Australian Broker Call *Extra* Edition – March 09, 2022


Daily Market Reports | March 09, 2022

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)

AIM CDP DDH ECF ENN EOS IMM LME OLL PCK PTM QAN RHC TAH TSI WAF

TAH TABCORP HOLDINGS LIMITED

Game – Night Price: $4.90

Jarden Rates ((TAH)) as Coverage Initiation with Overweight (2) –

Jarden is launching Tabcorp Holdings ahead of the company’s planned spinoff of its lottery and keno and betting and gaming businesses in June.

The broker finds the market valuation of the betting and gaming business too heavily discounted and feels that Tabcorp Holdings is not receiving its share of sports betting, exotic betting and micro betting revenue. Renegotiating state licenses could help reverse bad trends.

The broker starts with an overweight rating and a target price of $5.75.

This report was published on March 7, 2022.

The target price is $5.75 The current price is $4.90 Difference: $0.85
Yes TAH reaches Jarden’s goal, he will return approximately 17% (excluding dividends, fees and charges).
The current consensus price target is $5.79suggesting the reverse of 17.3%(excluding dividends)
The company’s fiscal year ends in June.

Forecast for FY22:

Jarden plans a full year EX22 dividend of 14.00 cents and EPS of 5:40 p.m. cents.
At the last closing price, the estimated dividend yield is 2.86%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 28.16.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 17.1which implies an annual growth of 38.8%.
The current DPS consensus estimate is 13.6implying a prospective dividend yield of 2.8%.
The current consensus estimate of EPS suggests that PER is 28.9.

Forecast for FY23:

Jarden plans a full year EX23 dividend of 3:00 p.m. cents and EPS of 19.00 cents.
At the last closing price, the estimated dividend yield is 3.06%.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 25.79.

How do these forecasts compare to consensus market projections?

The current consensus estimate of EPS is 21.2which implies an annual growth of 24.0%.
The current DPS consensus estimate is 16.9implying a prospective dividend yield of 3.4%.
The current consensus estimate of EPS suggests that PER is 23.3.

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

TSI TOP SHELF INTERNATIONAL HOLDINGS LIMITED

Food, drink and tobacco – Price per night: $1.54

Canaccord Genuity ((TSI)) purchase rate (1) –

The integration of Coles Group ((COL)) as a distributor from March gives Top Shelf International a broad platform to sell the more than 550,000 liters of whiskey maturing next year. Canaccord Genuity notes that the partnership reduces transaction risk.

Coles Group will stock NED and Grainshaker branded products in 806 and 815 locations respectively, and the broker sees growth potential in whiskey and vodka sales to benefit from this.

The widely reported first half results included revenue growth of 57% over the prior comparable period and a loss of earnings of -$6.8 million after taking into account the investment.

The speculative buy rating is maintained and the target price goes from $2.51 to $2.44.

This report was published on February 28, 2022.

The target price is $2.44 The current price is $1.54 Difference: $0.9
Yes ITS reaches the Canaccord Genuity target, it will earn approximately 58% (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 22.00 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is minus 7.00.

Forecast for FY23:

Canaccord Genuity plans a full year EX23 dividend of 0.00 cents and EPS of minus 10.00 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is less than 3:40 p.m..

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

WAF WEST AFRICAN RESOURCES LIMITED

Gold and Silver – Overnight Price: $1.23

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

Shaw and Partners launches coverage of West African resources. The Company owns 90% of the Sanbrado Gold Project and the recently acquired Kiaka Gold Project, with Sanbrado providing a stable financial platform for operations and growth.

Kiaka, one of the few fully licensed gold projects in West Africa, offers production growth and price leverage over a mine life of more than 15 years. The broker expects West African Resources to be able to generate shareholder value with Kiaka given its track record of operational execution.

Company targets gold production of 400,000 ounces per year by 2025

The broker starts with a buy quote and a target price of $1.47.

This report was published on March 7, 2022.

The target price is $1.47 The current price is $1.23 Difference: $0.24
Yes WAF achieves the Shaw and Partners goal, it will earn approximately 20% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY21:

Shaw and Partners expects a full year FY21 dividend of 0.00 cents and EPS of 26:30 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 4.68.

Forecast for FY22:

Shaw and Partners expects a full year EX22 dividend of 0.00 cents and EPS of 20.10 cents.
At the last closing price, the estimated price/earnings ratio (PER) of the stock is 6.12.

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


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