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

Daily Market Reports | Jun 10 2020

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listedequities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArenahas now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listedstocks, also enlarging the number of stocks that make up the FNArenauniverse.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ACF AD8 ADH APZ ASB BKL BSA CAT CRN CYC EHL(2) EXP(2) FNP GDF GNC INA JLG MYX NEA PBH PNV PPE PSI SXY(2) WTC

ACF ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services - Overnight Price: $0.29

Bell Potter rates ((ACF)) as Buy (1) -

Acrow Formwork & Construction Services has experienced better than expected trading conditions since the beginning of its cash saving program at March-end. The broker expects the company to deliver a strong second half.

Bell Potter considers the company is doing a good job considering the current operational uncertainty and has increased its FY20 operating income forecast, while leaving the FY21 and FY22 figures unchanged.

The broker maintains its Buy rating with target price increased to $0.31 from $0.30.

This report was published on May 26, 2020.

Target price is $0.31 Current Price is $0.29 Difference: $0.02
If ACF meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.84.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.20 cents and EPS of 4.50 cents.
At the last closing share price the estimated dividend yield is 7.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.44.

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

AD8 AUDINATE GROUP LIMITED

Hardware & Equipment - Overnight Price: $6.61

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

Audinate Groups key customer Yamaha Corp reiterated continuing uncertainty regarding the impact of covid-19 with third-quarter revenue for FY20 declining year on year. Audinate finds it challenging to forecast for FY21, notes Shaw and Partners, although it does indicate a robust pipeline of strong AV products.

Shaw and Partners believes the groups core chips, cards and module (CCM) business remains robust with multiple revenue streams expected in the coming months. The broker maintains its Buy recommendation with a target price of $8.

This report was published on May 29, 2020.

Target price is $8.00 Current Price is $6.61 Difference: $1.39
If AD8 meets the Shaw and Partners target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $6.43, suggesting downside of -2.7%(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 1101.67.

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 287.39.

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

ADH ADAIRS LIMITED

Furniture & Renovation - Overnight Price: $2.04

Goldman Sachs rates ((ADH)) as Upgrade to Buy (1) -

Goldman Sachs expects a quicker than expected recovery for Adairs due to an improved covid-19 trajectory. The earnings forecast hasbeen upgraded by 6% for FY21, while reduced by -11% for FY22.

A strong online presence, improving supply chain and a solid product offering are some positives in the companys favour. Goldman Sachs upgrades its rating to Buy with a target price of $2.40.

This report was published on May 28, 2020.

Target price is $2.40 Current Price is $2.04 Difference: $0.36
If ADH meets the Goldman Sachs target it will return approximately 18% (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 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.33.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.75.

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

APZ ASPEN GROUP

Real Estate - Overnight Price: $1.04

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

Aspen Groups revenue is considered by Taylor Collison to be insulated with demand for affordable housing expected to increase. The broker expects the group to continue its acquisition activities, noting the latest to be the acquisition of 18 townhouses in Burleigh Heads and a co-living facility in Newcastle.

Aspen has reinstated guidance and the brokers forecast is in-line. The broker is positive about the companys prospects noting the capital raising of $20m and rates the stock as Outperform. Net present value (NPV) derived price target is $1.21.

This report was published on June 4, 2020.

Target price is $1.21 Current Price is $1.04 Difference: $0.17
If APZ meets the Taylor Collison target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 6.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 7.00 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 6.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.44.

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

ASB AUSTAL LIMITED

Commercial Services & Supplies - Overnight Price: $3.42

Goldman Sachs rates ((ASB)) as Buy (1) -

Austal raised FY20 operating income guidance by 14% on account of strong trading conditions and less than expected impact of covid-19. Goldman Sachs has raised FY20-21 operating income forecasts.

Positives in the companys favour include multi-year backlog, potential for margin improvement in its Littoral Combat Ship (LCS) program, a strong balance sheet and resilient near-term conditions.

Goldman Sachs is positive about the companys prospects and has included the stock in its conviction list. The broker reaffirms its Buy rating with a target price of $4.08.

This report was published on May 29, 2020.

Target price is $4.08 Current Price is $3.42 Difference: $0.66
If ASB meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $3.22, suggesting downside of -5.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 6.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of 33.0%.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 7.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 6.4%.
Current consensus DPS estimate is 7.2, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 13.7.

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


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