficult during the quarter, notes the broker.

The broker appreciates the company’s successful enterprise engineering projects over the past 18 months (ie Woodside) and believes this strength bodes well for the company.

Buy mark and target price of $46.43 retained.

This report was published on October 20, 2022.

The target price is $46.43 The current price is $37.36 Difference: $9.07
Whether BHP achieves the Shaw and Partners goal, it will earn approximately 24% (excluding dividends, fees and charges).
The current consensus price target is $42.12suggesting the reverse of 12.0%(excluding dividends)
The company’s fiscal year ends in June.

Forecast for FY23:

Shaw and Partners expects a full year AF23 dividend of 538.54 cents and EPS of 485.31 cents.
At the last closing price, the estimated dividend yield is 14.41%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 7.70.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 458.0which implies an annual growth of N / A.
The current DPS consensus estimate is 333.2implying a prospective dividend yield of 8.9%.
The current consensus estimate of EPS suggests that PER is 8.2.

Forecast for FY24:

Shaw and Partners expects a full year EX24 dividend of 437.90 cents and EPS of 367.07 cents.
At the last closing price, the estimated dividend yield is 11.72%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 10.18.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 424.7which implies an annual growth of -7.3%.
The current DPS consensus estimate is 310.7implying a prospective dividend yield of 8.3%.
The current consensus estimate of EPS suggests that PER is 8.9.

This company reports in USD. All estimates have been converted to AUD by FNArena at current exchange values.
Market Sentiment: 0.3
All consensus data is updated to yesterday. FNArena consensus calculations require a minimum of three sources


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