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

This story features BIGTINCAN HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: BTH

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

FCL    FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $3.08

Moelis rates ((FCL)) as Buy (1) –

Moelis is pleased to note the company has won five new contracts in FY20 to date as it validates its strong competitive position and ability to capitalise on industry modernisation.

All contracts are similar in size and have a minimum five-year length. While prospectus forecasts have been affirmed, cost savings of EUR4.9m have been identified, primarily relating to brokerage fees.

Moelis maintains a Buy rating and $3.73 target.

This report was published on October 29, 2019.

Target price is $3.73 Current Price is $3.08 Difference: $0.65
If FCL meets the Moelis target it will return approximately 21% (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 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 256.67.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1026.67.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.99

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

The company has signalled it is on track to deliver another record. No specific update on trading was provided at the AGM but the sales are well above budget. Bell Potter expects double-digit growth in revenue and net profit in FY20.

The recent extension of the agreement with CSIRO on the continuous flow manufacturing project for another five years highlights the progress being made so far, in the broker's view. Bell Potter retains a Buy rating and raises the target to $7.05 from $6.95.

This report was published on October 30, 2019.

Target price is $7.05 Current Price is $5.99 Difference: $1.06
If MVP meets the Bell Potter target it will return approximately 18% (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 4.00 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 0.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 260.43.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.00 cents and EPS of 3.40 cents.
At the last closing share price the estimated dividend yield is 0.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 176.18.

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

NEU    NEUREN PHARMACEUTICALS LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.64

Bell Potter rates ((NEU)) as Speculative Buy (1) –

Neuren's North American partner, Acadia Pharmaceuticals, has started a phase 3 trial for Rett Syndrome in the US with the drug Trofinetide.

Bell Potter considers this a significant development, as Neuren is transformed into a phase 3 company and one step closer to having its first drug approved and launched in the US.

This lifts the broker's valuation to $3.75. Speculative Buy rating maintained.

This report was published on November 1, 2019.

Current Price is $2.64. Target price not assessed.
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 13.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.27.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.75.

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

NWH    NRW HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $2.60

Wilsons rates ((NWH)) as Overweight (1) –

Management has confirmed NRW Holdings is the preferred bidder for the private construction firm BGC and Wilsons suspects a tie-up of the two is now a step closer.

Any merger would create Australia's second-largest mining services business and confirmation of such would send the share price soaring, in the broker's view.

Wilsons maintains an Overweight rating and $2.80 target.

This report was published on November 5, 2019.

Target price is $2.80 Current Price is $2.60 Difference: $0.2
If NWH meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 7.40 cents and EPS of 18.70 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 13.90.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 9.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.82.

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

OSL    ONCOSIL MEDICAL LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.17

Wilsons rates ((OSL)) as Upgrade to Overweight from Marketweight (1) –

Wilsons observes the company appears to be overcoming the objections from the European regulator and, if successful, approval of its product in 2020 would mark a rare regulatory 'about-face'.

This would mean OncoSil, which provides a means of irradiating tumours from the inside, would be available for the treatment of pancreatic cancer in Europe.

The company's pursuit of a humanitarian approval in the US is on track and considered another source of potential sales in 2020.

Wilsons upgrades to Overweight from Marketweight and lifts the target to $0.19 from $0.06.

This report was published on November 4, 2019.

Target price is $0.19 Current Price is $0.17 Difference: $0.02
If OSL meets the Wilsons target it will return approximately 12% (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 minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.67.

Forecast for FY21:

Wilsons forecasts a full year FY21 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 17.00.

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

RDC    REDCAPE HOTEL GROUP

Travel, Leisure & Tourism – Overnight Price: $1.08

Moelis rates ((RDC)) as Buy (1) –

The company has conducted an investor tour of several of its hotels to showcase refurbishments, which Moelis greets positively. The broker considers the stock one of the most attractive risk-return value propositions.

Guidance has been reaffirmed, despite the divestment of the St George Hotel, and remains conservative in the broker's view. Buy rating and $1.26 target maintained.

This report was published on October 31, 2019.

Target price is $1.26 Current Price is $1.08 Difference: $0.18
If RDC meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 8.80 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 8.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.87.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 8.90 cents and EPS of 9.40 cents.
At the last closing share price the estimated dividend yield is 8.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.49.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $1.05

Canaccord Genuity rates ((SLC)) as Upgrade to Buy from Speculative Buy (1) –

Canaccord Genuity expects a sustained period of earnings growth as the company completes its capital investment phase. The business should become positive on free cash flow in FY22.

The broker expects earnings will be generated from multiple drivers and upgrades to Buy from Speculative Buy.

Capital expenditure is expected to ease materially in the second half, which the broker suggests will combine with the step up in earnings to create an attractive opportunity to invest in the stock. Target is reduced to $1.28 from $1.30.

This report was published on October 30, 2019.

Target price is $1.28 Current Price is $1.05 Difference: $0.23
If SLC meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $1.26, suggesting upside of 19.7%(ex-dividends)
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 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.8, 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 N/A.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 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 26.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.3, 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 N/A.

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

UWL    UNITI WIRELESS LIMITED

Overnight Price: $1.49

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

Bell Potter now believes the stock is reasonable value on FY20 and FY21 multiples and a premium is warranted because of the likelihood of further accretive acquisitions and the strong cash flow.

The broker continues to expect pro forma FY20 revenue of $54m and operating earnings (EBITDA) of $20.4m. Rating is upgraded to Buy from Hold and the target is steady at $1.80.

This report was published on November 1, 2019.

Target price is $1.80 Current Price is $1.49 Difference: $0.31
If UWL meets the Bell Potter target it will return approximately 21% (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 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 49.67.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.34.

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

VTH    VITALHARVEST FREEHOLD TRUST

Real Estate – Overnight Price: $0.80

Moelis rates ((VTH)) as Buy (1) –

The company has provided more context around Costa Group's ((CGC)) trading update. Variable rents for citrus are down -33% while berries are yet to contribute to variable rent. Total variable rent is down -52% over 2019.

Moelis updates estimates to reflect a lower contribution from rents in FY20. The broker highlights the stock is leveraged to a recovery in Costa Group's citrus and berry operations.

Buy rating maintained. Target is $0.99.

Target price is $0.99 Current Price is $0.80 Difference: $0.19
If VTH meets the Moelis target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 4.70 cents and EPS of 5.10 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.69.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.10 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 6.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

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

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $3.51

Shaw and Partners rates ((Z1P)) as Buy (1) –

The business is delivering strong momentum with a record revenue of $31m in the first quarter, up 107%. Transaction value was $402.1m, up 120%.

Shaw and Partners suggests more good news will come in the following quarter, including strategic bank and network-wide deals as well as overseas expansion.

The broker attributes little value to international segments at this stage, or Biz, erring on the side of a conservative trajectory. Buy/High Risk retained. Target is $4.78.

This report was published on October 31, 2019.

Target price is $4.78 Current Price is $3.51 Difference: $1.27
If Z1P meets the Shaw and Partners target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $4.10, suggesting upside of 16.9%(ex-dividends)
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 minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 219.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.8, 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 N/A.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.7, 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 N/A.

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

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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.

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