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Australian Broker Call *Extra* Edition – May 08, 2020

Daily Market Reports | May 08 2020

This story features AUSWIDE BANK LIMITED, and other companies. For more info SHARE ANALYSIS: ABA

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)

ABA   AUB   BTH   CCP   CCX (2)   EML   EQT   EVT   GNX   GOR   HSN   IEL   IFM   JLG   KMD   OSL   PSQ (2)   RBL   SLK   SOL   UMG  

ABA    AUSWIDE BANK LTD

Banks – Overnight Price: $4.42

E.L. & C Baillieu rates ((ABA)) as Upgraded to Buy (1) –

After a strong first half, Auswide Bank’s share price has fallen, in line with the broader decline in equity markets, notes stockbroker Baillieu.

The bank is expecting to meet/exceed loan growth of 5.4% in the second half, which the broker considers achievable. FY21 will be a different story with lower consumer confidence and rising unemployment, predicts the broker. 

The bank is working towards a cost-to-income ratio target of 60% and while it (like other banks) is exposed to bad and doubtful debts (BDD), the overall capital ratio was strong at 13% in the first half with loan arrears at historical lows, observes the broker.

EPS forecasts by the broker for FY20 and FY21 have been reduced by -2% and -9% with a conservative view on loan growth till the first half of FY21. Rating upgraded to Buy with target price at $5.80.

The report was published on March 30, 2020.

Target price is $5.80 Current Price is $4.42 Difference: $1.38
If ABA meets the E.L. & C Baillieu target it will return approximately 31% (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 36.00 cents and EPS of 43.80 cents.
At the last closing share price the estimated dividend yield is 8.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.09.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 36.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 8.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.28.

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

AUB    AUB GROUP LIMITED

Diversified Financials – Overnight Price: $11.77

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

On account of covid-19, AUB Group recently withdrew FY20 earnings guidance and deferred both the final dividend payment for FY20 and MGA Whittles acquisition.

Stockbroker Baillieu suggests this would provide liquidity in the short term. The group has guided towards leverage ratio of 2.5x.

Short term would be volatile with a positive outlook long term, expects the broker, adding that the key risk to the business is the group's clients going out of business or reducing insurance cover.

Buy maintained with target price at $13.50

The report was published on April 2, 2020.

Target price is $13.50 Current Price is $11.77 Difference: $1.73
If AUB meets the E.L. & C Baillieu target it will return approximately 15% (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 45.50 cents and EPS of 65.70 cents.
At the last closing share price the estimated dividend yield is 3.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.91.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 45.50 cents and EPS of 69.10 cents.
At the last closing share price the estimated dividend yield is 3.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.03.

Market Sentiment: 1.0
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: $0.75

PhillipCapital rates ((BTH)) as Upgrade to Buy from Hold (1) –

Bigtincan Holdings has had a good first half with revenue up 53% at $14.3m and recurring revenue up by 38%. Costs also shot up with cash operating costs increasing by 57%, notes Phillip Capital. Operating loss was at -$2.2m while net cash at December end stood at $27.1m.

The company, reports the broker, has reiterated organic revenue guidance growth of 30-40% and is enjoying powerful tailwinds due to covid-19 which could ironically see an even bigger shift to mobile working.

Rating upgraded to Buy from Hold with target price at $0.68.

The report was published on March 20, 2020.

Target price is $0.68 Current Price is $0.75 Difference: minus $0.07 (current price is over target).
If BTH meets the PhillipCapital target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

PhillipCapital forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.71.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 83.33.

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

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $14.28

E.L. & C Baillieu rates ((CCP)) as Upgrade to Buy (1) –

Credit Corp's share price rebounded from a recent low of $6 but is well below the circa $38 of February, observes Baillieu.

Casual workers form 25% of the group’s exposure to purchased debt ledgers (PDL) and loans and thus, the recent surge in unemployment is a major risk, notes the broker, while adding the wage subsidy provided by the Federal government is a buffer for the group’s earnings. 

Driven by an anticipated slowdown in collections, increased amortisation and lower loan growth, the broker had recently downgraded EPS forecasts by -3% and -20% for FY20 and FY21 and sticks to it.

Rating upgraded to Buy with target price at $21.65.

The report was published on April 2, 2020.

Target price is $21.65 Current Price is $14.28 Difference: $7.37
If CCP meets the E.L. & C Baillieu target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $18.90, suggesting upside of 32.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 76.00 cents and EPS of 148.10 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.9, implying annual growth of -21.8%.
Current consensus DPS estimate is 49.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 72.00 cents and EPS of 140.40 cents.
At the last closing share price the estimated dividend yield is 5.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.0, implying annual growth of -27.0%.
Current consensus DPS estimate is 38.5, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 17.6.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $2.15

Goldman Sachs rates ((CCX)) as Buy (1) –

City Chic Collective announced a temporary closure of ANZ stores from late March due to covid-19. Goldman Sachs has cut estimates assuming in-store remains shut till June.

Even with a material downgrade in short-term earnings, the broker considers the company’s balance sheet strong enough to fund the disruption without seeking the JobSeeker allowance.

While acknowledging the company may face a weak trading environment, the broker sticks to its investment case citing a strong niche position, diversified marketing channels, cross-selling opportunities and good medium-term growth prospects.

The broker reduces EPS estimates for FY20 by -44%. Buy reiterated with target price at $3.05.

The report was published on April 2, 2020.

Target price is $3.05 Current Price is $2.15 Difference: $0.9
If CCX meets the Goldman Sachs target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.00.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.71.

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


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

City Chic Collective closed its physical stores in Australia and New Zealand with the online business emerging as an alternate channel. Wilsons expects growth in the online segment to continue even after macro conditions stabilise.

First half revenue was up 52.2% to $54.4m but with the acquisition of Avenue and softer sales, net debt is expected to increase to $8.9m in the second half from $2.3m, notes the broker.

The broker makes material changes to forecasts, reducing FY20 operating income estimate by -15.2% to $30.2m assuming a six-week closure.

Overweight retained with target price at $2.

The report was published on March 31, 2020.

Target price is $2.00 Current Price is $2.15 Difference: minus $0.15 (current price is over target).
If CCX meets the Wilsons target it will return approximately minus 7% (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 0.00 cents and EPS of 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.54.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.20.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $3.20

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

EML Payments has successfully renegotiated the acquisition of Prepaid Financial Services with $159m payable in cash. This would accelerate earnings growth and strengthen the balance sheet, comments Wilsons.

The broker reports both companies being impacted by covid-19 and has performed scenario analyses to ascertain the impact on Gross Development Value (GDV) rates.

The conclusion is a group operating income estimate ranging between $33m-$39m for FY20. Overweight rating retained with target price at $3.98.

The report was published on April 1, 2020.

Target price is $3.98 Current Price is $3.20 Difference: $0.78
If EML meets the Wilsons target it will return approximately 24% (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 9.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.33.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 12.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.81.

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

EQT    EQT HOLDINGS LIMITED

Diversified Financials – Overnight Price: $20.70

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

EQT Holdings has exposure to equity markets and may see fund outflows in the medium term, acknowledges Baillieu while adding this risk may be offset by the company's long term contracts and trustee mandates.

The company is well run with a number of growth opportunities and a strong financial position plus it has a huge opportunity for growth in Australia’s superannuation market, reports the broker.

Stockbroker Baillieu downgrades EPS forecasts by -20-38% over the next three years and cautions investors of short-term volatility. Buy maintained with target price at $28.

The report was published on March 30, 2020.

Target price is $28.00 Current Price is $20.70 Difference: $7.3
If EQT meets the E.L. & C Baillieu target it will return approximately 35% (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 78.00 cents and EPS of 103.70 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.96.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 72.50 cents and EPS of 96.50 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.45.

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

EVT    EVENT HOSPITALITY AND ENTERTAINMENT LTD

Travel, Leisure & Tourism – Overnight Price: $7.43

E.L. & C Baillieu rates ((EVT)) as Upgrade to Buy (1) –

Event Hospitality and Entertainment has withdrawn guidance for FY20 with covid-19 escalating. Broker Baillieu notes all cinemas operated by the company have been closed since March 23 with most employees stood down and major movies rescheduled to the next year.

The hospitality services provider's hotels had a good first half, but the broker reiterates the uncertainty from covid-19 and its impact on the second half. 

Baillieu downgrades FY20 EPS forecast by -30% with dividend forecasts flat to FY21. Rating upgraded to Buy with target price at $9.35.

The report was published on March 31, 2020.

Target price is $9.35 Current Price is $7.43 Difference: $1.92
If EVT meets the E.L. & C Baillieu target it will return approximately 26% (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 52.00 cents and EPS of 39.50 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 18.81.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 52.00 cents and EPS of 32.30 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 23.00.

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

GNX    GENEX POWER LIMITED

EV, Solar & Batteries – Overnight Price: $0.19

Canaccord Genuity rates ((GNX)) as Rating upgraded to Speculative Buy from Hold (1) –

Genex Power has signed an Energy Storage Services Agreement (ESSA) with Energy Australia involving the 250 MW Kidston pumped hydro development project. Broker Canaccord Genuity highlights the agreement is for a ten-year period with the company taking zero market risk.

The broker estimates a project Internal Rate of Return (IRR) of 6%, noting the key enabler to be NIAF's conditional funding support worth $610m. Genex Power is expected to opt for an equity sell-down to fund its cash contribution.

The broker expects construction to begin in the third quarter. The company reported the Jemalong solar farm project to be on schedule and within budget, with the local workforce not impacted by covid-19, notes Canaccord Genuity.

Rating upgraded to Speculative Buy from Hold with target price at $0.30.

The report was published on March 30, 2020.

Target price is $0.30 Current Price is $0.19 Difference: $0.11
If GNX meets the Canaccord Genuity target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.62.

Forecast for FY21:

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

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

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.58

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

Gold output for Gold Road Resources from the Gruyere gold mine is forecasted at 290koz for 2020, assuming no covid-19 impact. Bell Potter notes the mine is a fly in-fly out (FIFO) mining operation and is thus able to continue working under current travel constraints.

Even with operations suspended, the mining company has a large lower grade ore stockpile that would sustain production for about six months, reports the broker. With gold reaching all-time highs coupled with low costs of about $1,100/oz, the company is generating strong free cash flows and if this continues, the broker expects Gold Road Resources to repay its entire debt in 2020.

Bell Potter notes the company has outperformed its sector peers in the last two weeks of March. The broker is cautious and has reduced earnings estimates by -8% and -11% for FY20 and next year. Hold rating retained with target price at $1.40.

The report was published on March 30, 2020.

Target price is $1.40 Current Price is $1.58 Difference: minus $0.18 (current price is over target).
If GOR meets the Bell Potter target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 2.00 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.46.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.00 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.29.

Market Sentiment: 0.0
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: $2.85

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

Hansen Technologies recently withdrew FY20 earnings guidance in the wake of covid-19. While stating the performance thus far was as expected, the company called for caution while predicting an outlook for the near future, reports Baillieu.

The company has access to $39m of liquidity via its syndicated multi-currency facility. The broker reminds investors that two-thirds of the revenue is recurring and relatively secure and also considers the utility side of the business to pose more of a risk than communication.

The recent currency moves are likely to benefit the company’s profit by about 8%, predicts broker Baillieu. The broker reduces EPS forecasts by -4%, -10% and -8% over the next three years with the key drivers being a reduction in project revenue leading to a decreased margin performance.

Buy rating retained with target price at $4.

The report was published on April 5, 2020.

Target price is $4.00 Current Price is $2.85 Difference: $1.15
If HSN meets the E.L. & C Baillieu target it will return approximately 40% (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 18.70 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.24.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 5.90 cents and EPS of 19.50 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 14.62.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $15.21

Goldman Sachs rates ((IEL)) as Buy (1) –

While Goldman Sachs expects covid-19 led restrictions to impact IDP Education’s IELTS business, the broker is impressed with actions taken by the company to increase liquidity and considers it to be in a strong position to capitalise on long term opportunities.

The company is expected to be in a net cash position of $190m after an institutional placement of $175m and an increased working capital facility of $150m. This, states the broker, would enable the company to cover cash outflows for over twelve months if there is a pause on student placements and IELTS.

The company’s investments in the digitisation of student placement business is also a key advantage, notes Goldman Sachs. The broker has reduced EPS earnings forecast by -33% for FY20. Buy rating retained with target price at $19.40.

The report was published on April 2, 2020.

Target price is $19.40 Current Price is $15.21 Difference: $4.19
If IEL meets the Goldman Sachs target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $15.71, suggesting upside of 3.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 28.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.4, implying annual growth of -33.7%.
Current consensus DPS estimate is 18.5, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 87.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 15.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 69.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of 20.7%.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 72.4.

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: $1.57

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

Operating on a defensive model with 90% of revenues recurring in nature, one would expect Infomedia to be immune to covid-19. Unfortunately, this is not the case, notes Bell Potter, with the enforced shutdown of auto dealerships in various parts of the world hitting the company’s operations along with the expectations of customers cancelling/reducing subscriptions.

The broker has downgraded EPS forecasts for FY20, FY21 and FY22 by -7%, -6% and -5%, driven by a reduction in revenue forecasts of -2-3%. Hold rating maintained with target price at $1.70.

The report was published on April 2, 2020.

Target price is $1.70 Current Price is $1.57 Difference: $0.13
If IFM meets the Bell Potter target it will return approximately 8% (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 3.90 cents and EPS of 5.50 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.55.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.30 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.43.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $2.20

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

With construction deemed an essential service, Johns Lyng Group’s operations continue across all business lines, catalysed by recent catastrophic (CAT) events, notes Bell Potter.

With net cash at $8m and total debt of $25.1m (December end), the group is well placed to weather disruptions from covid-19, believes the broker, while highlighting the FY20 revenue guidance remains in place at $420m (excluding the CAT events and acquisitions).

Bell Potter is positive about the group’s prospects and expects the core business to lead the way. Cross-selling to strata management is considered the next big opportunity.

Rating upgraded to Buy from Hold with target price reduced to $2.70 from $2.75.

The report was published on March 31, 2020.

Target price is $2.70 Current Price is $2.20 Difference: $0.5
If JLG meets the Bell Potter target it will return approximately 23% (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 3.40 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.99.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.40 cents and EPS of 7.40 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.73.

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

KMD    KATHMANDU HOLDINGS LIMITED

Sports & Recreation – Overnight Price: $0.89

Canaccord Genuity rates ((KMD)) as Hold (3) –

Kathmandu Holdings recently raised equity worth NZ$207m, partly to de-lever the balance sheet as well as to provide liquidity to restructure the business, observes Canaccord Genuity.

The ability of a company to return to prior levels of earnings is considered important in this uncertain scenario, comments the broker, highlighting success depends on factors like medium-term consumer demand, inventory levels and operation restructuring (if any) rather than just raising equity.

Also, the broker considers forecasting for the second half a tough task given the company’s reliance on June/July sales, length of store closures and tendency to purchase outdoor/adventure wear from physical stores.

The broker reduces sales estimates for FY21 by -15% while cutting EPS estimates for FY20 and FY21 by -22% and -64%. Hold retained with target price at $0.89.

The report was published on April 1, 2020.

Target price is $0.89 Current Price is $0.89 Difference: $0
If KMD meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 9.51 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.36.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.70.

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

OSL    ONCOSIL MEDICAL LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.11

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

OncoSil Medical has been granted the European CE Mark and is planning to launch commercially in Europe later this year, notes Wilsons. The approval is for treating locally advanced pancreatic cancer in combination with chemotherapy.

With the launch delayed to the last 2020 quarter due to covid-19, the company is using this time to develop sales and logistics in other jurisdictions including ASEAN and APAC.

The company plans to secure a Humanitarian Device Exemption (HDE) for treating other rare biliary tumours with the broker expecting OncoSil to get clearance by the fourth quarter FY20.

Pancreatic cancer treatment in the US requires a pivotal trial and the broker reports the company aims at completing discussions this year with the FDA. Rating retained at Overweight with target price increased to $0.43 from $0.30.

The report was published on April 1, 2020.

Target price is $0.43 Current Price is $0.11 Difference: $0.32
If OSL meets the Wilsons target it will return approximately 291% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.71.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.22.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $1.21

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

The Pacific Smiles Group, impacted by covid-19, has withdrawn FY20 guidance along with closing down 76 centres and standing down affected employees with two weeks’ pay, notes Bell Potter. The broker reports cost management measures taken include freezing capex, curbing non-essential expenses, reducing rent and salaries of the board, CEO and executive management. Further, no final dividend is expected in FY20.

Bell Potter is of the view that the group could benefit from some pent-up demand once the situation normalises and also expects it could take some market share from smaller practices in the aftermath. The broker makes large reductions to EPS forecasts for FY20-22 driven by a double percentage reduction in forecasts for revenue and operating income.

Buy retained with target price at $1.17.

The report was published on April 1, 2020.

Target price is $1.17 Current Price is $1.21 Difference: minus $0.04 (current price is over target).
If PSQ meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 2.40 cents and EPS of minus 0.70 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 172.86.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.10 cents and EPS of 0.70 cents.
At the last closing share price the estimated dividend yield is 0.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 172.86.

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


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

Pacific Smiles Group has closed the majority of its dental centres due to covid-19. Most employees have been stood down with two weeks’ pay and salaries of senior management have taken a hit.

Wilsons notes circa $19m worth in cash and $10m in undrawn debt facilities are available to the company.

The broker anticipates a -90% drop in the activity levels with the group expected to report a loss in the first half of FY21. The situation is expected to recover rapidly thereafter.

The group’s access to capital may help in targeting new jurisdictions while local competition is weak, with the broker calculating the scope to reach about 275-300 practices.

Wilsons expects to see a ramp-up in the group’s greenfield and brownfield activities. The stock is rated Overweight with target price at $1.20.

The report was published on April 1, 2020.

Target price is $1.20 Current Price is $1.21 Difference: minus $0.01 (current price is over target).
If PSQ meets the Wilsons target it will return approximately minus 1% (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 2.40 cents and EPS of minus 3.90 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.03.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 17.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.87.

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

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $0.95

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

Redbubble has withdrawn previous guidance and Canaccord Genuity notes a modest contraction in revenue due to covid-19. The broker predicts a decline of -5-10% in group sales but acknowledges volatility in trading patterns.

Government stimulus in Europe, US and Australia may help boost Redbubble’s growth, predicts the broker, adding that the reduced ad spending on large online advertising platforms (think Google) will likely help the company’s customer acquisition cost (CAC) and offset lower website conversion rates.

Gross profit margins are expected to hold constant for now, the broker noting the company is implementing cost reduction measures including director/executive level pay cuts and decreasing the number of working days.

The broker has downgraded the gross profit after paid acquisition (GPAPA) forecasts by -11%, -19% and -19% for FY20-22. Points in the company’s favour include a shift towards online services, net cash position, flexible costs and a stable revenue base.

Buy retained with target price reduced to $1.50 from $1.80.

The report was published on April 1, 2020.

Target price is $1.50 Current Price is $0.95 Difference: $0.55
If RBL meets the Canaccord Genuity target it will return approximately 58% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 47.50.

Forecast for FY21:

Canaccord Genuity 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 95.00.

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

SLK    SEALINK TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $3.65

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

SeaLink Travel Group has removed guidance for the second half and has taken a number of measures including scaling back some businesses, implementing cost reductions and postponing all non-essential capex, notes Baillieu.

Bus service of the Transit Systems Group (SeaLink Travel Group's latest acquisition), deemed essential, is operating as expected and is backed by contracts with nil fare risk to the group, notes the broker, adding others were not so lucky with Fraser Island operations and Captain Cook Cruises suspended.

The broker has downgraded operating income forecast by -14% for FY20. On the positive side, the group has 80% revenue coming from operating contracts without farebox risk. Buy maintained with target price at $3.60.

The report was published on March 31, 2020.

Target price is $3.60 Current Price is $3.65 Difference: minus $0.05 (current price is over target).
If SLK meets the E.L. & C Baillieu target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 14.00 cents and EPS of 22.20 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.44.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 16.00 cents and EPS of 25.10 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.54.

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

SOL    WASHINGTON H SOUL PATTINSON & COMPANY LIMITED

Diversified Financials – Overnight Price: $17.86

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

Washington H Soul Pattinson’s first-half net profit was $124.7m with a dividend of $0.25 and Net Asset Value (NAV) up 0.2% to $5.5b for the period.

Shaw and Partners considers the company a fundamentally attractive investment in these uncertain times, reminding investors of its defensive nature, comfortable debt position, a track record of paying increased dividends and management expertise.

Some of the priorities, notes the broker, include investing across new asset classes. Buy rating retained with target price reduced to $25 from $26.

The report was published on March 26, 2020.

Target price is $25.00 Current Price is $17.86 Difference: $7.14
If SOL meets the Shaw and Partners target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 51.00 cents and EPS of 84.20 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.21.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 52.00 cents and EPS of 78.20 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.84.

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

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $4.10

Bell Potter rates ((UMG)) as Initiation of coverage with Buy (1) –

United Malt Group, the newly listed entity that demerged from GrainCorp, is the fourth largest commercial maltster globally with a capacity of about 1.25 Mtpa. The group has net debt of $433m, at the upper end yet considered manageable with the broker forecasting a 60% payout ratio.

Bell Potter initiates coverage on the stock noting various characteristics investors should pay attention to; a continuous demand for beer, high levels of contracted volumes, foreign income with exposure to a weakening AUD and capacity expansion plans in FY22.

The broker initiates coverage with a Buy rating and target price at $5.

The report was published on March 27, 2020.

Target price is $5.00 Current Price is $4.10 Difference: $0.9
If UMG meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 8.00 cents and EPS of 25.80 cents.
At the last closing share price the estimated dividend yield is 1.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.89.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 18.80 cents and EPS of 31.30 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.10.

Market Sentiment: 0.5
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

ABA AUB BTH CCP CCX EML EQT EVT GNX GOR HSN IEL IFM JLG KMD OSL PSQ RBL SLK SOL UMG

For more info SHARE ANALYSIS: ABA - AUSWIDE BANK LIMITED

For more info SHARE ANALYSIS: AUB - AUB GROUP LIMITED

For more info SHARE ANALYSIS: BTH - BIGTINCAN HOLDINGS LIMITED

For more info SHARE ANALYSIS: CCP - CREDIT CORP GROUP LIMITED

For more info SHARE ANALYSIS: CCX - CITY CHIC COLLECTIVE LIMITED

For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED

For more info SHARE ANALYSIS: EQT - EQT HOLDINGS LIMITED

For more info SHARE ANALYSIS: EVT - EVENT HOSPITALITY & ENTERTAINMENT LIMITED

For more info SHARE ANALYSIS: GNX - GENEX POWER LIMITED

For more info SHARE ANALYSIS: GOR - GOLD ROAD RESOURCES LIMITED

For more info SHARE ANALYSIS: HSN - HANSEN TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: IEL - IDP EDUCATION LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: KMD - KATHMANDU HOLDINGS LIMITED

For more info SHARE ANALYSIS: OSL - ONCOSIL MEDICAL LIMITED

For more info SHARE ANALYSIS: PSQ - PACIFIC SMILES GROUP LIMITED

For more info SHARE ANALYSIS: RBL - REDBUBBLE LIMITED

For more info SHARE ANALYSIS: SLK - SEALINK TRAVEL GROUP LIMITED

For more info SHARE ANALYSIS: UMG - UNITED MALT GROUP LIMITED