Best calls to action – Tuesday, 17 August
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 17 August 2021, 10:50 AM
- Sectors Covered:
- Equity Strategy and Quant
GWA Group Ltd - Housing leverage
GWA's FY21 result was ahead of Morgans and Bloomberg consensus estimates. Key positives: Improved detached housing construction in Australia in 2H21; Strong growth in NZ and the UK with both markets recovering from COVID-related impacts in the prior year; DPS was higher than expected; Cash flow was strong.
Key negatives: Commercial construction in Australia remains subdued; Management expects multi-res to decline further due to lower net migration. FY22F/FY23F/FY24F underlying EBIT changes by +0%/+0%/+1%.
Our target price remains broadly unchanged and with a 12-month forecast TSR of 19%, we upgrade our rating to Add (from Hold).
Read our full reports and latest price targets on ASX:GWA here.
Beach Energy Limited - Production outlook weighs on result
FY21 underlying NPAT of $363m significantly beat our forecast (+9%) and consensus (-12%). FY22 guidance for production of between 21MMboe - 23MMboe is significantly lower than our forecast (-17%).
Production in the Western Flank is declining faster than we'd assumed and the larger increases in Otway gas production will come in FY23. We maintain our ADD rating but reduce our price target.
Read our full reports and latest price targets on ASX:BPT here.
Garda Prpty Group - Executing on strategy
GDF's FY21 result highlighted that its 'build to own' strategy is starting to deliver. FY22 DPS guidance has been set at 7.2c based on a forecast payout ratio of 85-90% which equates to a distribution yield of +5% paid quarterly.
NTA currently stands at $1.45 and we expect there is near-term upside given the strong industrial market fundamentals (industrial WACR = 5.56%).
The portfolio is currently valued at around $1m across 17 assets with the development pipeline expected to add a further ~160,000 in industrial NLA. We retain an Add rating.
Read our full reports and latest price targets on ASX:GDF here.
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You can find further detailed analysis of company results this reporting season by browsing our reporting season tag, and view a full list of upcoming results on our Reporting Season Calendar.
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Disclaimer: Analyst may own shares. The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.