Australian Broker Call *Extra* Edition - Aug 12, 2020

Daily Market Reports | Aug 12 2020

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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 (2) ALQ APE (3) ARX (2) BWX CCP CCX DOW EHL FCL GMG GSS GUD IPD JHG MMM MND MQG MSB OBL PBH PCK PVS (2) RCL RMY RVS STG SUL UMG VUK

360 LIFE360 INC

Software & Services – Overnight Price: $3.89

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

Bell Potter upgrades underlying EPS estimates by 45.8%, 106.5% and 24.8% for FY20, FY21 and FY22, respectively.

This was driven by a better quarterly cashflow statement which highlighted tight cost control and the emergence of meaningful operating leverage with revenue holding up on the back of subscriptions only falling around -2% for the quarter.

The analyst sees the hard work as largely done, with over US$58m in the bank, no debt and guidance for growth to resume.

The next catalyst is the result in late August where progress on new membership tiers will be of interest, says Bell Potter.

The Buy rating is maintained. The price target increased to $5.20 from $4.80.

This report was published on July 29, 2020.

Target price is $5.20 Current Price is $3.89 Difference: $1.31
If 360 meets the Bell Potter target it will return approximately 34% (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 6.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.89.

Forecast for FY21:

Bell Potter 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 1309.76.

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

Moelis rates ((360)) as Buy (1) –

Life360 released its 4Q20 operating update with all metrics exceeding Moelis expectations.

The US user retention was well above expectations given lockdowns and is growing again with May and June recovering 70% of the losses in April and positive trends continuing into July, the analyst points out.

Annualised Monthly Revenue (AMR) was US$18.7m. Moelis notes this demonstrated that the company can organically grow AMR despite limited user acquisition spend and the difficult operating environment.

The broker sees the company entering 2H20 with a greatly improved customer value proposition through the membership offering, proof of inherent discretionary profitability and a return to sequential revenue/user growth.

The broker reinstates coverage with a Buy and a target price of $4.05.

This report was published on July 30, 2020.

Target price is $4.05 Current Price is $3.89 Difference: $0.16
If 360 meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in November.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 23.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.46.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.37.

ALQ ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $9.00

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

ALS Ltd provided a trading update for 1Q21 with revenues below Goldman Sachs anticipated 1H21 run rate, but flat margins were meaningfully above the broker's expectations.

The broker highlights other key takeaways including Life Sciences was the least impacted by covid-19 as it provides essential services, and while mining sample flows were challenged at the beginning of the quarter, they experienced an improvement in late May/June, due to an increase in general mining activity.

Management noted the company's recent acquisitions (ARJ and Aquimisa) are performing in-line with expectations.

The Neutral rating is maintained. The target price is increased to $8.80.

This report was published on July 29, 2020.

Target price is $8.80 Current Price is $9.00 Difference: minus $0.2 (current price is over target).
If ALQ meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.12, suggesting downside of -9.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 36.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of 23.2%.
Current consensus DPS estimate is 15.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 27.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 41.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.8, implying annual growth of 22.1%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 22.6.

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

APE AP EAGERS LIMITED

Automobiles & Components – Overnight Price: $8.67

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

AP Eagers provided unaudited 1H20 profit (PBT) and net debt as at 30 June, which were both much better than Bell Potter forecast.

The broker notes this was mostly driven by better than expected cost cutting, as demonstrated by the permanent cost reduction of around -$78m per annum.

The net debt improvement appears to the broker to have been driven by sundry factors including around $105m in deferred payments and an increase in cash from the wage subsidy schemes and rental waivers.

Buy rating is maintained. The target price is increased to $9.00 from $8.00.

This report was published on July 29, 2020.

Target price is $9.00 Current Price is $8.67 Difference: $0.33
If APE meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $8.00, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 10.00 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.2, implying annual growth of N/A.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 28.7.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.00 cents and EPS of 39.10 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.7, implying annual growth of 21.5%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 23.6.

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

Moelis rates ((APE)) as Hold (3) –

AP Eagers provided a 1H20 update with operating profit (PBT) of $40.3m, which Moelis considers an impressive result, given this figure does not include JobKeeper payments received in the period.

No quantified guidance was given for FY21, given the 'challenging economic conditions'. However, 'optimism of the company's existing business model has accelerated' and the analyst notes the full benefit of the -$78m permanent cost reduction should support stronger second half earnings.

Moelis sees the company as a strong operator and backs management to navigate (and even benefit from) changes facing the industry. However, the analyst estimates this is already captured in the price.

The Hold rating is maintained. The target price is $8.73.

This report was published on July30, 2020.

Target price is $8.73 Current Price is $8.67 Difference: $0.06
If APE meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $8.00, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of 26.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.2, implying annual growth of N/A.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 28.7.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 31.30 cents and EPS of 41.50 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.7, implying annual growth of 21.5%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 23.6.

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

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

AP Eagers provided a 1H20 trading update that pointed to a resilient result in a very challenging environment that demonstrated excellent leadership and execution, according to Wilsons.

The profit (PTB) guidance was materially above the broker's forecast, driven by a combination of stronger top-line sales and better margin performance. The analyst highlights gross margins that benefited from tighter vehicle supply. The company also achieved a cost reduction of around -$78m on an annual basis.

The guidance also suggests to Wilsons improvements in the underlying performance of the AHG dealerships.

Despite industry feedback pointing to a strong start to 2H2020, the broker remains cautious on the outlook for new vehicle sales in the next 6-12 months.

The Market Weight rating is maintained. The target price is increased to $8.10 from $5.88, after material upgrades to earnings estimates.

This report was published on August 3, 2020.

Target price is $8.10 Current Price is $8.67 Difference: minus $0.57 (current price is over target).
If APE meets the Wilsons target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.00, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 17.50 cents and EPS of 29.60 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.2, implying annual growth of N/A.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 28.7.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 29.40 cents and EPS of 43.10 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.7, implying annual growth of 21.5%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 23.6.

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

ARX AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.46

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

Aroa Biosurgery develops and commercialises Endoform, a proprietary soft tissue regeneration platform. According to Bell Potter, it provides a "holy grail" solution to the trade-off between safety, efficacy and cost with currently available Synthetic and Biologic wound dressings and surgical meshes.

The company achieved sales of $22m in FY20 from commercialised products Endoform (wound care), Myriad (surgical) and OviTex and OviTex PRS (hernia repair and plastic/reconstructive surgery).

The broker cites key stock drivers including strong execution and strategy on sales and marketing, tailwinds from ongoing data read outs for market share growth in areas with high unmet clinical need and a differentiated product based on technology, efficacy and health economics, with overwhelmingly positive feedback from leading physicians.

The analyst notes some upcoming catalysts this calendar year including the Bravo (hernia trial) clinical update in 4Q20 and Myriad clinical data in 2H20.

Initiation of coverage with a Buy (speculative) rating. The valuation (not a price target) is $2.10.

This report was published on August 3, 2020.

Current Price is $1.46. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.40.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 112.31.

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

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

Aroa Biosurgery develops and manufactures medical devices for hernia repair, wound healing, soft tissue reinforcement and reconstructive surgery. All of the company’s products feature a proprietary extracellular matrix (ECM) biomaterial derived from ovine (sheep) forestomach.

The company’s ovine forestomach matrix is the best biomaterial the reconstructive surgery market has seen, according to Wilsons. The biomaterial is almost perfect in terms of its handling properties, ability to withstand infection and to regenerate high quality, remodelled tissue.

The broker points to a commercial partnership with US firm Tela Bio that is achieving great success in hernia repair, abdominal wall and other reconstructive surgeries.

Wilsons estimates the company revenues in five years will exceed NZ$75m, split approximately equally between Tela Bio’s launch of OviTex in hernia and reconstructive surgery, organic and international growth from Aroa’s Endoform wound care platform, and new product launches.

Other prospects come from the early 2000 launch of Myriad and the recently FDA-approved Symphony

Initiation of coverage with an Overweight rating. Target price is $1.91

This report was published on August 3, 2020.

Target price is $1.91 Current Price is $1.46 Difference: $0.45
If ARX meets the Wilsons target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.56.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 69.52.

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: $4.12

Canaccord Genuity rates ((BWX)) as Upgrade to Buy from Hold (1) –

BWX announced unaudited earnings (EBITDA) of 30.9m. This was within its guidance range and 4% above the Canaccord Genuity estimate.

Sukin was the standout performer of the company's brands and its revenue reflected accelerating like-for-like growth, says the analyst.

Canaccord Genuity points to other highlights including increased gross margins, an improved working capital profile and better net debt.

The company is raising up to $50m of new equity via a $40m placement and a $10m SPP with an issue price of $3.40. The raising will support the development of a new operations centre.

The broker upgrades the rating to a Buy from Hold as the company has undertaken two years of increasing investment in its own operations. The analyst suggests it now has a more robust business model with improved growth prospects and is generating higher quality earnings, along with a stronger balance sheet.

The target price is increased to $4.58 from $4.01.

This report was published on August 4, 2020.

Target price is $4.58 Current Price is $4.12 Difference: $0.46
If BWX meets the Canaccord Genuity target it will return approximately 11% (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 4.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.45.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 5.90 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.69.

Market Sentiment: 1.0
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: $19.00

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

Credit Corp Group has reported profit (NPAT) at the top end of its guidance range and booked around -$90m in pre-tax impairments and provisions.

The impairments related to lower collections in the debt purchasing business, debt purchasing agreements that have uneconomic components and the expectation of higher losses out of the consumer lending book.

Canaccord Genuity encourages investors to focus on future announcements regarding the two key drivers, which are staffing levels and loan originations.

The broker increases EPS estimates for FY21 and FY22 by 24% and 4%, respectively.

Canaccord Genuity maintains its Buy rating. The target price is decreased to $19.90 from $20.50.

This report was published on July 29, 2020.

Target price is $19.90 Current Price is $19.00 Difference: $0.9
If CCP meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $20.65, suggesting upside of 8.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 55.00 cents and EPS of 110.00 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.0, implying annual growth of 296.1%.
Current consensus DPS estimate is 50.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 65.00 cents and EPS of 132.00 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.8, implying annual growth of 18.6%.
Current consensus DPS estimate is 60.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 15.9.

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

CCX CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $3.36

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

City Chic Collective looks to be acquiring the digital assets of US plus-sized apparel retailer Catherines for a US$16m offer price, which settles in October.

Canaccord Genuity sees this as consistent with the company's playbook to date, as it increases the customer base and age groups that it caters for via digital channels. Importantly, the broker states the acquisition of Avenue Store late last year established the necessary infrastructure to service the US market on a greater scale.

Catherines is a retailer for mature value-conscious women, with 300 US stores (now closed) and a 60 year operating history. Annual online sales were US67m (April 2020) which accounted for one third of total sales, notes the analyst.

The company made an accompanying $90m capital raise and a trading update which revealed FY20 sales of $194m and earnings (EBITDA) of $29.3m.

The results announcement is due on Thursday, August 27.

The Buy rating is maintained. The target price is increased to $4.10 from $3.10.

This report was published on August 3, 2020.

Target price is $4.10 Current Price is $3.36 Difference: $0.74
If CCX meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.84, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 3.30 cents and EPS of 8.60 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 39.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of -12.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 46.0.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 12.40 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.3, implying annual growth of 41.1%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 32.6.

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

DOW DOWNER EDI LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $4.18

Goldman Sachs rates ((DOW)) as Upgrade to Buy (1) –

Goldman Sachs notes that Downer EDI has meaningfully underperformed the market, largely on balance sheet concerns and relatively undefined covid-19 risks.

The broker now views these near-term concerns as largely addressed by the capital raising and the company's recent earnings pre-announcement.

The analyst sees the company as a defensive play because of its core positioning as a macro-insulated urban services provider. This is a result of the company's portfolio reshaping efforts, whereby the definition of core includes Transport, Facilities, Utilities and Asset Services.

The remaining divisions are are in the process of either being wound down or under review/for sale. The rating is upgraded to Buy from Hold. The target price is increased to $5.10 from $3.93.

This report was published on July 29, 2020.

Target price is $5.10 Current Price is $4.18 Difference: $0.92
If DOW meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $4.66, suggesting upside of 11.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 14.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.8, implying annual growth of -37.5%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.1, implying annual growth of 23.5%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 12.6.

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

EHL EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $1.02

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

Emeco Holdings reported a strong FY20 result with earnings in line with its guidance. The company also guided towards a better than expected FY21 outlook.

Operating income was up 15% while net profit grew by 23.1%. Bell Potter notes earnings were hit by the soft coal markets driven by less utilisation in the Eastern Region due to the pandemic.

This was partially offset by a better than expected result from Pit N Portal. Western Regions' exposure to gold and iron ore also helped. The broker considers the company's rental business outlook to be better than expected.

The broker has revised its earnings estimates downwards for FY21 while increasing it for FY22.

Bell Potter reiterates its Buy recommendation with the target price increasing to $1.60 from $1.52. The broker expects coal-related headwinds to continue to impact the Eastern Region.

Target price is $1.60 Current Price is $1.02 Difference: $0.58
If EHL meets the Bell Potter target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 10.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.90.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.90.

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

FCL FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $4.57

Moelis rates ((FCL)) as Hold (3) –

Fineos Corp Holdings released its Q420 operating update and Moelis notes the company continues to execute well through the pandemic, by winning new clients and maintaining high professional services utilisation.

Full year cash receipts were EUR82m, which was slightly below expectations, according to the analyst, given management expected revenue to be at the upper end of EUR84m-86m guidance range.

Two new contracts were signed in the quarter, F&G (announced in June) and AIA Australia, a top two life insurer in Australia.

The largest North American client completed an upgrade to the cloud. Having the full AdminSuite live in the cloud is an important milestone for future Policy and Billing sales, which the broker expects to play out in the latter half of FY21.

Moelis reinstates coverage with a Hold and a target price of $4.72.

This report was published on July 30, 2020.

Target price is $4.72 Current Price is $4.57 Difference: $0.15
If FCL meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 147.42.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 91.40.

This company reports in EUR. 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

GMG GOODMAN GROUP

Infra & Property Developers – Overnight Price: $17.90

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

Goldman Sachs projects forward to the FY20 result for Goodman Group and seeks to justify the broker’s existing Sell rating and target price, which is set well below the current share price.

The broker estimates investors are expecting the company to generate medium-term EPS growth of greater than 9%. However, for this to be achieved the broker calculates the company would need to generate a further positive step-change in its Marginal Return on Equity (ROE).

Goldman Sachs fails to see how this may be achieved given management fees are already at the top end of the company’s guidance range, overheads as a percentage of group capital have remained stable since FY15, the proportion of capital allocated to relatively low-Return On Invested Capital (ROIC) direct asset base has already declined to -15% from 28% and Development ROIC has been boosted by super-normal margins.

The broker acknowledges the risks to its negative view and cites upside risks including a more benign valuation decline than the broker assumed for logistics assets globally and stronger tenant demand for the company’s development book than the broker has forecast.

The broker lifts its earnings estimates for FY21, FY22 and FY23 by 3.5%, 4.4% and 2.3%, respectively.

Sell rating is maintained. The target price is increased to $10.77 from $10.26.

This report was published on August 3, 2020.

Target price is $10.77 Current Price is $17.90 Difference: minus $7.13 (current price is over target).
If GMG meets the Goldman Sachs target it will return approximately minus 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.88, suggesting downside of -11.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 30.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.7, implying annual growth of -35.8%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 31.0.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 32.00 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.5, implying annual growth of 8.3%.
Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 28.6.

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

GSS GENETIC SIGNATURES LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.40

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

Genetic Signatures revealed another record quarter in 4QFY20 with revenue of $7m beating the Bell Potter forecast of $5m.

As a result, the broker lifts revenue forecasts which translates into a reduction in FY20 net loss estimates and a large increase in FY21 profit estimates.

The beat was driven by instrument sales of $1m and strong domestic demand for covid-19 testing, partially offset by lower than expected revenue from Europe.

Specific covid-19 testing reimbursement and the secondary wave of infections is continuing to grow the volume of testing in the US and Australia, notes the analyst.

Buy (speculative) rating maintained with target price increased to $3.45 from $2.60.

The report was published on July 29, 2020.

Target price is $3.45 Current Price is $2.40 Difference: $1.05
If GSS meets the Bell Potter target it will return approximately 44% (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 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 141.18.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.28.

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: $11.58

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

GUD Holdings' FY20 result is labeled as "reasonable" with net profit down -13% due to volatile trading conditions. Operating income in the core automotive segment declined -8% because of fx impact and unfavourable mix margins.

Strong cash conversion at 97% helped minimise damage to the balance sheet from weaker trading results. Trading conditions have improved and longer-term, Wilsons forecasts single-digit operating income growth and modest bolt-on acquisition activity.

Wilsons maintains its Market Weight rating with a target price of $11.15.

This report was published on July 29, 2020.

Target price is $11.15 Current Price is $11.58 Difference: minus $0.43 (current price is over target).
If GUD meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $11.65, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 54.00 cents and EPS of 67.60 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.8, implying annual growth of 20.6%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 19.0.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 57.00 cents and EPS of 70.20 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of 8.2%.
Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 17.6.

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

IPD IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.08

Canaccord Genuity rates ((IPD)) as Speculative Buy (1) –

ImpediMed reported 4Q20 cash flows which were impacted by covid-19, but demonstrated some resilience, according to Canaccord Genuity.

Total revenue declined -27% quarter on quarter to $1.2m, largely due to SOZO revenue being down -$1.1m.

The company finished the quarter with $19.7m in cash, largely due to the recent $18.2m capital raising.

The broker expects the Heart Failure product could reach commercialisation by the end of the year, which is not yet factored into the broker's forecasts.

Canaccord Genuity also expects some progress over the next quarter on the new Renal Failure Project. The Speculative Buy rating is maintained. The target price is $0.20.

The report was published on July 29, 2020.

Target price is $0.20 Current Price is $0.08 Difference: $0.12
If IPD meets the Canaccord Genuity target it will return approximately 150% (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 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.58.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 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.

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

JHG JANUS HENDERSON GROUP PLC.

Wealth Management & Investments – Overnight Price: $29.59

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

Janus Henderson reported 2Q20 adjusted EPS of $0.67, well above the Goldman Sachs forecast of $0.49. The broker notes delta was driven by higher management fees, higher performance fees and a lower tax rate.

Adjusted operating income of $138.4m was 16% above the broker's estimate of $119.1m.

Goldman Sachs regards the result as 'decent' with key positives including a surprisingly resilient management fee and higher-than-consensus quarter-ending Assets Under Management.

However, flows remain challenged, while year to date excess performance trends are sharply negative in large US Equity funds. The a Neutral rating is maintained. The target price is $23.

This report was released on 29 July 2020.

Target price is $23.00 Current Price is $29.59 Difference: minus $6.59 (current price is over target).
If JHG meets the Goldman Sachs target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.38, suggesting upside of 12.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 213.97 cents and EPS of 365.53 cents.
At the last closing share price the estimated dividend yield is 7.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 337.7, implying annual growth of N/A.
Current consensus DPS estimate is 200.4, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 8.8.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 213.97 cents and EPS of 334.32 cents.
At the last closing share price the estimated dividend yield is 7.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 342.3, implying annual growth of 1.4%.
Current consensus DPS estimate is 200.5, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 8.6.

This company reports in USD. 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

MMM MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $3.18

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

Following a second quarter trading update by Marley Spoon AG, Canaccord Genuity raises both FY20 and FY21 revenue estimates by 17%.

The key takeaways for the analyst were the standout performance by the Australian region with operating margins of 44% and a strong revenue increase in the US, likely driven by the continued success and differentiated low-priced Dinnerly product.

Canaccord Genuity considers Hellofresh, headquartered in Berlin, Germany, is the company's closest listed peer and on a comparison of several conditions and metrics Marley Spoon has an implied value of $3.40.

The broker maintains the Buy (speculative) rating. The target price is increased to $3.20 from $2.00.

The report was published on July 29, 2020.

Target price is $3.20 Current Price is $3.18 Difference: $0.02
If MMM meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 96.39.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.25 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.56.

This company reports in EUR. 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

MND MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $8.48

Wilsons rates ((MND)) as Downgrade to Market Weight from Overweight (3) –

Wilsons downgrades Monadelphous Group to Market Weight from Overweight for a number of reasons including a fresh announcement on potential litigation, mounting uncertainty surrounding visibility on construction projects, resource supply chains (customers and its own) and the impacts of the precipitous fall in the oil price.

Although Rio Tinto's ((RIO)) claim is potentially large, the broker sees a negotiated process vastly reducing the headline claim of -$493m. More importantly the analyst believes the situation is survivable for the company.

The company's FY20 result is due on August 18 and the broker suggests this will be somewhat underwhelming, although the analyst highlights the consensus expectations of the broking community is low.

The rating is downgraded to Market Weight from Overweight. The target price is reduced to $8.40 from $14.00.

This report was published on August 4, 2020.

Target price is $8.40 Current Price is $8.48 Difference: minus $0.08 (current price is over target).
If MND meets the Wilsons target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.53, suggesting upside of 24.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 34.60 cents and EPS of 50.90 cents.
At the last closing share price the estimated dividend yield is 4.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.5, implying annual growth of -24.6%.
Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 37.50 cents and EPS of 48.40 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.3, implying annual growth of 36.5%.
Current consensus DPS estimate is 42.8, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.3.

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

MQG MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $126.21

Goldman Sachs rates ((MQG)) as No Rating (-1) –

Macquarie Group provided a 1Q21 update broadly consistent with Goldman Sachs expectations.

The company reiterated that it is currently unable to provide meaningful earnings guidance for FY21, given an uncertain global macroeconomic backdrop.

Management expects a softening in activity within its Commodities and Global Markets business, following a stronger-than-expected contribution in 1Q21.

The broker notes the key positive from the company update is the capital position remains strong. Goldman Sachs currently expects FY21 profit (NPAT) to fall by -23% compared to the previous corresponding period.

There is no rating provided. The target price is $127.32

This report was published on July 30, 2020.

Target price is $127.32 Current Price is $126.21 Difference: $1.11
If MQG meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $120.65, suggesting downside of -4.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 574.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 646.7, implying annual growth of -18.2%.
Current consensus DPS estimate is 416.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 896.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 814.9, implying annual growth of 26.0%.
Current consensus DPS estimate is 580.5, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.5.

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

MSB MESOBLAST LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.36

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

Mesoblast provided a quarterly activities report and an update on upcoming milestones for its lead product candidate Ryoncil.

Bell Potter notes the 4QFY20 result includes a cash balance of US$129.3m, which was higher than the US$126.6m forecast by the broker. Existing debt facilities and an upcoming milestone payment provides a cash runway into 1QFY22, says the analyst.

The broker points out the company is well capitalised to support near-term strategic objectives which includes the commercial launch of Ryoncil for acute Graft Versus Host Disease (GVHD). Funds will also need to be deployed in the scale-up of manufacturing for the projected increase in capacity requirements for the maturing pipeline and clinical programs supporting label extension strategies and regulatory approvals of Phase 3 assets.

Bell Potter says all eyes are on Ryoncil’s administrative committee (ADCOM) for paediatric SR-aGvHD on August 13 and the FDA has set a Prescription Drug Use Fed Act (PDUFA) date of September 30, 2020.

The stock remains the broker’s top pick for the year. The Buy rating is maintained. The target price is increased to $6.00 from $5.90.

This report was published on July 31, 2020.

Target price is $6.00 Current Price is $3.36 Difference: $2.64
If MSB meets the Bell Potter target it will return approximately 79% (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 20.95 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.04.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.38.

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

OBL OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $4.23

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

Omni Bridgeway is a global leader in dispute finance, financing disputes from inception through trial, appeal, enforcement and recovery.

The company has released its 4Q20 portfolio update ahead of its 19 August, FY20 result, which should be a catalyst for the stock, according to Goldman Sachs.

The broker highlights include a 10% rise in Estimated Portfolio Value (EPV), the highest gross revenue ever recorded and an increased cash and receivables balance.

The analyst notes a strong investment opportunity created by increasing demand from corporates for litigation funding alternatives as they consider capital allocation decisions, some covid-19-related opportunities and a general increase in litigation funding demand from law firms given current conditions.

Additionally, there are some second opportunities on matters the company had missed out on due to competition, but have returned for various reasons.

The Parliamentary Joint Committee on Corporations and Financial Services is due to report its findings by December 7. However, regardless of how the regulatory environment evolves, Goldman Sachs views litigation funders will remain a key part of the class action industry.

Due to slippage in expected completion of EPV, the broker adjusts EPS estimates by -21%, -9% and 37% for FY20, FY21 and FY22, respectively. This reflects movements in the timing of expected case completions.

The Buy rating is maintained and the target price is increased 6.5% to $5.70.

This report was published on August 3, 2020.

Target price is $5.70 Current Price is $4.23 Difference: $1.47
If OBL meets the Goldman Sachs target it will return approximately 35% (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 9.00 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.00.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 7.00 cents and EPS of 92.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.60.

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

PBH POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $6.08

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

A strong trading FY20 update for the Australian business of PointsBet Holdings has underpinned a second consecutive positive earnings (EBITDA) quarter for that geography, according to Bell Potter.

The broker states the company is a beneficiary of the domestic growth in online betting during covid-19, which has been supported by the continuation of Australian racing and the forced closure of TAB outlets, pokies and casinos.

Bell Potter sees further momentum from a ramp-up of US sport in the very short-term and the launch of retail and digital operations in Illinois by the end of August, 2020.

The broker has retained its Speculative Buy rating. The target price is increased to $7.60 from $7.00.

This report was published on July 28, 2020.

Target price is $7.60 Current Price is $6.08 Difference: $1.52
If PBH meets the Bell Potter target it will return approximately 25% (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 25.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.94.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 34.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.62.

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

PCK PAINCHEK LIMITED

Medical Equipment & Devices – Overnight Price: $0.13

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

PainChek provides pain assessment solutions primarily in Australia and Europe. The product PainCheck is a smartphone and tablet pain assessment and monitoring device that automatically detects pain through facial recognition technology. It serves pre-verbal children and dementia patients.

The company delivered a solid June quarter result, according to Canaccord Genuity, despite the impact of covid-19 on its core customer base of Residential Aged Care (RAC).

The company added 33 new clients in the quarter, compared with 77 in the March quarter. The analyst believes this was admirable, given the lockdown persisted for most of the quarter.

Annual Recurring Revenue increased around 18%, quarter on quarter, and is up around 451% for FY20, observes the analyst.

The home care market represents the next phase of expansion and has a significantly larger target market, states the broker.

The Buy rating and target price of $0.55 are unchanged.

This report was published on July 29, 2020.

Target price is $0.55 Current Price is $0.13 Difference: $0.42
If PCK meets the Canaccord Genuity target it will return approximately 323% (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 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.33.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

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

PVS PIVOTAL SYSTEMS CORPORATION

Hardware & Equipment – Overnight Price: $1.00

Moelis rates ((PVS)) as Buy (1) –

Pivotal Systems provides the best-in-class gas flow monitoring and control technology platform for the global semiconductor industry. The company’s proprietary hardware and software utilises advanced machine learning to enable preventative diagnostic capability.

The company released its Q2FY20 revenue and overall operating update and revealed revenue trending up and gross margins slightly behind expectations, according to Moelis. However, the broker says margins are a temporary issue and expects gross margins to be greater than 30% in the second half.

The broker sees the company continuing to build the revenue base through incremental market share wins in a buoyant industry.

Moelis re-initiates coverage with a Buy. The target price is $1.48.

This report was published on August 4, 2020.

Target price is $1.48 Current Price is $1.00 Difference: $0.48
If PVS meets the Moelis target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 15.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.29.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.32.

Shaw and Partners rates ((PVS)) as Buy (1) –

The company reported 2Q20 and preliminary 1H20 sales results, which indicated the recovery Shaw and Partners were looking for.

The company anticipates 2H20 revenues will increase sequentially on the first half and sees continued strengthening in the overall semiconductor industry into 2021.

The broker notes the company is expected to be back to cashflow positive by the end of 2H20.

The Buy rating is maintained. The target price is $1.70.

This report was published on August 4, 2020.

Target price is $1.70 Current Price is $1.00 Difference: $0.7
If PVS meets the Shaw and Partners target it will return approximately 70% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.68 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.38.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.83.

RCL READCLOUD LIMITED

Education & Tuition – Overnight Price: $0.36

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

ReadCloud reported its 4Q20 cash flows and business update below Canaccord Genuity's expectations. However, faster invoicing and collections in 3Q20 accounted for the slight drop in the fourth quarter.

The company connects users with digital education content from multiple publishers on a single platform, sitting between schools and publishers. The platform’s major focus is the secondary school market and the vocational training market.

The company advised that underlying earnings (EBITDA) were positive, which makes it the maiden positive earnings period for the company, according to the broker.

Canaccord Genuity maintains the company has become a leader in digital resources for secondary school education and this has continued with several enhancements to the product.

The Buy rating is maintained. The target price is unchanged at $0.60.

The report was published on July 29, 2020.

Target price is $0.60 Current Price is $0.36 Difference: $0.24
If RCL meets the Canaccord Genuity target it will return approximately 67% (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 0.00 cents.

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 36.00.

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

RMY RMA GLOBAL LIMITED

Real Estate – Overnight Price: $0.27

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

RMA Global is an online digital marketing company that provides data on real estate. Its platform offers data on active residential property listings, sale results for individual residential real estate agents and agencies and reviews of agent performance from vendors and buyers of real estate.

The company has delivered a positive 4Q20 update, with the company making solid progress in refining its on-boarding and review collection process within the US market, according to Bell Potter. The broker state this has delivered another uptick in the number of US claimed agents and reviews collected.

Around 5,200 new US agents connected to the Rate My Agent Platform during July which compares to a monthly average around 3,200 for FY2020. In Australia Promoter revenues grew 40% during the quarter, due to an increase in the number of agents utilising online during the pandemic.

RMA Global is targeting 100,000 US Agents on the platform by December, 2020, and as the company now begins targeting other groups, Bell Potter maintains this will be a key catalyst for accelerating US subscriptions over the year ahead.

The rating is upgraded to Buy from Hold. The target price is increased to $0.35 from $0.30.

This report was published on July 31, 2020

Target price is $0.35 Current Price is $0.27 Difference: $0.08
If RMY meets the Bell Potter target it will return approximately 30% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.64.

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 30.00.

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

RVS REVASUM INC

Hardware & Equipment – Overnight Price: $0.30

Shaw and Partners rates ((RVS)) as Hold (3) –

Revasum designs, manufactures and markets a portfolio of market-leading tools for grinding and polishing the substrates upon which semiconductor wafers are built.

Revasum reported 1H20 (year ended July 5, 2020) preliminary unaudited revenue of US$6.5m of which US$4.1m is systems revenue. Shaw and Partners notes the top line performance is yet to show any recovery and the company's systems backlog of US$5.7m, consisting of tools scheduled to ship during 2H20, suggest it is yet to begin.

The broker highlights the significance of the company still awaiting the first sale of its new tool. However, the analyst notes cost containment looks to have been established, which should result in better leverage. Reverting to a caution, the analyst also states the company requires significant growth in SiC tool shipments to support improved cash generation over coming periods.

Shaw and Partners forecasts are reduced for FY20 (EPS to -7cps from 1.9cps) and beyond. The Hold rating is maintained.The target price is decreased to $0.60 from $0.80.

This report was published on July 31, 2020.

Target price is $0.60 Current Price is $0.30 Difference: $0.3
If RVS meets the Shaw and Partners target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 7.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.80.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 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 8.11.

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

STG STRAKER TRANSLATIONS LIMITED

IT & Support – Overnight Price: $1.15

Shaw and Partners rates ((STG)) as Buy (1) –

Straker Translations engages in the provision of translation services in many parts of the world and operates Ray, a cloud-based translation platform. It offers corporate amd business translation services.

The company released 1Q21 results which showed the post pandemic recovery is gaining pace from April/May into June, notes Shaw and Partners.

The key takeaways for the broker included revenue ahead of the broker's forecast, June revenue up 28% on the pcp as all market segments recover, the pipeline of opportunities continuing to flourish, operating cash flows are improving with no debt and the company reiterated the longer-term revenue target of NZ$100m within three years.

Shaw and Partners lists the positives including earnings and cashflow breakeven is possible in the next 12-24 months, gross margins are strong at 55%, recurring revenues are greater than 86%, management expertise is high and the risk/reward equation is compelling.

Also, merger and acquisition remains a key driver and catalyst of share price performance in the coming months. The broker rates the stock a Buy with a target price of $1.20.

This report was published on July 31, 2020.

Target price is $1.20 Current Price is $1.15 Difference: $0.05
If STG meets the Shaw and Partners target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.45 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.87.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.52.

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

SUL SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $9.25

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

Super Retail Group's trading update reflects strong double-digit like for like-for-like growth for all brands, except Rebel (around 5%), highlights Goldman Sachs.

The broker views this as confirmation of its thesis the company is benefiting from increased domestic travel and local holidays, as well as increased usage of private transport and home fitness equipment as a result of covid-19.

The analyst draws comfort from the recent capital raising that bolsters the balance sheet and provides support in the event of any forced store closures from covid-19.

Goldman Sachs retains its Buy rating with a target price of $10.30.

This report was published on August 3, 2020.

Target price is $10.30 Current Price is $9.25 Difference: $1.05
If SUL meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $9.86, suggesting upside of 6.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 29.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 3.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.7, implying annual growth of 3.0%.
Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 43.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 4.65%.
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 67.6, implying annual growth of -7.0%.
Current consensus DPS estimate is 39.2, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 13.7.

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

UMG UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $4.01

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

United Malt Group is the recently listed entity that demerged from GrainCorp and is the fourth largest commercial maltster globally.

Bell Potter updates estimates after reviewing recent results for US brewers and data points from the Beer Institute (BI) and Brewers Association (BA).

The recent US results highlight US beer volume declines and a recent BA survey showed an approximate year on year -10% decline in craft beer volumes through 1HCY20. According to the analyst, this compares to total US shipments declining around -1%, which suggests a shift in demand for the company to mainstream brewers from higher margin craft brewers.

Bell Potter concludes the company is trading at a multiple broadly consistent with US brewery stocks. The largest risk is the financial viability of small craft brewers, that are likely disproportionately represented in the company's earnings, says the analyst.

The broker's forecasts are adjusted to reflect stronger overall beer volumes than previously incorporated. The Hold rating is maintained. The target price is increased to $4.00 from $3.60.

The report was published on August 3, 2020.

Target price is $4.00 Current Price is $4.01 Difference: minus $0.01 (current price is over target).
If UMG meets the Bell Potter target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.50, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 8.00 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 25.5.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.60 cents and EPS of 21.80 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 18.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of 27.4%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 20.0.

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

VUK VIRGIN MONEY UK PLC

Banks – Overnight Price: $1.66

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

Virgin Money UK provided a 3Q20 trading update showing softer mortgage and personal lending conditions, notes Bell Potter. Some positives included stronger deposit growth and business lending increasing due to government-backed lending schemes.

3Q20 Net Interest Margin (NIM) was lower due to adverse asset repricing in line with the base rate reduction and higher cost of holding excess liquidity, but the broker expects improved NIM in 4Q20.

The broker lifts the rating to a Buy purely on valuation grounds after increasing profit estimates, because of better impairment expense outcomes, as a result of previously being too conservative.

According to Bell Potter, the company indicated things would not get better soon because of subdued consumer lending due to the pandemic. The company intends to offset this headwind with margin, cost and capital management.

The rating increased to Buy from Hold. The target price increased to $2.00 from $1.90.

The report was published on July 28, 2020.

Target price is $2.00 Current Price is $1.66 Difference: $0.34
If VUK meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.70, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 16.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, 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 10.3.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.38 cents and EPS of 13.15 cents.
At the last closing share price the estimated dividend yield is 2.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 21.7%.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 8.5.

This company reports in GBP. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
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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