Australian Broker Call *Extra* Edition – Dec 20, 2023

Daily Market Reports | 11:33 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)

AKE   BMN   CVN   IEL   IGO   LNW   MGH   NEU   PLY   REG   RFF   RGN   RIC (2)   SGLLV   SPR   TAH   TWE   WC8  

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $23.96

Wilsons rates ((NEU)) as Overweight (1) –

Neuren Pharmaceuticals has been somewhat de-risked by the impressive topline data from its phase II trial of NNZ-2591, according to Wilsons. As per the data, NNZ-2591 has a superior potency and tolerability profile to trofinetide.

The treatment demonstrated significant efficacy improvements over a shorter treatment period, at lower doses, compared to trofinetide, and showed benign side effects.

The broker considers this data transformational for Neuren Pharmaceuticals, encouraging investors to value NNZ-2591 as a material asset. The Overweight rating is retained and the target price increases to $27.23 from $22.79.

This report was published on December 19, 2023.

Target price is $27.23 Current Price is $23.96 Difference: $3.27
If NEU meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 120.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.92.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 31.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 76.55.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

PLY    PLAYSIDE STUDIOS LIMITED

Gaming – Overnight Price: $0.66

Canaccord Genuity rates ((PLY)) as Buy (1) –

Playside Studios is set to develop and jointly market two PC/console titles, expected to be based on highly recognisable IP, having secured a multi-game licensing agreement with Warner Bros Interactive Entertainment. Playside Studios will pay the latter licensing fees over the course of development.

While details are currently light, Canaccord Genuity is expecting the agreement to provide a material step change to the revenue accretion of its original IP division, given Warner Bros strong franchises.

The Buy rating and target price of 80 cents are retained.

This report was published on December 18, 2023.

Target price is $0.80 Current Price is $0.66 Difference: $0.145
If PLY meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 65.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 32.75.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

REG    REGIS HEALTHCARE LIMITED

Aged Care & Seniors – Overnight Price: $3.21

Jarden rates ((REG)) as Overweight (2) –

Regis Healthcare is set to generate an additional $15m in revenue in FY24 following the announcement of a $10 increase in AN-ACC care funding per operating bed as of the beginning of December.

This will see the company’s Government revenues per bed lift to $290 per bed, equating to a $25m revenue boost on a full year basis, in order to help fund the 5.75% award wage increase for aged care staff, which came into effect from the beginning of July.

According to Jarden, it is unclear if there are additional conditions attached to this funding, or how it will address back pay for the five months to December. The Overweight rating is retained and the target price increases to $3.35 from $3.12.

This report was published on December 15, 2023.

Target price is $3.35 Current Price is $3.21 Difference: $0.14
If REG meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 4.00 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.47.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 4.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.96.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $2.08

Moelis rates ((RFF)) as Initiation of coverage with Buy (1) –

Moelis has initiated coverage of Rural Funds with a Buy rating and $2.40 target. The fund offers exposure to institutional grade agricultural real estate, whilst mitigating operating risks generally associated with farming, the broker suggests.

Buying Rural Funds at a -29% discount to net asset value (with a 5.7% distribution yield) is a highly compelling investment
opportunity in Moelis’ view.

Key catalysts include the divestment of assets to ensure the capital position remains strong, valuation uplift on capex programs,
and a recovery in the profitability of assets operated on balance sheet.

This report was published on December 20, 2023.

Target price is $2.40 Current Price is $2.08 Difference: $0.32
If RFF meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 11.70 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.57.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 11.80 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.48.

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