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Australian Broker Call *Extra* Edition – Apr 16, 2020

Daily Market Reports | Apr 16 2020

This story features ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED, and other companies. For more info SHARE ANALYSIS: ACF

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)

ACF   AMA   APX   APZ   AVH   BGA   BOE   BRG (3)   CAJ   GMG   GNG   GPT   IPH   MNY   NAN   PBP   PGC   RFF   RHP   RWC   SHV   SSM   VVA   VVR   WGN  

ACF    ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services – Overnight Price: $0.26

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

Acrow Formwork and Construction Services delivered first-half results with operating profit of $5.5m and net profit of $2.4m, generated from revenue of $38.1m. The result was mostly in-line with Bell Potter’s expectations.

The company has not provided any formal guidance and is comfortable with market consensus which forecasts FY20 operating profit at $15.7m, notes Bell Potter. The broker expects a strong second half, driven by Uni-span earnings, improved Natform performance and momentum in work on the East Coast.

Believing the company to be sufficiently de-risked, Bell Potter upgrades the stock to Buy from Hold with target price at $0.34.

The report was published on March 04, 2020.

Target price is $0.34 Current Price is $0.26 Difference: $0.08
If ACF meets the Bell Potter target it will return approximately 31% (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 1.90 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 7.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.91.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.30 cents and EPS of 5.30 cents.
At the last closing share price the estimated dividend yield is 8.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.91.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.44

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

After AMA Group’s first-half results, Bell Potter has increased revenue forecast by 2% with a 25bps increase in the operating margin for FY20. This is accompanied by a 15-20% increase in the net interest expense forecasts (mostly duo to AASB-16). Overall, the broker expects an increase in the operating profit by 2-4% for FY20-FY22.

The group had guided towards operating profit of $73-77m for FY20 and circa $110m for FY21 but the broker expects the group to miss by -10-20% and has penciled in operating profit for FY20 at circa $66m and circa $102m for FY21.

The broker retains Buy with target price reduced to $0.85 from $1.

The report was published on March 09, 2020.

Target price is $0.85 Current Price is $0.44 Difference: $0.41
If AMA meets the Bell Potter target it will return approximately 93% (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 0.30 cents and EPS of minus 1.40 cents.
At the last closing share price the estimated dividend yield is 0.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.43.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.80 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.13.

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

APX    APPEN LIMITED

IT & Support – Overnight Price: $23.85

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

Bell Potter retains the FY20 forecasts released after the company's 2019 results. The forecasted operating profit is unchanged at $133.9m and ahead of the company's guidance range of $125-130m. Also, there is upside risk to earnings with a weakening USD, remarks the broker.

The language technology services provider stated being at relatively low risk from coronavirus, notes Bell Potter, with negligible impact on group earnings.

Driven by reductions in relative valuations, the target price has decreased by -8% to $26.50. Rating upgraded to Buy from Hold.

The report was published on March 02, 2020.

Target price is $26.50 Current Price is $23.85 Difference: $2.65
If APX meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $28.30, suggesting upside of 18.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 11.00 cents and EPS of 66.40 cents.
At the last closing share price the estimated dividend yield is 0.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.5, implying annual growth of 82.8%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 37.0.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.00 cents and EPS of 85.80 cents.
At the last closing share price the estimated dividend yield is 0.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.4, implying annual growth of 24.7%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 29.7.

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

APZ    ASPEN GROUP

Real Estate – Overnight Price: $0.94

Taylor Collison rates ((APZ)) as Outperform (2) –

Customers receiving government support form a high part of Aspen Group’s earnings, with circa 70% of the group’s earnings coming from long term rentals with the remaining exposed to domestic tourism (and not international), notes broker Taylor Collison. The group delivered a strong first half result with operating profit up 55% to $3.66m.

Short stay accommodation proved the strongest contributor with the broker also noting the occupancy improvement increased to about 98% from 90% across the 84-properties portfolio in Perth. Redevelopment of Lindfield apartments is also well advanced and the broker expects to see valuation uplift at Lindfield through FY21.

Aspen management's FY20 earnings guidance of $0.0675-0.07 per share looks low, says the broker, especially given the strong first half result even with a -$500k drag from both Darwin and fire-affected trade respectively.

The broker expects EPS estimates to grow 45.1% and 24.6% in FY20 and FY21 respectively and has increased EPS forecast for FY20 to $0.0735. The broker rates the stock as Outperform with target price at $1.39.

The report was published on March 10, 2020.

Target price is $1.39 Current Price is $0.94 Difference: $0.45
If APZ meets the Taylor Collison target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 6.00 cents and EPS of 7.35 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.79.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 7.00 cents and EPS of 9.16 cents.
At the last closing share price the estimated dividend yield is 7.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.26.

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

AVH    AVITA MEDICAL LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.53

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

To expand label claims for Recell – a device used for reconstruction of skin in patients with severe burns – Avita Medical has confirmed first patient enrolment in clinical trials for soft tissue injury and paediatric scalds.

Bell Potter considers the risk to be low and expects the medical technology company to achieve the desired results and be approved by mid-2023.

The company estimates the total addressable market for soft tissue injury to be US$550m annually while the size is US$250m for paediatric burns.

Rating upgraded to Buy from Hold with target price at $0.83.

The report was published on March 05, 2020.

Target price is $0.83 Current Price is $0.53 Difference: $0.3
If AVH meets the Bell Potter target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.33.

Forecast for FY21:

Bell Potter forecasts a full year FY21 EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.17.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $4.83

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

The first half result of Bega Cheese disappointed the broker with net profit of $15m and revenue and operating profit at $741m and $48.5m respectively. The result was below Bell Potter’s forecasts.

The business saw a reduction in milk collection with the Koroit facility experiencing the most reduction, notes the broker.

The company has retained the operating profit guidance of $95-105m and intends to reduce costs across the business in the coming years. Bell Potter has increased FY20 net profit forecast by 3% with target price unchanged.

Hold rating unchanged with target price steady at $4.25.

The report was published on March 02, 2020.

Target price is $4.25 Current Price is $4.83 Difference: minus $0.58 (current price is over target).
If BGA meets the Bell Potter target it will return approximately minus 12% (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 10.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.15.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.00 cents and EPS of 20.50 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.56.

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

BOE    BOSS RESOURCES LIMITED

Uranium – Overnight Price: $0.06

Canaccord Genuity rates ((BOE)) as Speculative Buy (1) –

Boss Resources, with the Honeymoon uranium project in Australia, is in an enviable position to meet renewed customer interest with utilities moving to fulfill un-contracted demand, states Canaccord Genuity.

The company has invested more than -$170m of sunk infrastructure capital and has all necessary permits along with several years of technical work in a definitive feasibility study released in January 2020, notes Canaccord Genuity. Further, the broker believes Boss Resources can restart the first stage of the project within a year for an initial capital outlay of -$35m. 

Canaccord Genuity comments that utilities have started to re-enter the market with more than 50% of the US needs to be re-contracted by 2023, providing upside potential to contract pricing.

The broker initiates coverage on the company with Speculative Buy and target price of $0.10.

The report was published on March 9, 2020.

Target price is $0.10 Current Price is $0.06 Difference: $0.04
If BOE meets the Canaccord Genuity target it will return approximately 67% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

Forecast for FY21:

Canaccord Genuity 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 30.00.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $18.29

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

Breville Group’s share price saw a sharp drop due to covid-19 related concerns which, states Bell Potter, is over-done. The broker substantiates this by adding that the major months for group revenue range from September to December and demand disruption won’t be as severe if the outbreak is contained by then.

The broker further notes inventory is above normal with supply chain risk on the lower end and the group’s key retail partners are major online players which would ensure an ability to purchase even if there are physical constraints. Lastly, states the broker, the group has the flexibility to tone down some costs temporarily.

Bell Potter admits to the near-term outlook being challenging and has reduced EPS estimates for FY20-22 by -3-6%. However, on account of the factors mentioned above, the broker is positive and believes the group is well placed for long term growth.

Rating upgraded to Buy from Hold with target price at $21.15.

 The report was published on March 11, 2020.

Target price is $21.15 Current Price is $18.29 Difference: $2.86
If BRG meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $18.72, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 38.70 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.3, implying annual growth of 8.7%.
Current consensus DPS estimate is 32.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.5.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 45.00 cents and EPS of 64.20 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of 16.9%.
Current consensus DPS estimate is 45.1, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.8.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


E.L. & C Baillieu rates ((BRG)) as Initiation of coverage with Buy (1) –

Breville Group is in the middle of a major business transformation, moving from third party distribution to a direct-to-market approach and expanding geographically, notes Baillieu.

The first half of the group saw net profit up 14.1% at $49.7m on the back of a 25% increase in revenue. Baillieu notes the group has established a strong track record of growth over the last five years even while undergoing a major transformation in Europe which required an increase in investment in R&D and marketing.

Having forayed into major population centres of Europe including Germany, Austria, Belgium and the Netherlands, the group has announced expansion into Spain and France with Italy and Portugal likely to follow, comments the broker.

Financially the group is strong, notes Baillieu, with little debt and high return on invested capital. Expecting the group to grow significantly, the broker initiates coverage on the company with a Speculative Buy. Target price is $19.50.

The report was published on March 16, 2020.

Target price is $19.50 Current Price is $18.29 Difference: $1.21
If BRG meets the E.L. & C Baillieu target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $18.72, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 41.00 cents and EPS of 57.60 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.3, implying annual growth of 8.7%.
Current consensus DPS estimate is 32.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.5.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 45.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of 16.9%.
Current consensus DPS estimate is 45.1, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.8.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

The Breville Group has built an attractive global platform and is led by a well-respected management team, notes Wilsons. However, this falls short of allaying the broker's concerns on covid-19 and issues like AUD/USD volatility – all of which would impact the short and medium-term growth prospects, especially in Europe.

While Wilsons keep the operating profit forecast for FY20 unchanged, the forecast is reduced by -2.1% to $118.6m for FY21, reflecting a cautious outlook for Europe.

Europe contributed 37.3% of revenue growth in the first half and is expected to continue the trend in the second half, driven by expansion in France and Spain, notes the broker while also mentioning this could become difficult if team travel is restricted.

The stock is rated Underweight with target price of $12.55.

The report was published on March 16, 2020.

Target price is $12.55 Current Price is $18.29 Difference: minus $5.74 (current price is over target).
If BRG meets the Wilsons target it will return approximately minus 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $18.72, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 41.50 cents and EPS of 57.40 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.3, implying annual growth of 8.7%.
Current consensus DPS estimate is 32.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.5.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 42.50 cents and EPS of 61.50 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of 16.9%.
Current consensus DPS estimate is 45.1, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.8.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.20

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

Capitol Health is a major diagnostic imaging player offering services like CT, X-ray, MRI, nuclear medicine. Shaw and Partners is optimistic and expects demand for diagnostic imaging services to grow in the current coronavirus-led environment with earnings increasing by 5-10% by 2020 end.

The broker’s operating profit forecast remains unchanged at $28.1m. Also, Shaw considers the company’s earnings to be better protected than most sectors. With defensive earnings, expected increase in organic growth fuelled by more GP attendance, a conservatively geared balance sheet, the broker is optimistic about the company’s prospects.

The broker rates the stock a Buy with target price at $0.32.

The report was published on March 16, 2020.

Target price is $0.32 Current Price is $0.20 Difference: $0.12
If CAJ meets the Shaw and Partners target it will return approximately 60% (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 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 1.30 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.11.

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

GMG    GOODMAN GROUP

Infra & Property Developers – Overnight Price: $13.22

Goldman Sachs rates ((GMG)) as Downgrade to Sell from Neutral (5) –

Goodman Group shares have undergone material re-rating over the last three years due to sustained cap rate tightening and structural demand drivers.

However, Goldman Sachs expects the business to be disrupted due to the coronavirus, leading to a fall in EPS estimates for FY20 and FY21.

Goldman Sachs states the business environment will be uncertain with price volatility across asset markets leading to delayed decision making.

The group’s heavy reliance on stock-based compensation may lead to reduction in the stock price, comments the broker. The group has upgraded EPS growth guidance by 11% with the broker in agreement, mostly due to a reduction in development profits. 

The broker downgrades the stock to Sell from Neutral with target price at $12.91.

The report was published on March 03, 2020.

Target price is $12.91 Current Price is $13.22 Difference: minus $0.31 (current price is over target).
If GMG meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.21, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 30.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.6, implying annual growth of -35.9%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 33.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.5, implying annual growth of 8.5%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 21.2.

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

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $0.73

Moelis rates ((GNG)) as Hold (3) –

The first half result of GR Engineering Services disappointed with operating profit of $2m significantly below Moelis’s estimate of $6.4m. The operating profit margin at 2% was below the broker’s 6% estimate.

The reduced numbers were a result of the impact of TOGA contract and conservative profit recognition on a number of EPC projects, notes Moelis. The broker expects operating margins to recover in the second half.

Moelis’s forecast FY20 operating profit is reduced by -15% to $11.6m with net profit down -31% to $6.4m. The revenue estimate is at the top end of the company’s guidance range of $200-$220m.

The broker anticipates margin recovery from a ramp-up in EPC projects and commencement of work on some conditional awards with the near term outlook expected to improve.

Hold rating maintained with target price at $0.85.

The report was published on March 05, 2020.

Target price is $0.85 Current Price is $0.73 Difference: $0.12
If GNG meets the Moelis target it will return approximately 16% (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 4.10 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.80.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.00 cents and EPS of 4.70 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.53.

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

GPT    GPT GROUP

Infra & Property Developers – Overnight Price: $4.00

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

Amidst an environment of macro uncertainty and market volatility, the GPT group provides a strong balance sheet, defensive income streams and is undervalued vis-à-vis the actual value of its tangible asset base, states Goldman Sachs.

The broker expects the group to deliver a three-year average DPS growth of 3.7%, offering a twelve-month total return of 9% which is much higher than the projected average 1% offered by other A-REITS currently.

Rating upgraded to Buy from Neutral with target price at $5.97.

The report was published on March 04, 2020.

Target price is $5.97 Current Price is $4.00 Difference: $1.97
If GPT meets the Goldman Sachs target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $5.36, suggesting upside of 34.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 27.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of -29.6%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 12.5.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 28.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 7.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.3, implying annual growth of 7.5%.
Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 11.7.

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

IPH    IPH LIMITED

Legal – Overnight Price: $7.77

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

With the recent market sell-off, IPH’s share price was hammered by about -30%. Bell Potter, however, is not too concerned as the company is functioning in a defensive industry which proved resilient even during the GFC.

Bell Potter notes the company had invested significantly over the years in ramping up IT capabilities, which is currently paying off with the company enjoying a high level of automation, online process capabilities and remote access flexibility for staff.

In addition, reports the broker, IP Australia is also well equipped to work from home with applications in the cloud. The broker allows for potential revenue slippage in the second half of FY20 and first half of FY21 and has reduced EPS forecasts for FY2-22 by -4-8%.

The broker believes the stock is well placed to navigate through the current virus-led disruptions. Rating upgraded to Buy from Hold with target price at $8.50.

The report was published on March 13, 2020.

Target price is $8.50 Current Price is $7.77 Difference: $0.73
If IPH meets the Bell Potter target it will return approximately 9% (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 27.50 cents and EPS of 36.10 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.52.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 29.20 cents and EPS of 38.40 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.23.

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

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $1.41

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

Noting the impact of covid-19 on Money3 Corp, Shaw and Partners forecasts a reduction in profit margins by -4%. The net loan book growth is expected to reduce to 6% from 12% for the second half of 2020, states the broker while conceding even these figures may be conservative.

Money3 has drawn -$40m from existing high-cost yet flexible debt facilities to fund growth, which the broker considers acceptable given the current situation. 

The broker expects the company’s customers to continue debt repayment. Being well-funded and having a healthy 6% provisioning cushion, the company would come out stronger than competitors, expects Shaw and Partners.

Stock rated a Buy with target price at $2.87.

The report was published on March 16, 2020.

Target price is $2.87 Current Price is $1.41 Difference: $1.46
If MNY meets the Shaw and Partners target it will return approximately 104% (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 10.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 7.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.34.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 11.80 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 8.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.12.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $6.26

Bell Potter rates ((NAN)) as Upgrade to Hold from Sell (3) –

Shares in Nanosonics, trading -25% below the all-time high price of $7.73, are considered expensive from a price-earnings perspective by Bell Potter.

The broker notes the core Trophon business in the US remains unaffected by covid-19 although Asia based component manufacturers pose a risk to the supply chain.

Bell Potter states consumables revenues are growing with the increase in installed base and any supply chain disruption would not impact the consumables revenues as the supply to the US market is sourced entirely within the US.

The second half will be driven by margin captured from consumables supplied to about 10,000 Trophon devices, highlights Bell Potter. The broker upgrades its rating to Hold from Sell with target price at $5.52.

The report was published on March 10, 2020.

Target price is $5.52 Current Price is $6.26 Difference: minus $0.74 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.24, suggesting downside of -0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 4.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 133.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of -9.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 152.7.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 81.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.0, implying annual growth of 70.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 89.4.

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

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.00

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

Probiotec has been a beneficiary of the unfortunate covid-19 pandemic, notes the broker, with a substantial increase in over-the-counter pharma products demand and an earnings skew towards the second half due to the flu season.

Probiotec is one of the top three manufacturers of over-the-counter (OTC) pharma products ranging from flu, paracetamol, analgesics etc. The company’s facilities are expected to work around the clock to meet this demand and would benefit in the short term.

The company has guided towards an operating profit of $16-17m in FY20 with the broker concurring and noting upside risk. The broker does caution about shutting down of global API chains which would adversely impact operations in the first half of FY21, although adding such a scenario seems unlikely. 

Overall, the stock is a winner in the short, medium and long term, states the broker. Buy rating reaffirmed with target price of $2.43.

The report was published on March 16, 2020.

Target price is $2.43 Current Price is $2.00 Difference: $0.43
If PBP meets the Shaw and Partners target it will return approximately 22% (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 4.80 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 6.40 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.42.

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

PGC    PARAGON CARE LIMITED

Medical Equipment & Devices – Overnight Price: $0.16

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

Paragon Care’s first-half FY20 result was in line with guidance. Group revenue increased by 1.1%, which increases to 8.5% if the loss of key clientele at Western Biomedical is excluded, explains Bell Potter.

The most pressing issue for the company, comments the broker, is the operating cost increase driven by a failed systems implementation and increase in working capital. The broker is also uncomfortable with the high debt levels, especially when seen alongside the relatively low current earnings.

If the company manages to get its act together in the next six months (reduce working capital, capture cost synergies and ensure stable management), the stock has the potential to be quite a catch, comments Bell Potter. Having said that, the broker is cautious until the aforementioned factors work out.

Hold rating retained with target price reduced to $0.27 from $0.37.

The report was published on March 02, 2020.

Target price is $0.27 Current Price is $0.16 Difference: $0.11
If PGC meets the Bell Potter target it will return approximately 69% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.67.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.10 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 6.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.21.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $1.85

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

Rural Funds Group’s first-half result outpaced the broker's expectations with adjusted funds from operations (AFFO) at $23.6m while revenue was $38m. Asset development was $12.5m during the period.

The company has guided towards an increased AFFO of $0.135 per unit while retaining distribution per unit (DPU) guidance of $0.1085. Bell Potter has made no material changes to the FY20 forecast. The AFFO per unit forecast for FY20 has been set at $0.135.

The broker believes the catalyst for revaluation and rental review would be an improvement in productivity of investments in the cotton and cattle sector. The broker retains the Buy rating with target price unchanged at $2.38.

The report was published on March 02, 2020.

Target price is $2.38 Current Price is $1.85 Difference: $0.53
If RFF meets the Bell Potter target it will return approximately 29% (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 10.80 cents.
At the last closing share price the estimated dividend yield is 5.84%.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.30 cents.
At the last closing share price the estimated dividend yield is 6.11%.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $1.74

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

Rhipe’s largest business is of software licensing sales and while Shaw and Partners doesn’t forecast any large adverse impact due to the coronavirus, there may be a fall in partner net new activities to end customers in the short term.

The majority of Rhipe’s earnings are from recurring, paid monthly licensing sales, notes the broker and the worst-case scenario would see a decline in medium-term growth with earnings hit by circa -$1m with about -$2m in lost earnings. Such a scenario, adds Shaw, is unlikely to unfold.

The broker has decreased growth expectations for net sales in the fourth quarter, leading to a group revenue reduction of -1% in FY20 and a consequent reduction in the EPS estimate by -1%.

The broker is optimistic about the company as Rhipe’s products are needed by customers to run their businesses and thus the company enjoys a defensive income stream.

Also, the company has a strong balance sheet with no debt and cash reserves of 24m. Shaw believes the unfortunate covid-19 may turn out to be a good opportunity for the company, leading to governments and businesses to rethink the utility of cloud and there may be an uptick in demand.

With no debt, positive net cash, above industry growth, recurring income and an increase in demand for cloud, the broker is optimistic and rates the stock a Buy with target price at $3.03.

The report was published on March 15, 2020.

Target price is $3.03 Current Price is $1.74 Difference: $1.29
If RHP meets the Shaw and Partners target it will return approximately 74% (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 2.90 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.49.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 3.70 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.22.

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

RWC    RELIANCE WORLDWIDE CORPORATION LIMITED

Building Products & Services – Overnight Price: $2.72

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

Reliance Worldwide is viewed positively by Baillieu due to expected improvement in revenue growth from the Americas segment, more focus on cost reduction and better efficiencies from manufacturing initiatives.

Improvement in the US housing market would help improve plant efficiency in the second half, expects the broker.

The company is considered attractively valued and Baillieu notes the potential for improvement. Rating upgraded to Buy from Hold with target price at $4.

The report was published on March 05, 2020.

Target price is $4.00 Current Price is $2.72 Difference: $1.28
If RWC meets the E.L. & C Baillieu target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $3.29, suggesting upside of 21.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 10.00 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of -8.8%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 11.50 cents and EPS of 20.30 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of 6.5%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.5.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $7.43

Wilsons rates ((SHV)) as Upgrade to Market Weight from Underweight (3) –

Wilsons has updated forecasts for Select Harvests after the AGM trading update and a reassessment of crop production costs assumptions.

The broker has reduced its almond price forecast by -7% for FY20 while increasing it by 3% for FY22. Crop production forecasts have been upgraded 5-6% due to higher contributions from immature orchards.

Crop production costs have been lowered -3% for FY20 but are forecasted to increase from FY21 onwards. The most important change is a circa -13% downgrade to outer year almond segment operating profit forecast, states the broker.

Stock upgraded to Market Weight from Underweight with target price of $6.33.

The report was published on March 05, 2020.

Target price is $6.33 Current Price is $7.43 Difference: minus $1.1 (current price is over target).
If SHV meets the Wilsons target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 27.90 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 37.60 cents and EPS of 57.80 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.87

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

With the share price declining materially over the last two months, Service Stream offers a great buying opportunity for long term investors, states Bell Potter.

The broker expects coronavirus impact on the company to be somewhat mitigated owing to the essential nature of services provided, although the company remains vulnerable to subcontractors being infected.

EPS estimates have been reduced by -1.5% and -2.2% for FY20 and FY21 respectively. Buy rating reiterated with target price at $2.80.

The report was published on March 13, 2020.

Target price is $2.80 Current Price is $1.87 Difference: $0.93
If SSM meets the Bell Potter target it will return approximately 50% (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 10.00 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.84.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 10.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.22.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.75

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

Viva Leisure has confirmed the business is on track with no impact of covid-19 on patronage, membership cancellations or new signings growth across facilities respectively.

The health club operator’s sales for December 2019 were $4.4m and the company has since been achieving monthly organic growth. Although the growth guidance at 112% for June 2020 remains unchanged, Shaw and Partners has factored in no growth during the fourth quarter.

The broker notes Viva Leisure’s facilities are located in regional suburban/metro rather than CBD locations which insulates it from the expected downturn. The broker notes the leisure company is yet to see any impact and the stock has a relatively low-risk exposure.

The broker does highlight some key risks including detection of covid-19 cases in regional areas, enforced closure of gyms, and higher chances of cancellations with prolonged duration of the virus. Buy rating retained with target price at $2.60.

The report was published on March 16, 2020.

Target price is $2.60 Current Price is $1.75 Difference: $0.85
If VVA meets the Shaw and Partners target it will return approximately 49% (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 9.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.23.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 3.80 cents and EPS of 15.50 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 11.29.

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

VVR    VIVA ENERGY REIT

REITs – Overnight Price: $2.40

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

Viva Energy REIT is on track to deliver growth on the back of long lease durations, fixed rental growth and strong tenant covenants, states Goldman Sachs. This view is further strengthened due to a robust acquisition pipeline and a possible near-term asset revaluation, notes the broker.

EPS growth will be circa 5% over the next three years, supplemented by a mix of acquisitions and rental increases. Maintenance capex needs are minimum and would help increase cash flow growth above the REIT average, according to the broker.

Rating upgraded to Buy from Neutral with target price at $2.92.

The report was published on March 03, 2020.

Target price is $2.92 Current Price is $2.40 Difference: $0.52
If VVR meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.42, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 15.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of -35.5%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of 5.3%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 15.2.

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

WGN    WAGNERS HOLDING COMPANY LIMITED

Building Products & Services – Overnight Price: $0.87

Wilsons rates ((WGN)) as Downgrade to Underweight from Overweight (5) –

Wagners reported a disappointing first half result with operating profit of $2.5m, a huge miss to the broker’s $13.9m. This was driven by the construction materials and services segment.

The company pointed towards operating profit guidance of $12.5-17.5m for FY20 while Wilsons has reduced operating profit forecast for FY20 by -45.9% to $12.8m due to uncertainty over project commencement and rising competition in South East Queensland.

The broker is concerned about the lack of near-term contracts while the Mozambique LNG project also remains elusive.

Rating reduced to Underweight from Overweight with target price at $0.78.

The report was published on March 05, 2020.

Target price is $0.78 Current Price is $0.87 Difference: minus $0.09 (current price is over target).
If WGN meets the Wilsons target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.25, suggesting upside of 43.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.8, implying annual growth of -77.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 48.3.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 1.50 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.1, implying annual growth of 238.9%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: -0.3
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

ACF AMA APX APZ AVH BGA BOE BRG CAJ GMG GNG GPT IPH MNY NAN PBP PGC RFF RHP RWC SHV SSM VVA WGN

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For more info SHARE ANALYSIS: IPH - IPH LIMITED

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For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: PBP - PROBIOTEC LIMITED

For more info SHARE ANALYSIS: PGC - PARAGON CARE LIMITED

For more info SHARE ANALYSIS: RFF - RURAL FUNDS GROUP

For more info SHARE ANALYSIS: RHP - RHIPE LIMITED

For more info SHARE ANALYSIS: RWC - RELIANCE WORLDWIDE CORP. LIMITED

For more info SHARE ANALYSIS: SHV - SELECT HARVESTS LIMITED

For more info SHARE ANALYSIS: SSM - SERVICE STREAM LIMITED

For more info SHARE ANALYSIS: VVA - VIVA LEISURE LIMITED

For more info SHARE ANALYSIS: WGN - WAGNERS HOLDING CO. LIMITED