Australian Broker Call *Extra* Edition – Nov 06, 2019

Daily Market Reports | Nov 06 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)

BTH   BVS   CDA   CGL   FCL   MVP   NEU   NWH   OSL   RDC   SLC   UWL   VTH   Z1P  

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services - Overnight Price: $0.69

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

The company has maintained FY20 revenue growth guidance of 30-40%. Several new clients have been won across a number of verticals in the first quarter with the deal size increasing and including Nike, Wyndham, ABB and Stratasys.

Canaccord Genuity expects increasing investor attention and large multiple re-rating through 2020 as the company deploys excess capital into accretive acquisitions and approaches critical break-even in FY21.

Target price is steady at 80c. Buy rating retained.

This report was published on October 30, 2019.

Target price is $0.80 Current Price is $0.69 Difference: $0.11
If BTH meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 69.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 690.00.

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: $4.00

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

The company has acquired UK-based wealth management software provider, FinoComp for $25m. Wilsons expects this will improve the reporting capabilities of the Sonata product.

The business is expected to be leveraged across the fund administration client base and provide scope for further upgrades.

Wilsons maintains an Overweight rating and raises the target to $5.44 from $5.34.

This report was published on October 29, 2019.

Target price is $5.44 Current Price is $4.00 Difference: $1.44
If BVS meets the Wilsons target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 11.40 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.54.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 13.80 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.30.

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

CDA    CODAN LIMITED

Hardware & Equipment - Overnight Price: $6.62

Canaccord Genuity rates ((CDA)) as Upgrade to Buy from Hold (1) -

Management expects first half net profit of $26m, up 24%. Canaccord Genuity was surprised by the guidance, given a very strong half is being cycled. This points to accelerated momentum in the business.

Communications is the main driver with metal detection expected to deliver a similar result to the prior corresponding half.

Rating is upgraded to Buy from Hold and the target raised to $6.70 from $4.30.

This report was published on October 31, 2019.

Target price is $6.70 Current Price is $6.62 Difference: $0.08
If CDA meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 16.00 cents and EPS of 31.30 cents.
At the last closing share price the estimated dividend yield is 2.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.15.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 17.00 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.19.

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

CGL    THE CITADEL GROUP LIMITED

IT & Support - Overnight Price: $3.44

Bell Potter rates ((CGL)) as Buy (1) -

The company has reaffirmed FY20 guidance at its AGM, confirming deferred contracts in the government/defence and tertiary education sectors will contribute from FY20.

Citadel Group also expects to execute at least one bolt-on acquisition, a software-as-a-service business in the e-health sector. Bell Potter takes a conservative view towards the FY20 outlook, given the disappointment in FY19.

The broker maintains a Buy rating and reduces the target to $5.50 from $6.00.

Report published on November 1, 2019.

Target price is $5.50 Current Price is $3.44 Difference: $2.06
If CGL meets the Bell Potter target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 12.80 cents and EPS of 23.60 cents.
At the last closing share price the estimated dividend yield is 3.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.80 cents and EPS of 33.80 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.18.

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


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