Australian Broker Call *Extra* Edition – Apr 11, 2019

Daily Market Reports | Apr 11 2019

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)

AHZ   AMA   BTH   FAR   LCK   LVT   MSV   NIC   SHV (3)   SPL   SXE   SXL   Z1P  

AHZ    ADMEDUS LTD

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.07

NDF Research rates ((AHZ)) as Initiation of coverage with Buy High Risk (1) -

NDF Research has initiated coverage of tissue engineering company Admedus, and bravely leads with a Buy, high risk, rating.

NDF expects a re-rating of Admedus given the biotech analyst's discounted-cash-flow valuation pegs the stock at between 8c per share and 21c (best-case scenario), well above the share price. Target price is 15c per share, in the mid-range of valuation.

The stock is reporting revenue of $11.1m and the analyst perceives market potential to be in the hundreds of millions. NDF expects strong growth in the CardioCel and VascuCel products; and notes the company is developing ADAPT technology that allows its products to be used in Transcatheter Aortic Valve Replacement - a market currently pegged at US$3.5bn and forecast to grow to US$12bn by 2025. NDF Research believes the stock has a competitive advantage in this market.

This report was published on March 20, 2019.

Target price is $0.15 Current Price is $0.07 Difference: $0.08
If AHZ meets the NDF Research target it will return approximately 114% (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

AMA    AMA GROUP LIMITED

Automobiles & Components - Overnight Price: $1.15

Wilsons rates ((AMA)) as Hold (3) -

Increasing vehicle complexity is pushing up costs for the industry, assure analysts at Wilsons. They anticipate ongoing pressure on the company's margins, also because motor vehicle insurance claims continue growing at a faster pace than AMA Group's organic growth rate.

For the company to achieve its targeted 10% operational margin (ebitda), the analysts suggest insurers need to play ball. In the absence of this, margin pressure is likely to remain a defining feature.

Wilsons acknowledges acquisition activity and total revenue growth continues to track well, but the analysts await signs of sustainable margins and profitability before turning more positive. Hold. Target price $1.08.

This report was released on April 11, 2019.

Target price is $1.08 Current Price is $1.15 Difference: minus $0.07 (current price is over target).
If AMA meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 3.00 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.18.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 3.50 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.43.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services - Overnight Price: $0.54

Canaccord Genuity rates ((BTH)) as Buy (1) -

Bigtincan has upgraded revenue growth to the top end of guidance at 40%, thanks to contract enhancements and customer win in new countries and industries, and slowing churn.

The broker notes that Bigtincan reports a four-year annual recurring revenue organic compound annual growth rate of greater than 40% and has gained larger "lighthouse" contracts - a sign of a maturing stock. 

Cannacord says the stock appears undervalued compared to other mature stocks in the sector, and expects medium-term growth and strong industry tailwinds to aid a re-rating.

Bigtincan is a provider of cloud-based sales enablement software to large enterprises with global and mobile sales forces and has more than 400 enterprise customers and more than 150,000 users. It has more than 100 technology integrations across a range of end-user functions.

Cannacord Genuity retains a Buy rating and 60c target price.

This report was published on April 3, 2019.

Target price is $0.60 Current Price is $0.54 Difference: $0.06
If BTH meets the Canaccord Genuity target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Canaccord Genuity forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.00.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.00.

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


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