Australian Broker Call *Extra* Edition – Mar 23, 2023

Daily Market Reports | 10:00 AM

An additional news report on the recommendation, valuation, forecast and opinion changes and updates 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)

360   APX   AVC   BCB   EVT   FSF   IPH (2)   KLS   MMI   NTO   PPH   SM1 (2)   SMR   SOP   TLX  

SMR    STANMORE RESOURCES LIMITED

Coal – Overnight Price: $3.31

Petra Capital rates ((SMR)) as Buy (1) –

BHP Group ((BHP)) is selling its Daunia and Blackwater met coal mines in the Bowen Basin in QLD, and Stanmore Resources has been formally invited to participate. 

Petra Capital feels the company will need to remain fiscally disciplined given it has no boundary coal. Management is not expected to be interested in Blackwater, which shows zero apparent synergies with existing Stanmore operations.

The Buy rating is maintained and a $5.41 target set.

This report was published on March 13, 2023.

Target price is $5.41 Current Price is $3.31 Difference: $2.1
If SMR meets the Petra Capital target it will return approximately 63% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 30.25 cents and EPS of 116.93 cents.
At the last closing share price the estimated dividend yield is 9.14%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 2.83.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 34.03 cents and EPS of 80.57 cents.
At the last closing share price the estimated dividend yield is 10.28%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 4.11.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SOP    SYNERTEC CORPORATION LIMITED

Overnight Price: $0.26

Shaw and Partners rates ((SOP)) as Initiation of coverage with Buy (1) –

Shaw and Partners has initiated coverage on Synertec, which is described as “a technology design and development company enabling a low carbon future through innovative technology solutions”, with the company recently announcing a commercial order from Santos ((STO)).

In particular, the broker highlights the opportunity in Powerhouse, a technology enabling users to super charge a solar battery array using artificial intelligence to optimise energy discharge, that Shaw and Partners finds to be super scalable.

Discussions are underway for large-scale roll out of Powerhouse to other Santos sites. 

The broker initiates with a Buy rating and a target price of $0.42.

This report was published on March 16, 2023.

Target price is $0.42 Current Price is $0.26 Difference: $0.16
If SOP meets the Shaw and Partners target it will return approximately 62% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 146.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 0.18.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 218.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 0.12.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.22

Jarden rates ((TLX)) as Buy (1) –

Telix Pharmaceuticals has received FDA approval for an expanded indication for its Illuccix, with the expanded label allowing for the identification and selection of patients who are candidates for PSMA-directed radioligand therapy.

As Jarden points out, the announcement expands the total addressable market by 25%, with Telix Pharmaceuticals suggesting the indication has a 32,000 patient population.

The broker notes the announcement may have been expected by the market, but is still encouraging. The Buy rating is retained and the target price increases to $8.78 from $8.31.

This report was published on March 17, 2023.

Target price is $8.78 Current Price is $7.22 Difference: $1.56
If TLX meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 70.78.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 288.80.

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