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Australian Broker Call *Extra* Edition – Apr 06, 2020

Daily Market Reports | Apr 06 2020

This story features AUSTIN ENGINEERING LIMITED, and other companies. For more info SHARE ANALYSIS: ANG

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)

ANG   BTH   D2O   EXL   GSS   HSN   IFM   IMF   JRV   LME   LVT   MSV   MVP   MWY (2)   MXI   NXS   OPY   PAL   PKS   PVS   PWH   REH   RFF   SDF   SHJ   SXE   VTH   WZR   Z1P  

ANG    AUSTIN ENGINEERING LIMITED

Mining Sector Contracting – Overnight Price: $0.13

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

Austin Engineering’s first half disappointed Wilsons with revenue and operating profit behind broker estimates. This was driven by orders postponed to the second half FY20, reduced sales volume and a challenging market.

Despite this, the broker notes, the company is confident about the earnings trajectory, attributing the miss to timing issues and reiterating the company’s strong cash balance and dividend return.

Revenue and operating profit forecasts remain unchanged at $24-28m while operating cash flow is expected to reduce a little, notes Wilsons.

Even though investors need to gain confidence with the second-half earnings, the broker sees upside and believes the company can deliver.

Overweight rating maintained with target price at $0.25.

The report was published on February 28, 2020.

Target price is $0.25 Current Price is $0.13 Difference: $0.12
If ANG meets the Wilsons target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.70 cents and EPS of 1.60 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.13.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.90 cents and EPS of 2.20 cents.
At the last closing share price the estimated dividend yield is 6.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.91.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services – Overnight Price: $0.47

E.L. & C Baillieu rates ((BTH)) as Buy (1) –

Bigtincan Holdings reported a strong first half with revenue at $14.3m, operating loss of -$1.9m and gross margin at 86%.

Growth on both counts – recurring revenue and acquisition – showed improvement with the ‘land and expand’ strategy and acquisition of Veelo, Asdeq and Xinn respectively, notes Baillieu. Broadening the company’s addressable market was Veela which gave the company presence in the technology vertical and Xinn, doing the same in financial services, comments the broker.

The broker has upgraded revenue forecast by 4-15% for FY20-22 with operating profit decreased by -$0.4m in FY20.

Baillieu considers the first-half numbers to be very strong along with improved cashflow and strong revenue growth. The cherry on the cake, states the broker, is the long growth runway as Bigtincan continues to broaden its product offering and addressable market.

Buy retained with target price $1.06.

The report was published on February 28, 2020.

Target price is $1.06 Current Price is $0.47 Difference: $0.59
If BTH meets the E.L. & C Baillieu target it will return approximately 126% (excluding dividends, fees and charges).
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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.57.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 235.00.

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

D2O    DUXTON WATER LIMITED

Agriculture – Overnight Price: $1.25

Bell Potter rates ((D2O)) as Hold (3) –

Duxton Water reported first-half figures mostly in-line with Bell Potter’s forecast with revenue, gross profit and net profit after tax at $96.5m, $21.1m and $7.4m, all in that order.

The cashflow saw an inflow of $24.8m versus -$14.2m in the prior comparable period and increase in net debt, due to investment in water assets worth $92.8m over the year, notes Bell Potter.

Although with no formal earnings guidance, the company points towards dividend worth 5.7cps for FY20. Bell Potter has upgraded net profit after tax by 8%.

Keeping in mind the ACCC inquiry into water markets and downside risk to entitlement prices, the broker retains Hold with target price at $1.55.

The report was published on February 28, 2020.

Target price is $1.55 Current Price is $1.25 Difference: $0.3
If D2O meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 5.70 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.53.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 6.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

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

EXL    ELIXINOL GLOBAL LIMITED

Health & Nutrition – Overnight Price: $0.28

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

Elixinol Global’s first half saw revenue at $27.2m with operating loss and statutory loss of -$22.6m and -$83.3m respectively. On the positive side, the balance sheet has been reset with non-viable assets sold/closed, notes Bell Potter.

The company is now focused on selling Elixinol branded products for the US, the UK and Europe markets respectively, comments the broker. Revenue contraction for the group in FY19 was driven by minimising involvement in low margin bulk goods, private label sales and cutting revenues from infusion strategies in the US, further observes the broker.

Bell Potter expects reduction in gross cash flow from operations to circa $5m in FY20 from $51m in 2019 and anticipates the next major catalyst to be the launch of the rebranded product range in the US. 

Broker’s revenue forecast reduced by -11% with EPS estimate reduced by -13% for FY20. Hold rating retained with target price at $0.46.

The report was published on February 28, 2020.

Target price is $0.46 Current Price is $0.28 Difference: $0.18
If EXL meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 11.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.35.

Forecast for FY21:

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

GSS    GENETIC SIGNATURES LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.75

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

Reported results for Genetic Signatures were in-line with Bell Potter’s expectations, along with a strong balance sheet and adequate funding.

The group’s focus has been validation of respiratory detection kits used in identification of the Wuhan-originated coronavirus strain. The company plans on getting approvals from key markets once validation is over, comments Bell Potter.

While this presents a huge near-term revenue opportunity, validation may be delayed due to labs managing a potential outbreak of the disease, thereby putting the predictability of the group’s short-term revenue at risk.

The submission of Enteric Protozoan Kit in the US is on track and is considered a key catalyst for the stock and a key driver of future revenues for the company.

Buy rating maintained with target price at $1.50.

The report was published on February 28, 2020.

Target price is $1.50 Current Price is $1.75 Difference: minus $0.25 (current price is over target).
If GSS meets the Bell Potter target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 minus 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.61.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.00.

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

HSN    HANSEN TECHNOLOGIES LIMITED

IT & Support – Overnight Price: $2.76

E.L. & C Baillieu rates ((HSN)) as Buy (1) –

Half-yearly result for Hansen Technologies was a tad below Baillieu’s forecasts with operating profit of $34.1m and net profit at $18.2m.

The company increased the operating profit guidance by circa 2% but cut revenue guidance to $300-305m from $305-310m respectively. The analysts, on their part, have reduced EPS forecasts by -1-3% for the year.

The broker considers business from the Nordic region to be strong. Overall, the stock is relatively low risk, well-diversified and cheap with improved organic growth prospects and margin improvement, comments Baillieu.

The broker rates the stock a Buy with target price at $4.50.

The report was published on February 28, 2020.

Target price is $4.50 Current Price is $2.76 Difference: $1.74
If HSN meets the E.L. & C Baillieu target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 6.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.15.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 6.50 cents and EPS of 21.60 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.78.

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

IFM    INFOMEDIA LTD

Automobiles & Components – Overnight Price: $1.58

E.L. & C Baillieu rates ((IFM)) as Buy (1) –

Infomedia’s first-half result was in line with Baillieu’s expectation with revenue of $47.9m leading to net profit growth of 24%. The company guided towards low double-digit growth in revenue and earnings for FY20 which the broker notes to be in line with consensus estimates.

Management is looking forward to releasing next-generation parts and service platform, expected to increase sales and customer loyalty but also incur operating expenses and R&D costs.

The points in the company’s favour are a large customer base and strong financials.

Baillieu has increased EPS estimates by 2-4% but is cautious at the moment.

Hold rating maintained with target price at $2.30.

The report was published on February 27, 2020.

Target price is $2.30 Current Price is $1.58 Difference: $0.72
If IFM meets the E.L. & C Baillieu target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 4.50 cents and EPS of 6.00 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 26.33.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 5.00 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.94.

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

IMF    IMF BENTHAM LIMITED

Diversified Financials – Overnight Price: $3.42

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

IMF Bentham’s first-half result showed a net loss of -$16.6m despite record litigation settlements. This was due to Omni Bridgeway’s acquisition and the minority interests receiving a bigger share of profit.

The broker expects the situation to improve in the second half, expecting settlement of some pending matters (Wivenhoe and Westgem) in the litigation funding company’s favour along with less profit sharing with the minority interests.

While the company did not provide formal guidance, notes the broker, it does anticipate about $280m in gross litigation revenue in the second half. Also, the company will change its name to Omni Bridgeway soon, notifies Baillieu.

The broker has trimmed FY20 EPS forecasts by -14% while maintaining the Hold rating. Target price is $4.50.

The report was published on February 28, 2020.

Target price is $4.50 Current Price is $3.42 Difference: $1.08
If IMF meets the E.L. & C Baillieu target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 12.00 cents and EPS of 21.30 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.06.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 11.00 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.24.

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

JRV    JERVOIS MINING LIMITED

New Battery Elements – Overnight Price: $0.14

Shaw and Partners rates ((JRV)) as Initiation of coverage with Buy (1) –

Jervois Mining is a battery metals development company with projects in Australia and the US with exploration interests in Uganda. The cobalt operation at Idaho, a strategically important asset, is ready for development and a unique opportunity to gain exposure to the cobalt market, comments Shaw and Partners.

The operation will produce about 2.3ktpa over a 13-year mine-life, states the broker. With demand for cobalt expected to shoot up to circa 250-300kt by late-2020 from circa 140kt in 2019, the broker expects LME (London Metal Exchange) cobalt price to rise to US$54,250 per tonne by 2025. 

The broker expects the company to raise capital and avail loans to cater to additional funding needs of about -$100m. The Nico Young project at NSW with an inferred resource of 93.3Mt needs higher prices to be commercial, comments Shaw and Partners.

Shaw and Partners initiates coverage on Jervois Mining with a Buy/High-risk recommendation. The target price is $0.46.

The report was published on March 03, 2020.

Target price is $0.46 Current Price is $0.14 Difference: $0.32
If JRV meets the Shaw and Partners target it will return approximately 229% (excluding dividends, fees and charges).

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 8.75.

Forecast for FY21:

Shaw and Partners 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 14.00.

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

LME    LIMEADE INC

Cloud services – Overnight Price: $1.41

Moelis rates ((LME)) as Buy (1) –

The FY19 result of Limeade Inc was better than the prospectus forecast with revenue of US$47.4m while operating profit was -US$2.1m, better than Moelis’s forecast of -US$4.8m.

Moelis notes a rise in average revenue per user to US$635k as the company gains traction with enterprise customers. 

Company management has provided FY20 guidance with forecasts for revenue at US$56.1m, operating profit (loss) at -US$10.7m and net profit (loss) of -US$12.4m respectively, notes the broker.

The analysts note the company is going as per plan with Well-Being the major business driver and commercialisation of new modules doing well. The main near-term catalysts are new contract wins and execution across new growth initiatives.

Moelis increases 2020 EPS estimate by 1.6%. The broker maintains Buy with target price at $2.36.

The report was published on February 28, 2020.

Target price is $2.36 Current Price is $1.41 Difference: $0.95
If LME meets the Moelis target it will return approximately 67% (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 6.74 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.92.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.38.

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

LVT    LIVETILES LIMITED

Cloud services – Overnight Price: $0.17

Wilsons rates ((LVT)) as Underweight (5) –

FY20 first-half figures for LiveTiles were a disappointment for Wilsons, with lower recurring revenue conversion and larger than expected operating loss of -$14.4m.

Between earn-out payments, acquisition costs and development costs, the cash burn is expected to continue in the second half.

The company is expected to get better results in the second half from sales although the disappointing organic growth in the first half and a weak balance sheet has the broker worried.

Underweight maintained with target price $0.23.

The report was published on February 28, 2020.

Target price is $0.23 Current Price is $0.17 Difference: $0.06
If LVT meets the Wilsons target it will return approximately 35% (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 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.15.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.80.

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

MSV    MITCHELL SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $0.30

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

First half for Mitchell Services was as expected by Wilsons, with the exception of high D&A figures due to the Deepcore acquisition. The broker is pleased with the special dividend of 1.1cps

The company expects revenue and operating profit estimates to be within $170-180m and $34-36m for FY20, ahead of the broker’s $167m and $33m respectively.

Wilsons notes the rig count rise to 103 and also factors in the additional depreciation and amortisation. With the underlying business doing well and growth outlook impressive along with diverse commodity exposure, Wilsons considers Mitchell Services a low-risk investment.

The stock is rated Overweight with target price at $1.10.

The report was published on February 28, 2020.

Target price is $1.10 Current Price is $0.30 Difference: $0.8
If MSV meets the Wilsons target it will return approximately 267% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 1.10 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.77.

Forecast for FY21:

Wilsons forecasts a full year FY21 EPS of 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.48.

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: $5.20

Moelis rates ((MVP)) as Hold (3) –

Driven by a strong performance in space chambers and robust Penthrox sales by Mundipharma, the first half FY20 result for Medical Developments has net profit at $0.2m from operating profit of $1.5m, generated from net revenue of $10.9m. The broker observes a strong balance sheet with healthy cash reserves of $23m.

Mundipharma in particular has driven revenue up 18% while increasing penetration in the hospital and General Practitioner markets, notes Moelis.

The company anticipates growth from new market launches even though no quantified commentary was provided. 

Even with a positive outlook and huge global opportunity for Penthrox, Moelis believes the valuation is fair and retains Hold with target price at $8.67.

The report was published on February 28, 2020.

Target price is $8.67 Current Price is $5.20 Difference: $3.47
If MVP meets the Moelis target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 4.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 0.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 260.00.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.00 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 0.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 136.84.

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

MWY    MIDWAY LIMITED

Agriculture – Overnight Price: $1.00

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

In the midst of a challenging market, Midway predictably reported a -65.5% decrease in cash operating profit along with net loss of -$1.2m while net debt increased to $55.4m.

More shipments are being postponed to the second half, notes Bell Potter. Increase in payment to timber suppliers and a downturn have adversely impacted the operating cash flow, which the broker expects would recover in the second half.

The company has guided towards circa $19m operating profit estimate for FY20.

Bell Potter has reduced EPS forecast by -13% for FY20 and -3.4% by FY21 on account of market uncertainty and has lowered the price target. Avoiding information vacuum would help calm investors, advises the broker.

Hold maintained with target price at $1.80.

The report was published on February 28, 2020.

Target price is $1.80 Current Price is $1.00 Difference: $0.8
If MWY meets the Bell Potter target it will return approximately 80% (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 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.95.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.50 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.

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


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

The FY20 first half result is largely in-line with Shaw and Partners, even though the figures indicate falling operating profit, a weak cashflow and an increase in net debt. The company has a stronger outlook for the second half, with the broker reiterating this view on the back of stable pulp pricing, strong demand for woodchips and lower AUD.

Shaw and Partners considers the stock an attractive Australian story with a large market and states the company may go back to double digit earnings growth, assuming things will improve from here onwards.

Buy rating retained with target price at $2.

The report was published on February 27, 2020.

Target price is $2.00 Current Price is $1.00 Difference: $1
If MWY meets the Shaw and Partners target it will return approximately 100% (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 6.00 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 6.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.24.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 6.00 cents and EPS of 8.10 cents.
At the last closing share price the estimated dividend yield is 6.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.

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

MXI    MAXITRANS INDUSTRIES LIMITED

Automobiles & Components – Overnight Price: $0.15

Wilsons rates ((MXI)) as Hold (3) –

MaxiTrans Industries reported an overall operating profit of $2.1m while revenue was down -12% at $16.5m. The decline was driven by a fall in the trailer business which felt the brunt of a challenging market, revenue down to $104.6m while operating profit decreased by -31% to $6.6m. Wilsons expects this to continue for now. 

The MaxiParts business, making up about 41% of group revenues, continues to perform well with operating profit of $5.6m, revenue worth $59m and steady margins at 6.7%.

Wilsons notes total cost reduction initiatives since February 2019 amount to $10.6m and would be a positive factor during the inevitable recovery in the sector. 

The business is doing well in terms of managing a cyclical downturn in demand. Even though the outlook is challenging with demand expected to remain soft, the company is well poised for any cyclical upswing, states Wilsons.

With new transport units demand expected to be subdued, the broker has downgraded FY20 and FY21 operating profits to $6m and $9.3m. Hold rating retained with target price at $0.22.

The report was published on March 03, 2020.

Target price is $0.22 Current Price is $0.15 Difference: $0.07
If MXI meets the Wilsons target it will return approximately 47% (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 0.00 cents.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1500.00.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.09

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

Next Science’s FY19 result saw revenue at $4m with operating expenses higher due to one-off listing costs at $15.5m. The gross margin was 86% and has room for improvement, comments Wilsons.

The broker expects BlastX sales to improve and Xperience to be launched after approval in the second half of the year.

Wilsons has increased expense estimates due to factors like a broad development pipeline, R&D investments and investment in sales and marketing infrastructure amongst others. The broker states Xperience will not be included in the earnings forecast till approved.

Wilsons retains Overweight with target price at $2.87.

The report was published on March 02, 2020.

Target price is $2.87 Current Price is $1.09 Difference: $1.78
If NXS meets the Wilsons target it will return approximately 163% (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 8.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.53.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.87.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
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: $0.56

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

Openpay released a trading update highlighting the strong performance of the UK market over the past six months.

Shaw and Partners notes the increasing momentum in the UK market and its translation into strong performance metrics. This momentum has continued in January 2020, states Shaw, with growth in active plans and active customers of 11% and 9% month-on-month respectively to 513,000 and 224,000.

The company has outpaced Shaw’s forecasts for the first half with more than 99% growth in active customers and 74% growth in active merchants. Active plans also showed a whopping 187% increase to more than 462,000 while sales were up 73% at $8.3m.

The company is in talks with fund providers for a customer receivables funding facility worth circa GBP25m to GBP50m.

Shaw and Partners believes the company is doing everything right and expects the growth trajectory to continue.

Buy retained with target price unchanged at $2.25.

The report was published on February 28, 2020.

Target price is $2.25 Current Price is $0.56 Difference: $1.69
If OPY meets the Shaw and Partners target it will return approximately 302% (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 42.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.32.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.00.

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

PAL    PALLA PHARMA LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.55

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

Palla Pharma’s FY19 result was in-line with company guidance, with revenue at $54.7m primarily driven by increase in API sales. The normalised operating profit increased to $0.9m with operating profit margin improving to -4%.

Shaw and Partners have lowered sales forecasts to 0.5% for FY20 while still expecting sales growth of 6.6%. This growth would be driven by higher-priced API sales, using Norway capacity for production of opiate-based finished dosage products and the likely acquisition of a UK manufacturing facility.

Palla Pharma continues to generate strong top-line growth and will continue doing so, comments Shaw.

Shaw rates the stock a Buy with target price of $1.20.

The report was published on February 27, 2020.

Target price is $1.20 Current Price is $0.55 Difference: $0.65
If PAL meets the Shaw and Partners target it will return approximately 118% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Shaw and Partners forecasts a full year FY19 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 28.95.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.21.

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

PKS    PKS HOLDINGS LIMITED

Healthcare services – Overnight Price: $0.10

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

FY20 half-yearly numbers for Pacific Knowledge Systems outpaced broker Shaw’s expectations with revenue at $1.9m and most of it recurring. The operating profit at $1.24m was about 35% more than Shaw and Partner’s forecast while net cash was at $4.2m.

The broker notes plenty of sources for recurring revenues, notably from new channel partnerships. The latest addition is the partner channel Abbott which is expected to increase the average revenue generated per user (ARPU) about 4-5x, states Shaw.

With PKS Holdings listed on the ASX and with a strong balance sheet, the company is looking at inorganic growth prospects as well, states the broker.

Shaw expects 80% increase in revenues over the next three years.

Shaw and Partners has increased operating profit estimates by 26% for FY20 and expect margins to increase overall.

Buy rating reiterated with target price at $0.30.

The report was published on February 28, 2020.

Target price is $0.30 Current Price is $0.10 Difference: $0.2
If PKS meets the Shaw and Partners target it will return approximately 200% (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 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.69.

Forecast for FY21:

Shaw and Partners 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 6.25.

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

PVS    PIVOTAL SYSTEMS CORPORATION

Hardware & Equipment – Overnight Price: $0.79

Moelis rates ((PVS)) as Buy (1) –

Pivotal Systems Corp reported FY19 results with revenue at US$15.3m while operating loss stood at -US$7.1m, more than Moelis’s estimated -US$5.9m.

Improved market dynamics have continued from the fourth quarter of 2019 into first-half 2020, notes Moelis, with the company expecting a much better financial performance this year.

The broker comments that while the coronavirus has not yet impacted the supply chain, it is unclear how the end market will be impacted over the next few quarters.

With this in mind, Moelis trims FY20 revenue estimate by -1.8% to US$28.4m. Even so, the broker is positive and considers the company well placed to continue winning market share.

Moelis rates the stock a Buy with target price at $2.21.

The report was published on March 2, 2020.

Target price is $2.21 Current Price is $0.79 Difference: $1.42
If PVS meets the Moelis target it will return approximately 180% (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 3.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.57.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 107.92.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $3.49

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

PWR Holdings' H1 period saw an increase in net profit by 10% to $3.5m, below Bell Potter's expectations, while revenue and operating profit were mostly in-line. The broker expects operating profit conversion rate to be higher in the second half.

Although with no formal guidance, the company views the second half and beyond in a more positive light and has announced expansion of the capital expenditure program for FY20 and FY21, with Original Equipment Manufacturer (OEM) programs ramping up.

Bell Potter has downgraded EPS forecasts for FY20 by -4% along with decreasing the target price by -5%. Hold retained with target price at $4.75.

The report was published on February 28, 2020.

Target price is $4.75 Current Price is $3.49 Difference: $1.26
If PWH meets the Bell Potter target it will return approximately 36% (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 9.90 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.68.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.80 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.72.

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

REH    REECE LIMITED

Furniture & Renovation – Overnight Price: $8.69

E.L. & C Baillieu rates ((REH)) as Upgrade to Buy from Hold (1) –

Reece’s Australian and New Zealand operations saw only a modest fall in earnings in H1 even with a cyclical downturn in the housing sector- considered a testament to its strength by Baillieu. The US market performance was strong with expansion there offsetting the weak Australian numbers, comments Baillieu.

While the company did not provide guidance for the second half, the broker expects conditions to be similar to the first half and growth to pick up in 2021. Baillieu has trimmed FY20 net profit forecast by -7%.

The broker views Reece as a high-quality business with an experienced management team and strong cash flow from the Australian and New Zealand operations. The US market offers the growth opportunity for the next decade.

Rating upgraded to Buy from Hold with target price at $12.90.

The report was published on March 3, 2020.

Target price is $12.90 Current Price is $8.69 Difference: $4.21
If REH meets the E.L. & C Baillieu target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 20.00 cents and EPS of 43.20 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.12.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 22.00 cents and EPS of 47.60 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.26.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $1.94

Wilsons rates ((RFF)) as Buy (1) –

Rural Funds Group reported a strong interim result with funds from operations (FFO) increased 16% to $23.7m, -3% below the broker’s forecast. Gross debt proved much higher than estimates, notes Wilsons.

The broker points towards productivity improvements leading to revaluation gain in the Natala Cattle property of circa 17%, similar to the Rewan cattle case in June 2019. Wilsons also expects positive rent review outcomes in future and notes the group retains circa $57m headroom in its debt facility for potential acquisitions.

The broker upgrades the funds from operations (FFO) forecast by about 4% on the back of higher property income. The stock is rated a Buy with target price of $2.19.

The report was published on March 03, 2020.

Target price is $2.19 Current Price is $1.94 Difference: $0.25
If RFF meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 10.80 cents and EPS of 20.80 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.33.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.30 cents and EPS of 21.40 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.07.

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

SDF    STEADFAST GROUP LIMITED

Insurance – Overnight Price: $2.38

E.L. & C Baillieu rates ((SDF)) as Buy (1) –

The first half result of the Steadfast Group outpaced Baillieu’s forecast reporting operating profit of $105.2m and net profit after tax of $64m. The growth was driven by less seasonal skew and increased contribution from acquisitions, notes Baillieu.

The group guided towards the top-end of the pre-existing range for operating profit ($215-225m) and net profit after tax ($100-110m) while the broker expects upside risk to the guidance.

Baillieu upgrades EPS estimates by 2-3% and notes the group’s ample funding capacity and premium rate tailwinds.

Buy Rating reiterated with target price at $4.10.

The report was published on February 27, 2020.

Target price is $4.10 Current Price is $2.38 Difference: $1.72
If SDF meets the E.L. & C Baillieu target it will return approximately 72% (excluding dividends, fees and charges).
Current consensus price target is $3.73, suggesting upside of 56.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 9.60 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 4.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of 14.7%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 10.60 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 2.0%.
Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.5.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SHJ    SHINE CORPORATE LTD

Legal – Overnight Price: $0.79

Moelis rates ((SHJ)) as Buy (1) –

Shine Corporate reported half-yearly revenue of $89.2m driven by growth in the new practice areas (abuse law and family law). The operating profit expanded 10.8% to $21.7m while profit margin grew by 1.6% on account of cost reductions.

The company has reiterated FY20 guidance for about 10% increase in operating profit, notes broker Moelis.

After a three-year period of stabilisation, comments Moelis, the company is delivering on growth with better cash flow conversion, scaling up in new practice areas and downsizing the personal injury business.

The broker believes the stock is undervalued and has a limited correlation with the broader macroeconomic trends, very useful in the present conditions.

Moelis upgrades FY20-21 EPS estimates by 3.9%-4.5% respectively. Buy rating maintained with target price at $1.15.

The report was published on March 03, 2020.

Target price is $1.15 Current Price is $0.79 Difference: $0.36
If SHJ meets the Moelis target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 4.30 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.90.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.80 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.52.

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

SXE    SOUTHERN CROSS ELECTRICAL ENGINEERING LTD

Mining Sector Contracting – Overnight Price: $0.42

Moelis rates ((SXE)) as Buy (1) –

The FY20 half-yearly result for Southern Cross Electrical was mostly in-line or above Moelis’s estimates save for the gross profit margin at 10.3%, lower than Moelis’s 12%. Moelis notes a strong balance sheet with cash reserves of $53m and expects a strong free cash flow generation.

Southern Cross Electrical has guided towards revenue exceeding $420m for the entire year with the broker predicting $444m and expecting performance to be somewhat skewed towards the second half. Moelis has a positive outlook helped by strong expected cashflows, an attractive valuation and a low capital intensive business model.

The broker retains Buy rating with target price at $0.87.

The report was published on March 02, 2020.

Target price is $0.87 Current Price is $0.42 Difference: $0.45
If SXE meets the Moelis target it will return approximately 107% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 3.00 cents and EPS of 5.10 cents.
At the last closing share price the estimated dividend yield is 7.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.24.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 3.00 cents and EPS of 6.10 cents.
At the last closing share price the estimated dividend yield is 7.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.89.

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: $0.70

Moelis rates ((VTH)) as Buy (1) –

Vitalharvest Freehold Trust’s first half moderately outpaced Moelis’s estimates with funds from operations (FFO) worth $6.7m. Impacted by extreme weather events, the variable rent took a hit of -39%, ending at $4.7m.

Going forward, Moelis expects the berry division to benefit from water supply, removal of crumbly raspberry fruit and lower market supply; all likely to contribute to the variable revenue in the second half.

The citrus division was the main contributor to the first half figures, but the outlook for FY21 depends on the impact of hail storms and water availability, points out the broker. Moelis moderates FY21 estimates by circa -3% due to higher citrus input costs.

Buy rating maintained with target price of $0.930.

The report was published on March 03, 2020.

Target price is $0.93 Current Price is $0.70 Difference: $0.23
If VTH meets the Moelis target it will return approximately 33% (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 5.30 cents.
At the last closing share price the estimated dividend yield is 6.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.10 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 7.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.07.

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

WZR    WISR LIMITED

Hardware & Equipment – Overnight Price: $0.09

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

For the first half, Wisr’s sales were up 83% to $2.2m with the second quarter bringing in a record $164m in loan originations. The first half result was as expected and confirmed the company’s financial capacity and leadership position in neo-lending, comments Shaw and Partners.

Wisr is one of Shaw’s key small-cap picks of 2020, with the company on an accelerated growth path and, according to the broker, doing everything right. As Australia’s first neo-lender, the company is well-positioned for long term growth, believes Shaw and rates the stock a Buy with target price of $0.35.

The report was published on February 27, 2020.

Target price is $0.35 Current Price is $0.09 Difference: $0.26
If WZR meets the Shaw and Partners target it will return approximately 289% (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 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.92.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

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: $1.71

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

Zip Co’s first-half result was solid with operating revenues at $69.6m, up 103% year-on-year and cash operating profit at $1.5m.

The company claims it is ahead of own FY20 guidance, reiterating 2.5m customers by year end. The broker, however, forecasts only 2.2m customers by FY20 end.

The broker notes that 40% of Zip’s current resources are invested to drive the next growth and excluding them, the company would deliver $32m of cash operating profit in FY20 which is 8-10x current forecasts.

Shaw & Partners has increased estimates for spending figures while reducing cash by circa $12m in FY20 and $14m in FY21.

Zip Co is expected to have a big second half, adding 700k customers.

Buy rating maintained. Target price at $4.91.

The report was published on February 27, 2020.

Target price is $4.91 Current Price is $1.71 Difference: $3.2
If Z1P meets the Shaw and Partners target it will return approximately 187% (excluding dividends, fees and charges).
Current consensus price target is $3.48, suggesting upside of 103.3%(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 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -12.4, 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 N/A.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.1, 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: 0.8
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

ANG BTH D2O EXL GSS HSN IFM JRV LME LVT MSV MVP MWY MXI NXS OPY PAL PKS PVS PWH REH RFF SDF SHJ SXE VTH WZR Z1P

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For more info SHARE ANALYSIS: GSS - GENETIC SIGNATURES LIMITED

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For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

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For more info SHARE ANALYSIS: LME - LIMEADE, INC

For more info SHARE ANALYSIS: LVT - LIVETILES LIMITED

For more info SHARE ANALYSIS: MSV - MITCHELL SERVICES LIMITED

For more info SHARE ANALYSIS: MVP - MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: MWY - MIDWAY LIMITED

For more info SHARE ANALYSIS: MXI - MAXIPARTS LIMITED

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

For more info SHARE ANALYSIS: PAL - PALLA PHARMA LIMITED

For more info SHARE ANALYSIS: PKS - PKS HOLDINGS LIMITED

For more info SHARE ANALYSIS: PVS - PIVOTAL SYSTEMS CORP.

For more info SHARE ANALYSIS: PWH - PWR HOLDINGS LIMITED

For more info SHARE ANALYSIS: REH - REECE LIMITED

For more info SHARE ANALYSIS: RFF - RURAL FUNDS GROUP

For more info SHARE ANALYSIS: SDF - STEADFAST GROUP LIMITED

For more info SHARE ANALYSIS: SHJ - SHINE JUSTICE LIMITED

For more info SHARE ANALYSIS: VTH - VITALHARVEST FREEHOLD TRUST

For more info SHARE ANALYSIS: WZR - WISR LIMITED

For more info SHARE ANALYSIS: Z1P - ZIP CO LIMITED