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

Daily Market Reports | Jul 08 2020

This story features ADACEL TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: ADA

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)

ADA   ALU   AMA (2)   AMP   ASB   AX1   BFC   BGL   CAT   CGF (2)   CKF (2)   DGH   EQT   EVS   FPH   GNX   GUD   HVN   INA   IRI   LIC   LTR   MTO   MYX   NXS   PRN   QUB   RBL (2)   RFF   RHP   RIC   SHV   SMP   VTH   YOJ  

ADA    ADACEL TECHNOLOGIES LTD

Software & Services – Overnight Price: $0.55

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

Adacel Technologies has announced a contract win with the US army of around $4m. The broker forecasts strong earnings growth for FY21 and anticipates 4 systems contracts will also be completed.

The Bell Potter forecast is for FY21 earnings before tax of $6.6m, which is 65% greater than FY20. The broker has confidence in the forecast as the dollar value of the US army contract accounts for the majority of assumed contract wins.

Despite not paying a dividend in FY19, the broker anticipates both an interim and final dividend for the forecast period.

Buy rating maintained. Target price is $0.75. [Additional note: the broker raised its price target to $0.80 on July 7th]

This report was published on June 26, 2020.

Target price is $0.75 Current Price is $0.55 Difference: $0.2
If ADA 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 dividend of 1.50 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.50.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.50 cents and EPS of 6.50 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.46.

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

ALU    ALTIUM LIMITED

Hardware & Equipment – Overnight Price: $34.20

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

Altium expects below consensus FY20 revenue growth due to weaker trading in the last two weeks of June. This is attributable to rising covid-19 infection rates in the US and temporary closure of an office subject to the Beijing lock-down.

The broker expects delayed cash recognition due to Altium's 'buy now, pay later' payment option will impact H2 FY20, while a slower economy will defer any near-term material share price upside.

The broker reaffirms its Neutral rating with the target price reduced to $32.50 from $34.55.

This report was published on June 23, 2020.

Target price is $32.50 Current Price is $34.20 Difference: minus $1.7 (current price is over target).
If ALU meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 58.10 cents and EPS of 52.14 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.60.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 62.57 cents and EPS of 62.57 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.66.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.64

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

AMA Group has indicated that repair volumes are improving and should return to normal by the December quarter 2021. Additionally, the service agreement negotiation with Insurance Australia Group ((IAG)) has completed.

Bell Potter believes profit and cashflow expectations outperformed both market and management expectations.

No guidance was given by the company and the broker's forecasts are unchanged. However, there was a 6% increase in target price to $0.85 from $0.80 due to an updated valuation methodology.

This report was published on June 19, 2020.

Target price is $0.85 Current Price is $0.64 Difference: $0.21
If AMA meets the Bell Potter target it will return approximately 33% (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 minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.29.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 320.00.

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


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

The broker has revised down expectations for debt levels, after AMA Group announced a trading update. However, the net debt is still elevated and balance sheet risks remain high.

On one hand, the update has allowed Goldman Sachs to no longer model for a FY21 equity raise, which was based on the potential for a debt covenant breach. On the other hand, AMA Group has traditionally derived growth via acquisitions, and with limited organic growth in the industry, the potential still remains for a capital raising.

The company expects repair volumes to recover to pre covid-19 levels by FY21 and announced an improved pricing outcome from negotiations with key insurance customers.

The Neutral rating is maintained. The target price is increased to $0.71 from $0.43.

This report was published on June 25, 2020.

Target price is $0.71 Current Price is $0.64 Difference: $0.07
If AMA meets the Goldman Sachs target it will return approximately 11% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.00.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 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 16.00.

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

AMP    AMP LIMITED

Insurance – Overnight Price: $1.82

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

Bell Potter considers the pending sale of the life insurance business by June 30, 2020 significantly de-risks the business and removes the need for a capital raise. The funds may be deployed for a share buyback or to invest for growth.

The broker believes the company could now potentially be ripe for takeover or break-up.

Earnings have been upgraded by 0.6% for FY20, 4.3% for FY21 and 1.6% for FY22.

The Buy rating is maintained and the target is raised to $2.50 from $2.15

This report was published on 23 June, 2020.

Target price is $2.50 Current Price is $1.82 Difference: $0.68
If AMP meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $1.68, suggesting downside of -7.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 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 14.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.8, implying annual growth of N/A.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 8.00 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.5, implying annual growth of 8.0%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 19.2.

Market Sentiment: 0.0
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: $3.33

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

The US government is providing US$50m to allow Austal to expand its steel ship building capacity in Alabama. The company will invest an additional -US$50m over the next two years.

Goldman Sachs believes this will improve the ability of Austal to participate in future steel-related Navy programs, while reaffirming its existing aluminium hull expertise.

The broker reaffirms its Buy rating with a target price of $4.08.

This report was published on June 22, 2020.

Target price is $4.08 Current Price is $3.33 Difference: $0.75
If ASB meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $3.36, suggesting upside of 0.9%(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 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.48.

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 7.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 14.2.

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 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of 3.4%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 13.8.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $1.38

Bell Potter rates ((AX1)) as Buy (1) –

Accent Group has provided a business update that reveals increased earnings, acquisition of many new online customers and the conclusion of successful negotiation with landlords.

Bell Potter considers it a strong update, which shows the company delivering on its business model and leaving it well placed to leverage off the trend toward online.

The broker provides some caution on the troublesome demand outlook as well as making allowances for the current wage support. However, earnings are significantly upgraded by 59% for FY20, 16% for FY21, followed by little change for FY22.

The Buy rating was maintained while the price target was raised to $1.80 from $1.45

This report was produced on June 25, 2020.

Target price is $1.80 Current Price is $1.38 Difference: $0.42
If AX1 meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $1.72, suggesting upside of 24.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 5.30 cents and EPS of 10.50 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 13.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 6.8%.
Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 8.00 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.5, implying annual growth of -1.9%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 13.1.

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

BFC    BESTON GLOBAL FOOD COMPANY LIMITED

Dairy – Overnight Price: $0.08

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

Beston Global Food Co has made the transition to an operating company from a food-related investment company. The dual focus is now on dairy and pre-cooked meats.

Phillip Capital pronounces the recent $10m capital raise, and intended use of funds, as a transformational event for the company and foresees a long-awaited profit by FY22.

The broker wrongly assumed that the recent sale of dairy farms to Aurora Dairies would preclude the need for raising capital. However, the analysts are pleased to see that gearing will be reduced to zero and that the company will now go for growth.

By adopting proven overseas technology and production methods, the company may effectively extract 4x times more Lactoferrin from the same quantity of milk. Hence, the rush is on to spend -$12m on stage 1 of upgrading its Lactoferrin plant, which will generate an additional $13.5m in revenue.

The broker points to very low PE ratios of 4.3x for FY22 & 3.0x for FY23. The analysts also highlight the company announcement on June 22 of a potential takeover bid.

The Buy rating is maintained. The target price is $0.16.

This report was published on June 25, 2020.

Target price is $0.16 Current Price is $0.08 Difference: $0.08
If BFC meets the PhillipCapital target it will return approximately 100% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.00.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.67.

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

BGL    BELLEVUE GOLD LTD

Gold & Silver – Overnight Price: $0.97

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

Bellevue Gold is a gold exploration company that owns the Bellevue gold project in Western Australia. Canaccord Genuity highlights it is the highest grade gold development project in Australia.

The company confirmed recoveries that are both exceptional and well in excess of industry benchmarks. For the first time, the company has set a timeline for commencement of underground drilling (in December, 2020).

A maiden Indicated Resource estimate is due in “coming weeks”. The broker is expecting it to be 550-650koz at 8-10g/t with good scope to grow to approximately 1 million oz by the end of 2020.

Canaccord Genuity believes the company is the most attractive and well-funded gold story across all their coverage.

Buy (speculative) rating is maintained. The target price is increased to $1.45 from $1.35.

This report was published on June 24, 2020.

Target price is $1.45 Current Price is $0.97 Difference: $0.48
If BGL meets the Canaccord Genuity target it will return approximately 49% (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 0.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4850.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9700.00.

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

CAT    CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices – Overnight Price: $1.27

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

Bell Potter is concerned about the delay in recommencing sporting leagues in North America and the financial health of individual teams.

The broker sees more downside than upside risk in the coming FY20 result. There is potential for diminishing sales of units and churn above prior expectations.

Accordingly, Bell Potter downgrades earnings by -14.4% for FY20, -11.6% for FY21 and -8.4% for FY22. Hold rating maintained with target price decreased to $1.35 from $1.75.

This report was published on June 23, 2020.

Target price is $1.35 Current Price is $1.27 Difference: $0.08
If CAT meets the Bell Potter target it will return approximately 6% (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 minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.52.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.56.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $4.63

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

Challenger has raised $300m. The company plans to redeploy excess capital into higher yielding assets over time.

However, reduced Life net flows and falling rental income from rent holidays contributed to a softer guidance, toward the bottom half of $500-550m.

Goldman Sachs has downgraded FY20 normalised earnings per share by -3%, FY21 by -12% and FY22 by -14%.

The broker maintains its Hold recommendation with its target price reduced to $5.20 from $5.31.

This report was published on June 22, 2020.

Target price is $5.20 Current Price is $4.63 Difference: $0.57
If CGF meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $5.03, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 18.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of -48.3%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 17.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 24.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.7, implying annual growth of 54.8%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 11.4.

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


Shaw and Partners rates ((CGF)) as Sell (5) –

In announcing a $300m capital raising, Challenger also highlighted the investing alternatives for achieving an increased-risk portfolio.

Another less favourable alternative, according to Shaw and Partners, is shoring up net annuity outflows which amounted to -$470m in April and May.

This would counter the possibility of forced selling of less liquid assets. This possibility was not mentioned by the management of the company but they did state the funds would not be invested immediately.

As the estimated loss for FY20 is similar to the end of March, the broker concludes that Challenger has not benefited from the rally in financial markets since.

Sell rating retained. Target price is $3.70

This report was published on June 25, 2020.

Target price is $3.70 Current Price is $4.63 Difference: minus $0.93 (current price is over target).
If CGF meets the Shaw and Partners target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.03, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 18.00 cents and EPS of minus 7.40 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of -48.3%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 17.6.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 24.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.7, implying annual growth of 54.8%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 11.4.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $9.46

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

The Collins Foods FY20 result revealed strength in Australia and relative weakness in Europe. Momentum in KFC Australia drove the result and this has continued in the first 7 weeks of the new financial year with comparative sales up 12%.

Canaccord Genuity states the European performance exceeded its forecast and will not act as an overall drag as the region accounts for less than 10% of group earnings pre-overheads.

The broker believes the Australian performance resulted from the switch to drive-thru and delivery from the reduced dining areas. The brand of KFC was also a strength.

A rapid change in strategy toward growth-by-acquisition (more likely in Europe) at the expense of organic rollout was highlighted by the broker.

The rating was upgraded to Buy from Hold. The target price increased to $9.75 from $7.50.

The report was published on June 30, 2020.

Target price is $9.75 Current Price is $9.46 Difference: $0.29
If CKF meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in May.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 23.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.07.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 24.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.50.

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


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

Collins Foods reported a net profit 5% above the previous corresponding period. Sales and margin improvements, along with a promising start to the financial year have led Wilsons to upgrade forecasts materially.

The broker considers that KFC Germany is building momentum and higher operating leverage may be imminent.

The balance sheet has sufficient capacity for acquisitions, however, the broker is supportive of the temporary delay in store rollout given the prevailing and upcoming capital commitments.

Overweight rating is maintained. Target price is $10.47.

The report was published on July 01, 2020.

Target price is $10.47 Current Price is $9.46 Difference: $1.01
If CKF meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in May.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 23.00 cents and EPS of 44.70 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.16.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 24.00 cents and EPS of 47.70 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.83.

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

DGH    DESANE GROUP HOLDINGS LIMITED

Overnight Price: $1.35

Taylor Collison rates ((DGH)) as Speculative Buy (2) –

Desane is a Sydney-based property investment and property development (residential and mixed-use) business, which has been listed on the ASX for over 30 years.

The broker believes Desane is well placed to capitalise on any downturn with capacity for both acquisitions and development alternatives.

Having sold a major property in November 2018, the company has net cash of $7.1m and the ability to gear up its balance sheet.

The broker has performed a rental analysis of the existing portfolio and believes rental income is secure. There is also development upside for projects at various levels of completion.

Outperform rating maintained. The NTA for FY21 is estimated to be $1.49.

This report was published on June 24, 2020.

Current Price is $1.35. Target price not assessed.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 2.50 cents and EPS of 6.60 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.45.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 3.00 cents and EPS of 5.40 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

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: $25.45

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

Recent corporate activity relating to AMP Life has been the catalyst for the outsourcing of trustee arrangements to EQT Holdings.

Baillieu estimates the $7.0 bn of superannuation funds will result in $1.5-$2.0m of annualised revenue and boosts the company's FUA to a total of $20bn.

While this is not a game-changing contract win, the broker expects it to provide EQT Holdings with ongoing potential opportunities in superannuation and investments.

The broker increases earnings forecasts by 2% for both FY21and FY22. Buy rating maintained. Target price increased to $31 from $30.

The report was published on July 01, 2020.

Target price is $31.00 Current Price is $25.45 Difference: $5.55
If EQT meets the E.L. & C Baillieu target it will return approximately 22% (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 85.00 cents and EPS of 99.90 cents.
At the last closing share price the estimated dividend yield is 3.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.48.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 86.00 cents and EPS of 99.90 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.48.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.16

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

Envirosuite is a leading global provider of environmental management software. The company provides solutions across the air, noise and water sectors. Airports represent a concentration risk, as they generate over 80% of revenue. 

The company has brought forward an earnings target by three months, as a result of cost reductions, synergies and increased revenue projections. 

While a positive outcome, Bell potter awaits further clarification upon the release of FY20 results in August. The broker explains how this should result in a lower forecast loss, but has retained the existing valuation, which is set at a 90% premium to the share price.

Bell Potter retains its Buy (Speculative) recommendation with valuation at $0.275 per share.

This report was published on June 30, 2020.

Target price is $0.28 Current Price is $0.16 Difference: $0.115
If EVS meets the Bell Potter target it will return approximately 72% (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 minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.42.

Forecast for FY21:

Bell Potter 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 17.78.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $32.90

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

Fisher & Paykel Healthcare announced a strong finish to FY20, with second half sales up 18%. However, Goldman Sachs reminds us that FY20 finished nearly three months ago and prefers to concentrate on forward guidance.

First quarter FY21 has begun with Hospital hardware and Hospital consumables growing greater than 300% and 33% respectively, while Homecare growth has been greater than 4%. 

The broker lifts earnings forecasts based on increased covid-19 demand, largely in hospital hardware, which should drive greater and higher-margin consumables revenue, even in normal operating conditions.

The broker believes that FY21 management guidance will prove conservative due to growth at a higher and sustainable level. Contributing factors may be a broader acceptance of and application to other respiratory conditions and evidence that the initial demand surge in China has remained elevated. 

The broker forecasts a 20% increase in earnings (management has guided to 13%-18%). Recent history may be with the broker, as management guidance was upgraded four times last financial year.

Buy rating is maintained. Target price increased to $33.90  from $27.80.

This report was produced on June 30, 2020.

Target price is $33.90 Current Price is $32.90 Difference: $1
If FPH meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is N/A
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 29.39 cents and EPS of 56.88 cents.
At the last closing share price the estimated dividend yield is 0.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.6, implying annual growth of N/A.
Current consensus DPS estimate is 35.7, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 57.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 32.23 cents and EPS of 60.68 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 54.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.2, implying annual growth of 6.3%.
Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 53.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
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: $0.22

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

Genex Power's 250mw Kidston pumped hydro development (K2Hydro) in Queensland is set to receive a final investment decision during the third quarter, 2020.

The $600m budget has been reaffirmed. Pricing (nearly all fixed price) and terms have been confirmed with all major contractors, who will absorb weather, geotechnical and labour risks.   

Canaccord Genuity believes JPower will be the likely buyer in the 50% sell down of K2Hydro and has assumed a $40m developer margin.

The Northern Australia Infrastructure Fund has agreed to extend its $610m concessional funding offer to September 30, while the Queensland government and Genex are progressing the agreement to cofund the transmission line that links the Kidston renewables hub to the electricity grid.

Speculative Buy is maintained. Price target price increased to $0.34 from $0.30.

The report was published on July 01, 2020.

Target price is $0.34 Current Price is $0.22 Difference: $0.12
If GNX meets the Canaccord Genuity target it will return approximately 55% (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 16.92.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.77

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

Wilsons believe an improvement in trading for the core Auto business has been underway since May. Some peer confirmation has been provided by a trading update from Bapcor ((BAP)).

This is believed to be due to a combination of increased travel distance post-lockdown and Government support packages. 

The broker forecasts Auto sales will decline by 6% in 2H20. The subsequent half should see organic growth return to around 5% and margins are expected to improve with the benefit of cost reductions and the recent rally of the Australian dollar.

Despite lower earnings and cash conversion dropping to 50% (from a 3 year average of 80%), there are no leverage fears for the broker.

Market weight rating is maintained. Price target is decreased to $11.15 from $11.70.

This report was produced on June 29, 2020.

Target price is $11.15 Current Price is $11.77 Difference: minus $0.62 (current price is over target).
If GUD meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.04, suggesting downside of -14.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 49.00 cents and EPS of 59.10 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.5, implying annual growth of -20.9%.
Current consensus DPS estimate is 36.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 57.00 cents and EPS of 69.80 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.1, implying annual growth of 2.9%.
Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 21.0.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $3.63

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

Harvey Norman updated the market with earnings figures to 31 May approximately 20% above the previous corresponding period.

Due to insufficient detail, Goldman Sachs has compared this result to that of JB Hi-Fi ((JBH)) and concludes that operating leverage across the sector is above the broker's expectations.

Goldman Sachs expects the company to return to a stronger dividend payout ratio and notes a 7.7% fully franked dividend will be paid over the next year.

Earnings estimates have been raised by 38.8% for FY20 and 3% for FYY21. The Buy rating is maintained and the target is raised to $4.25 from $4.05

This report was published on June 23, 2020.

Target price is $4.25 Current Price is $3.63 Difference: $0.62
If HVN meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $3.98, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 21.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.4, implying annual growth of -6.6%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 22.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 6.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.4, implying annual growth of -18.5%.
Current consensus DPS estimate is 19.8, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 13.7.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.52

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

Goldman Sachs sees upside in the re-opening of Ingenia Communities Group’s holiday parks from 01 June, given that forward bookings have doubled.

Also, the Federal Government’s housing stimulus package may provide a potential benefit to the company's Land Lease Development. This part of the business will also benefit from the return of a normalised real estate market, which should drive increased settlements.

The broker is not concerned by the expected entry of Stockland ((SGP)) into the land lease market as it should promote awareness and ultimately increase overall demand.

The Buy rating is maintained.. The target price is increased to $5.20 from $5.10.

This report was published on June 25, 2020.

Target price is $5.20 Current Price is $4.52 Difference: $0.68
If INA meets the Goldman Sachs target it will return approximately 15% (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 10.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.79.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 9.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 1.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.79.

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

IRI    INTEGRATED RESEARCH LIMITED

IT & Support – Overnight Price: $4.08

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

Integrated Research is a leading global provider of performance management software for business-critical computing environments.

In a FY20 results preview, Bell Potter is expecting a solid increase in demand from the shift to online working-from-home.

The broker expects a positive currency impact as the AUDUSD rate was on average approximately -5c lower during the second half of the financial year. Around 70% of revenue is received in US dollars.

The Buy rating was maintained. The price target also remains at $4.25.

This report was produced on June 25, 2020.

Target price is $4.25 Current Price is $4.08 Difference: $0.17
If IRI meets the Bell Potter target it will return approximately 4% (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 7.50 cents and EPS of 13.90 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 29.35.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 8.50 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.15.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $9.27

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

Goldman Sachs considers Lifestyle Communities one of the highest quality businesses under its coverage.

The company has acquired its 22nd site in Clyde, with potential for construction of around 230 homes. Settlement is not until mid 2023 to avoid cannibalising sales at the recently acquired site in North Clyde.

The company reiterated its target to purchase two sites per year and the occasional additional site. The company increased and extended debt facilities and remains self-funding. 

The broker expects 235 settlements for the upcoming FY20 result in a year disrupted by covid-19. By FY22, this number is expected to increase to over 400 new homes.

Buy rating is maintained. Target price increased to $10.60 from $9.60.

This report was published on July 01, 2020.

Target price is $10.60 Current Price is $9.27 Difference: $1.33
If LIC meets the Goldman Sachs target it will return approximately 14% (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 6.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.65.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 6.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.75.

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

LTR   

Overnight Price: $0.11

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

Liontown Resources is a Perth-based mineral exploration and development company. It owns the Kathleen Valley Lithium Project on the Eastern Goldfields in Western Australia and is currently progressing an Updated Prefeasability Study (PFS).  

The study should be completed in the December quarter of 2020 and is expected to materially improve on the $507m net present value of the PFS. According to Bell Potter, these improvements will flow from higher early mine-life grades, a simpler ore processing flowsheet, a tantalum by-product and a larger ore reserve.

In addition, the Moora project, 150km north-northeast of Perth, offers prospects for exploration of nickel, copper, platinum group elements and gold. These tenements are largely unexplored.

First production of lithium will potentially commence in 2024. Bell Potter initiates coverage with a Buy (speculative ) rating and sets a valuation of $0.19.

This report was published on June 23, 2020.

Target price is $0.19 Current Price is $0.11 Difference: $0.08
If LTR meets the Bell Potter target it will return approximately 73% (excluding dividends, fees and charges).

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

MTO    MOTORCYCLE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $1.70

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

Motorcycle Holdings has released strong trading results and provided FY20 earnings guidance of $24m-$27m.

Wilsons highlights the underlying demand uncertainty and warns of looming volatility after 30 September, when the JobKeeper program is withdrawn.

The broker draws some comfort from the diversifying of the customer base and product range. It also points to the relatively undemanding PE ratio of 8.8x for FY2022.

The Market Weight rating is maintained. The target price is $1.90

This report was published on June 24, 2020

Target price is $1.90 Current Price is $1.70 Difference: $0.2
If MTO meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 6.60 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.51.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 8.30 cents and EPS of 24.30 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.00.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.43

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

Bell Potter is bracing for a significant earnings impact from covid-19. However, there are exciting prospects with the pending launch of two new women’s health products.

Data suggests a -75% reduction across Europe and the US for visits to physicians. Despite falling overheads and the benefit from an ongoing cost-out program, the broker has reduced FY20 revenue by -7.7%. 

On a positive note, excitement is building for the launch of the generic Nuvaring product in a few months. More importantly, a game-changing new oral contraceptive should gain approval for marketing in the US from April 2021.This should underpin long term earnings for the company.

Overall, Bell Potter has increased revenues by 16% for FY21. The rating was raised to Buy from Hold, while the price target increased to $0.55 from $0.35

This report was produced on June 25, 2020.

Target price is $0.55 Current Price is $0.43 Difference: $0.12
If MYX meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $0.42, suggesting downside of -1.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.2, 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:

Bell Potter forecasts a full year FY21 EPS of 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.35.

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 30.7.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.55

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

Next Science has a primary focus on disrupting and combating biofilms, one of the leading causes of antimicrobial resistance. To that end, the company develops, manufactures and partners innovative products.

SurgX (sterile gel applied to surgical incisions) is developing a biofilm-disruption narrative with surgeons, ahead of the expected FDA approval of Next Science's flagship product Xperience in 3Q20.

Once approved, it will support a 2H20 launch in orthopedic and colorectal surgery, targeting surgical site infection in US hospitals. Wilsons forecast FDA approval of Xperience will be a catalyst for upgrades as it is absent from current projections.

The significance of Xperience is revealed by Wilsons' first year sales estimates of $8m growing to $85m after five years, allowing the company to be profitable by FY22.

Wilsons retains Overweight. Target price is $2.87.

The report was published on July 01, 2020.

Target price is $2.87 Current Price is $1.55 Difference: $1.32
If NXS meets the Wilsons target it will return approximately 85% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Wilsons 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 25.41.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
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: $1.11

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

Perenti Global's activity levels in the mining services space have been underpinned by the gold sector. Addiotionally, management is confident the worst of covid-19 restrictions has passed.

Wilsons highlights the proposed dividend payment of $0.35 in July has sent a strong message that balance sheet concerns are overdone and that an equity raise is now unlikely.

A greater focus on North American gold customers, instead of exposure to elevated risks in Africa, can lead to a share price re-rating according to the broker.

The Overweight rating is maintained, while the target price has been decreased to $2.00 from $2.30.

The report was published on June 24, 2020.

Target price is $2.00 Current Price is $1.11 Difference: $0.89
If PRN meets the Wilsons target it will return approximately 80% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 7.00 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 6.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.07.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 7.00 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 6.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.49.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.74

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

Qube Holdings and Woolworths ((WOW)) are to develop two distribution centres at Moorebank Logistics Park in Sydney. Qube will contribute between -$420-$460m toward construction over three years. 

Once operational, around 2023-2024, Qube will receive $30m per year in lease payments from anchor tenant Woolworths.

The broker believes the announcement provides a clear signal of confidence in the overall supply chain value proposition. Goldman Sachs maintains a Buy recommendation, Price target is increased to $3.32.

This report was published on 23 June, 2020.

Target price is $3.32 Current Price is $2.74 Difference: $0.58
If QUB meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 10.4%(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 5.00 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -46.3%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 41.5.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of 7.6%.
Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 38.6.

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

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $2.01

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

After the recent trading update, Canaccord Genuity believes Redbubble is trading at a material discount to both domestic and international peers.

The company is a major beneficiary of the covid crisis and the structural move to online, as evidenced by revenues exceeding consensus forecasts for 4Q20 by greater than 80%. This growth was evident across both Redbubble.com and TeePublic websites.

Further highlights were the free cash flow across April and May of $34m and management’s commitment to a reduction in operating expenses.

Buy rating is maintained. The target price is increased to $3.00 from $1.60.

This report was published on June 25, 2020.

Target price is $3.00 Current Price is $2.01 Difference: $0.99
If RBL meets the Canaccord Genuity target it will return approximately 49% (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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 134.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.12.

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


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

After a fourth quarter trading update that was materially better than forecast, Goldman Sachs expects stronger operating leverage in coming years.

The accelerating revenue, combined with recently expanded valuation metrics for the company’s peers, results in a material upgrade of earnings and valuation by the broker.

Goldman Sachs highlights the potential for a virtuous cycle, whereby consumer growth leads to artist growth, which fuels content growth, which leverages off a broadening product range, which in turn leads to more consumer growth.

The rating is upgraded to Buy from Neutral. The target price is increased to $2.35 from $0.75.

This report was published on June 26, 2020.

Target price is $2.35 Current Price is $2.01 Difference: $0.34
If RBL meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 EPS of 0.00 cents.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of minus 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20100.00.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $1.98

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

Rural Funds Group is a listed agricultural REIT that has a portfolio of assets focused on almond orchards, vineyards, cattle, cotton and macadamias.

The company is proposing to sell the Mooral orchard and using the proceeds to pay down debt and expand into cotton and cattle.

The company has previously been targeted by short sellers on the basis of inflated asset valuations. The broker believes this thesis may be proven incorrect, if like a prior sale in October 2018, Mooral is sold near book value.

In the cotton and cattle sector overall, the company has been investing in productivity improvements since 2016. From FY21, this should result in increased valuations and rentals.

The Buy rating is maintained. The target price is increased to $2.30 from $2.18.

This report was published on June 24, 2020.

Target price is $2.30 Current Price is $1.98 Difference: $0.32
If RFF meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 10.85 cents.
At the last closing share price the estimated dividend yield is 5.48%.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.28 cents.
At the last closing share price the estimated dividend yield is 5.70%.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $2.13

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

Bell Potter maintains that the company’s exposure to the cloud computing mega-trend, assisted by COVIDSafe-19, is continuing.

While leasing margins are contracting, the broker believes that market expectations have been lowered accordingly.

Bell Potter suggest a potential lift in the share price may result from either an outperformance in Japan or the deployment of cash toward an EPS-accretive acquisition.

The main downside risk is the company’s exposure to the small and medium enterprise segment in the event of an economic deterioration across all relevant geographies.

The broker maintains a Buy recommendation. The target is $2.30.

This report was published on June 23, 2020.

Target price is $2.30 Current Price is $2.13 Difference: $0.17
If RHP 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 1.00 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 0.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.17.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.00 cents and EPS of 4.60 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.30.

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

RIC    RIDLEY CORPORATION LIMITED

Agriculture – Overnight Price: $0.76

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

Ridley Corp has confirmed the commissioning, on time and on budget, of a new feedmill at Wellsford, near Bendigo in Victoria.

This allows the closure of the Moooroopna feedmill and the consolidation of its production and customers, while still retaining 70,000 tonnes of feed capacity at Wellsford. 

Wilsons continue to be cautiously optimistic about sustained earnings growth. The broker notes the core valuation of the business is $0.93, which is above the prevailing share price.

Overweight rating retained. Target price is $1.10

This report was published on June 29, 2020.

Target price is $1.10 Current Price is $0.76 Difference: $0.34
If RIC meets the Wilsons target it will return approximately 45% (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 5.50 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.82.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 3.00 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.57.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $6.18

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

Bell Potter has analysed a scenario whereby Select Harvests purchases the Mooral Orchard, recently placed on the market by Rural Funds Group ((RFF)).

The company already has a part lease on the property. The broker believes $85m could secure both the property and the crop rights. This would generate low double digit EPS accretion, with upside coming from rental income or improvements to yield. Under this scenario FY20 gearing would increase by approximately 80%.

Although global markets have been volatile, the key investment thesis still remains for the broker. This includes slowing development acreage in California and compressing water costs, all as the existing acreage is maturing.

The Buy rating is maintained. The target price is $8.00.

This report was published on June 24, 2020.

Target price is $8.00 Current Price is $6.18 Difference: $1.82
If SHV meets the Bell Potter target it will return approximately 29% (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 19.00 cents and EPS of 37.80 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.35.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 25.00 cents and EPS of 48.60 cents.
At the last closing share price the estimated dividend yield is 4.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.72.

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

SMP   

Overnight Price: $0.66

CCZ Equities rates ((SMP)) as Buy (1) –

Smartpay increased revenue by 34% to NZ$28.3m for FY20. This was largely due to a  recovery in transactions from the lockdown and a consequent swing away from cash and an increase in usage of SmartCharge terminals.

The result was largely the result of growth in revenue of 275% in the Australian business. Given the recent -NZ$15m capital raise,the broker believes the company is now well positioned to grow the company in Australia.

Although subsequently withdrawn, a recent NZ$70.0m bid was received for the New Zealand segment of the business. 

The broker values the New Zealand segment of the business at a -20% discount to the bid price, but firmly believes the business will be sold in the future. 

A Buy rating has been maintained, while the target price increased to NZ$0.76 from NZ$0.56.

This report was published on June 24, 2020.

Current Price is $0.66. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 660.00.

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

VTH    VITALHARVEST FREEHOLD TRUST

Real Estate – Overnight Price: $0.79

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

Primewest ((PWG)) has purchased GoFarm Asset Management, the external manager of the VitalHarvest Freehold Trust. Separately, it has acquired a 11.8% stake in VTH with right of first refusal over another 6%.

VitalHarvest Freehold Trust will  soon be newly-branded as the Primewest Agri-chain Fund and will look to increase exposure to agriculture property assets.

Bell Potter is relatively less comfortable with diversification into infrastructure style assets, which impacts on the original investment thesis.

The broker cites recent share price appreciation in downgrading to Hold from Buy. Target is steady at $0.84.

This report was published on June 19, 2020.

Target price is $0.84 Current Price is $0.79 Difference: $0.05
If VTH meets the Bell Potter target it will return approximately 6% (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 4.50 cents.
At the last closing share price the estimated dividend yield is 5.70%.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.70 cents.
At the last closing share price the estimated dividend yield is 5.95%.

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

YOJ   

Overnight Price: $0.08

Euroz rates ((YOJ)) as Speculative Buy (1) –

Yojee Limited focuses on developing a sharing- economy based logistics platform in the Aia-Pacific region.

The company processed 10,000 transactions on the first day of going live in the Philippines and the broker believes that if scale of transactions is achieved, margins of 50% are considered conservative.

A presentation by the company shows achievable revenue of $7.3m should the transactions per day increase to 100,000 per day.

Euroz states that validation of the platform by existing clients, including a leading logistics company, is important for ultimate success.

The Buy rating is maintained. The target price is $0.13.

This report was published on June 24, 2020.

Target price is $0.13 Current Price is $0.08 Difference: $0.05
If YOJ meets the Euroz target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

ADA ALU AMA AMP ASB AX1 BAP BFC BGL CAT CGF CKF DGH EQT EVS FPH GNX GUD HVN IAG INA IRI JBH LIC LTR MTO MYX NXS PRN PWG QUB RBL RFF RHP RIC SGP SHV SMP VTH WOW YOJ

For more info SHARE ANALYSIS: ADA - ADACEL TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: ALU - ALTIUM

For more info SHARE ANALYSIS: AMA - AMA GROUP LIMITED

For more info SHARE ANALYSIS: AMP - AMP LIMITED

For more info SHARE ANALYSIS: ASB - AUSTAL LIMITED

For more info SHARE ANALYSIS: AX1 - ACCENT GROUP LIMITED

For more info SHARE ANALYSIS: BAP - BAPCOR LIMITED

For more info SHARE ANALYSIS: BFC - BESTON GLOBAL FOOD COMPANY LIMITED

For more info SHARE ANALYSIS: BGL - BELLEVUE GOLD LIMITED

For more info SHARE ANALYSIS: CAT - CATAPULT GROUP INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: CGF - CHALLENGER LIMITED

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: DGH - DESANE GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: EQT - EQT HOLDINGS LIMITED

For more info SHARE ANALYSIS: EVS - ENVIROSUITE LIMITED

For more info SHARE ANALYSIS: GNX - GENEX POWER LIMITED

For more info SHARE ANALYSIS: GUD - G.U.D. HOLDINGS LIMITED

For more info SHARE ANALYSIS: HVN - HARVEY NORMAN HOLDINGS LIMITED

For more info SHARE ANALYSIS: IAG - INSURANCE AUSTRALIA GROUP LIMITED

For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP

For more info SHARE ANALYSIS: IRI - INTEGRATED RESEARCH LIMITED

For more info SHARE ANALYSIS: JBH - JB HI-FI LIMITED

For more info SHARE ANALYSIS: LIC - LIFESTYLE COMMUNITIES LIMITED

For more info SHARE ANALYSIS: LTR - LIONTOWN RESOURCES LIMITED

For more info SHARE ANALYSIS: MTO - MOTORCYCLE HOLDINGS LIMITED

For more info SHARE ANALYSIS: MYX - MAYNE PHARMA GROUP LIMITED

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: PRN - PERENTI GLOBAL LIMITED

For more info SHARE ANALYSIS: PWG - PRIMEWEST GROUP LIMITED

For more info SHARE ANALYSIS: QUB - QUBE HOLDINGS LIMITED

For more info SHARE ANALYSIS: RBL - REDBUBBLE LIMITED

For more info SHARE ANALYSIS: RFF - RURAL FUNDS GROUP

For more info SHARE ANALYSIS: RHP - RHIPE LIMITED

For more info SHARE ANALYSIS: RIC - RIDLEY CORPORATION LIMITED

For more info SHARE ANALYSIS: SGP - STOCKLAND

For more info SHARE ANALYSIS: SHV - SELECT HARVESTS LIMITED

For more info SHARE ANALYSIS: SMP - SMARTPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: VTH - VITALHARVEST FREEHOLD TRUST

For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED

For more info SHARE ANALYSIS: YOJ - YOJEE LIMITED