Australian Broker Call *Extra* Edition – Jul 29, 2020

Daily Market Reports | Jul 29 2020

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

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

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

360   AD8   AT1   BWX   CAT   CBR   DTC   ELD   HLO   MP1   MSV   OPY   ORA   PYG   QHL   SEK   SKF   VEA   WSP (2)   XRF   Z1P  

360    LIFE360 INC

Software & Services - Overnight Price: $3.31

Bell Potter rates ((360)) as Buy (1) -

Life360 has upgraded its app in a major way with a range of new features and pricing memberships. Bell Potter observes the company is moving fast to a whole of life family safety app from the simple location sharing family feature.

The market need and opportunity for the company are enhanced by the additional benefit of not needing a large infrastructure setup (since it is software-based).

Bell Potter retains its Buy rating with the target price increasing to $4.80 from $3.60.

This report was published on July 17, 2020.

Target price is $4.80 Current Price is $3.31 Difference: $1.49
If 360 meets the Bell Potter target it will return approximately 45% (excluding dividends, fees and charges).
The company's fiscal year ends in November.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 11.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.79.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 76.66.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment - Overnight Price: $5.25

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

Audinate Group delivered a positive surprise with stronger than expected revenues and profit as compared to Shaw and Partners’ estimates.

The focus is now on the outlook for FY21 and the broker takes a conservative stance due to the pandemic and reduces its FY21 sales estimate. Post-pandemic, the company remains one of the broker’s key small cap picks for the long term.

Shaw and Partners reiterates its Buy rating with a target price of 6.75.

This report was published on July 17, 2020.

Target price is $6.75 Current Price is $5.25 Difference: $1.5
If AD8 meets the Shaw and Partners target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $6.75, suggesting upside of 28.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 477.27.

How do these forecasts compare to market consensus projections?

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

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 750.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

AT1    ATOMO DIAGNOSTICS LIMITED

Medical Equipment & Devices - Overnight Price: $0.40

Canaccord Genuity rates ((AT1)) as Buy (1) -

Atomo Diagnostics’ maiden quarterly business update after its IPO shows positive momentum and a higher than expected revenue, comments Canaccord Genuity. The cash flow was also in-line.  

Production capacity expansion is on track to double this quarter from pre-IPO levels, points out the broker, and is expected to reach 1m units per month by December.

Getting new customers for the higher production volume along with regulatory approvals for the company's Australian and US markets will decide the future share price momentum, expects the broker.

Canaccord Genuity maintains its Buy recommendation with a target price of $0.65.

This report was published on July 23, 2020.

Target price is $0.65 Current Price is $0.40 Difference: $0.25
If AT1 meets the Canaccord Genuity target it will return approximately 63% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00.

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

BWX    BWX LTD

Household & Personal Products - Overnight Price: $4.00

Moelis rates ((BWX)) as No Rating (-1) -

BWX Ltd delivered a stronger than expected revenue result for FY20 and earnings that met the Moelis forecast.

The company is expecting ongoing revenue and earnings growth of 'at least 10%' in FY21. This guidance is slightly weaker than the broker was expecting but the analyst believes management is being conservative in the current climate.

The company also announced a $50m equity raise, of which -$33.7m will be deployed to build a new Australian manufacturing facility and the balance of funds can be used for any merger and acquisition opportunities, according to Moelis.

The broker noted a strong performance from Sukin, which in the analysts opinion more than offsets any weakness in the US.

The broker provides neither a rating nor a target price.

This report was published on July 20, 2020.

Current Price is $4.00. Target price not assessed.

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


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