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Australian Broker Call *Extra* Edition – May 20, 2020

Daily Market Reports | May 20 2020

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)

AD8 (2)   APX   AVH   BID (2)   BRG   CAJ   CGL   CLV   EHL   HLA   HUB   IMU   IRE   LIC   MVP   OTW   PGX   PNV   PRN   PSQ (2)   RUL   SLC   SLK (2)   UMG   WPR   XRO   Z1P  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $5.75

Canaccord Genuity rates ((AD8)) as Buy (1) –

Canaccord Genuity opines that while the broader economic slowdown may not have an immediate impact on Audinate Group’s revenues, there will be a lagged impact on product launches with a marked impact on FY21 revenues. 

Expecting revenue growth to moderate in 2020, the broker has reduced revenue estimates for FY20 and FY21 by -4% and -14%.

Buy retained with target price reduced to $5.50 from $7.20.

The report was published on April 6, 2020.

Target price is $5.50 Current Price is $5.75 Difference: minus $0.25 (current price is over target).
If AD8 meets the Canaccord Genuity target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.43, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 442.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1437.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Shaw and Partners rates ((AD8)) as Buy (1) –

Audinate has withdrawn guidance for the second half which does not surprise Shaw and Partners, given the covid-19 related disruptions. The third-quarter revenue stood strong at US$5.3m driven by strong gross margins, new Dante products and a design win from Yamaha but the broker expects a weaker fourth quarter.

While Shaw and Partners has reduced FY20 sales forecasts by -5%, the broker is positive about the company owing to a strong balance sheet with no debt, prepaid orders and multiple revenue streams expected in the coming months.

Stock rated a Buy with target price at $8.

This report was published on April 8, 2020.

Target price is $8.00 Current Price is $5.75 Difference: $2.25
If AD8 meets the Shaw and Partners target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $6.43, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 958.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 250.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APX    APPEN LIMITED

IT & Support – Overnight Price: $29.74

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

As per Bell Potter, the rally in Appen's share price suggests the market may be expecting an upgrade; one that the broker does not consider certain due to the current market environment.

The broker has not changed 2020 forecast with operating income estimated at circa $135m, already ahead of the guidance of $125-130m.

Rating downgraded to Hold from Buy with target price at $30.

The report was published on May 12, 2020.

Target price is $30.00 Current Price is $29.74 Difference: $0.26
If APX meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $31.48, suggesting upside of 5.8%(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 67.20 cents.
At the last closing share price the estimated dividend yield is 0.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.4, implying annual growth of 85.4%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 45.5.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.00 cents and EPS of 86.00 cents.
At the last closing share price the estimated dividend yield is 0.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.8, implying annual growth of 31.2%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 34.7.

Market Sentiment: 0.6
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: $0.46

Wilsons rates ((AVH)) as Market Weight (3) –

Avita Medical was forced to stop clinical development work with the onset of covid-19, leading Wilsons to cut down its valuation by -40%.

The broker expects the next six months to be tough but remains positive about the long-term sales outlook for product RECELL.

Also, the company is in a comfortable position in terms of cash balances for the next two years, adds Wilsons.

Market weight rating retained with target price at $0.48.

The report was published on April 6, 2020.

Target price is $0.48 Current Price is $0.46 Difference: $0.02
If AVH meets the Wilsons target it will return approximately 4% (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 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.21.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.17.

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

BID    BIDENERGY LIMITED

Cloud services – Overnight Price: $0.76

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

With record cash receipts generated, low operating costs and a cash balance of more than $9m, BidEnergy has had a great quarter, reports Canaccord Genuity.

The company is yet to see any covid-19 impact but has reined in non-essential costs, observes the broker.

Canaccord Genuity does not expect material churn impact in the June quarter and forecasts the company moving through cash flow breakeven in the second half.

Buy retained with target price at $1.40.

The report was published on April 6, 2020.

Target price is $1.40 Current Price is $0.76 Difference: $0.64
If BID meets the Canaccord Genuity target it will return approximately 84% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.00.

Forecast for FY21:

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

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


PhillipCapital rates ((BID)) as Buy (1) –

BidEnergy’s third quarter saw an improvement with platform revenue up 80% at $1.4m (unaudited) and US rebate revenue of $1.5m, up 282%. Overall, the group revenue at $3m was 147% higher than last quarter.

Phillip Capital upgrades revenue forecasts for the US rebate business by 88% and 58% in FY20 and FY21 with operating losses forecasts reduced by -$1.3m and -$1.4m in FY20 and FY21.

Buy rating retained with target price at $1.40.

This report was published on April 8, 2020.

Target price is $1.40 Current Price is $0.76 Difference: $0.64
If BID meets the PhillipCapital target it will return approximately 84% (excluding dividends, fees and charges).
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 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.46.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.55.

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: $20.03

Goldman Sachs rates ((BRG)) as Neutral (3) –

Breville Group’s update was way ahead of Goldman Sach’s expectations with global products growing 24% between January-April and distribution up 30%.

The group recently announced a fully underwritten $104m institutional placement and share purchase plan. The broker believes the fresh capital raising will instill flexibility in the group’s balance sheet and help in dealing with working capital pressures while looking out for new market opportunities.

The broker expects revenue growth momentum to continue in the second half of FY20. Neutral rating retained with the target price increased to $19.25 from $16.70.

The report was published on May 14, 2020.

Target price is $19.25 Current Price is $20.03 Difference: minus $0.78 (current price is over target).
If BRG meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.57, suggesting upside of 2.7%(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 59.00 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.3, implying annual growth of 12.5%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 34.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 46.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.0, implying annual growth of 1.2%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 33.9.

Market Sentiment: 0.5
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: $0.19

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

Measures to stall covid-19 have led to a huge drop in GP referrals and diagnostic imaging with -40% fall in revenue experienced by Capitol Health since March.

The company has reduced overall group costs by -40%, cut salary of the board and executives by -50% and retained all doctors/clinicians which will allow some of the business to get back on track and serve pent up demand.

Shaw and Partners has reduced fourth-quarter revenue estimates by circa -40% and by about -20% for the first quarter FY21. The broker has also reduced capex forecast for FY20 by around -20% plus removed dividends.

Overall, this translates to a decrease in operating earnings by -17% and -14% for FY20 and FY21. Buy retained with target price at $0.29

This report was published on April 14, 2020.

Target price is $0.29 Current Price is $0.19 Difference: $0.1
If CAJ meets the Shaw and Partners target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.00.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 1.00 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

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

CGL    THE CITADEL GROUP LIMITED

IT & Support – Overnight Price: $2.90

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

The factors in Citadel Group’s favour include long-term contracts, high-quality customer base and exposure to key sectors like health and government, notes Bell Potter while explaining the rationale behind no downgrade in forecasts so far even with covid-19 led restrictions.

The broker does acknowledge some impact is inevitable from spending reduction/deferral in some sectors and has reduced forecasts in those areas.

Overall, earnings forecasts for FY20 and FY21 have been reduced by -10% and -9% driven by expected revenue reduction in the technology segment and slightly lower margin forecasts.

Buy rating retained with target price at $4.75.

This report was published on May 13, 2020.

Target price is $4.75 Current Price is $2.90 Difference: $1.85
If CGL meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 9.60 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.03.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 10.60 cents and EPS of 26.40 cents.
At the last closing share price the estimated dividend yield is 3.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.98.

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

CLV    CLOVER CORPORATION

Health & Nutrition – Overnight Price: $2.24

PhillipCapital rates ((CLV)) as Hold (3) –

Clover Corp stated no impact on the first half from covid-19 and expects demand to continue in the second half, along with the opportunity to grow its infant formula market share, notes Phillip Capital.

The broker highlights Clover Corp is one of the few companies able to provide the key DHA ingredient in sufficient quantities, needed to meet food standards and also in demand by consumers.

Phillip Capital has reduced revenue forecasts by -9% and -16% for FY20 and FY21 on account of higher costs, lower growth in Europe and expected deferral of minimum DHA rules in China until FY23.

The broker holds onto its Hold rating with its target price reduced to $1.64 from $2.30.

 This report was published on March 30, 2020.

Target price is $1.64 Current Price is $2.24 Difference: minus $0.6 (current price is over target).
If CLV meets the PhillipCapital target it will return approximately minus 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in July.

Forecast for FY20:

PhillipCapital forecasts a full year FY20 dividend of 2.30 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.30.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 2.60 cents and EPS of 6.60 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.94.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $1.03

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

Bell Potter notes limited covid-19 impact on Australian key commodity production volumes and, consequently, on Emeco Holdings. The broker notes the majority of producers reiterated FY20 production guidance and those who withdrew did so due to increasing uncertainty and not any material impact.

With low thermal and metallurgical coal prices, Australian producers are under pressure to optimise costs and this is expected to continue to present a risk to FY21 utilisation. The broker expects a cyclical shock to earnings, but considers Emeco Holdings somewhat insulated. 

Bell Potter has upgraded earnings estimates for FY20 and FY21 by 17.5% and 0.9%. The stock is rated a Buy with target price at $1.40.

This report was published on May 13, 2020.

Target price is $1.40 Current Price is $1.03 Difference: $0.37
If EHL meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 EPS of 22.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.60.

Forecast for FY21:

Bell Potter forecasts a full year FY21 EPS of 11.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.04.

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

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $0.99

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

Healthia announced the acquisition of 12 Podiatry clinics in Victoria, operating under the brand The Foot and Ankle Clinic, with total consideration around $5m, funded largely through existing cash reserves.

This acquisition will bring total acquired annualised operating earnings for FY20 to $4.2m, in line with Canaccord Genuity’s estimate of $4.4m. Overall, the broker notes business performance has been resilient during the pandemic.

Earnings forecast for FY20 are expected to reduce by -9.5% to $0.086. The broker retains its Buy rating with target price at $1.45.

This report was published on May 12, 2020.

Target price is $1.45 Current Price is $0.99 Difference: $0.46
If HLA meets the Canaccord Genuity target it will return approximately 46% (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 2.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.25.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $10.21

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

The Hub24 platform has been growing at the fastest rate in its industry with funds under administration (FUA) more than tripling to $17.4bn since 2017, with market share rising to 1.6% in September 2019 year on year.

Shaw and Partners forecasts Hub24’s margins to contract by about -40 bps over the next 3-4 years with increasing competition and commoditisation of platforms. Even so, the broker considers the company well placed to benefit from tailwinds driven by a changing financial advice regulatory environment and increasing awareness of the benefits of using separately managed accounts (SMA).

Another positive is the company's solid balance sheet supported by strong cash flows and no debt. Shaw and Partners initiates coverage with a Buy rating and target price at $12.

This report was published on April 6, 2020.

Target price is $12.00 Current Price is $10.21 Difference: $1.79
If HUB meets the Shaw and Partners target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $11.02, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 7.50 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 0.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.4, implying annual growth of 76.8%.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 50.0.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 10.00 cents and EPS of 23.60 cents.
At the last closing share price the estimated dividend yield is 0.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.8, implying annual growth of 16.7%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 42.9.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IMU    IMUGENE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.03

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

Imugene is a clinical-stage biotechnology company with two assets – B-Cell cancer immunotherapies and a pre-clinical oncolytic virus.

The analysts note the broad-based belief is the B-cell immunotherapy approach will have significant advantages over the synthetic mAb’s like higher tumour specificity and safety, while the oncolytic virus has been used in many forms for over a century as a platform for vaccines.

The broker initiates coverage with a Speculative Buy rating and target price of $0.05.

This report was published on May 13, 2020.

Target price is $0.05 Current Price is $0.03 Difference: $0.02
If IMU meets the Bell Potter target it will return approximately 67% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY21:

Bell Potter forecasts a full year FY21 EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $10.66

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

Iress withdrew 2020 profit growth guidance on account of covid-19, although Baillieu is yet to note any material impact. The broker has moderated the sales growth expecting a pause/delay in new customer wins and projects.

Overall, earnings forecasts for 2020 and 2021 have been lowered by -4%

The company offers a defensible if modest growth option, comments the broker, noting a sound APAC business with emerging super administration opportunity. Rating upgraded to Buy with target price at $11.60.

The report was published on May 14, 2020.

Target price is $11.60 Current Price is $10.66 Difference: $0.94
If IRE meets the E.L. & C Baillieu target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $12.80, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 44.00 cents and EPS of 44.30 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, implying annual growth of 10.0%.
Current consensus DPS estimate is 45.5, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 25.6.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 49.00 cents and EPS of 48.50 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.8, implying annual growth of 17.0%.
Current consensus DPS estimate is 48.8, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 21.8.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Infra & Property Developers – Overnight Price: $8.31

Canaccord Genuity rates ((LIC)) as Upgrade to Buy from Hold (1) –

Lifestyle Communities' settlements are expected to be slow in the near future and the extent of this depends on home availability, lifting of the ban on auctions and inspections, plus a boost in the First Home Owners Grant by the government, suggests Canaccord Genuity.

Canaccord Genuity has downgraded FY20 settlements forecasts for Lifestyle Communities to 200 homes from 290, and to 300 homes from 405 in FY21.

The company’s landlord model would ensure occupancy will not be impacted, thus securing recurring revenue streams, points out the broker, while reminding investors the company is well funded. Any boost to the First Home Owner Grant would also be a positive, states the broker.

Stock rated a Buy with target price at $7.50.

This report was published on April 8, 2020.

Target price is $7.50 Current Price is $8.31 Difference: minus $0.81 (current price is over target).
If LIC meets the Canaccord Genuity target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 6.00 cents and EPS of 27.10 cents.
At the last closing share price the estimated dividend yield is 0.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.66.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 6.50 cents and EPS of 43.90 cents.
At the last closing share price the estimated dividend yield is 0.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.99

PhillipCapital rates ((MVP)) as Buy (1) –

Medical Development International’s main divisions are going strong with broker Phillip Capital forecasting sales of the pain relief medicine Penthrox to increase to $128m in FY20.

The first-half results were in line with the broker's estimates except for medical equipment, whose sales were 33% ahead of the broker’s estimate.

Revenue forecast for FY20 has been reduced by -21% by the broker while operating income stands reduced by -42% due to demand for Penthrox being hit by covid-19 on top of delays expected in new country approvals.

The broker still sees potential and maintains its Buy rating for the stock with target price at $7.80.

The report was published on April 2, 2020.

Target price is $7.80 Current Price is $7.99 Difference: minus $0.19 (current price is over target).
If MVP meets the PhillipCapital target it will return approximately minus 2% (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 3.00 cents and EPS of minus 0.10 cents.
At the last closing share price the estimated dividend yield is 0.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7990.00.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 3.00 cents and EPS of minus 0.10 cents.
At the last closing share price the estimated dividend yield is 0.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7990.00.

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $2.87

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

Bell Potter has downgraded Over The Wire’s earnings estimates by circa -5% for each of the next three years, on the back of -2-3% decrease expected in revenues.

This decrease, in turn, is due to an anticipated reduction in non-recurring data network revenue with more customers shifting to working from home rather than office.

The broker expects this decrease to be somewhat offset by an increase in voice and hosting revenues.

The broker downgrades its rating to Hold from Buy with its target price increased to $3.15 from $3.

This report was published on April 7, 2020.

Target price is $3.15 Current Price is $2.87 Difference: $0.28
If OTW meets the Bell Potter target it will return approximately 10% (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 3.50 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.42.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.30 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.07.

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

PGX    PRIMERO GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.24

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

Primero Group may receive a $17m payment in the near term owing to a favourable adjudication and the group has also increased its FY21 order book, highlights Canaccord Genuity.

The group is generating impressive growth, observes the broker, and has a net cash position of circa $16m while seeking cash payments on a contract worth up to about $68m.

The broker highlights an active tender pipeline potentially leading to contract wins in the near term.? Canaccord Genuity maintains its Buy rating with $0.54 as target price.

This report was published on May 14, 2020.

Target price is $0.54 Current Price is $0.24 Difference: $0.3
If PGX meets the Canaccord Genuity target it will return approximately 125% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 2.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 8.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.80.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.47

Wilsons rates ((PNV)) as Upgrade to Overweight from Market Weight (1) –

Polynovo's management expects FY20 sales to be double that of FY19 and states that sales for the quarter ending March were $4.49m, up 166% while sales for the month of March were 173% higher than last year.

Also, the company secured $9.3m of debt financing to help in funding the business while beginning to digitally engage with physicians and new hospital sites.

Wilsons is positive about the long-term value potential for NovoSorb BTM and does not anticipate any major delays in clinical work. 

Rating upgraded to Overweight from Market Weight with price target unchanged at $2.25.

This report was published on April 8, 2020.

Target price is $2.25 Current Price is $2.47 Difference: minus $0.22 (current price is over target).
If PNV meets the Wilsons 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:

Wilsons 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 1235.00.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 411.67.

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

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $1.06

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

Canaccord Genuity believes Perenti Global will see a relatively mild earnings impact due to covid-19 and is relatively well-positioned with exposure to gold and production operations which have been less volatile.

The company has withdrawn FY20 net profit guidance of $115m-$120m while noting no material financial impact. Canaccord Genuity notes the primary risk is large-scale shutdown of key mines, but so far this appears to be limited to just two sites.

Delay in being awarded contracts, postponement of capex and logistical issues have created some uncertainty and the broker has reduced capex estimates along with delaying first-half dividend payment.

The broker cuts its net profit estimate by -10% to $108.5m in FY20, below the now withdrawn FY20 guidance. Buy rating maintained with target decreased to $1.81 from $2.01.

This report was published on May 12, 2020.

Target price is $1.81 Current Price is $1.06 Difference: $0.75
If PRN meets the Canaccord Genuity target it will return approximately 71% (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 7.00 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 7.00 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.48.

Market Sentiment: 1.0
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: $1.25

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

Pacific Smiles Group is expected to reopen all 93 centres after approval by the National Cabinet to move to Level 1 restrictions. Bell Potter expects patient volumes to recover gradually from June, with the situation expected to normalise by November 2020.

Earnings forecasts are upgraded for FY20 and FY21 by circa 3% and circa 13% with the earlier than expected re-opening leading to improved revenue and operating income outlook. The broker expects dividend in FY21 and not sooner.

Hold rating retained with target price at $1.54.

This report was published on May 13, 2020.

Target price is $1.54 Current Price is $1.25 Difference: $0.29
If PSQ 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 2.40 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.67.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.70 cents and EPS of 3.70 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.78.

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) –

With the National Cabinet approving a move to Level 1 restrictions for dental practices, Wilsons expects Pacific Smiles Group to move towards re-opening all of its practices.

The broker notes there is still uncertainty about at the pace with which patients will want to come back for dental appointments, but also notes new opportunities to partner with other health insurers.

Wilsons has increased revenue and earnings forecasts materially with FY21-22 operating earnings estimates restored to 80%-93% of pre-covid-19 levels, while re-instating dividends from the second half of FY21 onwards.

Overweight rating with target price at $1.65.

This report was published on May 11, 2020.

Target price is $1.65 Current Price is $1.25 Difference: $0.4
If PSQ meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
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 3.10 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.32.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 3.90 cents and EPS of 4.10 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.49.

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

RUL    RPMGLOBAL HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.05

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

With cash balances amounting to $24.6m and a move towards a subscription-based model, Taylor Collison considers RPM Global well positioned to tackle the tougher economic conditions. The critical nature of the software for mining clients further helps the company, comments the broker.

Revenue rose 13% to $41.1m in the first half with operating earnings at $4.3m. The broker downgrades FY20 operating earnings estimates to $12.2m, reducing estimates for the advisory business due to covid-19. Outperform rating maintained.

This report was published on March  26, 2020.

Current Price is $1.05. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.73.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.89.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $1.17

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

Canaccord Genuity expects Superloop to achieve earnings guidance and retains a positive outlook.? Superloop has maintained FY20 operating earnings guidance of $12-$15m.

Covid-19 impact has seen a reduction in guest WiFi services while demand for wholesale IP has increased and will likely improve revenues, expects the broker.

This along with the Indigo subsea cable system will lead to more than 90% gross profit margin. The broker is cautious and prefers to be on the lower side of the guidance range.

Buy maintained with target price at $1.04.

This report was published on April 5, 2020.

Target price is $1.04 Current Price is $1.17 Difference: minus $0.13 (current price is over target).
If SLC meets the Canaccord Genuity target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.12, suggesting downside of -4.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 11.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

SLK    SEALINK TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $3.85

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

Two-thirds of the SeaLink Group’s revenue comes from tourism which is mostly uncontracted and has been adversely impacted by travel restrictions, observes Bell Potter. This has led the broker to reduce the second half revenue forecast by about -38% to $74.2m.

The transit business, on the other hand, is mostly unaffected and Bell Potter retains its FY20 forecasts. The broker has deferred the $6m benefit from service changes to the Sydney region 6 contract to FY22 from FY21 due to covid-19 led disruptions.

Overall, earnings have been downgraded by -42% in FY20 and by -28% in FY21. Hold rating reaffirmed with target price at $3.85.

This report was published on May 13, 2020.

Target price is $3.85 Current Price is $3.85 Difference: $0
If SLK meets the Bell Potter target it will return approximately 0% (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 6.50 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 1.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.91.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 12.00 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.19.

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


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

Given its bias towards commuter and passenger ferry transport services, SeaLink Travel enjoys a defensive business model with government contracts contributing about 85% of the group revenue while domestic tourism forms another 10%.

Canaccord Genuity comments that even with about -18% decline year-to-date, the stock has still been the best performer compared to the average decline of -49% witnessed in other stocks, along with outperforming the ASX Small Industrials this year.

The broker retains a below-consensus outlook for FY21 and FY22 with its FY21 EPS forecast circa -22% lower than December 2019 figures.

Canaccord Genuity notes access to the JobKeeper scheme which would buffer earnings headwinds till the first quarter of FY21 and enable the company to restart some tourism operations sooner. The stock is rated a Buy with target price at $4.69.

This report was published on May 14, 2020.

Target price is $4.69 Current Price is $3.85 Difference: $0.84
If SLK meets the Canaccord Genuity target it will return approximately 22% (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 15.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.39.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 11.00 cents and EPS of 27.00 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 14.26.

Market Sentiment: 1.0
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: $4.06

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

United Malt Group had a rather muted first half with the group operating income missing Wilsons' expectations by -14% due to contraction in processing margin and distribution earnings on the lower side.

The company has provided no guidance, but the broker expects a severe covid-19 related impact in the third quarter, gradually recovering thereafter, with sales volumes returning to near pre-covid levels in FY21.

Overweight rating retained with target price at $4.82.

This report was published on May 15, 2020.

Target price is $4.82 Current Price is $4.06 Difference: $0.76
If UMG meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $4.39, suggesting upside of 8.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 19.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of N/A.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 24.8.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 13.50 cents and EPS of 26.30 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of 31.7%.
Current consensus DPS estimate is 13.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.8.

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

WPR    WAYPOINT REIT

REITs – Overnight Price: $2.49

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

Waypoint REIT (formerly Viva Energy REIT) announced the internalising of management post the sale of Viva Energy’s ((VEA)) shares in the REIT. Goldman Sachs considers the detachment between Waypoint and the group positive for the REIT, giving it more options for future growth.

The broker considers the REIT a good option owing to secure income streams from long-term leases, with fixed rent reviews and minimal expiries till FY26. Service stations remained open during the covid-19 impacted environment, observes the broker.

Goldman Sachs expects real estate investors to be attracted to such characteristics. The FY20 earnings estimate is unchanged with FY21 up about 2%, driven by increased acquisition volumes and a slightly lower cost of debt. Buy rating retained with target price at $2.98.

The report was published on May 14, 2020.

Target price is $2.98 Current Price is $2.49 Difference: $0.49
If WPR meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.52, suggesting upside of 1.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of -35.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.5.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of 5.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 15.7.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $79.40

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

Xero’s FY20 numbers were strong with the company achieving a positive net profit of $3.3m for the first time. Wilsons notes margins improvement from scale efficiencies and higher utilisation of the Xero central platform. 

There has been muted covid-19 impact so far, observes Wilsons, although the broker is expecting the ARPU and subscriber growth to moderate in the first half of FY21.

The broker is attracted to Xero’s long-term revenue growth drivers which include expanding in new markets, sustained software development and recurring revenues.

The broker retains its Overweight rating with a target price of 88.09.

This report was published on May 15, 2020.

Target price is $88.09 Current Price is $79.40 Difference: $8.69
If XRO meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $73.92, suggesting downside of -6.9%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 48.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 162.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 321.5.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 92.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.6, implying annual growth of 96.8%.
Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 163.4.

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

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $3.09

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

April for Zip Co turned out better than expected, even with covid-19 rendering consumer behaviour volatile, comments Shaw and Partners. The company has pointed at May being considerably stronger than April.

Total transaction volume (TV) in April was up 86% year on year at $181.6m while group revenues were up 81% at $15.1m. Shaw and Partners expects $530m in TV in the fourth quarter while expecting offline opening to add 20% to volumes. The broker expects Zip Co to deliver $600-$650m in TV during the fourth quarter and possibly beat the $2.2bn annualised target.

In the long term, the broker believes Buy Now, Pay Later (BNPL)-led structural change will gain momentum with providers successfully implementing their services amidst the pandemic becoming nearly invincible. The broker rates the stock a Buy with a target price of $4.29.

This report was published on May 13, 2020.

Target price is $4.29 Current Price is $3.09 Difference: $1.2
If Z1P meets the Shaw and Partners target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $3.50, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.12.

How do these forecasts compare to market consensus projections?

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

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.79.

How do these forecasts compare to market consensus projections?

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

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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