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Australian Broker Call *Extra* Edition – Jul 23, 2020

Daily Market Reports | Jul 23 2020

This story features AFTERPAY LIMITED, and other companies. For more info SHARE ANALYSIS: APT

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)

APT (2)   AVH (2)   CBR   CCP (2)   CGF   CVL   ELO   OCL   PAR   PDL   PPS   PTM   RWC   SXY   TLS   TNE   TPW   WHC  

APT    AFTERPAY LIMITED

Business & Consumer Credit – Overnight Price: $72.50

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

Afterpay has confirmed Apple Pay and Google Pay will be used in-store in the US and this has commenced with 3-4 retailers.

Bell Potter considers this important as the in-store rollout does not require integrations (which can be time-consuming) with each retailer. This will allow for a more rapid rollout, believes the broker.

Bell Potter highlights this shows the company’s increasing clout. Overall, its integrations with key global tech companies will help establish it as a global e-commerce and payments player, comments the broker.

The broker has revised revenue estimates upwards for FY20-22. These are driven by higher forecast US customer numbers due to Apple Pay and Google Pay integrations.

Bell Potter retains its Buy rating with the target price increasing to $83 from $81.25.

This report was published on July 15, 2020.

Target price is $83.00 Current Price is $72.50 Difference: $10.5
If APT meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $67.92, suggesting downside of -6.3%(ex-dividends)
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 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1959.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -15.0, 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 dividend of 0.00 cents and EPS of 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 541.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.2, 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.

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


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

Afterpay’s June quarter trading update was materially ahead of Goldman Sachs’ forecast. The broker considers the recent capital raising enables the company to make use of new opportunities.

The broker predicts Afterpay will achieve $151bn in gross merchandise value (GMV) by FY30 led by 47.8m users across its three regions.

Tailwinds exist in the form of new market opportunities, faster than anticipated recovery in each geography, competitors losing momentum, increasing migration to online shopping.

Goldman Sachs reiterates its Neutral rating with a target price of $70.15.

This report was published on July 12, 2020.

Target price is $70.15 Current Price is $72.50 Difference: minus $2.35 (current price is over target).
If APT meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $67.92, suggesting downside of -6.3%(ex-dividends)
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 minus 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 483.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -15.0, 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:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1035.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.2, 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.

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

AVH    AVITA MEDICAL LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $6.48

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

For FY20, Avita Medical reported total revenues from device sales of US$13.8m, an increase of 213% over FY19.

The June quarter revenues were flat compared to the previous quarter. Bell Potter terms this a good result despite the reduction in burns across the US with more people staying at home.

Revenue growth outlook is difficult for now due to the restrictions, comments the broker, but the long-term outlook is intact. There may be additional funding for the use of ReCell in the outpatient market, highlights the broker.

Bell Potter maintains its Speculative Buy rating with a target price of $16.20.

This report was published on July 14, 2020.

Target price is $16.20 Current Price is $6.48 Difference: $9.72
If AVH meets the Bell Potter target it will return approximately 150% (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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 432.00.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 462.86.

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


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

Avita Medical tripled its US sales over FY20. Sales of ReCell held up well over the June quarter despite covid-19 proving to be an irritant by delaying trials related to the expansion of ReCell.

The broker notes the company is working to achieve a “pass-through” status so hospitals can be reimbursed for the cost of ReCell separately.

The broker remains Market-weight on the stock with a target price of $7.58.

This report was published on July 13, 2020.

Target price is $7.58 Current Price is $6.48 Difference: $1.1
If AVH meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 137.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.71.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 130.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.98.

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

CBR    CARBON REVOLUTION LIMITED

Automobiles & Components – Overnight Price: $1.48

Bell Potter rates ((CBR)) as Speculative Buy (1) –

Carbon Revolution expects covid-19 related demand disruptions to continue into the first quarter of FY21 and affect first half sales.

The disruption is driven by a six month delay of a vehicle platform extension that was supposed to replace an existing vehicle program.

In response, Bell Potter notes the company will be restructuring shifts, eliminating the requirement for its casual workforce while also access the JobKeeper payment for its fulltime workforce.

The broker has deferred breakeven expectations by six-twelve months following the announcement, but finds the long-term growth profile intact.

Bell Potter retains its Speculative Buy recommendation with the valuation decreasing to $2 from $2.42

This report was published on July 10, 2020.

Target price is $2.00 Current Price is $1.48 Difference: $0.52
If CBR meets the Bell Potter target it will return approximately 35% (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 26.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.56.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 18.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.00.

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

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $17.47

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

Credit Corp Group’s FY20 impairments are higher than anticipated by Canaccord Genuity. Collections performance was slightly better than hoped.

Next year’s earnings are expected to remain below the FY20 profitability level and the broker expects funds to be prioritised for domestic debt purchasing.

The company’s clean balance sheet, valuation and competitive position should help it deal with a lack of near-term catalysts.

Canaccord Genuity maintains its Buy rating with a target price of $20.50.

This report was published on July 14, 2020.

Target price is $20.50 Current Price is $17.47 Difference: $3.03
If CCP meets the Canaccord Genuity target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $19.47, suggesting upside of 11.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 36.00 cents and EPS of 136.00 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 123.6, implying annual growth of -12.9%.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 45.00 cents and EPS of 89.00 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.4, implying annual growth of -26.9%.
Current consensus DPS estimate is 42.3, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 19.3.

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


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

Credit Corp released its unaudited FY20 results with net profit in the range of $10-$15m after considering purchase debt ledger (PDL) impairments and an increase in consumer loan loss provisioning.

Broker Baillieu notes the company has unsurprisingly noted less number of debtors ready to maintain repayment terms. After an initial decrease, collections returned to pre-covid-19 levels in May and June which the broker considers encouraging.

The company expects lower collections for the next two years and an uplift in PDL supply in ANZ and the US by as much as 80% due to covid-19, reports the broker.

Risks on collections from a second wave remain, points out the broker while noting a huge opportunity in the form of a massive increase in PDL supply at materially low prices.

Baillieu retains its Buy rating with a target price of $21.65.

This report was published on July 13, 2020.

Target price is $21.65 Current Price is $17.47 Difference: $4.18
If CCP meets the E.L. & C Baillieu target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $19.47, suggesting upside of 11.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 62.00 cents and EPS of 123.80 cents.
At the last closing share price the estimated dividend yield is 3.55%.
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 123.6, implying annual growth of -12.9%.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 52.00 cents and EPS of 99.40 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.4, implying annual growth of -26.9%.
Current consensus DPS estimate is 42.3, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 19.3.

Market Sentiment: 0.8
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: $4.68

Bell Potter rates ((CGF)) as Upgrade to Hold from Sell (3) –

Bell Potter thinks it is a difficult time to evaluate and gauge the risks associated with Challenger, which is an annuity provider guaranteeing payments in the middle of a pandemic. The broker likes the company’s business model and overall market positioning.

There is a place and need for products the company provides, believes the broker, noting its funds management business has set a record in growth. The broker considers the outlook uncertain due to asset price dislocation and potential for more volatility.

Bell Potter upgrades its rating to Hold from Sell although remains cautious. The target price is $4.30.

This report was published on July 16, 2020.

Target price is $4.30 Current Price is $4.68 Difference: minus $0.38 (current price is over target).
If CGF meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.05, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 17.50 cents and EPS of 58.20 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.04.

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 4.4%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 20.80 cents and EPS of 45.90 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.4, implying annual growth of 53.6%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 11.6.

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

CVL    CIVMEC LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.43

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

Civmec has been awarded a substantial stand-alone civil contract at Fortescue Metals Group’s ((FMG)) US$2.6bn iron bridge magnetite project.

Broker Euroz notes this contract is likely to finish by the first quarter of 2022. Also, this contract takes the group’s order book to a strong position of about $901m.

The investment case continues to be based on expectations of improving margins from the order book, entry into a new line of operations with the offshore patrol vessel program, plus generating returns from infrastructure investments.

Euroz maintains its Speculative Buy recommendation with a target price of $0.51.

This report was published on July 9, 2020.

Target price is $0.51 Current Price is $0.43 Difference: $0.08
If CVL meets the Euroz target it will return approximately 19% (excluding dividends, fees and charges).

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

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $6.91

Moelis rates ((ELO)) as Hold (3) –

Elmo Software’s June quarter result saw growth in cash receipts of 8.4% over the last year. This, states Moelis, is a reasonable proxy for growth in the first full covid-19 impacted quarter.

The broker expects the rate to increase throughout FY21 with mid-market organisations resuming IT procurement.

Net cash burn at -$18.9m remains high for FY20 due to investment into sales and marketing, product development and integration of acquisitions, forming 37.5% of the company’s revenue, notes the broker.

The broker considers it good that the company was able to grow cash receipts during the covid-19 impacted quarter. However, the company is trading close to the broker’s fair value estimate and in line with peers.

Moelis reinstates its coverage on the stock with a Hold rating and a target price of $6.75.

This report was published on July 16, 2020.

Target price is $6.75 Current Price is $6.91 Difference: minus $0.16 (current price is over target).
If ELO meets the Moelis target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $9.68

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

Objective Corp has acquired the regulatory technology specialist, Itree for $18.5m and CCZ Equities believes this represents inorganic revenue growth of 20% and growth in annual recurring revenue of 15% over the first half number.

The acquisition gives Objective Corp an opportunity to leverage relationships to expand Itree’s customer base and cross-selling opportunities.

Organic revenue continues to grow via new customers along with increasing revenue from existing customers.

Covid-19 led digitisation has strengthened the investment case for the company and the broker considers this a business with impressive earnings growth outlook disguised by the transition to subscription revenues from a perpetual license.

CCZ Equities maintains its Buy rating with the target price increasing to $10.16 from $7.26.

This report was published on July 8, 2020.

Target price is $10.16 Current Price is $9.68 Difference: $0.48
If OCL meets the CCZ Equities target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 6.80 cents and EPS of 11.37 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.14.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 9.90 cents and EPS of 16.54 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.52.

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

PAR    PARADIGM BIOPHARMACEUTICAL

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.23

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

Paradigm Biopharmaceuticals is preparing further data for the next stage of a provisional approval for Zilosul or the injectable form called iPPS. This is used for treating Osteoarthritis in the knee.

The broker notes the Zilosul clinical program remains on track to commence in the first quarter 2021.

Following the 140% rise in share price since April’s capital raise, Bell Potter downgrades its rating to Hold (Speculative) from Buy with the valuation increasing to $3 from $2.79.

This report was published on July 16, 2020.

Target price is $3.00 Current Price is $3.23 Difference: minus $0.23 (current price is over target).
If PAR meets the Bell Potter target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 63.33.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 18.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.46.

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

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $5.91

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

Pendal Group’s June quarter performance reveals funds under management (FUM) increasing by 4% driven by investment returns. Weak organic growth (net outflows) and a currency headwind offset the result somewhat.

Outflows were driven mostly by the institutional channel in Australia and by Open-Ended Investment Companies (OEICs) within JO Hambro Capital Management (JOHCM), reports Goldman Sachs.

Pendal remains Goldman Sachs' preferred exposure across its funds management coverage. The broker reiterates its Buy with the target price reducing to $6.88 from $6.95.

This report was published on July 14, 2020.

Target price is $6.88 Current Price is $5.91 Difference: $0.97
If PDL meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $6.59, suggesting upside of 11.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 37.00 cents and EPS of 46.00 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.3, implying annual growth of -16.7%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 41.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 6.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.8, implying annual growth of -7.7%.
Current consensus DPS estimate is 36.5, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.1.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.46

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

Praemium’s June quarter shows strong progress across the business driven by funds under administration (FuA) growing 7.5% quarter on quarter. Net flows were solid too with outflows less than expected, reports the broker.

The proposed acquisition of Powerwrap is expected to proceed. The market update demonstrates steady progress on new business, remarks the broker.

Praemium is considered well placed to benefit from the significant change expected in Australia’s wealth management industry in the next few years. The broker continues to see the company as a potential target in a consolidating platforms sector.

Baillieu maintains its Buy rating with a target price of $0.55.

This report was published on July 13, 2020.

Target price is $0.55 Current Price is $0.46 Difference: $0.09
If PPS meets the E.L. & C Baillieu target it will return approximately 20% (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 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.33.

Forecast for FY21:

E.L. & C Baillieu 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 35.38.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $3.85

Goldman Sachs rates ((PTM)) as Sell (5) –

Funds under management (FUM) decreased by -1.7% during June due to positive returns being offset by yearly distributions and outflows, reports Goldman Sachs.

The broker notes improving trends for the company’s Platinum Asia Fund, with the healthcare fund continuing to maintain its strong track record.

Performance fees for the second half were well above the broker’s estimates and driven mostly by Platinum's Asia strategy.

Goldman Sachs retains its Sell rating with a target price of $3.51.

This report was published on July 13, 2020.

Target price is $3.51 Current Price is $3.85 Difference: minus $0.34 (current price is over target).
If PTM meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.03, suggesting downside of -21.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 26.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of -8.3%.
Current consensus DPS estimate is 23.9, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 22.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of -17.3%.
Current consensus DPS estimate is 20.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 18.8.

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

RWC    RELIANCE WORLDWIDE CORPORATION LIMITED

Building Products & Services – Overnight Price: $2.89

E.L. & C Baillieu rates ((RWC)) as Hold (3) –

Reliance Worldwide Corp's operations in US and Europe experienced extreme difficulties in April, reports Baillieu. Activity levels were down -60-65% and sales remain well below last year's levels.

Industry forecasts suggest demand for the remainder of 2020 and 2021 will remain below 2019 levels. The UK construction market remains difficult, observes the broker, with anecdotal evidence suggesting a -20-25% decline in second-half revenue.

Residential new build demand in 2021 is likely to be -20% lower than 2019 levels, forecasts the Construction Products Association, and expects a “long slog ahead”.

Baillieu retains its Hold rating with a target price of $2.75.

This report was published on July 13, 2020.

Target price is $2.75 Current Price is $2.89 Difference: minus $0.14 (current price is over target).
If RWC meets the E.L. & C Baillieu target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.34, suggesting upside of 15.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 7.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 2.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of -7.6%.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 9.00 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of 2.5%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.0.

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

SXY    SENEX ENERGY LIMITED

Crude Oil – Overnight Price: $0.30

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

Senex Energy reported June quarter production of 711kboe, taking the FY20 figure to 2.1mmboe. This is ahead of Bell Potter’s estimates.

The company is expected to report FY30 operating income towards the top end of its guidance.

The broker reports the company has significantly increased its gas reserves and production, de-risking the company since its $125m reserve-based lending facility was agreed.

The company has a strong free cash flow growth profile from its Queensland coal seam gas operations, notes Bell Potter.

It also provides leverage to Australia’s east coast gas market where the broker expects supply risks to support higher prices over the medium to long term.

The diversified nature of its sales gives Senex Energy some protection from oil price volatility, adds the broker.

Bell Potter rates the stock as Buy with the target price increasing to $0.35 from $0.33.

This report was published on July 16, 2020.

Target price is $0.35 Current Price is $0.30 Difference: $0.05
If SXY meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $0.40, suggesting upside of 32.4%(ex-dividends)
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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, implying annual growth of 160.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 50.0.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.1, implying annual growth of 250.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 14.3.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TLS    TELSTRA CORPORATION LIMITED

Telecommunication – Overnight Price: $3.39

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

Goldman Sachs has revised its FY21 operating income forecast downwards due to resurging covid-19 cases in Australia and the lockdown in Melbourne.

Telstra remains on track to hit its $630m cost reduction target in FY20, observes the broker. The telecom has also increased scope to improve efficiencies in its retail store network and customer service.

In an uncertain, low rate environment, the broker sees telco infrastructure as highly attractive. Any NBN privatisation discussions are unlikely to occur until 2023, it forecasts.

FY21 operating income is expected to decline to $7.14bn before recovering to $7.55bn. Goldman Sachs reaffirms its Buy rating with a target price of $4.10.

This report was published on July 15, 2020.

Target price is $4.10 Current Price is $3.39 Difference: $0.71
If TLS meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.81, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 16.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.1, implying annual growth of -5.5%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 19.8.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -5.3%.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 20.9.

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

TNE    TECHNOLOGYONE LIMITED

IT & Support – Overnight Price: $8.66

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

Bell Potter continues to forecast growth of 10% in net profit in FY20 for TechnologyOne. Profit growth is expected to return to mid-teens in FY21 and FY22, assuming no material covid-19 impact.

The broker feels there is value again in the shares looking at the PE ratios of FY20 and FY21. There is no obvious material downside risk to the company’s guidance, states the broker.

Bell Potter upgrades its rating to Buy from Hold with a target price of $9.50.

This report was published on July 14, 2020.

Target price is $9.50 Current Price is $8.66 Difference: $0.84
If TNE meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $8.54, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 13.10 cents and EPS of 20.10 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of 5.8%.
Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 44.4.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.10 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.5, implying annual growth of 10.3%.
Current consensus DPS estimate is 14.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 40.3.

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

TPW    TEMPLE & WEBSTER GROUP

Furniture & Renovation – Overnight Price: $7.78

Goldman Sachs rates ((TPW)) as Initiation of coverage with Buy (1) –

Covid-19 has accelerated the pace of online sales in the home and homewares category and the broker expects e-commerce penetration to reach 20% by FY31 from the current 6.9%.

Increasing purchases have led to higher margins and also allowed for higher investment to further drive customer growth.

In the near term, the broker expects marketing may be given more focus at the expense of margins, but expects margins to expand over the long term.

Goldman Sachs initiates coverage on Temple and Webster with a Buy rating and a target price of $8.50.

This report was published on July 9, 2020.

Target price is $8.50 Current Price is $7.78 Difference: $0.72
If TPW meets the Goldman Sachs target it will return approximately 9% (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 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 97.25.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.44.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $1.53

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

Whitehaven Coal achieved its guidance which is considered a strong positive by Wilsons. The broker is bullish about the miner in FY21 and expects a more normalised production year.

Maules Creek and Narrabri are expected to be strong performers, while first-quarter FY21 sales should be boosted by inventory sell down.

Wilsons has cut its coal price forecasts in FY21 to US$60/t from US$70/t but expects significant upside. No dividends expected in the second half.

Wilsons maintains its Overweight rating with a target price of $4.

This report was published on July 14, 2020.

Target price is $4.00 Current Price is $1.53 Difference: $2.47
If WHC meets the Wilsons target it will return approximately 161% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting upside of 30.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 1.50 cents and EPS of 2.70 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 56.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.1, implying annual growth of -96.1%.
Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 72.9.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 1.30 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 0.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, implying annual growth of -71.4%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 255.0.

Market Sentiment: 0.4
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

APT AVH CBR CCP CGF CVL ELO FMG OCL PAR PDL PPS PTM RWC SXY TLS TNE TPW WHC

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: AVH - AVITA MEDICAL INC

For more info SHARE ANALYSIS: CBR - CARBON REVOLUTION LIMITED

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

For more info SHARE ANALYSIS: CGF - CHALLENGER LIMITED

For more info SHARE ANALYSIS: CVL - CIVMEC LIMITED

For more info SHARE ANALYSIS: ELO - ELMO SOFTWARE LIMITED

For more info SHARE ANALYSIS: FMG - FORTESCUE METALS GROUP LIMITED

For more info SHARE ANALYSIS: OCL - OBJECTIVE CORPORATION LIMITED

For more info SHARE ANALYSIS: PAR - PARADIGM BIOPHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: PDL - PENDAL GROUP LIMITED

For more info SHARE ANALYSIS: PPS - PRAEMIUM LIMITED

For more info SHARE ANALYSIS: PTM - PLATINUM ASSET MANAGEMENT LIMITED

For more info SHARE ANALYSIS: RWC - RELIANCE WORLDWIDE CORP. LIMITED

For more info SHARE ANALYSIS: SXY - SENEX ENERGY LIMITED

For more info SHARE ANALYSIS: TLS - TELSTRA CORPORATION LIMITED

For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED

For more info SHARE ANALYSIS: TPW - TEMPLE & WEBSTER GROUP LIMITED

For more info SHARE ANALYSIS: WHC - WHITEHAVEN COAL LIMITED