Australian Broker Call *Extra* Edition – Mar 31, 2021

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   APZ   ARX (2)   CAI   CGC   CVL   FPH   GGG   GNC (2)   GNG   KMD   LRK   MCP   PMV (2)   PNV   RDY   RHC   RSG (2)   RUL   SM1   SPK   TWE   WBC   YOJ  

360    LIFE360 INC

Software & Services – Overnight Price: $4.74

Bell Potter rates ((360)) as Buy (1) –

Bell Potter remains positive on Life360 and the company's outlook noting the strong organic growth implied by the company's 2021 guidance along with the potential for corporate activity like listing/dual listing on a US exchange, acquisition or even a merger with a larger entity.

The broker has reduced its 2021-2022 revenue forecasts by -8-14% expecting the negative impact from the current covid environment to continue in the first half of 2021.

Also, looking at the investment in additional initiatives to drive growth in the business, Bell Potter now forecasts negative rather than positive operating income in 2021-22.

The broker retains its Buy rating and reduces the target price to $6 from $8.05.

This report was published on March 24, 2021.

Target price is $6.00 Current Price is $4.74 Difference: $1.26
If 360 meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 15.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.13.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 64.23.

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

APZ    ASPEN GROUP

Real Estate – Overnight Price: $1.20

Taylor Collison rates ((APZ)) as Speculative Buy (2) –

After Aspen Group delivered a first half 37% increase in operating earnings (EBITDA) growth on 8% revenue growth, Taylor Collison expects continued long-term net operating income (NOI) growth irrespective of economic conditions. 

The broker highlights housing in Karratha remains heavily under supplied with rents up greater than 50% year-on-year. With Woodside Petroleum ((WPL)) and Perdamen set to begin multi-billion-dollar projects in the region, supply is expected to come under further pressure.

Also the Perth rental vacancy remains at less than 1% with house prices beginning to reflect the pent-up demand, notes the analyst who retains the Outperform rating. Target price of $1.23.

This report was published on March 24, 2021.

Target price is $1.23 Current Price is $1.20 Difference: $0.03
If APZ meets the Taylor Collison target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 7.00 cents and EPS of 7.35 cents.
At the last closing share price the estimated dividend yield is 5.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.33.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 8.00 cents and EPS of 8.87 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.53.

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: $1.16

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

Given that the hernia registry was down around -25%, Bell Potter believes the announced FY20 result of Aroa Biosurgery’s distribution partner Tela Bio – with full year revenues up 18% versus 2019 – was a very impressive result.

The broker believes FY21 revenue guidance of US$27m-$30m, up 48%-65%, represents a strong covid recovery and ongoing market share wins.

Bell Potter looks to Aroa’s improved manufacturing levels and capacity as a leading indicator for sales growth and stock performance.

While the market has recently seen interest in a direct comparison between biologic and synthetic products, the broker does not view the two products as competitors.

Given that they meet different clinical needs, Bell Potter believes both products are well positioned for growth in their respective segments.

Bell Potter maintains its Buy rating with a price target of $2.

This report was published on March 26, 2021.

Target price is $2.00 Current Price is $1.16 Difference: $0.84
If ARX meets the Bell Potter target it will return approximately 72% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.43.

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 72.50.

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 US partner Tela Bio reported 4Q20 net sales of US$5.7m (up 17%), consistent with the pre-announced target (US$5.5M-US$5.7M) and ahead of Wilsons' US$5.6m forecast.

Commenting on the result, the broker believes Tela’s FY21 revenue guidance of between US$27m and US$30m appears conservative given the bullish 4Q operational update.

Consistent with most of the other US medtechs Wilsons follows, Tela described good trading in October and November followed by increased volatility in December/January due to covid re-emergence.

February and March run-rates are back ‘on plan’ and the broker suspects that if demand patterns remain consistent then management inferred upside to guidance, noting that OviTex (hernia) has been more impacted than PRS (plastic surgery) over the last year.

Overweight and $2 price target retained.

This report was published on March 26, 2021.

Target price is $2.00 Current Price is $1.16 Difference: $0.84
If ARX meets the Wilsons target it will return approximately 72% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.75.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 68.24.

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

CAI    CALIDUS RESOURCES LTD

Gold & Silver – Overnight Price: $0.42

Canaccord Genuity rates ((CAI)) as Speculative Buy (1) –

Calidus Resources now plans to mine the high-grade underground satellite deposits, Blue Spec and Gold Spec that the mining junior announced it had agreed to acquire for -$19.5m in September 2020.

Following the release of the feasibility study in September 2020, early construction works have commenced with the company targeting first gold in MarQ'22.

While Cannacord Genuity awaits a more formal detailed feasibility study, the broker expects the integration of Blue Spec to be value accretive, with added exploration upside remaining further afield at Warrawoona, Otways and Blue Spec as well.

Cannacord Genuity remains unsure whether there is enough of a working capital buffer to see Calidus Resources through ramp-up of Warrawoona based on the company’s assumptions.

The broker believes Calidus Resources continues to offer exposure to one of WA's next gold production stories, while also offering a low level of risk given the conservative nature of mining studies published to date.

Speculative Buy unchanged and price target increases to $0.80 from $0.75.

This report was issued March 28, 2021.

Target price is $0.80 Current Price is $0.42 Difference: $0.38
If CAI meets the Canaccord Genuity target it will return approximately 90% (excluding dividends, fees and charges).

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1400.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $4.73

Jarden rates ((CGC)) as Buy (2) –

Despite a deterioration in Costa Group’s pricing trends across four major local produce categories in the past 8 weeks, Jarden has left forecasts unchanged, but sees upside risk as more limited if trends were to continue beyond April.

The broker expects to see an improvement in pricing in April with recent flooding creating supply side pressures, and cycling bushfire/covid panic buying which created supply side shortages, and demand spikes putting upward pressure on pricing.

Outside Australia, Jarden believes Moroccan weather remains favourable and supportive of a 'normal' season in terms of both yield and pricing.

Jarden is forecasting FY21 earnings (EBITDA-S) of $250.9m, up around 26% year-on-year or 13% adjusting for a number of one-off costs in 2020, namely drought, covid and one-off production issues.

The Overweight rating and the target price of $4.80 are both unchanged, but could be under review if current pricing trends continue.

This report was published on March 25, 2021. 

Target price is $4.80 Current Price is $4.73 Difference: $0.07
If CGC meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.81, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 11.00 cents and EPS of 21.00 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 22.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.4, implying annual growth of 34.6%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 23.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 13.00 cents and EPS of 25.30 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of 7.8%.
Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.5.

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

CVL    CIVMEC LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.58

Euroz Hartleys rates ((CVL)) as Speculative Buy (1) –

According to Euroz Hartleys, Civmec has produced strong first half FY21 numbers, generating earnings (EBITDA) of $34.3m and profit (NPAT) of $15m from revenues of $306m. These numbers are all well up on both the first and second halves of 2020, points out the broker.

The analyst illustrates the investment case by reference to net tangible assets (NTA) of $0.55, a significant order book of $1.15bn and strong tendering across multiple projects, geographies, industries and disciplines.

Euroz Hartleys considers it a meaningful business at circa $600m in revenue per annum, which has grown strongly in what is a robust operating environment. The Speculative Buy rating is maintained and the target increased to $0.85 from $0.63.

This report was published on February 12, 2021.

Target price is $0.85 Current Price is $0.58 Difference: $0.27
If CVL meets the Euroz Hartleys target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 2.00 cents and EPS of 6.51 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.91.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 2.50 cents and EPS of 7.19 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.07.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $29.35

JP Morgan rates ((FPH)) as Upgrade to Overweight from Neutral (1) –

Given the extraordinary opportunity covid has provided for Fisher & Paykel Healthcare to demonstrate the benefits of nasal high-flow (NHF) therapy, JP Morgan has upgraded the company to Overweight from Neutral.

But due to lower per-patient pricing, the target has decreased to NZ$35.40 from NZ$36.50.

While only minor revisions were made to JP Morgan’s overall estimates, one notable change was a material lift in the expected dividend. The broker suspects this may in part be paid as a special dividend as the company seeks to maintain a progressive dividend policy.

Based on the latest trading update, JP Morgan expects Fisher & Paykel Healthcare to report hardware sales of over $600m for the financial year ending March – up nearly 400% on FY20. This equates to over 5x the broker’s pre-pandemic estimate of hardware sales.

This report was published on March 25, 2021.

Current Price is $29.35. Target price not assessed.
Current consensus price target is N/A
The company's fiscal year ends in March.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 0.38 cents and EPS of 0.93 cents.
At the last closing share price the estimated dividend yield is 0.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3142.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.6, implying annual growth of N/A.
Current consensus DPS estimate is 44.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 32.0.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.37 cents and EPS of 0.66 cents.
At the last closing share price the estimated dividend yield is 0.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4426.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.0, implying annual growth of -26.9%.
Current consensus DPS estimate is 44.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 43.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GGG    GREENLAND MINERALS LIMITED

Rare Earth Minerals – Overnight Price: $0.18

Euroz Hartleys rates ((GGG)) as Downgrade to Hold from Speculative Buy (5) –

Euroz Hartleys downgrades to a Hold rating from Speculative Buy around uncertainty over the upcoming Greenland elections on April 6. This is considered to potentially adversely impact prospects of being granted an exploitation license for the Kvanefjeld Project.

However, the broker believes there will be a time to own the stock on account of the strategic value of the deposit.

The target is reduced to $0.20 from $0.52 as the broker adjusts the financial model's risk to reflect equity dilution, funding, execution and sovereign risk.

This report was released on February 17, 2021.

Target price is $0.20 Current Price is $0.18 Difference: $0.02
If GGG meets the Euroz Hartleys target it will return approximately 11% (excluding dividends, fees and charges).

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $5.15

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

GrainCorp has guided to FY21 crop receipts forecast of 15.5-16.5mt and grain exports of 7.5-8.5mt. The company expects operating income of $230-270m. Bell Potter sees an upside bias to crop receipts with the prospect of a good harvest in FY21-22.

The company expects a further $25m in operating income initiatives which are expected to be delivered by FY23-24. The new initiatives focus on moving into higher-value oil products and diversifying into other non-grain bulk commodities.

Bell Potter believes these initiatives will likely lift sustainable operating income to $240m from $200m by FY23-24.

Buy rating with the target rising to $6.20 from $5.20.

This report was published on March 25, 2021.

Target price is $6.20 Current Price is $5.15 Difference: $1.05
If GNC meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $6.09, suggesting upside of 18.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 20.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.5, implying annual growth of -77.0%.
Current consensus DPS estimate is 20.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 18.00 cents and EPS of 32.80 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of -14.5%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 17.5.

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

Commenting on GrainCorp's 2021 Investor Day in Sydney, Goldman Sachs noted that the company’s normalised earnings target for the first time, with expected earnings (EBITDA) of $240m by FY23-24, sit 30% above the FactSet consensus.

The broker’s continued Buy thesis centres on a view that the market under-values the company’s intrinsic earnings power on the back of current initiatives and normalising crop conditions.

Goldman Sachs continues to view GrainCorp as presenting a strong combination of near-term harvest leverage and long-term structural benefits, and has increased its target price to $6.40 from $5.34.

This report was published on March 25, 2021.

Target price is $6.40 Current Price is $5.15 Difference: $1.25
If GNC meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $6.09, suggesting upside of 18.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.18 cents and EPS of 0.36 cents.
At the last closing share price the estimated dividend yield is 0.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1430.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.5, implying annual growth of -77.0%.
Current consensus DPS estimate is 20.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.14 cents and EPS of 0.28 cents.
At the last closing share price the estimated dividend yield is 0.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1839.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of -14.5%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 17.5.

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

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $1.29

Euroz Hartleys rates ((GNG)) as Speculative Buy (1) –

The company increased FY21 revenue guidance to $340-$360m from $280- $300m. With an emerging resources boom in construction imminent, and in the midst of industry rationalisation, Euroz Hartleys believes the medium-term outlook is very strong.

The speculative Buy rating is maintained with a $1.57 target.

This report was published on February 2, 2021.

Target price is $1.57 Current Price is $1.29 Difference: $0.28
If GNG meets the Euroz Hartleys target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

KMD    KATHMANDU HOLDINGS LIMITED

Sports & Recreation – Overnight Price: $1.24

Jarden rates ((KMD)) as Buy (1) –

While Kathmandu Holdings 1H21 earnings (EBITDA) of NZ$48.2m were in line with guidance of NZ$47m-$49m and Jarden’s forecast of NZ$47.9m, underlying net profit (NPAT) of NZ$23.1m was 13% ahead of the broker’s estimate on lower than forecast finance costs and taxation.

The company noted that Rip Curl wholesale orders for 2H are ahead of pre-covid levels (typically 55% of 2H sales) and that Oboz's order book is also well above pre-covid.

Commenting on the result, Jarden noted that Rip Curl’s 1H21 earnings (EBITDA) margin of 19.4% is meaningfully ahead of the target margin of 15% presented at the time of the acquisition.

To reflect the better-than-expected margin, the broker has upgraded underlying EPS for FY21-23 to 11%, 10%, and 7% respectively. While Jarden has upgraded near-term earnings, the medium- and long-run track is broadly unchanged.

Kathmandu Holdings reinstated its dividend declaring a 2cps interim payment (not imputed), and on a full-year basis, Jarden expect the company to have a payout ratio of around 70%.

Buy rating remains, and target price increases to NZ$1.75 from NZ$1.70.

This report was first issued March 23, 2021.

Current Price is $1.24. Target price not assessed.
Current consensus price target is $1.38, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 6.54 cents and EPS of 9.34 cents.
At the last closing share price the estimated dividend yield is 5.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of N/A.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 9.34 cents and EPS of 11.67 cents.
At the last closing share price the estimated dividend yield is 7.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of 26.4%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 11.3.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LRK    LARK DISTILLING CO LTD

Food, Beverages & Tobacco – Overnight Price: $2.30

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

Based on a strong growth outlook driven by favourable spirit consumption trends, rising e-commerce penetration, and investment in inventory and production volume uplift, Moelis initiates coverage of Lark Distilling Co with a Buy, and target price of $2.65.

A Tasmanian-based producer of craft whisky and gin, Lark Distilling Co offers an estimated 88% FY20-22 sales compound annual growth rate, and generated $6.4m net revenue in FY20.

Despite a FY20 -$1.1m earnings (EBITDA) loss, the broker believes the company is on track to double net sales in FY21, which should see it deliver a maiden earnings (EBITDA) profit in FY21.

Moelis also believes the -17% discount Lark Distilling Co trades at versus the peer average of 7.0x is unwarranted given its strong growth outlook.

The report was issued March 25, 2021.

Target price is $2.65 Current Price is $2.30 Difference: $0.35
If LRK meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20909.09.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4509.80.

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

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $1.40

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

Following a period of underperformance both at share price and execution levels, the Geminder Family-controlled Gallin Group has launched a takeover bid on market for McPherson’s, and has appointed a broker to acquire all of the shares at a price of $1.34, which represents a premium of 9.8% to last close.

In Shaw & Partners view, to acquire a significant stake or complete an acquisition Gallin would need to raise its bid. The broker believes an expectant 30% control premium infers a share price of around $1.58-plus.

Other factors on which the brokers expects a higher premium could be commanded include low takeout multiple (consensus expectations only 13.6x price earnings), solid balance sheet and cash flow generator, as well as the company’s market position as one of the country’s leading suppliers of health wellness and beauty products.

Based on the lack of a significant control premium, a strong balance sheet and the potential for further competing interest, Shaw maintains a Buy and the target of $1.54 remains unchanged.

This report was published on March 26, 2021.

Target price is $1.54 Current Price is $1.40 Difference: $0.14
If MCP meets the Shaw and Partners target it will return approximately 10% (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 6.80 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 4.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $25.18

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

Premier Investments' first half was strong, observes Bell Potter, with operating income up 88.5% versus last year to $237.8m. Bell Potter notes the uplift was mostly driven by margin gains from online sales acceleration, outperformance by Peter Alexander and opex leverage.

Sales performance was robust, highlights the broker, rising by 7.2% despite store closures, with global same store sales up 18.2%. Somewhat offsetting was Smiggle with sales down -26.5% due to covid.

Hold rating retained with the price target increasing to $25 from $23.90.

This report was published on March 25, 2021.

Target price is $25.00 Current Price is $25.18 Difference: minus $0.18 (current price is over target).
If PMV meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.26, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 72.80 cents and EPS of 158.30 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.2, implying annual growth of 70.6%.
Current consensus DPS estimate is 85.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 89.80 cents and EPS of 130.00 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 120.8, implying annual growth of -18.5%.
Current consensus DPS estimate is 84.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.8.

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

Having benefited from benefit from wage and rent subsidies of $15.6m and $26m, Premier Investments reported 1H21 retail sales of $784.6m, +1% versus Goldman Sachs and -0.2% versus consensus data, and Retail earnings (EBIT) of $237.8m.

Goldman Sachs has allowed for these subsidies with revised EBIT forecasts implying a 4 year compound annual growth rate (CAGR) of 3.8% over FY19-23. Overall, the broker has revised underlying earnings (EBIT) forecasts by +18.3% and +5.0% respectively in FY21 and FY22.

Peter Alexander, Just Jeans and Jay Jays reported strong sales growth, while Smiggle – with sales down -26.5% year-on-year – continued to lag recovery due to ongoing store closures into 2H21 in Asia and Europe. European stores are only expected to reopen in mid-April.

Goldman Sachs has maintained its Sell rating with the target price decreased to $20.20 from $20.80.

This report was published on March 24, 2021.

Target price is $20.20 Current Price is $25.18 Difference: minus $4.98 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.26, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.89 cents and EPS of 1.59 cents.
At the last closing share price the estimated dividend yield is 0.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1583.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.2, implying annual growth of 70.6%.
Current consensus DPS estimate is 85.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.76 cents and EPS of 1.03 cents.
At the last closing share price the estimated dividend yield is 0.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2444.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 120.8, implying annual growth of -18.5%.
Current consensus DPS estimate is 84.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.8.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.76

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

Arriving four months later than Wilsons expected, Polynovo’s first major group purchasing organisation (GPO) contract win, Premier Inc is seen as a material step forward for market access, opening up over 3,600 settings including acute/ambulatory hospitals.

It also provides a platform to interface more with general surgery, enabling (Biodegradable Temporizing Matrix) BTM growth beyond burns/trauma and launches in hernia and breast.

However, Wilsons regards Premier contract access as supportive of, rather than additive to the broker’s forecasts.

Key revenue drivers highlighted by the broker include uptake of BTM into new hospitals, expanding footprint of BTM into existing hospital clients, additional supporting cost/effectiveness data to drive uptake, and new product approvals.

Wilsons is forecasting a net debt position of around $4m over the balance of FY21, and maintains the Market Weight rating with the target increasing to $2.80 from $2.60.

This report was published on March 26, 2021.

Target price is $2.80 Current Price is $2.76 Difference: $0.04
If PNV meets the Wilsons target it will return approximately 1% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 306.67.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 172.50.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RDY    READYTECH HOLDINGS LTD

Software & Services – Overnight Price: $1.85

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

Shaw & Partners is initiating coverage on mission-critical, software-as-a-service (SaaS) solutions provider, Readytech Holdings Ltd with a Buy rating and a target price of $3.0, which implies over 75% upside to the current price.

The broker is forecasting revenue to increase to over $90m by FY25, implying a compound annual growth rate (CAGR) of around 19%, and sees potential for margin expansion and model (100bps) through FY25.

Given that Readytech trades at a -40-45% discount to its closest peers, Shaw believe the market is not fully valuing the company’s attractive blend of software attributes, and suspects a re-rating could be imminent.

This report was published on March 26, 2021.

Target price is $3.00 Current Price is $1.85 Difference: $1.15
If RDY 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 FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.56.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.23.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $65.99

Jarden rates ((RHC)) as Buy (1) –

In light of its improving top line and relatively cheap valuation at 24.7x FY22, Jarden believes Ramsay Healthcare is one of the only healthcare stocks still sitting within a basket of "recovery trade" stocks.

Jarden believes the return of earnings leverage, as the recovery unfolds and the material reduction in covid costs, as the efficiency around screening and cleaning protocols improve, allows the broker to tweak FY21, FY22 and FY23 net profit (NPAT) higher by 2.2%, 2% and 1.4% respectively.

Buy rating is unchanged and the price increases to $86 from $84.24.

The report was issued March 25, 2021.

Target price is $86.00 Current Price is $65.99 Difference: $20.01
If RHC meets the Jarden target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $69.06, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of -107.10 cents and EPS of 193.70 cents.
At the last closing share price the estimated dividend yield is – 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 201.0, implying annual growth of 53.4%.
Current consensus DPS estimate is 115.8, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.8.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of -152.60 cents and EPS of 275.70 cents.
At the last closing share price the estimated dividend yield is – 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 258.3, implying annual growth of 28.5%.
Current consensus DPS estimate is 145.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 25.5.

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

RSG    RESOLUTE MINING LIMITED

Gold & Silver – Overnight Price: $0.42

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

While no explanation has yet been provided, Resolute Mining has been notified by the Ghanian Minerals Commission that the Mining Lease covering the Bibiani project area has been terminated.

As a result, Canaccord Genuity believes it's hard to see how any transaction with Chifeng Jilong Gold Mining Co for the sale of Bibiani for a cash consideration of US$100m can proceed.

Consequently, the broker believes the previous expectations for a -US$100m debt reduction in 1H'21 is now also in doubt.

But Canaccord Genuity still thinks Resolute Mining could generate sufficient positive cash flow to mostly meet amortisation of the Term Loan component of total debt facilities.

Given that the market ascribed little (if any) value to Bibiani, the broker believes the sell-off is overdone.

The Buy rating is unchanged and the target price decreases to $1.35 from $1.50.

This report was published on March 25, 2021.

Target price is $1.35 Current Price is $0.42 Difference: $0.93
If RSG meets the Canaccord Genuity target it will return approximately 221% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.02 cents and EPS of 0.05 cents.
At the last closing share price the estimated dividend yield is 0.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 840.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.02 cents and EPS of 0.09 cents.
At the last closing share price the estimated dividend yield is 0.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 466.67.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Resolute Mining announced the termination of the Bibiani mining lease and this has raised uncertainty over whether the company will be able to realise any value from the asset going forward, specifically with regard to the previously announced sale agreement to Chifeng Jilong for US$105m.

Commenting on the announcement, Goldman Sachs noted the sale of Bibiani is not required to meet any debt or liquidity obligations hence this is not an issue currently on the broker’s forecasts.

Resolute’s net debt at the end of 2020 was -US$270m (inc. leases), with US$89m cash on hand. Given strong free cash flow generation from Syama and Mako, Goldman Sachs expects Resolute will comfortably meet any near-term debt obligations.

Goldman Sachs believes the current share price implies no value is being ascribed to any asset apart from Syama Sulphides, which the broker conservatively models at Reserves only.

Buy rating and $1.30 target price both left unchanged.

This report was published on March 26, 2021.

Target price is $1.30 Current Price is $0.42 Difference: $0.88
If RSG meets the Goldman Sachs target it will return approximately 210% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.17 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 251.50.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 200.96.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RUL    RPMGLOBAL HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.37

CCZ Equities rates ((RUL)) as Initiation of coverage with Buy (1) –

CCZ Equities initiates coverage with a Buy rating and target of $1.73 for RPMGlobal Holdings. The company supplies software to the mining industry at each stage of the mining process.

The analyst believes management is well placed to capture the continued investment in mining technology, given the relative lack of competition in a majority of the segments the company supplies. Also, the company’s preparedness in building these solutions is considered a plus.

On average the company has added 98 cents of free cash flow for every $1 of cash invested in the last three years and return on capital employed (ROCE) has also been growing steadily to 17% in FY20, the broker observes.

This report was published on March 25, 2021.

Target price is $1.73 Current Price is $1.37 Difference: $0.36
If RUL meets the CCZ Equities target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.59.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.07.

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

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $3.16

Jarden rates ((SM1)) as Initiation of coverage with Underweight (2) –

While the impact of a2 Milk Company-centric FY21 downgrade pressure that Synlait Milk Ltd recently warned the market about is inherently difficult to calibrate, Jarden has now revised the company’s FY21 net profit (NPAT) to NZ$28m (previously NZ$38m).

The broker also expects the 1H contribution to be around NZ$12m (-55%on pcp) and 20,000 MT of IFC produced (-8% on pcp).

With a2 Milk Company-centric FY21 downgrade pressure now bringing Synlait ‘s debt loading back into picture from a covenant perspective, Jarden’s revised FY21 net debt estimate on earnings (EBITDA) is now 3.6x (previously 2.8x, pro-forma 2x at equity raise) versus its covenant of 4x.

Assuming a2 Milk’s daigou demand stabilises and recovers, Jarden believes this covenant risk should be a temporary issue.

While Jarden has cut FY21 net profit (NPAT) to NZ$28m (from NZ$38m), the broker notes this estimate still carries material up and down risks dependent on a2 Milk demand across the 2H.

Underweight rating remains unchanged, and target reduces to NZ$3.90 from NZ$4.60.

This report was issued March 25, 2021

Current Price is $3.16. Target price not assessed.
Current consensus price target is $2.58, suggesting downside of -18.4%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of 12.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.1, 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 31.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 22.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.7, implying annual growth of 124.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 13.9.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SPK    SPARK NEW ZEALAND LIMITED

Telecommunication – Overnight Price: $4.15

Jarden rates ((SPK)) as Buy (1) –

While Spark NZ is expected to continue to invest in its core network infrastructure, Jarden expects the capital intensity of its cloud business to reduce and help offset margin pressure.

Jarden noted that Spark NZ Ltd sees itself as well placed for 5-10% annual revenue growth over FY21-23 from IT & Managed Services compared to forecast market growth at 4-6%.

Jarden’s rating moves to Buy from Overweight and the target increases to NZ$4.73 from NZ$4.72 based on an attractive yield that looks well supported over the next few years.

This report was published on March 25, 2021. 

Current Price is $4.15. Target price not assessed.
Current consensus price target is N/A
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 23.35 cents and EPS of 19.89 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.8, implying annual growth of N/A.
Current consensus DPS estimate is 22.9, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 21.0.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 23.35 cents and EPS of 21.67 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.2, implying annual growth of 12.1%.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 18.7.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.35

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

While double digit market growth continued in the broader wine market, up15.6% year-on-year for the 4 weeks ended 20 February 2021, data trends across Treasury Wine Estate’s key markets have continued to diverge in recent months, the broker observes.

Australian wine imports to China (bottled wine sales) continued to decline by more than -75% in both January and February on a volume basis and by more than -60% on a value basis.

Online sales are demonstrating strong growth against a weak base, while US off-premise sales remain elevated with double digit market growth continuing in the broader wine market, up 15.6% year-on-year for the 4 weeks ended 20 February 2021.

On a 2-year compound annual growth rate basis (CAGR), growth in January 2021 was down -29.5% versus -15.5% in the prior month. Goldman Sachs expect this trend to continue in the coming months until wine industry participants find a new home for the wine originally earmarked for China.

However, the broker notes, the industry is also cycling through weaker underlying trends from the previous period due to the covid impact.

Neutral rating and $9.30 target price both left unchanged.

This report was published on March 24, 2021.

Target price is $9.30 Current Price is $10.35 Difference: minus $1.05 (current price is over target).
If TWE meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.61, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 34.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.6, implying annual growth of 14.9%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 24.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 44.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.0, implying annual growth of 1.0%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 24.6.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $24.36

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

Commenting on Westpac’s decision to review its NZ business, and possible demerger, Goldman Sachs noted the Reserve Bank of NZs (RBNZ) objective of increasing the level of capital in the New Zealand banking system will adversely impact the relative NZ return on equity (ROE) trajectory going forward.

To this end, the broker previously estimated that the FY19 NZ major bank ROE of 14% would fall by 5% to 9%, assuming the NZ$20bn required increase in Tier 1 capital was entirely funded by equity.

Goldman Sachs believes this risk is ameliorated by the fact the RBNZ has been progressively structurally separating the operations of the New Zealand business from the Australian parents, from the perspective of funding, capital, and, more recently, broader operations, including systems.

While Goldman Sachs maintains its Buy, the broker notes that downside risks include slower-than-expected housing growth, risk of higher investment spend, as well as a higher exposure to NSW property market.

Target price $25.94. Buy.

The report was issued March 25, 2021

Target price is $25.94 Current Price is $24.36 Difference: $1.58
If WBC meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $26.11, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 1.62 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1503.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 173.6, implying annual growth of 139.4%.
Current consensus DPS estimate is 122.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 1.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1416.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 174.7, implying annual growth of 0.6%.
Current consensus DPS estimate is 129.0, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 13.9.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

YOJ    YOJEE LIMITED

Software & Services – Overnight Price: $0.14

Euroz Hartleys rates ((YOJ)) as Speculative Buy (1) –

Euroz Hartleys maintains a Speculative Buy recommendation and $0.50 price target after a business update revealed management expects revenue growth over the coming quarters as a result of recent rollouts. This is in-line with the broker's expectations.

The company highlighted a robust pipeline of opportunities which include new enterprise countries and hubs with existing clients. 

Management also stated they are in advanced discussions with potentially new enterprise clients and they expect to sign new agreements and undertake additional deployments of the platform through 2021.

This report was published on March 4, 2021.

Target price is $0.50 Current Price is $0.14 Difference: $0.36
If YOJ meets the Euroz Hartleys target it will return approximately 257% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

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