Australian Broker Call *Extra* Edition – July 1, 2020

Daily Market Reports | Jul 01 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)

AQZ BET CCX CDA CGC DEG DTC EVS EXL GEM HLS IDX IPH JLG MAQ MGV NHC OKU OPY SSG SUL SVW TPW UWL WHC WZR

AQZ ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics - Overnight Price: $3.00

Wilsons rates ((AQZ)) as Market Weight (3) -

Alliance Aviation recently raised $92m and will be supplementing this by a share purchase plan worth $30m. The funds will primarily be used for acquiring aircraft and funding growth.

Wilsons highlights the possibility the company may convertsome of the increased charter activity into contracted revenue and also notes it is well-positioned to service regional flight routes.

FY21 operating income is estimated to increase between 4-33% mostly with thefleet expansion being weighed down by new fleet costs. This will improve with operating leverage benefits kicking in from FY22 onwards.

Earnings have been downgraded for FY21-22 due to equity issuance and aircraft acquisition, while upgraded for FY23 by 10%.

Wilsons retains its Market Weight rating with a target price of $3.14.

This report was published on June 16, 2020.

Target price is $3.14 Current Price is $3.00 Difference: $0.14
If AQZ meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 3.00 cents and EPS of 22.30 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.45.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 8.80 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

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

BET BETMAKERS TECHNOLOGY GROUP LTD

Gaming - Overnight Price: $0.41

Canaccord Genuity rates ((BET)) as Buy (1) -

Betmakers Technology Group develops analytic and data products for the wagering market. The company also produces and distributes racing content.

The group recently announced securing rights for on-course fixed odds in New Jersey which includes establishing fixed-odds betting terminals in Monmouth Park, as well as managing the race wagering book relating to fixed odd bets taken at the track.

The latter is a development that was not considered by Canaccord Genuity before and represents a cash stream. The broker notes a strong performance in the online gaming sector which is expected to continue.

Canaccord Genuity retains its Buy recommendation with the target price increased to $0.50 from $0.40.

This report was published on June 11, 2020.

Target price is $0.50 Current Price is $0.41 Difference: $0.09
If BET 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 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 102.50.

Forecast for FY21:

Canaccord Genuity 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 68.33.

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

DEG DE GREY MINING LIMITED

Gold & Silver - Overnight Price: $0.87

Bell Potter rates ((DEG)) as Initiation of coverage with Buy (Speculative) (1) -

De Grey Mining is an exploration and development company with activities on the Mallina Gold Project in Western Australia.

Bell Potter notes the last four years have seen the company implementing a strategy of resource growth and building a regional position over an emerging belt hosting world-class goldfields.

Most of the factors like scalability, mining costs, timeframe, funding etc are in the companys favour. The broker sees potential for production of more than 200kozpa.

Bell Potter initiates coverage on De Grey Mining with a Buy (Speculative) rating and a valuation of $0.69.

This report was published on June 10, 2020.

Target price is $0.69 Current Price is $0.87 Difference: minus $0.18 (current price is over target).
If DEG meets the Bell Potter target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

DTC DAMSTRA HOLDINGS LIMITED

Software & Services - Overnight Price: $1.30

Shaw and Partners rates ((DTC)) as Initiation of coverage with Buy (1) -

Damstra Holdings provides cloud-based technology solutions across a range of workplace and employee management products. The companys annual recurring revenues are to the north of $20m with high gross margins and growing more than 25% per annum.

Shaw and Partners highlights most of the companys revenues are recurring with contracts ranging between 3-5 years. A prominent channel partner is TechnologyOne ((TNE)). Net cash is circa $20m.

The market within which Damstra operates, global workplace management solutions, is valued at US$16bn and is growing 6% per annum while the Australian market has a total addressable market estimated atUS$0.6bn a year.

The broker considers the company to be a dynamic product for small and large enterprises and the US/international opportunity is key with the USs market fragmented.

Most importantly, the broker expects Damstra Holdings to benefit from the pandemic as employee health and safety becomes of utmost importance. Thermal camera, tracking, site management, sign in, breath testing and asset management are offered by the company.

Shaw and Partners initiates coverage on Damstra Holdings with a target price of $1.55.

This report was published on June 18, 2020.

Target price is $1.55 Current Price is $1.30 Difference: $0.25
If DTC meets the Shaw and Partners target it will return approximately 19% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 325.00.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 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 100.00.

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


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