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Australian Broker Call *Extra* Edition – Feb 10, 2020

Daily Market Reports | Feb 10 2020

This story features LIFE360, INC, and other companies. For more info SHARE ANALYSIS: 360

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   ABP   ASG (2)   CBR   EHL   FDV   IFL   LME   MMM   NEA   OCL   OPY   ORE (2)   OSL   PCK   PNV   ST1   STG   VOC   WZR  

360    LIFE360 INC

Software & Services – Overnight Price: $3.30

Moelis rates ((360)) as Buy (1) –

The revenue for 360 in FY19 was up by 0.6% despite the early termination of the ADT partnership, notes Moelis.

Further, the broker highlights, the Monthly Active Users (MAU) increased by 47% on a yearly basis and moreover, were acquired more efficiently. Moelis also notes a consecutive third quarter of less cash burning.

The broker is still cautious and warns of a drop in revenues by -1.5% until a pick up during the second half. Overall, Moelis believes 360 is good value for money at 3.3x EV/FY20 sales and with a big market. The broker holds on to its Buy rating with a target price of $6.51.

The report was first published on January 30, 2020.

Target price is $6.51 Current Price is $3.30 Difference: $3.21
If 360 meets the Moelis target it will return approximately 97% (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 25.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.90.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 15.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.54.

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

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $3.79

Shaw and Partners rates ((ABP)) as Initiation of coverage with Hold (3) –

Abacus Property Group owns and manages a portfolio of office and self-storage assets across Australia and New Zealand. Shaw and Partners notes the property group has moved towards an annuity-style business that offers more consistency.

The broker observes the quality of the group’s office portfolio has improved with more focus on CBD assets across Australia. The broker finds the listed REIT is well diversified with over 30,000 customers.

Positive about the long-term prospects owing to structural and demographic changes, the analysts opine the real estate group is a good investment option for a diversified portfolio. Shaw and Partners initiates coverage on the stock with a Hold rating and a target price of $3.92.

The report was published on January 30, 2020.

Target price is $3.92 Current Price is $3.79 Difference: $0.13
If ABP meets the Shaw and Partners target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.93, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 18.90 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 4.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of -39.9%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.0.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 19.50 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of 1.0%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 17.9.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $1.65

Moelis rates ((ASG)) as Downgrade to Hold from Buy (3) –

Weak market conditions led to Autosports Group missing out on some volume incentive targets in the December quarter, notes Moelis. The broker downgrades the company’s first-half estimates by circa -20%.

Moelis highlights new car sales were down with overall trading conditions difficult in 2019. In spite of downgrading the EPS estimates by -6-20% to reflect weak operating conditions, the broker expects the luxury operator to improve due to cyclical recovery.

The broker downgrades the stock to Hold with the target price set at $1.80.

The report was published on February 3, 2020.

Target price is $1.80 Current Price is $1.65 Difference: $0.15
If ASG meets the Moelis target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 6.00 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.70 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

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


Wilsons rates ((ASG)) as Downgrade to Market Weight from Overweight (3) –

Due to weak new vehicle sales and OEM incentive payments, Autosports Group expects the first half to be flat in terms of earnings growth. Wilsons notes the company underperformed in the new vehicle sales category during the first half after outperforming in recent years.

Wilsons has lowered its key forecasts for FY20 and states that positive like-for-like growth has been postponed to the first half of FY21. Balance sheet is a concern as the broker’s revised forecasts project an adjusted leverage ratio at 2.3x in FY21.

The valuation is not enough to maintain the Overweight rating and the broker downgrades to Market Weight. The target price is $1.69.

The report was published on January 31, 2020.

Target price is $1.69 Current Price is $1.65 Difference: $0.04
If ASG meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 5.10 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.18.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 6.40 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

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

CBR    CARBON REVOLUTION LIMITED

Automobiles & Components – Overnight Price: $4.36

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

With a strong first quarterly update, Carbon Revolution is expected to be well on its way to reach the FY20 prospectus revenue and operating profit forecasts, anticipates Bell Potter.

The total revenue in the first half of FY20 is $20m while the revenue for the entire 2019 was $13.9m. Bell Potter expects the wheel sales volume to “materially step-up” in the third quarter and keeps the forecast at 16,060 wheels.

The broker keeps the forecast for FY20 unchanged for the time being and rates the stock a Buy (Speculative). The target price is $5.80.

The report was published on January 31, 2020.

Target price is $5.80 Current Price is $4.36 Difference: $1.44
If CBR meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 14.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.07.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 545.00.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $2.07

Moelis rates ((EHL)) as Hold (3) –

Emeco Holdings has agreed to acquire Pit n Portal, an underground mining equipment and services provider, for $72m by February end 2020. Moelis notes this acquisition makes Emeco the largest hard rock underground mining equipment rental provider.

Moelis reckons the acquisition would provide earnings diversification along with underground exposure. The figures for the first half are also in line with the company’s guidance and 3% more than what Moelis estimated.

The broker maintains its Hold rating with a target price of $2.46.

The report was first published on January 30, 2020.

Target price is $2.46 Current Price is $2.07 Difference: $0.39
If EHL meets the Moelis target it will return approximately 19% (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 18.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.44.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 21.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.67.

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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $1.10

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

Frontier Digital Ventures enjoyed a strong fourth quarter for FY19 with revenues up 74.6% year-on-year to $72.5m, exceeding all estimates, notes Bell Potter.

The broker expects margins to improve in FY20 and has increased revenue forecasts by 2.4%, 4.1%, and 3.1% in FY19, FY20 & FY21 respectively.

While Bell Potter expects more improvement over the long run, the recent share price surge has already started factoring this in and the broker downgrades the stock to Hold (Speculative) for now while the target price is at $1.30.

The report was published on January 31, 2020.

Target price is $1.30 Current Price is $1.10 Difference: $0.2
If FDV meets the Bell Potter target it will return approximately 18% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.67.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 157.14.

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

IFL    IOOF HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $7.12

Bell Potter rates ((IFL)) as Sell (5) –

Bell Potter is of the view that IOOF Holdings has delivered a misleading and "low-quality quarterly update". The company improved its headline net-flows by $463m by excluding pension payments in its net-flows, points out the broker.

Further, comments Bell Potter, the only real gains came from the ex-ANZ Advice business which itself is running at a loss.

The net-flow of the Investment Platform service is down from a year ago to $131m while Investment Management saw net-outflows of -$415m, marking six consecutive quarters of negative flows, notes the broker.

The broker has a wait-and-watch approach till February 18 when IOOF releases its first-half result and has left the EPS unchanged for FY20 while reducing it by -0.2% both for FY21 and FY22 respectively.

Bell Potter retains its Sell recommendation with the target price unchanged at $4.20.

The report was published on January 30, 2020.

Target price is $4.20 Current Price is $7.12 Difference: minus $2.92 (current price is over target).
If IFL meets the Bell Potter target it will return approximately minus 41% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.78, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 35.00 cents and EPS of 43.40 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.6, implying annual growth of 463.0%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 35.00 cents and EPS of 49.10 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.3, implying annual growth of 34.4%.
Current consensus DPS estimate is 38.2, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 11.6.

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

LME    LIMEADE INC

Cloud services – Overnight Price: $1.86

Moelis rates ((LME)) as Buy (1) –

The fourth quarter for Limeade was a strong one with 13 new contracts signed, observes Moelis. This, believes the broker, vindicates the strategy of investing in sales and marketing as well as product development.

The employee experience software company’s contracted annual recurring revenue (CARR) in December was US$57.1m, up 20.1% year-on-year, observes the broker. Following a successful $100m IPO in December 2019, the broker expects prospectus revenue forecast to be US$56.1m for FY20.

Moelis retains its Buy rating on the stock with the target price at $2.37.

The report was first published on February 3, 2020.

Target price is $2.37 Current Price is $1.86 Difference: $0.51
If LME meets the Moelis target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 6.79 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.39.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.36 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.26.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $0.30

Canaccord Genuity rates ((MMM)) as Buy (1) –

With the fourth quarter revenue amounting to EUR35m, the total revenue for FY19 is up by 41% to EUR130m, and marks Marley Spoon’s first upgrade since its IPO, observes Canaccord Genuity. The gross profit margin of the company was 28% for the fourth quarter FY19.

Marley Spoon reaffirmed guidance expecting another year of growth, notes the broker. Canaccord Genuity feels the stock is undervalued and trading at an implied EV/revenue of 0.6x.

The broker holds on to the Buy (speculative) rating for now with the target price as $0.75.

The report was published on February 2, 2020.

Target price is $0.75 Current Price is $0.30 Difference: $0.45
If MMM meets the Canaccord Genuity target it will return approximately 150% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Canaccord Genuity forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 27.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.10.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 14.04 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.14.

This company reports in EUR. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NEA    NEARMAP LTD

Software & Services – Overnight Price: $1.93

Canaccord Genuity rates ((NEA)) as Buy (1) –

Nearmap downgraded its Annual Contract Value (ACV) guidance to $102-$110 from $116m – $120m, notes Canaccord Genuity. The broker, already anticipating the first half to be “underwhelming” in terms of key operating metrics, termed the loss of three major contracts a “negative surprise”. This, notes the broker, impacted the ACV by -$7m.

Aggravating the downgrade is the large operating leverage, shifting investors’ concern towards the balance sheet, points out the broker. The broker has downgraded ACV forecasts by -9%, and -11% for FY20 and FY21 respectively.

Canaccord Genuity maintains its Buy rating but reduces the target price to $2.90 from $3.60.

The report was first published on January 30, 2020.

Target price is $2.90 Current Price is $1.93 Difference: $0.97
If NEA meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
Current consensus price target is $2.70, suggesting upside of 39.9%(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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.9, 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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.8, 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.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $6.37

CCZ Equities rates ((OCL)) as Buy (1) –

Objective Corporation, a multinational software business providing services across Australia, New Zealand, the UK and the US, got listed on the ASX in 2000.

The company has a healthy balance sheet, notes CCZ Equities, and recently acquired Alpha and MBS in New Zealand. The broker also notes the company has the opportunity to cross-sell products and expects most of the future revenue growth to be from existing customers.

The company’s move from licensed products to SaaS annual fees hampered revenues and growth, but the negative effect is expected to decrease in the future, anticipates the broker.

CCZ Equities rates the stock a Buy with target price of $7.16.

The report was published on December 20, 2019.

Target price is $7.16 Current Price is $6.37 Difference: $0.79
If OCL meets the CCZ Equities target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 6.50 cents and EPS of 10.88 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.55.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 8.60 cents and EPS of 14.31 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.51.

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

OPY    OPENPAY GROUP LTD

Business & Consumer Credit – Overnight Price: $1.26

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

Openpay Group announced a very strong second quarter result, beating the broker’s expectations. Acknowledging that the momentum is due to key metrics like customer growth and merchant growth respectively, the broker notes a 99% increase year-on-year in the number of active customers putting them at 206k, while active merchants showed a 74% rise to more than 1890 over the same period.

The company won three key Aussie contracts, which would add to the revenue. Adding to this, Openpay has minimal debt and a healthy cash balance, points out the broker.

The company is in it for the long haul and is doing everything right, in the view of Shaw And Partners. Currently trading at a huge discount to its peers on an EV/Sales multiple of 6x, the stock is seen offering a great investment opportunity.

The broker rates the stock a Buy with the target price at $2.25.

The report was published on January 31, 2020.

Target price is $2.25 Current Price is $1.26 Difference: $0.99
If OPY meets the Shaw and Partners target it will return approximately 79% (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 minus 25.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.90.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 16.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.59.

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

ORE    OROCOBRE LIMITED

New Battery Elements – Overnight Price: $3.44

Canaccord Genuity rates ((ORE)) as Buy (1) –

Orocobre missed its target output for December quarter although the company did improve in terms of cost, notes Canaccord Genuity. The broker highlights the weak pricing, reflecting ongoing weak market conditions.

Canaccord Genuity expects management at the company to recover during the second half but is also cautious, especially due to the impact of the coronavirus on China, which forms about 55% of the global Electric Vehicle (EV) market share.

On a positive note, the broker notes the expansion plans for both Olaroz and Naraha to be on track. Also, comments Canaccord Genuity, the ongoing cost reductions provide an additional buffer while the lithium market remains weak.

The broker maintains its Buy recommendation with the target price at $5.50.

The report was first published on January 30, 2020.

Target price is $5.50 Current Price is $3.44 Difference: $2.06
If ORE meets the Canaccord Genuity target it will return approximately 60% (excluding dividends, fees and charges).
Current consensus price target is $3.33, suggesting downside of -3.2%(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 4.33 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.8, 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 5.78 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, 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 382.2.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


E.L. & C Baillieu rates ((ORE)) as Hold (3) –

Orocobre is the first Australian lithium brine producer with operations in Argentina. Stockbroker Baillieu notes the production for the December quarter was a little lower than the company’s forecast due to inventory management.

The broker further observes a reduction in costs and improvement in product quality. Expectations are tempered by pointing out the lithium market remains “soft” and an increase in demand may not necessarily lead to an increase in prices due to excess inventory.

The broker remains optimistic about the stock delivering long-term benefits and recommends a Hold rating with a target price of $2.80.

The report was first published on January 30, 2020.

Target price is $2.80 Current Price is $3.44 Difference: minus $0.64 (current price is over target).
If ORE meets the E.L. & C Baillieu target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.33, suggesting downside of -3.2%(ex-dividends)
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 minus 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 64.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.8, 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:

E.L. & C Baillieu forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 491.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, 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 382.2.

Market Sentiment: 0.1
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: $0.19

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

Wilsons strongly expects OncoSil Medical to receive approval in Europe for treating pancreatic cancer. The broker notes another expected “humanitarian approval” from the US, related to the treatment of bile duct cancer, is in the pipeline and can be another potential source of income. 

Wilsons reckons the medical company’s valuation is reconnecting with fundamentals due to the aforementioned developments. The broker increases the probability of European approval to 90%, leading to an upgrade in the target price to $0.30.

Wilsons upgrades the stock rating to Overweight with a target price of $0.30.

The report was first published on January 30, 2020.

Target price is $0.30 Current Price is $0.19 Difference: $0.11
If OSL meets the Wilsons target it will return approximately 58% (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 63.33.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.11.

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

PCK    PAINCHEK LIMITED

Medical Equipment & Devices – Overnight Price: $0.14

Canaccord Genuity rates ((PCK)) as Buy (1) –

PainChek’s December quarter witnessed an increase in cash receipts by 57% to $0.11m. Canaccord Genuity points out the revenue during the first half is above the estimated $0.3m. This is due to receipt of the first installment of the Federal government grant of close to $0.5m.

The company is on track to deliver the milestones in government trials, observes the broker, and is headed in the right direction in terms of achievement of key metrics.

The broker highlights the business is generating interest all over the world with Japan and the US being the latest to express interest after the UK and New Zealand. While Canaccord Genuity maintains its revenue estimates, the broker does acknowledge the app's growth potential and maintains its Buy rating. The target price is $0.55.

This report was published on January 30, 2020.

Target price is $0.55 Current Price is $0.14 Difference: $0.41
If PCK meets the Canaccord Genuity target it will return approximately 293% (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 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.35.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.00

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

The broker has updated sales forecasts by 3%, 24% and 25% for FY20, FY21 and FY22 respectively, but expects the expenses to go up as well with the net result being a -$2m downgrade in operating income for FY20.

Baillieu is positive about the company especially after NovoSorb BTM received the CE mark. The broker reckons the go-to nature of the product is a positive factor and cites the Australian bushfires and New Zealand volcano eruption as examples of the potential utility of the product.

The broker expects PolyNovo to go for capital raising so as to invest more in R&D. Baillieu recommends holding on to the stock for now with the target price at $2.75.

The report was published on January 31, 2020.

Target price is $2.75 Current Price is $3.00 Difference: minus $0.25 (current price is over target).
If PNV meets the E.L. & C Baillieu target it will return approximately minus 8% (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 0.00 cents.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 187.50.

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

ST1    SPIRIT TELECOM LIMITED

Telecommunication – Overnight Price: $0.19

Shaw and Partners rates ((ST1)) as Buy (1) –

Spirit Telecom released a market update for the first-half which is mostly in line with forecasts, notes the broker. The launch of the platform – Spirit X- will provide an advantage over competitors, expects Shaw and Partners, and drive significant recurring revenues and “material competitive differences”.

The company has been undergoing key changes like the appointment of a new MD, digital strategy, acquisitions, etc. The first half revenues were up 51% to 12.3m year-on-year.

The broker expects the company to achieve more in the second half and rates the stock a Buy with a target price of $0.27.

The report was published on January 31, 2020.

Target price is $0.27 Current Price is $0.19 Difference: $0.08
If ST1 meets the Shaw and Partners target it will return approximately 42% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 190.00.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.75.

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

STG    STRAKER TRANSLATIONS LIMITED

IT & Support – Overnight Price: $1.20

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

Straker Translations recently released its Q3 cash flow statement which highlights cash inflows of NZ$6.9m, up 2% from last year, notes Bell Potter. Straker also admitted to “subdued” revenue growth without disclosing any concrete numbers for now, highlights the broker.

The company is following a strategy of shifting to large enterprise customers, notes the broker, while adding Straker is in the advanced stages of an M&A opportunity, expected to be closed by March-end.

Bell Potter has downgraded its revenue forecasts by about -1.5% but expects a strong second half. The broker upgrades its recommendation to Buy (Spec) with the target price unchanged at $1.90.

The report was published on January 30, 2020.

Target price is $1.90 Current Price is $1.20 Difference: $0.7
If STG meets the Bell Potter target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.17.

Forecast for FY21:

Bell Potter forecasts a full year FY21 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 100.00.

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

VOC    VOCUS GROUP LIMITED

Telecommunication – Overnight Price: $3.38

Goldman Sachs rates ((VOC)) as Upgrade to Buy from Neutral (1) –

Vocus Group is improving after facing headwinds in the first half, observes Goldman Sachs, and has provided guidance for its network services division towards $20-30m as operating profits for FY20. This, notes the broker, is on account of increasing sales momentum as well as sales from the Australian-Singapore cable.

The broker has revised its operating profits expectations for the years FY20-22  respectively by 1% on the back of a positive enterprise earnings trajectory and an improved operating environment.

Goldman Sachs is confident about the company’s prospects and improves its rating to Buy from Neutral. The target price is $3.85.

The report was first published on January 29, 2020.

Target price is $3.85 Current Price is $3.38 Difference: $0.47
If VOC meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.50, suggesting upside of 3.5%(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 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of 199.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 11.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 18.6.

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

WZR    WISR LIMITED

Hardware & Equipment – Overnight Price: $0.32

Moelis rates ((WZR)) as Buy (1) –

Post business update and raising additional equity to the tune of $33.5m, tthe broker has lowered the weighted average cost of capital or WACC, to 11.8% from 12.7% to reflect lesser risk due to a stronger balance sheet.

Moelis also estimates Wisr would be left with about $20m after capital raising to deploy for growth initiatives. The company should have more flexibility to deal with the growth versus profitability conundrum, comments the broker.

The broker is positive on account of initiatives like the transition to the new warehouse facility, increase in core distribution channels along with coming up with new ones like the Wisr App, Wisr Credit.

Moelis retains its Buy rating with the target price being at $0.31.

The report was last published on February 3, 2020.

Target price is $0.31 Current Price is $0.32 Difference: minus $0.01 (current price is over target).
If WZR meets the Moelis target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 26.67.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.33.

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

360 ABP ASG CBR EHL FDV IFL LME MMM NEA OCL OPY ORE OSL PCK PNV ST1 STG VOC WZR

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For more info SHARE ANALYSIS: ORE - OROCOBRE LIMITED

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For more info SHARE ANALYSIS: PCK - PAINCHEK LIMITED

For more info SHARE ANALYSIS: PNV - POLYNOVO LIMITED

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For more info SHARE ANALYSIS: VOC - VOCUS GROUP LIMITED

For more info SHARE ANALYSIS: WZR - WISR LIMITED