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Australian Broker Call *Extra* Edition – Sep 27, 2019

Daily Market Reports | Sep 27 2019

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M   APT (2)   ARQ (2)   BKL   BNO   BUB   CG1   CKF   ELO (2)   EML (2)   RBL  

A2M    THE A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $12.21

Wilsons rates ((A2M)) as Initiation of coverage with Hold (3) –

Wilsons has initiated coverage of A2M with a Hold rating and a target price of $12.08.

The broker spies a strong growth opportunity in the Chinese infant formula market and the US liquid milk market.

But the broker feels the stock is trading near fair value, noting increased competition, declining birth rates and potential regulatory disruption in the Chinese formula market. Declining consumption per capita also represents a headwind in the US, where oversupply remains a concern.

In the near term, the broker expects volume transitions following a push to a more direct distribution model in China, combined with increased marketing spending will dampen return on investment. The broker's FY20 forecasts sit -4% below consensus.

The strong balance sheet remains a plus. 

This report was published on September 24, 2019.

Target price is $12.08 Current Price is $12.21 Difference: minus $0.13 (current price is over target).
If A2M meets the Wilsons target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.59, suggesting upside of 11.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 41.23 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.2, 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 28.3.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 51.25 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.2, implying annual growth of 25.5%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 22.5.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APT    AFTERPAY TOUCH GROUP LIMITED

Business & Consumer Credit – Overnight Price: $36.13

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

Bell Potter cuts its AUSTRAC discount on Afterpay Touch Group's valuation to -7.5% from -15% after the monitoring organisation's interim report found the company to be free of money laundering or terrorism financing on its platform. The broker awaits the final report on November 23 before removing the discount entirely.

The target price increases to $41.61 from $38.41 accordingly.

Underlying EPS and customer growth estimates are unchanged and the Buy rating is retained.

The report was published on September 25, 2019.

Target price is $41.61 Current Price is $36.13 Difference: $5.48
If APT meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $33.52, suggesting downside of -7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 13.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 265.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.4, 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 1505.4.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 29.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 124.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of 800.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 167.3.

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


Goldman Sachs rates ((APT)) as Upgrade to Buy (1) –

Goldman Sachs has upgraded Afterpay Touch Group to a Buy and added it to its Conviction list.

Several metrics prompted the upgrade, including use-trends suggesting strong future adoption, an acceleration in capital efficiency, lower default rates, and strong operating leverage.

On top of that, the broker adds a life-time-value premium after Afterpay Touch's FY20 announced in its strategy that it would be targeting new markets (which the broker assumes will add a base-case 2.5m customers, which would equate to a valuation of $35.30 – and as many as 5m, which would equate to a valuation of $47). The broker emphasises that the company represents a trillion-dollar market opportunity.

The broker's revised gross-merchandising volume estimate for FY22 is 46% above the company's target, and the broker's net transaction profit estimate also outpaces the company forecast.

Goldman Sachs increases FY21 and FY22 EPS estimates 15% and 30%.

Target price rises to $42.90.

This report was published on September 24, 2019.

Target price is $42.90 Current Price is $36.13 Difference: $6.77
If APT meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $33.52, suggesting downside of -7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs 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 1806.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.4, 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 1505.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1204.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of 800.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 167.3.

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

ARQ    ARQ GROUP LIMITED

IT & Support – Overnight Price: $0.34

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

Bell Potter cuts ARQ Group's target to 35c from 65c, after the company issued yet another downgrade to guidance and the CEO Martin Mercer resigned, effective immediately. The company is undertaking a strategic review.

The broker cuts earnings forecasts -37%, -29% and -26% across 2019, 2020 and 2021 to the lower end of guidance, expecting a net loss for 2019 and breakeven in 2020.

The broker expects some parts of the business will need to be sold to meet debt covenants, which the broker says may be at risk.

Given the share price is trading close to the target price, Hold rating is retained.

This report was published on September 25, 2019.

Target price is $0.35 Current Price is $0.34 Difference: $0.01
If ARQ meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.15.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.00.

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


Wilsons rates ((ARQ)) as Hold (3) –

Wilsons throws up its hands in despair after ARQ Group again downgraded guidance, the CEO resigned and evidence emerged of a weak balance sheet.

The broker says a fire-sale is about the only option left for shareholders but retains a Hold rating given the share price is trading near par with the revised target.

The significant downgrade in guidance leaves net debt to earnings at 3.4x and the broker expects covenants will be breached by the end of December.

Meanwhile, ARQ is undertaking a strategic review and says it has received expressions of interest in its assets, which will likely result in capital erosion following the company's $190m M&A splurge, says the broker. SMB is expected to be the most likely candidate.

Target price is set at 37c.

This report was published on September 24, 2019.

Target price is $0.37 Current Price is $0.34 Difference: $0.03
If ARQ meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.08.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 68.00.

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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $84.27

Wilsons rates ((BKL)) as Initiation of coverage with Sell (5) –

Wilsons intitiates coverage of health-supplements company Blackmores with a Sell rating and sets a target price of $70.30.

The broker is cautious in the near term, noting disruptions to cross-border e-commerce channels, potential regulation, limited offline growth potential and low visibility of return on investment from brand-spend. 

Wilsons perceives potential demand from the ageing Chinese population but overall believes the share price to be excessive and gearing a tad on the high side.

This report was published on September 24, 2019.

Target price is $70.30 Current Price is $84.27 Difference: minus $13.97 (current price is over target).
If BKL meets the Wilsons target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $66.52, suggesting downside of -21.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 199.90 cents and EPS of 285.60 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 304.9, implying annual growth of -1.4%.
Current consensus DPS estimate is 219.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 27.6.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 258.60 cents and EPS of 369.40 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 346.5, implying annual growth of 13.6%.
Current consensus DPS estimate is 247.8, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 24.3.

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

BNO    BIONOMICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.08

Bell Potter rates ((BNO)) as Upgrade to Buy from Hold (1) –

Bell Potter has been encouraged by results from a single ascending dose study (SAD) in healthy volunteers with the new solid dose formulation of BNC210 meeting its objective. Bionomics will now prepare for a new Phase 2 trial for PTSD with the solid dose formulation.

No changes have been made to forecasts, but the improved probability of success drives an upgrade in valuation/price target to $0.127 from $0.042. Rating is upgraded to Buy/Speculative from Hold/Speculative.

This report was released on September 27, 2019.

Target price is $0.13 Current Price is $0.08 Difference: $0.047
If BNO meets the Bell Potter target it will return approximately 59% (excluding dividends, fees and charges).

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.76.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $1.36

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

Wilsons initiates coverage on Bubs Australia with a Hold rating and a $1.30 target price.

Wilsons spies a growth market in China for the company's goat infant formula and notes the company has developed relationships with key distributors.

But the broker says the company will have to contend with strong competition so the brand-build will be critical.

The balance sheet is solid, the broker expecting the company will hit a positive operating cash-flow run-rate by the end of FY21.

Wilsons says the company is fairly valued, hence the Hold rating.

This report was published on September 24, 2019.

Target price is $1.30 Current Price is $1.36 Difference: minus $0.06 (current price is over target).
If BUB meets the Wilsons target it will return approximately minus 4% (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 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 85.00.

Forecast for FY20:

Wilsons 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 68.00.

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

CG1    CARBONXT GROUP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.30

Shaw and Partners rates ((CG1)) as Buy (1) –

The company has issued a profit warning, advising investors that seasonal fluctuations and temporary slower demand from its largest customer mean current 1Q20 revenues will be similar to the last quarter.

The disappointing market update was accompanied by the positive news about three new industrial pellets contracts. Shaw and Partners acknowledges the short term growth bump, but also states the pipeline of new opportunities continues to build for the company.

The shares IPO-ed at $0.70 and have never even traded near that price level since. Currently they trade at a significant discount, which the broker suggests offers an opportunity. Buy rating re-affirmed. Target price remains $0.70. Earnings estimates have been lowered.

This report was released on September 27, 2019.

Target price is $0.70 Current Price is $0.30 Difference: $0.4
If CG1 meets the Shaw and Partners target it will return approximately 133% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.79.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.45.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.22

Wilsons rates ((CKF)) as Downgrade to Hold from Buy (3) –

Wilsons downgrades Collins Foods to Hold from Buy after the recent sharp share-price rally.

Meanwhile the company continues to meet expectations, with the domestic KFC rollout exceeding expectations (now at 100 compared with 64 at FY19 result roadshow), and KFC's European prospects continuing to improve.

The broker leaves EPS forecasts unchanged but the target price ticks up to $9.86 following a roll-forward of the valuation.

This report was published on September 24, 2019.

Target price is $9.86 Current Price is $10.22 Difference: minus $0.36 (current price is over target).
If CKF meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in April.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 21.00 cents and EPS of 41.60 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.57.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 24.00 cents and EPS of 47.20 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.65.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ELO    ELMO SOFTWARE LIMITED

Software & Services – Overnight Price: $6.65

Moelis rates ((ELO)) as No Rating (-1) –

Moelis Australia cuts ELMO Software's target price in response to the recent $55m institutional placement; $5m share purchase plan and $35m founder sell-down at $6 per share. 

The money will be used to strengthen the balance sheet, and accelerate growth through sales and marketing, product development and acquisitions, and the broker describes it as prudent.

Moelis appreciates the company's cloud-based HR & Payroll platform and believes the raising will help the company carve a niche in the lower mid-market.

Target price falls to $7.20 from $7.83 – primarily reflecting the dilution. Broker upgrades to Buy from Hold given the improved price-earnings multiple.

This report was published on September 19, 2019.

Target price is $7.20 Current Price is $6.65 Difference: $0.55
If ELO meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 19.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.93.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 19.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.46.

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


Wilsons rates ((ELO)) as Sell (5) –

Wilsons downgrades ELMO Software's target price to account for the recent $55m equity raising.

Net proceeds from the raising will be allocated to business reinvestment, acquisition earn-out obligations and mergers and acquisitions.

The broker says all is steady as she goes but the valuation is stretched and retains a Sell rating, noting higher client servicing costs and higher marketing investment assumptions in FY21 and FY22.

Target price falls to $5.55.

This report was published on September 20, 2019.

Target price is $5.55 Current Price is $6.65 Difference: minus $1.1 (current price is over target).
If ELO meets the Wilsons target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 23.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.30.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 23.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.06.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $4.22

E.L. & C Baillieu rates ((EML)) as Downgrade to Hold from Buy (3) –

EL&C Baillieu raises the target price for EML Payments again to $3.95 from $3.50.

The broker notes the share price has charged up 22% after its strong FY19 result, thanks to a 37% jump in revenue, 40% jump in earnings and a 34% increase in gross debit value.

The broker increases FY20 and FY21 earnings forecasts 2% and 3% accordingly. The broker says gaming was off to a slow start but expects momentum to build from late FY20 onward.

Hold rating retained, given a slightly stretched valuation, but the broker remains a fan, citing strong revenue growth, operating leverage (thanks to high acquisition-led headcount), and high cash conversion. Maiden guidance and capital management initiatives will be announced at the annual general meeting.

This report was published on September 23, 2019.

Target price is $3.95 Current Price is $4.22 Difference: minus $0.27 (current price is over target).
If EML meets the E.L. & C Baillieu 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 FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 0.00 cents and EPS of 8.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.24.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 0.00 cents and EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.18.

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


Wilsons rates ((EML)) as Buy (1) –

Wilsons notes the EML Payments share price has already performed splendidly throughout calendar year 2019, but the analysts do not think this success story is about to end. They believe the outlook remains positive for the company with "plentiful" drivers supporting growth.

The analysts are pointing at gift card operations in Europe and the gaming sector in the US. In line with appreciating peer multiples, Wilsons has lifted its own price target to $4.52 (we had $3.55 in June). Buy rating retained.

This report was released on September 27, 2019.

Target price is $4.52 Current Price is $4.22 Difference: $0.3
If EML meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 11.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.38.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.46.

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

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $1.49

Goldman Sachs rates ((RBL)) as Upgrade to Buy (1) –

Goldman Sachs upgrades Redbubble to Buy after the successful launch of three products, and with another two in the pipeline.

The broker expresses confidence in the strategy, citing the product launches, content partnerships, strong app downloads, and a focus on the membership experience.

Goldman Sachs tips a compound average growth rate across FY19-FY22 of 23% and increases earning estimates 9%, 6%, and 6% across FY20/FY21/FY22 after updating foreign exchange estimates and in anticipation of higher revenue.

This report was published on September 19, 2019.

Target price is $1.65 Current Price is $1.49 Difference: $0.16
If RBL meets the Goldman Sachs target it will return approximately 11% (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 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.25.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.00 cents.

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


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.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

A2M APT BKL BNO BUB CG1 CKF ELO EML RBL

For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: BKL - BLACKMORES LIMITED

For more info SHARE ANALYSIS: BNO - BIONOMICS LIMITED

For more info SHARE ANALYSIS: BUB - BUBS AUSTRALIA LIMITED

For more info SHARE ANALYSIS: CG1 - CARBONXT GROUP LIMITED

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: ELO - ELMO SOFTWARE LIMITED

For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED

For more info SHARE ANALYSIS: RBL - REDBUBBLE LIMITED