Australian Broker Call *Extra* Edition – Jun 24, 2019

This story features AMA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AMA

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)

AMA   AQR   BAP   CCX   CXL   D2O   EHL   GUD   JLG   MAH   PWH   UWL   VOC   VVR  

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $1.39

Wilsons rates ((AMA)) as Hold (3) –

Wilsons upgrades outer year forecasts for AMA Group to account for recent acquisitions.

The broker notes trading conditions appear in line with expectations and suspects AMA will benefit from an increase in hail-damage claims in the past two quarters.

On top of core acquisitions, AMA is reported to have bought roughly seven heavy vehicle panel shops, suggesting its entry into the Truck market.

Should the company be successful in its bid for Suncorp's Capital SMART business, Wilson estimates the deal will be 5% to 32% accretive. 

Margin pressure continues as more complex vehicles enter the market and will require negotiations with insurers to return to balance.

Wilsons upgrades earnings-per-share estimates up to 6% across 2019, 2020 and 2021. Hold rating retained; target price rises to $1.12 to reflect stronger earnings.

This report was published on June 11, 2019.

Target price is $1.12 Current Price is $1.39 Difference: minus $0.27 (current price is over target).
If AMA meets the Wilsons target it will return approximately minus 19% (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 2.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.39.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 3.60 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.58.

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

AQR    APN CONVENIENCE RETAIL REIT

REITs – Overnight Price: $3.21

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

Moelis has initiated coverage of APN Convenience Retail REIT with a Buy rating. The broker pegs a $3.31 target price, which equates to an FY20 dividend of 6.8%.

Moelis notes convenience retailers continue to generate strong profit margins from non-fuel goods, and income from this stream has been growing at a compound annual growth rate of 4%. 

The company boasts 100% occupancy with weighted average leases to expiry of 12.1%, the majority of which have contracted 2.9% rental increases annually. 76% of lease income expires in and after FY30.

APN Convenience Retail REIT is well-positioned in the low-interest environment to execute accretive acquisitions, suggest the analysts.

This report was published on June 19, 2019.

Target price is $3.31 Current Price is $3.21 Difference: $0.1
If AQR meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Moelis forecasts a full year FY19 dividend of 18.10 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 5.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.35.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 20.90 cents and EPS of 21.60 cents.
At the last closing share price the estimated dividend yield is 6.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

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

BAP    BAPCOR LIMITED

Automobiles & Components – Overnight Price: $5.66

E.L. & C Baillieu rates ((BAP)) as Buy (1) –

Bapcor has reaffirmed guidance for 9% growth in net profit after tax, and a recovery in cash flow conversion to 90%. It has also announced the acquisition of Japanese Trucks Australia.

Bailleau has taken the opportunity to reiterate its Buy rating and $6.80 target price.

The broker points to strong demand and sales in the core Burson Auto Parts business; the expanded Australia and New Zealand store network; and stronger operating margins.

The broker forecasts a return to 3%-4% organic growth in the medium term, and a recovery in the share price.

This report was published on June 13, 2019.

Target price is $6.80 Current Price is $5.66 Difference: $1.14
If BAP meets the E.L. & C Baillieu target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $6.98, suggesting upside of 23.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

E.L. & C Baillieu forecasts a full year FY19 dividend of 17.00 cents and EPS of 33.30 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.6, implying annual growth of -0.9%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 16.8.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 18.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.3, implying annual growth of 11.0%.
Current consensus DPS estimate is 19.7, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 15.2.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $1.79

Bell Potter rates ((CCX)) as Initiation of coverage with Buy (1) –

Bell Potter has initiated coverage of women's plus-size, accessories and footwear multi-channel retailer and brand City Chic Collective with a Buy rating.

City Chic has 107 stores in Australia and New Zealand, a high-margin high-growth online business which represents 40% of sales and wholesale relationships with major retailers. 

The broker notes the stock is showing strength and growing brand recognition in northern hemisphere markets, having penetrated through Macy's and Nordstrom, and onliners, Amazon, Gwynnie Bee and Stitch Fix.

The United States market now represents about 16% of sales and offers considerable potential given the market is roughly 35 times larger than the Australia and New Zealand market. The company is also branching into Europe.

Bell Potter notes the plus-size women's apparel market is significantly underserved, and likes the long-standing management team and strong balance sheet. Target price $2.15.

This report was published on June 12, 2019.

Target price is $2.15 Current Price is $1.79 Difference: $0.36
If CCX meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 6.70 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.66.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 6.90 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.25.

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

CXL    CALIX LIMITED

Overnight Price: $0.68

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

Shaw has issued a Buy, High Risk, rating recommendation for Calix on the news that the company's LEILAC project partner HeidelbergCement Group has received validation of its carbon dioxide (CO2) reduction targets from the Science Based Targets initiative, a collaboration between the UN Global Compact, CDP, World Resources Institute and World Wide Fund for Nature. 

HeidelbergCement is helping LEILAC develop its CO2 sequestration technology. The approval makes HeidelbergCement the first company in the cement sector, and one of only about 200 companies globally, to receive such validation. The implications of this have yet to be seen.

Calix has provided some of the technology underpinning the validation and upon which HeidelbergCement will rely for further sequestration gains on its journey towards creating carbon-neutral concrete (at present its carbon reduction only sits at -20%). The separation of CO2 from the limestone in cement will be a key achievement.

The LEILAC project is in the test-phase now and data are expected in July.  Shaw notes otherwise, Calix product progress has been strong and the company has several promising projects in cement, aquaculture and new materials production. Target price is 90c.

This report was published on June 18, 2019.

Target price is $90.00 Current Price is $0.68 Difference: $89.32
If CXL meets the Shaw and Partners target it will return approximately 13135% (excluding dividends, fees and charges).

Forecast for FY19:

Shaw and Partners forecasts a full year FY19 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 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 34.00.

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

D2O    DUXTON WATER LIMITED

Overnight Price: $0.00

Bell Potter rates ((D2O)) as Initiation of coverage with Hold (3) –

Bell Potter has initiated coverage on Duxton Water with a Hold recommendation. 

Duxton holds a portfolio of water of 71,696 megalitres with a 75% bias to high-security assets. primarily in the southern Murray Darling Basin, which it leases.

The broker says water entitlement prices have demonstrated compound annual growth of 6% to 7% a year and the average cash return on high-security assets in the area is 5.4%.

While the broker likes the long-term profile, the short-term variability of water inflows will likely result in a period of price consolidation.

Hence the Hold rating. Target price is $1.50.

This report was issued on June 19, 2019.

Target price is $1.50
The company's fiscal year ends in December.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 5.30 cents and EPS of 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 5.60 cents and EPS of 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $2.19

Bell Potter rates ((EHL)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage of Emeco Holdings with a Buy rating, believing the company's five-year transformation is starting to pay off.

Bell Potter notes stronger mining production, capital expenditure and exploration have boosted demand, which, combined with a tight equipment market and expansion in the company's rental fleet, should underpin the stock.

Add to that an improved balance sheet, lower interest rates and higher earnings per share, and the company should be in a good position to refinance senior debt in FY20.

The broker notes the relatively young fleet, accelerated capital expenditure and carry-forward tax losses promise to sharply increase free cash flow from $65.6m in FY19 to $106.8m in FY20. Target price is set at $2.63.

This report was published on June 18, 2019.

Target price is $2.63 Current Price is $2.19 Difference: $0.44
If EHL meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 0.00 cents and EPS of 23.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.44.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 24.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.90.

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

GUD    G.U.D. HOLDINGS LIMITED

Household & Personal Products – Overnight Price: $10.33

Wilsons rates ((GUD)) as Hold (3) –

GUD Holding's first-half FY19 result disappointed the broker and Wilsons spies no reprieve in the second-half.

Wilsons believes the setback is temporary but says signs of intense competition warrant caution.

The broker expects trading conditions will deteriorate and that GUD's history of increasing prices regularly will be stymied by a more competitive environment as new entrants step up.

Earnings-per-share estimates fall -3% to -6% over the forecast period to reflect lower expected sales growth and tighter Auto margins.

Target price eases to $10.75 a share and Hold rating retained, albeit with a positive bias.

This report was published on June 11, 2019.

Target price is $10.75 Current Price is $10.33 Difference: $0.42
If GUD meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $13.28, suggesting upside of 28.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 50.50 cents and EPS of 68.30 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.6, implying annual growth of 20.5%.
Current consensus DPS estimate is 55.2, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 53.70 cents and EPS of 71.60 cents.
At the last closing share price the estimated dividend yield is 5.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.9, implying annual growth of 10.3%.
Current consensus DPS estimate is 62.5, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 13.3.

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

JLG    JOHNS LYNG GROUP LIMITED

Overnight Price: $1.47

Goldman Sachs rates ((JLG)) as Initiation of coverage with Buy (1) –

Goldman Sachs has initiated coverage of Johns Lyng Group with a Buy rating and maiden price target of $1.70. The broker argues the integrated building services group offers defensive growth at still a reasonable share price valuation.

Acting as project manager, the broker finds JLG has a capital-light business model, managing over 5,500 sub-contractors, and generates strong returns and cash flows. Also, the analysts note in the face of more regular extreme weather events in highly populated areas, revenues from catastrophic events may be lumpy but they also represent steady growth.

Acquisitions remain par for the course. Goldman Sachs believes the shares deserve to trade on a premium versus both domestic and international peers.

This research report was issued on June 21, 2019.

Target price is $1.70 Current Price is $1.47 Difference: $0.23
If JLG meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Goldman Sachs forecasts a full year FY19 dividend of 3.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 2.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.40.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 2.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.

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

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.22

Moelis rates ((MAH)) as Buy (1) –

Moelis Australia reiterates its Buy rating for MacMahon Holdings, after news the company will buy underground mining contractor GBF on a consideration of cash and the assumption of GBF's debt. 

The broker perceives the deal as attractive, the slight premium to net tangible assets seeming reasonable given the swift access to the mining fleet and workforce, and the opportunity for margin improvement.

Moelis says the deal diversifies earnings and increases the company's chances in the higher barrier-to-entry underground service business. The company has reiterated FY19 earnings and guided to growth in FY20.

McMahon is negotiating a rate increase with its Telfer contract and while a good result is expected in August, the sting in the tail is a heavy provision should it experience delays.

The broker increases earnings to reflect the GBF purchase, a figure muted by the Telfer caution, and says the stock appears undervalued. Target price is 30c.

This report was published on June 19, 2019.

Target price is $0.30 Current Price is $0.22 Difference: $0.08
If MAH meets the Moelis target it will return approximately 36% (excluding dividends, fees and charges).

Forecast for FY19:

Moelis forecasts a full year FY19 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.80.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 1.10 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.86.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $4.36

Bell Potter rates ((PWH)) as Downgrade to Hold from Buy (3) –

Bell Potter maintains a positive perspective on Power Holdings but downgrades to Hold from Buy on something of a technicality.

The upgraded target price of $4.85 (derived after changes to the valuation process) offers a total expected return, including dividend, of 10%, short of the 15% required to trigger a Buy recommendation.

Earnings-per-share forecasts remain steady at 25%, 29% and 21%, across FY19, FY20 and FY21. Bell Poter does suggest the risk remains in favour of the company beating forecasts.

The company has said it is on track for growth in FY19 and FY20.

This report was published on June 18, 2019.

Target price is $4.85 Current Price is $4.36 Difference: $0.49
If PWH meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 8.40 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 1.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.59.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 10.00 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 2.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.49.

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

UWL    UNITI WIRELESS LIMITED

Overnight Price: $1.86

Bell Potter rates ((UWL)) as Initiation of coverage with Hold (3) –

Bell Potter initiates coverage on Uniti Wireless, a contender to the NBN, with a Hold rating.

Uniti Wireless aims to provide an alternative to the NBN nationally, benefiting from lower operating costs.

Bell Potter expects the company will easily lap second-half prospectus forecasts given recent acquisitions of Pivit, Fone Dynamics and call Dynamics; and cites quality, experienced board and management.

Target price is set at $1.15.

This report was published on June 11, 2019.

Target price is $1.15 Current Price is $1.86 Difference: minus $0.71 (current price is over target).
If UWL meets the Bell Potter target it will return approximately minus 38% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 88.57.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.13.

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

VOC    VOCUS GROUP LIMITED

Telecommunication – Overnight Price: $3.22

CCZ Equities rates ((VOC)) as Buy (1) –

CCZ Equities Research has upgraded Vocus Group to Buy from Hold after the stock's hammering in response to AGL Energy's withdrawal of its indicative $4.85 bid. Earnings FY19 guidance has been reiterated and the broker spies some risk from the SMB brand. 

A sum-of-the-parts valuation now sits at $4.05 and the broker revises down FY20 earnings for the Fibre segment to a 9.5x multiple (from 10.5x), ad the SMB contribution to 4.0x (from 6.0x)

The broker expect organic growth in the region of 6% to 8% in Fibre in the segment.

This report was issued on June 18, 2019.

Target price is $4.05 Current Price is $3.22 Difference: $0.83
If VOC meets the CCZ Equities target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.73, suggesting upside of 16.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

CCZ Equities forecasts a full year FY19 dividend of 0.00 cents and EPS of 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of 54.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 0.00 cents and EPS of 19.10 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 16.8, implying annual growth of 10.5%.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 19.2.

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

VVR    VIVA ENERGY REIT

REITs – Overnight Price: $2.74

Moelis rates ((VVR)) as Initiation of coverage with Hold (3) –

Moelis initiates coverage of Viva Energy REIT as part of an overview of service station and convenience retail REITs.

The broker appreciates VVR's quality portfolio but notes the stock is trading at a 15% premium to net tangible asset backing and is trading on a FY20 dividend yield of 5.9%

The company has a strong weighted average lease to expiry of 12.6 years and only 0.9% of its leases expire prior to 2026.

Viva Energy REIT's gearing offers acquisition potential and it has about $67m of purchases in the pipeline. Moelis estimates $100m of debt-funded acquisitions to be 1.9% accretive, which leaves the company with a very manageable gearing of 35%.

Moelis pegs a $2.53 target price, and expects better entry points are in the wings.

This report was published on June 19, 2019.

Target price is $2.53 Current Price is $2.74 Difference: minus $0.21 (current price is over target).
If VVR meets the Moelis target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.55, suggesting downside of -6.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY19:

Moelis forecasts a full year FY19 dividend of 14.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of -30.6%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 14.50 cents and EPS of 14.54 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of 2.7%.
Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 18.0.

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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Disclaimer:
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.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

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