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Australian Broker Call *Extra* Edition – Jul 08, 2019

Daily Market Reports | Jul 08 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)

AHQ   ALU   CAJ   EPD   EXP   HUB   MCR   NEC   NUF   NWL (2)   PBH   REH   RHP   SHV   SSM   SWM  

AHQ    ALLEGIANCE COAL LTD

Coal – Overnight Price: $0.07

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

Bell Potter initiates coverage of Allegiance Coal with a Buy, high risk, rating.

The broker says the company is undervalued  and expects this discount to unwind as the company completes permitting and brings the Tenas semi-soft coking coal project in British Columbia into production. 

The mine has a 22-year life and Japan's giant coal company Itochu is about to increase its stake from 10% to 20% through an investment agreement. The broker says there is potential to leverage the start-up into a larger project.

The Buy recommendation is supported by the broker's positive view on metallurgical coal prices, but its full reliance on the speculative project accounts for the high-risk rating.

This report was published on June 27, 2019.

Target price is $0.15 Current Price is $0.07 Difference: $0.08
If AHQ meets the Bell Potter 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

ALU    ALTIUM LIMITED

Hardware & Equipment – Overnight Price: $35.47

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

Bell Potter believes Altium is on track to achieve and possible exceed its ambitious $200m revenue target for FY20. 

It also expects the company's margins will be well ahead of target.

The broker makes no changes to forecasts, but the target price rises 7% to $40, a 14% premium to the share price.

Buy rating retained.

This report was published on July 4, 2019.

Target price is $40.00 Current Price is $35.47 Difference: $4.53
If ALU meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $29.50, suggesting downside of -16.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 33.00 cents and EPS of 41.20 cents.
At the last closing share price the estimated dividend yield is 0.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, implying annual growth of 44.5%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 85.1.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 39.00 cents and EPS of 51.70 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.3, implying annual growth of 20.6%.
Current consensus DPS estimate is 40.5, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 70.5.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.25

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

Capitol Health has confirmed it will report in line with consensus and announced that the managing director Andrew Harrison will take a non-executive director position in the company and hand over the reins to chief operating officer Justin Walter.

The broker believes that following Harrison's transformation, Walter will be able to focus on building organic growth.

In terms of reporting, Shaw calculates that Capitol has delivered a 7% improvement in the run rate from the first half to the second half of 2019, and will report slightly subdued margins in the second-half of 17.4%.

The company reports improved trading conditions in the second half, which Shaw expects will drive an improved result in FY20. Shaw notes the company trades -30% below peers and expects a rerating. Buy reiterated. Target price steady at 27c.

This report was published on July 2, 2019. 

Target price is $0.27 Current Price is $0.25 Difference: $0.02
If CAJ meets the Shaw and Partners target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Shaw and Partners forecasts a full year FY19 dividend of 1.10 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 1.10 cents and EPS of 1.70 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

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

EPD    EMPIRED LTD

Software & Services – Overnight Price: $0.32

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

Empired has published a disappointing FY19 trading update but forecasts revenue and earnings growth in FY20.

The company also announced a non-cash impairment charge and the beginning of its share buyback.

Bell Potter downgrades FY19 earnings forecasts accordingly (-16%), and upgrades FY20 and FY21 earnings-per-share forecasts 27% and 25%, thanks largely to a fall in depreciation and amortisation after the impairment charge.

Target price is steady at 40c. Buy rating retained on valuation grounds.

This report was published on July 2, 2019.

Target price is $0.40 Current Price is $0.32 Difference: $0.08
If EPD meets the Bell Potter target it will return approximately 25% (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 minus 8.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.72.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.67.

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

EXP    EXPERIENCE CO LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.23

Wilsons rates ((EXP)) as Initiation of coverage with Hold (3) –

Wilsons initiates coverage of Australia's leading national skydiving and adventure experience operator with a Hold rating and $0.25 price target, noting recent acquisitions have been merely a distraction for the company and new management is likely to restructure, including selling off non-core operations.

Given the above context, the analysts await further details before revisiting their investment thesis. Investors should note the company is exposed to weather volatility.

This report was released on 8 July, 2019.

Target price is $0.25 Current Price is $0.23 Difference: $0.02
If EXP meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 1.00 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.33.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.17.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $11.26

Wilsons rates ((HUB)) as Sell (5) –

Wilsons cuts HUB24's target price to $9.50 from $10.90, expecting continued margin pressure to dog the stock. The broker notes that recent contract wins have been with very large clients which are typically lower margin.

Add to that recent cuts to interest rates, which are likely to hurt cash management fees which the company generates by charging a spread on its platforms (the broker estimates cash margins make up 60% of group earnings), and the broker says that if the soft rate environment continues, the spreads will probably need to contract, or platform account holders may choose to put their money elsewhere.

Wilsons cuts eanings-per-share forecasts -12.3%, -13.5% and -15.8% across FY19, FY20 and FY21. The broker expects the company will continue to grow funds significantly but is unclear how long headwinds will persist. Sell rating retained.

This report was published on July 4, 2019.

Target price is $9.50 Current Price is $11.26 Difference: minus $1.76 (current price is over target).
If HUB meets the Wilsons target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.23, suggesting upside of 17.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 9.00 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 0.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of 17.4%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 78.2.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 15.70 cents and EPS of 25.70 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.0, implying annual growth of 87.5%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 41.7.

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

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $0.44

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

Bell Potter cuts Mincor Resources' target price to 54c from 58c, primarily to reflect the reduced Widgiemooltha Gold Project valuation and another equity raising.

The broker notes the company continues to expand its nickel resource base as it shifts from its poorly performing gold operations into nickel following a strategy review, in which it decided to divest Widgiemooltha Gold.

The broker downgrades to Speculative Hold, from Buy, holding to its internal rating structure.

This report was published on July 4, 2019.

Target price is $0.54 Current Price is $0.44 Difference: $0.1
If MCR meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).

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

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $2.00

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

Goldman Sachs places a Buy rating on Nine Entertainment, based on the group's scale and digital exposure (with the Domain and Stan platforms).

Despite being bearish on free-to-air television, the broker believes the growth in the broadcasting video on demand market should underpin earnings growth, as will growth in the publishing business and efficiencies arising from incorporating the Fairfax operations.

The broker says that while the company looks fairly valued based on historical multiples, we are now in a brave new digital world, and is expecting a significant re-rating of global classified players such as Domain, although the performance of the Spring housing market remains a wildcard. Target price is $2.35.

This report was published on June 28, 2019.

Target price is $2.35 Current Price is $2.00 Difference: $0.35
If NEC meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.06, suggesting upside of 3.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Goldman Sachs forecasts a full year FY19 dividend of 10.00 cents and EPS of 12.00 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 16.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of -40.0%.
Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 10.00 cents and EPS of 14.00 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 14.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.5, implying annual growth of 0.7%.
Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.8.

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

NUF    NUFARM LIMITED

Agriculture – Overnight Price: $4.56

Wilsons rates ((NUF)) as Hold (3) –

Analysts at Wilsons are toying with the idea that Nufarm might need to raise additional capital, with the announcement possibly arriving as soon as the upcoming FY19 release.

Wilsons agrees the shares look "cheap", but the raising could be as large as $450m on its calculations and assumptions. Meanwhile, the news from glyphosate continues to be negative, further impacting on the share price.

This report was released on 8 July, 2019.

Target price is $4.40 Current Price is $4.56 Difference: minus $0.16 (current price is over target).
If NUF meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.33, suggesting upside of 38.7%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 0.00 cents and EPS of 21.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of -0.4%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 13.50 cents and EPS of 35.50 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.3, implying annual growth of 50.5%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 10.8.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $7.57

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

Bell Potter believes concerns about margin pressure on Netwealth arising from recent interest rate cuts are misplaced.

The broker explains that a bank pays Netwealth a healthy margin above the cash rate, enabling Netwealth to pass on a discount to underlying clients. However, when the cash rate falls, so does the discount to the client, netting out.

Should the cash rate fall below 0.5% (1% at present), the broker suspects a modest margin impact of three to four basis points. The broker has already factored tighter margins into its Netwealth forecasts to reflect competitive pressure.

Earnings-per-share forecasts rise 0.4%. 1.7% and 1.4% across FY19, FY20 and FY21 to reflect the impact of a stronger share market on funds under administration. Broker upgrades to Buy from Hold.

The report was first published on July 2, 2019.

Target price is $10.28 Current Price is $7.57 Difference: $2.71
If NWL meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $8.10, suggesting upside of 7.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 12.00 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 74.2%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 51.5.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 15.00 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 25.9%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 40.9.

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


Wilsons rates ((NWL)) as Buy (1) –

Wilsons reduces earnings-per-share forecasts for Netwealth to reflect continued downward pressure on the cash rate. 

Wilsons believes this will reduce the cash returns that can be generated by Netwealth or enjoyed by their account holders. 

The broker estimates cash margins constitute about 43% of group earnings. Earnings-per-share forecasts fall -2.3%, -5.9% and -14.7% across FY19, FY20 and FY21.

Target price falls to $8.53 – representing a total shareholder return of 20%, hence Buy rating is retained.

This report was published on July 4, 2019.

Target price is $8.53 Current Price is $7.57 Difference: $0.96
If NWL meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $8.10, suggesting upside of 7.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 11.30 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 74.2%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 51.5.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 13.10 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 25.9%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 40.9.

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

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $2.83

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

Bell Potter initiates coverage on Australian corporate bookmaker, PointsBet Holdings, with a speculative Buy rating and Customer Lifetime Valuation of $3.10.

The broker says the US Supreme Court's decision to overturn the Professional Amateur Sports Protection Act allows PointsBet to expand in the US as each state introduces legislation permitting online wagering and sports betting.

Already, PointsPet has been awarded a commercial licence to partner with the New Meadowlands Racetrack and the New Jersey Division of Gaming Enforcement has authorised the implementation of Pointsbet's platform, and the company had gained 4.1% of the online sports wagering market by March 2019. It has also signed agreements in New York, Iowa, Colorado, Illinois and Mexico.

This report was published on June 26, 2019.

Target price is $3.10 Current Price is $2.83 Difference: $0.27
If PBH meets the Bell Potter target it will return approximately 10% (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 minus 28.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.07.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 16.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.47.

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

REH    REECE AUSTRALIA LIMITED

Furniture & Renovation – Overnight Price: $9.97

E.L. & C Baillieu rates ((REH)) as Initiation of coverage with Hold (3) –

Baillieu has initiated coverage of Reece with a Hold rating and $9.80 target price.

The broker notes the company's strong earnings growth over the past five years, thanks to the strong housing market, and expects recent weakness in housing will be offset by growth from its US acquisition MORSCO.

MORSCO is a US distributor of plumbing, heating and cooling products in a market estimated at $80bn. The broker says the US acquisition offers diversification and growth runway for future years.

This report was published on July 2, 2019.

Target price is $9.80 Current Price is $9.97 Difference: minus $0.17 (current price is over target).
If REH meets the E.L. & C Baillieu target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY19:

E.L. & C Baillieu forecasts a full year FY19 dividend of 20.50 cents and EPS of 48.20 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.68.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 21.00 cents and EPS of 48.90 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.39.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $2.79

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

Rhipe recently upgraded FY19 profit guidance for the third time this financial year.

The broker points to strong top-line growth, operating leverage and cash-flow conversion and believes FY20 guidance is conservative. 

The broker upgrades revenue forecasts 1.9% in FY20 and 4.2% in FY21, but says this is offset by increased sales and marketing cost assumptions.

Despite being likely to benefit from structural tailwinds from the cloud computing megatrend, the broker believes this growth is reflected in the share price and maintains a Hold rating.

Target price rises to $2.75 from $2.30.

This report was published on June 25, 2018.

Target price is $2.75 Current Price is $2.79 Difference: minus $0.04 (current price is over target).
If RHP meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 2.30 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.94.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 2.80 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.30.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $7.33

Wilsons rates ((SHV)) as Hold (3) –

Wilsons raises almond grower Select Harvests' target price to $7.49 from $6.60, expecting continued near-term strength.

Select Harvest reported the best crop yields in six years in the first half and is experiencing unexpected trading windfalls.

The US China trade war has increased the company's almond price and now California's 2019 almond crop forecast has been downgraded -12%, from the May forecast and -3% below the previous year's crop, placing further upward pressure on almond prices.

The broker increases earnings-per-share forecasts 1% to 4% across FY19-FY21. Hold retained.

This report was published on July 4, 2019.

Target price is $7.49 Current Price is $7.33 Difference: $0.16
If SHV meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 23.80 cents and EPS of 34.60 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.18.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 21.30 cents and EPS of 42.50 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.25.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.84

E.L. & C Baillieu rates ((SSM)) as Initiation of coverage with Hold (3) –

Stockbroker Baillieu initiates coverage with a Buy rating and $2.95 seeing this company benefiting from a number of medium term tailwinds while observing that the current valuation seems fair.

Service Stream provides activation and assurance works for the NBN roll out and the broker points out the NBN is forecast to significantly ramp up its activation profile in the next two years.

In addition, following the acquisition of Comdain Infrastructure, the company's revenue is believed to have become significantly more diversified, including longer dated annuity-style revenue contracts.

This report was released on 8 July, 2019.

Target price is $2.95 Current Price is $2.84 Difference: $0.11
If SSM meets the E.L. & C Baillieu target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

E.L. & C Baillieu forecasts a full year FY19 dividend of 8.50 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 2.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 10.50 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.75.

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

SWM    SEVEN WEST MEDIA LIMITED

Print, Radio & TV – Overnight Price: $0.44

Goldman Sachs rates ((SWM)) as Initiation of coverage with Neutral (3) –

Goldman Sachs initiates coverage of Seven West Media with a neutral rating and 50c target price.

Despite the company being a leader in sports and news coverage, the broker says it lacks the scale of competitors with strong digital platforms, such as News Corp ((NWS)) and Nine Entertainment ((NEC)).

Goldman Sachs notes Seven West Media's digital portfolio is relatively nascent and will struggle to offset weakness in the traditional media divisions. On the upside, it expects resilience in the broadcaster's TV business and expects it will continue to take market share at the expense of Ten Network, heading into the FY20 Olympics.

The broker values the stock at 50c a share.

This report was published on June 28, 2019.

Target price is $0.50 Current Price is $0.44 Difference: $0.06
If SWM meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $0.52, suggesting upside of 17.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Goldman Sachs forecasts a full year FY19 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of -2.2%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 5.1.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 2.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of -3.4%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 5.2.

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


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