Australian Broker Call *Extra* Edition – Sep 12, 2019

Daily Market Reports | Sep 12 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)

360   ANG   BVS   CAT   CDA   FNP   IRI   MAQ   MNF (2)   MVP   NAN   NBL   NVL   PKS   PPC   RDY   SSG  

360    LIFE360 INC

Software & Services - Overnight Price: $3.45

Moelis rates ((360)) as Buy (1) -

Life360's FY19 result beat the broker by a nose, thanks to a strong performance across all major metrics. Revenue growth, retention, user growth, higher-value conversion and monetisation of users through the lead generation partnership with Allstate all contributed.

Management reaffirmed guidance.? Moelis notes Life360 is experiencing strong momentum and is making solid progress on growing and monetising its user base. Target price is steady at $6.50. Buy rating retained.

This report was released on August 23, 2019.

Target price is $6.50 Current Price is $3.45 Difference: $3.05
If 360 meets the Moelis target it will return approximately 88% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Moelis forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 23.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.41.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 18.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.03.

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

ANG    AUSTIN ENGINEERING LIMITED

Mining Sector Contracting - Overnight Price: $0.18

Wilsons rates ((ANG)) as Buy (1) -

Austin Engineering's FY19 result fell short of Wilsons estimates and downgraded guidance. The broker trims FY20 earnings -15% to match the lower end of guidance, and to reflect a cautious outlook for North America.Target price falls to 25c from 28c.

The broker retains a Buy rating, believing the company is in its best position in more than five years.?

Wilsons expects a shortage of domestic yellow-kit will trigger a resurgence in demand, says the share valuation is cheap, and the company holds a strong balance sheet.?

This report was published on August 28, 2019.

Target price is $0.25 Current Price is $0.18 Difference: $0.07
If ANG meets the Wilsons target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.40 cents and EPS of 1.60 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.25.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.80 cents and EPS of 2.10 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.57.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments - Overnight Price: $4.39

Wilsons rates ((BVS)) as Buy (1) -

Bravura Solutions' FY19 results outpaced Wilsons' earnings estimates by 5% and the company issued double-digit growth guidance (in-line).

The higher value wealth management business experienced further revenue declines and guidance included an immaterial contribution from mergers and acquisitions, but management reiterated to the market that the investment case remains intact.

Wilsons believes the structural outlook for the wealth management software is good, and notes the company has plenty of cash to splash on accretive mergers and acquisitions.

Buy rating retained, reflecting the undemanding valuation. Target price goes to $5.66. Buy rating retained.

Target price is $5.66 Current Price is $4.39 Difference: $1.27
If BVS meets the Wilsons target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 4.20 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 0.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.09.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 5.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.90.

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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