Australian Broker Call *Extra* Edition – Nov 09, 2020

This story features ALLIANCE AVIATION SERVICES LIMITED, and other companies. For more info SHARE ANALYSIS: AQZ

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

APT   AQZ   ARX (2)   BEN (2)   BGA   BKL   BVS   CAT   DTC   DXS   EVN   EXP (2)   IMM   IPD   MNF   MVP   NXS (2)   ORA   PBH   PBP   PNI   RHP   SCG   SCP (2)   SES   TPW   TYR  

APT    AFTERPAY LIMITED

Business & Consumer Credit – Overnight Price: $100.50

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

Afterpay noted a strong start to the first quarter with early signs pointing to a strong December quarter, observes Wilsons. The broker expects the chances of a major US marketplace deal with Afterpay has only strengthened in the last few months.

The broker suggests PayPal entering the fray will hurt those more at the margin than those controlling the centre. Overweight rating retained with the target price increasing to $113.94 from 102.23.

This report was published on October 28, 2020.

Target price is $113.94 Current Price is $100.50 Difference: $13.44
If APT meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $92.38, suggesting downside of -8.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 897.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 1182.4.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 28.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 347.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 398.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 237.0.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics – Overnight Price: $3.41

Wilsons rates ((AQZ)) as Market Weight (3) –

On 23 October, Virgin Australia and Alliance Aviation applied for authorisation to cooperate with respect to providing services on circa 40 regional routes and two short-haul international routes.

Wilsons notes while the wet-lease agreement between Virgin Australia and Alliance Aviation was suspended, if authorisation for the routes is granted, both parties will discuss resuming the arrangement and which routes would be served best by it.

The broker retains its Market Weight rating with a target price of $3.30.

This report was published on October 28, 2020.

Target price is $3.30 Current Price is $3.41 Difference: minus $0.11 (current price is over target).
If AQZ meets the Wilsons target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.07, suggesting upside of 19.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.90 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of -13.2%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 16.00 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of 24.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 15.0.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.29

Bell Potter rates ((ARX)) as Buy (1) –

Bell Potter maintains its Buy rating while lowering the valuation to $2 from $2.10.

The broker expects a longer-term covid-related impact in the form of reduced patient volumes. Aroa Biosurgery's first-half revenues slightly beat the broker's and management’s expectations. Patient volumes are also well on their way to recovery.

The company has preferred to be conservative in its full-year guidance given the uncertainty around the resurgence of covid-19 cases in the US. 

Bell Potter remains optimistic on Aroa’s clinical and cost-utility differentiation and expects a full recovery in procedure volumes in FY23. 

This report was published on October 28, 2020.

Target price is $2.00 Current Price is $1.29 Difference: $0.71
If ARX meets the Bell Potter target it will return approximately 55% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 47.78.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 80.63.

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

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

Aroa Biosurgery's first-half revenues were down -10% versus last year and a -9% miss to Wilsons' forecast. The company has kept its second-half revenue growth guidance intact and expects higher growth than last year led by hospital account expansion.

The broker also expects the larger ventral surgery market to pick up the pace. The Overweight rating is unchanged with a target price of $2.

This report was published on October 27, 2020

Target price is $2.00 Current Price is $1.29 Difference: $0.71
If ARX meets the Wilsons target it will return approximately 55% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.61.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.67.

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

BEN    BENDIGO AND ADELAIDE BANK LIMITED

Banks – Overnight Price: $6.91

Bell Potter rates ((BEN)) as Hold (3) –

Bell Potter observes despite challenging conditions, Bendigo and Adelaide Bank saw strong annualised lending growth in the first quarter. The net interest margin was also higher with the bank managing its costs effectively.

Cash net profit forecasts have been increased for FY21-24 mainly due to higher net interest margins, higher lending volumes and broadly flat operating expenses.

Hold rating is retained with the target price increasing to $7.40 from $7.

This report was published on October 28, 2020.

Target price is $7.40 Current Price is $6.91 Difference: $0.49
If BEN meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $7.56, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 32.00 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 4.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.2, implying annual growth of -14.2%.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 41.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 5.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of 6.1%.
Current consensus DPS estimate is 37.7, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.7.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Goldman Sachs rates ((BEN)) as Neutral (3) –

Bendigo and Adelaide Bank's first-quarter update noted a weaker than expected net interest margin performance. Goldman Sachs attributes this to lower customer lending yields and normalised hedging costs.

In terms of lending performance, the broker observes the bank continues to exhibit strength, having achieved 11% growth in total lending year to date. Residential lending was up 16.1%. Both metrics are well ahead of expectations of the broker.

Since the economic and health outlook remains uncertain, the bank has decided to maintain its credit provisioning measures.

Goldman Sachs retains its Neutral rating with a target price of $7.73.

The report was published on October 27, 2020.

Target price is $7.73 Current Price is $6.91 Difference: $0.82
If BEN meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $7.56, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 49.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.2, implying annual growth of -14.2%.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 57.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of 6.1%.
Current consensus DPS estimate is 37.7, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.7.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.16

Goldman Sachs rates ((BGA)) as Neutral (3) –

Bega Cheese's commentary on the start to FY21 is in-line with Goldman Sachs's expectations. The company noted better seasonal conditions helped Bega achieve a more stable milk procurement environment.

On the flip side, headwinds remain in the form of a broadly flat milk intake for FY21 and the rising AUD/USD. The broker assesses these risks to be already included in Bega Cheese's current valuation and maintains its Neutral rating.

The target price rises to $4.90 from $4.73.

This report was published on October 27, 2020.

Target price is $4.90 Current Price is $5.16 Difference: minus $0.26 (current price is over target).
If BGA meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.45.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.85.

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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $71.25

Goldman Sachs rates ((BKL)) as Neutral (3) –

Blackmores will be selling its Global Therapeutics (GT) business to McPherson’s ((MCP)) for an enterprise value of $27m. The deal is expected to be completed on 30th November.

Goldman Sachs is neutral as far as the deal is concerned. The broker does expect profit growth in FY21, predominantly from the second half.

Management did not give any details on the progress towards its transformation strategy, but the broker suggests there are positive qualitative indicators towards achieving cost rationalisation and divestment of non-core assets.

Goldman Sachs rates the stock neutral with a target price of $71.

This report was published on October 27, 2020.

Target price is $71.00 Current Price is $71.25 Difference: minus $0.25 (current price is over target).
If BKL meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $66.96, suggesting downside of -6.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 158.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 182.0, implying annual growth of 75.8%.
Current consensus DPS estimate is 122.8, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 39.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 221.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 242.8, implying annual growth of 33.4%.
Current consensus DPS estimate is 170.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 29.3.

Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $2.93

Goldman Sachs rates ((BVS)) as Buy (1) –

Bravura Solutions has signed a long-term contract with Aware Super for implementing an ecosystem of Bravura products underpinned by Sonata Alta. 

Goldman Sachs believes the company’s deal pipeline is strong but timing delays may hamper short term earnings. 

Goldman Sachs considers Bravura well positioned on account of its strong market position in existing product offerings, a high degree of recurring revenue, a net cash position that provides Bravura with a buffer and an undemanding valuation.

Goldman Sachs maintains its Buy rating with the target reducing to $4.50 from $4.80.

This report was published on October 27, 2020.

Target price is $4.50 Current Price is $2.93 Difference: $1.57
If BVS meets the Goldman Sachs target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.31.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.28.

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

CAT    CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices – Overnight Price: $1.76

Bell Potter rates ((CAT)) as Hold (3) –

Bell Potter has updated its forecasts for Catapult Group to incorporate the year-end and base currency changes from June to March and AUD to USD.

Forecasts have been downgraded modestly looking at the second wave of cases occurring in the key markets of the US and Europe, which will cause new capital sales to remain muted in the short term. The broker expects a relatively flat year in FY21.

The company is expected to generate losses for the next two years with the first dividend expected in FY23. The Hold rating is maintained, with the target price falling to $1.85 from $2.

This report was published on October 28, 2020.

Target price is $1.85 Current Price is $1.76 Difference: $0.09
If CAT meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.86.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 176.00.

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $1.87

Shaw and Partners rates ((DTC)) as Buy (1) –

Damstra Holdings, founded in 2002 and headquartered in South Yarra, provides workplace management solutions. Shaw and Partners notes Damstra's business has been strong and expects more sales enquiries in the second half.

Revenues in the first quarter were up 34% versus last year with gross margins strengthening by 300bps. Net operating cash flows were a record of $2.4m. 

The broker is impressed with how well Vault Intelligence's integration has gone. Damstra is expected to continue its inorganic growth profile (implying: more acquisitions remain on the menu).

Buy rating retained with a target price of $2.36.

This report was published on October 27, 2020.

Target price is $2.36 Current Price is $1.87 Difference: $0.49
If DTC meets the Shaw and Partners target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 124.67.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.96.

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

DXS    DEXUS PROPERTY GROUP

REITs – Overnight Price: $9.05

Goldman Sachs rates ((DXS)) as Sell (5) –

In an update to the market, Dexus Property Group has introduced distribution guidance for FY21, with an expectation of flat DPS versus FY20. This guidance is  slightly above Goldman Sachs forecast and well ahead of consensus.

There was nothing in the update to change the broker's view on earnings profile or outlook.

The analyst notes the group is making progress with asset disposals (further strengthening its balance sheet while taking advantage of elevated pricing) and continues to build its non-Office funds under management (FUM) base.

The Sell rating and target price of $9.09 are unchanged.

This report was published on October 21, 2020.

Target price is $9.09 Current Price is $9.05 Difference: $0.04
If DXS meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $9.45, suggesting upside of 4.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.40 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.0, implying annual growth of -28.7%.
Current consensus DPS estimate is 49.3, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.20 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 0.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.7, implying annual growth of 2.7%.
Current consensus DPS estimate is 48.5, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.8.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $6.25

Goldman Sachs rates ((EVN)) as Sell (5) –

Evolution Mining's September quarter gold production was pre-released, in line with Goldman Sachs's forecasts. The broker observes the quarter was softer with production declining by -22% on a quarterly basis and at higher costs. 

The broker's production forecasts remain broadly unchanged and sit below the bottom end of the cost guidance range. Even so, the FY21-22 operating income expected is down -6% and -3% after including the September quarter result.

Goldman Sachs retains its Sell rating with the target price reducing to $4.80 from $5.

This report was published on October 27, 2020.

Target price is $4.80 Current Price is $6.25 Difference: minus $1.45 (current price is over target).
If EVN meets the Goldman Sachs target it will return approximately minus 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.39, suggesting downside of -13.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.4, implying annual growth of 66.0%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 18.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 4.4%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 20.4.

Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EXP    EXPERIENCE CO LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.23

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

Canaccord Genuity finds Experience Co's commentary to be in-line with its expectations and believes the company is poised for a steady recovery. September quarter volumes were 30-37% of last year with group revenue 25% of last year's figure.

More importantly, Experience Co was profitable in the quarter from an operating income and operating cash flow perspective. The company has also managed to reduce its debt to $5m, ahead of Canaccord Genuity's forecast of $8.4m.

The broker notes with the company moving into its seasonally stronger trading periods, the easing of border restrictions going into December 2020 is considered an encouraging sign that bodes well for domestic travel over the summer.

The broker continues to view the company positively and retains its Buy recommendation with a target of $0.22.

This report was published on October 28, 2020.

Target price is $0.22 Current Price is $0.23 Difference: minus $0.01 (current price is over target).
If EXP meets the Canaccord Genuity target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 23.00.

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

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Wilsons rates ((EXP)) as Market Weight (3) –

Experience Co's September quarter update was positive. Wilsons is surprised seeing the volume growth led by recommenced operations and stimulus packages. This also helped management focus on its covid-19 recovery plans and potential medium-term growth drivers.

The company highlights a number of positive near-term catalysts including Victoria’s easing restrictions, the trans-Tasman travel bubble in FY21, plus initiatives to develop international travel bubbles with Singapore, South Korea and Japan.

Wilsons reaffirms its Market Weight rating with a target price of $0.14.

This report was published on October 28, 2020.

Target price is $0.14 Current Price is $0.23 Difference: minus $0.09 (current price is over target).
If EXP meets the Wilsons target it will return approximately minus 39% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 76.67.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 11.50.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.29

Bell Potter rates ((IMM)) as Buy (1) –

Immutep is a clinical-stage biopharmaceutical company, focusing on developing novel immunotherapies for treating cancer and autoimmune diseases. Its core technology is based on LAG-3 (lymphocyte activation gene-3) protein, a key mediator of the immune system.

Bell Potter notes the phase-2 covid-19 trial has commenced in Europe with the aim to explore if giving an immune booster (called efti) to covid-19 hospitalised patients would prevent their condition from deteriorating to severe stages.

Interim results are expected in early 2021. Bell Potter maintains its Buy rating and a target price of $0.60.

This report was published on October 28, 2020.

Target price is $0.60 Current Price is $0.29 Difference: $0.31
If IMM meets the Bell Potter target it will return approximately 107% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.06.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.53.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.08

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

ImpediMed's first-quarter sales were $1.5m, as expected by Wilsons. SaaS revenue was up 28% and testing volumes rebounded from the covid-led trough in the June quarter to post a new record of 25,000 assessments.

Wilsons notes ImpediMed's lymphoedema business is making good organic progress. The broker remains focussed on the final outcome of ImpediMed’s PREVENT clinical trial, which will finish in December.

The company reports its top-line results in early 2021. FY21 revenue is expected to grow by 35% to $7.7m.

Overweight rating is retained with a target price of $0.14.

This report was published on October 28, 2020.

Target price is $0.14 Current Price is $0.08 Difference: $0.06
If IPD meets the Wilsons target it will return approximately 75% (excluding dividends, fees and charges).

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

MNF    MNF GROUP LIMITED

Telecommunication – Overnight Price: $4.72

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

MNF Group's FY21 operating income guidance of $40-$43m range is in line with consensus's $41.6m and Canaccord Genuity's forecast of $41.3m.

The broker assesses the growth in the UCaaS/CPaaS division remains robust, leading to double-digit organic growth in gross profit. The company's guidance corroborates the broker's view that growth in the new generation revenues more than accounts for the current value of the business.

Buy rating is retained with a target of $7.15.

This report was published on October 28, 2020.

Target price is $7.15 Current Price is $4.72 Difference: $2.43
If MNF meets the Canaccord Genuity target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 7.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.45.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 10.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.48.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.67

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

Canaccord Genuity is not happy with the limited details given at Medical Developments International's AGM.

The broker expected more visibility, especially in light of the significant changes to the European distribution model and the impact of covid-19 across the key markets of Australia, UK and the EU.

Canaccord takes the absence of information to indicate the pandemic is having a material impact on sales across these key markets. As a result, operating income estimates across FY21-22 have been reduced. 

Viewing the current predicament as transitory, Canaccord Genuity retain its Buy rating with the target price decreased to $7.85 from $8.61

This report was published on October 29, 2020.

Target price is $7.85 Current Price is $5.67 Difference: $2.18
If MVP meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of minus 5.00 cents.
At the last closing share price the estimated dividend yield is 0.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 113.40.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 0.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 283.50.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.20

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

Next Science's September quarter update revealed cash receipts were only US$0.13m. This was the weakest quarter to date, remarks Canaccord Genuity, reflecting the impact of the pandemic on elective surgery volume and wound care activity in the US market.

Going ahead, the broker notes elective surgery volumes are on a gradual recovery with Next Science's distribution partner, Zimmer Biomet indicating surgery volumes for the December quarter will be equivalent to the December 2019 quarter.

Yet, some uncertainty is added from the increasing covid-19 infection rates and the potential change in the US Administration. 

The Buy rating is unchanged with a target of $2.30.

This report was published on October 28, 2020.

Target price is $2.30 Current Price is $1.20 Difference: $1.1
If NXS meets the Canaccord Genuity target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 10.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.70.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 81.86.

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

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Wilsons rates ((NXS)) as Downgrade to Market Weight from Overweight (3) –

Wilsons downgrades Next Science to Market Weight from Overweight and trims its target to $1.19 from $2.1.

The broker advises the arrangements around Next Science's BlastX are not enough and aren't giving the product the required support and should be reassessed.

The campaign for XPerience is responding to US FDA guidance and is on track for a first-half approval and launch. Wilsons assesses XPerience needs investment in R&D, business development and market access.

The broker believes the business outlook remains weak with potentially higher investment in the future.

This report was published on October 29, 2020.

Target price is $1.19 Current Price is $1.20 Difference: minus $0.01 (current price is over target).
If NXS meets the Wilsons target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 7.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.38.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.90.

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

ORA    ORORA LIMITED

Paper & Packaging – Overnight Price: $2.67

Goldman Sachs rates ((ORA)) as Neutral (3) –

Orora noted solid first quarter trading conditions, with Australasia earnings (EBIT) in-line with pcp and North America tracking slightly ahead. This normalising of conditions in both regions represents an upgrade to Goldman Sachs's existing forecasts.

The analyst increases earnings (EBIT) forecasts for FY21 and FY22 by 11% and 7%, respectively, due to upward revisions for both regions.

The Neutral rating is unchanged, as the share price rise on the day of the trading update largely closed the valuation gap, explains the broker. The target price is increased to $2.69 from $2.43.

This report was published on October 21, 2020.

Target price is $2.69 Current Price is $2.67 Difference: $0.02
If ORA meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $2.77, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 13.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 431.0%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of 12.3%.
Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.4.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $11.38

Bell Potter rates ((PBH)) as Buy (1) –

The September-quarter highlighted Pointsbet Holdings' continued success in the Australian business from the shift to online wagering. The US also noted a spike in customers, implying a resumption of major US sports.

The net win increased by 13.7% to $38.1m while the net win margin fell to 5.5% from 9.6% in the June quarter due to increased promotional spend. Active customers increased by 47.7% to 164,531.

Bell Potter continues to see momentum for the company from domestic market share gains and further US state launches. A speculative Buy rating is maintained with the target price reducing to $15.10 from 18.40.

This report was published on October 28, 2020.

Target price is $15.10 Current Price is $11.38 Difference: $3.72
If PBH meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.79.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 23.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.02.

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

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.74

Shaw and Partners rates ((PBP)) as Buy (1) –

Shaw and Partners suggests Probiotec provided positive AGM commentary, advising trading was ahead of expectations with first-quarter sales up 6.5% versus last year. The broker finds the performance was solid across the business.

Probiotec announced signing a contract with Nasodine for colds and respiratory issues in ANZ/internationally plus a separate contract with DuPont. Shaw and Partners believes these two opportunities are material and will contribute to an already strong pipeline in FY22.

Buy rating is reaffirmed with a target price of $2.54.

The report was published on October 28, 2020.

Target price is $2.54 Current Price is $1.74 Difference: $0.8
If PBP meets the Shaw and Partners target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 4.70 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.90 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $5.19

Wilsons rates ((PNI)) as Upgrade to Overweight from Market Weight (1) –

Pinnacle Investment Management Group's trading update is viewed positively by Wilsons. The broker is especially encouraged by the performance of newer affiliates like Metrics and Coolabah, expected to attract further funds under management growth. 

While Pinnacle did not provide any quantitative guidance, Wilsons forecasts FY21 net profit to increase by 0.8% to $33.9m, which is -2.5% below consensus forecast.

Driven by increased retail funds under management assumptions, which will attract higher management fees, Wilsons upgrades to Overweight from Market Weight. The target price is increased to $5.80 from $5.70.

This report was published on October 29, 2020.

Target price is $5.80 Current Price is $5.19 Difference: $0.61
If PNI meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 20.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 15.60 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of N/A.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 27.5.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 18.10 cents and EPS of 21.30 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 16.9%.
Current consensus DPS estimate is 19.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 23.5.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $2.10

Shaw and Partners rates ((RHP)) as Buy (1) –

Rhipe released its first-quarter update with numbers mostly ahead of Shaw's and market expectations. With the group operating profit up 39% versus last year and gross profit growth of 16%, the broker considers FY21 to be shaping up nicely.

Flush with cash, the broker believes acquisitions may be likely over the next six months in larger software/IP. The Buy rating is unchanged with the target price rising to $3.02 from $2.87.

This report was published on October 23, 2020.

Target price is $3.02 Current Price is $2.10 Difference: $0.92
If RHP meets the Shaw and Partners target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 4.20 cents and EPS of 8.40 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.50 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.09.

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

SCG    SCENTRE GROUP

REITs – Overnight Price: $2.40

Goldman Sachs rates ((SCG)) as Buy (1) –

Goldman Sachs observes Scentre Group's portfolio includes 16 of the 30 most productive malls in Australia.

In a low growth and low inflation environment, the broker expects rents to continue to re-base down on expiry but the broker also believes the group's current pricing overestimates the pace and the magnitude of this re-basing.

The broker retains its Buy rating with the target reducing to $3.54 from $3.57.

This report was published on October 27, 2020.

Target price is $3.54 Current Price is $2.40 Difference: $1.14
If SCG meets the Goldman Sachs target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 0.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 9.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of -33.2%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 7.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.2, implying annual growth of 28.9%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 12.5.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SCP    SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP

REITs – Overnight Price: $2.36

Goldman Sachs rates ((SCP)) as Sell (5) –

Shopping Centres Australasia Property Group's trading update included guidance for the first half funds from operations (FFO) and dividend. The REIT expects the second half FFO/DPS to exceed the first half.

The guidance failed to impress Goldman Sachs who believes the soft guidance partly reflects the broker's concerns around the REIT's specialty exposure with greater covenant risk along with its exposure to Victoria.

While it looks like the environment is improving for specialty tenants, the broker expects the REIT's earnings growth to remain subdued due to its strategy of accepting lower rents to lift occupancies, on top of prolonged headwinds facing supermarket sales.

The Sell rating is retained with the target price down to $1.97 from $2.

This report was published on October 27, 2020.

Target price is $1.97 Current Price is $2.36 Difference: minus $0.39 (current price is over target).
If SCP meets the Goldman Sachs target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.38, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of 57.3%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 10.0%.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 15.3.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Moelis rates ((SCP)) as Upgrade to Buy from Sell (1) –

With more certainty around rent collections and higher than expected credit loss recovery, Shopping Centres Australasia guided to a first-half dividend per unit of 5.5c and has stated the dividend for the second half will be higher than for the first half.

Moelis's dividend estimates remain unchanged.

The resilience of the REIT's asset can be seen by its strong tenant sales with first-quarter sales up 9.7% versus last year, suggests the analyst. The strong tenant sales are also driving rent collections, notes the analyst, with September collections at 81%

Looking at better rent collections and Victoria emerging from lockdown, the broker considers the REIT to be well-positioned due to its defensive income stream and upgrades its rating to Buy from Sell with a target price of $2.44.

The report was published on October 27, 2020.

Target price is $2.44 Current Price is $2.36 Difference: $0.08
If SCP meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.38, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 12.00 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of 57.3%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 14.30 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 6.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 10.0%.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 15.3.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SES    SECOS GROUP LTD

Paper & Packaging – Overnight Price: $0.15

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

Sustainable packaging company Secos Group had a better-than-expected September quarter result with revenue at about $5.8m, up 19% versus last year and ahead of Canaccord Genuity's forecast of 8% growth.

The highlight of the result, according to the broker, was the 76% increase in biopolymer sales on account of the tailwinds the group is seeing due to the shift away from single-use plastic.

With the outlook strong due to the potential for new contract wins and strong tailwinds, Canaccord Genuity reaffirms its Buy rating and $0.25 target price.

This report was published on October 29, 2020.

Target price is $0.25 Current Price is $0.15 Difference: $0.1
If SES meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 15.00.

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

TPW    TEMPLE & WEBSTER GROUP

Furniture & Renovation – Overnight Price: $11.72

Goldman Sachs rates ((TPW)) as Buy (1) –

Temple & Webster has reported first quarter earnings ahead of Goldman Sachs' forecast, driven by strong revenue. The broker calculates an implied margin of over 10%, which indicates a higher base profitability than previously forecast.

The broker explains an early lead in the home furniture category is allowing a broadening of categories, investment in technology and increased marketing spend. Additionally, the rate of growth is likely providing scale benefits with suppliers and logistics networks.

The Buy rating is unchanged and the target is increased to $12.85 from $11.50.

This report was published on October 21, 2020.

Target price is $12.85 Current Price is $11.72 Difference: $1.13
If TPW meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.81.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.68.

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

TYR    TYRO PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $3.90

Goldman Sachs rates ((TYR)) as Neutral (3) –

Tyro Payments had 33,200 merchants as on 30 September 2020, up from 32,176 on 30 Jun 2020. Goldman Sachs expects the merchant numbers to increase to 35,500 by 31 Dec 2020.

Tyro's first half transaction value is expected to be $11,681m, up 5.6% versus last year. In the first quarter, e-commerce transaction value was $6.7m, implying an increase in the monthly run rate.

Loan originations till 30 Sep 2020 were down -95% versus last year. The broker expects loan originations in the first half to be less than half of the originations in the first half of FY20.

Goldman Sachs reaffirms its Neutral rating with a target price of $3.65. 

This report was published on October 27, 2020.

Target price is $3.65 Current Price is $3.90 Difference: minus $0.25 (current price is over target).
If TYR meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.20, suggesting upside of 7.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 130.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 780.0.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

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