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Australian Broker Call *Extra* Edition – Sep 02, 2020

Daily Market Reports | Sep 02 2020

This story features 5G NETWORKS LIMITED, and other companies. For more info SHARE ANALYSIS: 5GN

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)

5GN   ARB   COH   IMD   INA   IVC   MCP (2)   MFD   MND (2)   MNY   MP1   NEA   PPS (2)   TNK (2)   WPR   WTC  

5GN    5G NETWORKS LIMITED

Telecommunication – Overnight Price: $2.22

Wilsons rates ((5GN)) as Overweight (1) –

5GN’s FY20 result slightly disappointed Wilsons in terms of revenue. On the bright side, operating income and operating income margins both more than doubled, reinforcing the company's tilt towards higher quality revenues, reports the broker.

Wilsons considers FY20 to be a transition year with the company increasing focus on its higher-margin cloud, data centre, network and voice segments.

Operating income guidance appears to be conservative. The broker remains constructive on the company's growth trajectory driven by covid-19-induced demand for cloud-based services and digital transformation programs.

Wilsons retains its Overweight rating with the target price decreasing to $2.10 from $2.14.

This report was published on August 19, 2020.

Target price is $2.10 Current Price is $2.22 Difference: minus $0.12 (current price is over target).
If 5GN meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 2.00 cents and EPS of 1.10 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 201.82.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 2.00 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 79.29.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $26.07

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

ARB Corp's FY20 net profit (NPAT) and sales were well above Wilsons' forecast. The beat was led by stronger sales and a more favourable sales mix. First half dividend was deferred and the second half dividend was 21c to be paid on October 23.

While no guidance was provided for FY21, the broker notes the outlook commentary was very robust and implies a strong start to the year. Wilsons forecasts flat sales in FY21 with upside risk due to favourable demand trends.

Wilsons maintains its Overweight rating with a target price of $19.70.

This report was published on August 18, 2020.

Target price is $19.70 Current Price is $26.07 Difference: minus $6.37 (current price is over target).
If ARB meets the Wilsons target it will return approximately minus 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $22.45, suggesting downside of -13.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Current consensus EPS estimate is 78.5, implying annual growth of 9.3%.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 33.2.

Forecast for FY22:

Current consensus EPS estimate is 85.4, implying annual growth of 8.8%.
Current consensus DPS estimate is 52.6, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 30.5.

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

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $190.02

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

Wilsons downgrades its rating to Market Weight from Overweight with the target price lifting to $228.95.

Cochlear's second half FY20 results were stronger than expected and have led to the broker upgrading its forecasts for FY21, reflecting higher cochlear implant sales, improved gross margin outlook and lower opex guidance.

The outlook appears to be very strong in terms of product pipeline, notes the broker. The launch of a new sound processor could amplify the device-level advantages.

The adult/senior patient cohort accounts for 75% of major market demand and is the major risk to forecasts and valuation, according to the broker.

Target price is $228.95 Current Price is $190.02 Difference: $38.93
If COH meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $201.33, suggesting upside of 6.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 160.00 cents and EPS of 327.50 cents.
At the last closing share price the estimated dividend yield is 0.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 328.1, implying annual growth of N/A.
Current consensus DPS estimate is 109.9, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 57.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 302.20 cents and EPS of 444.50 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 459.3, implying annual growth of 40.0%.
Current consensus DPS estimate is 308.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 41.4.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IMD    IMDEX LIMITED

Mining Sector Contracting – Overnight Price: $1.25

Canaccord Genuity rates ((IMD)) as Hold (3) –

Imdex emerged from the shutdowns with its growth trajectory intact, observes Canaccord Genuity, along with a strong balance sheet and potential earnings upside from recent activity in the mining sector.

The recovery was faster than anticipated and the broker continues to believe Imdex offers the best mining services leverage to the gold sector.

The broker estimates the company's deferred consideration may imply expecting up to circa $90m in revenue from the Flexidrill technologies over the coming 6 years.

The stock is seen trading close to fair value and Canaccord Genuity maintains its Hold rating with the target price increasing to $1.38 from $1.

The report was published on August 18, 2020.

Target price is $1.38 Current Price is $1.25 Difference: $0.13
If IMD meets the Canaccord Genuity target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 3.70 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.51.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.80 cents and EPS of 4.50 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.78.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.60

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

Ingenia Communities Group's year to date contracted/deposited homes of 205 and 37 new home settlements indicates a strong start to the year and supports Goldman Sachs's forecast of 355 settlements in FY21.

A look at holiday booking indicates the business bouncing back post covid. The macro for the company, leveraged to an ageing population with limited or no retirement savings, is considered supportive.

The broker expects Ingenia and the land lease asset class in general to continue to re-rate over the medium term and maintains its Buy rating. Target price is $5.40.

This report was published on August 18, 2020.

Target price is $5.40 Current Price is $4.60 Difference: $0.8
If INA meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.90.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.40.

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

IVC    INVOCARE LIMITED

Consumer Products & Services – Overnight Price: $9.68

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

InvoCare announced first half operating earnings in-line with Bell Potter estimates.

Second quarter sales were materially impacted by social restrictions, which reduced average revenue per funeral by -6.6% across the group, notes the broker. Lower market volumes also reflected a benign flu season due to social distancing.

Bell Potter reduces growth estimates, given renewed social restriction headwinds and lower near-term market funeral case volumes.

The Buy rating is maintained and the target price is decreased to $12.50 from $13.90.

This report was published on August 19, 2020.

Target price is $12.50 Current Price is $9.68 Difference: $2.82
If IVC meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $10.79, suggesting upside of 11.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 19.40 cents and EPS of 27.40 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 35.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.7, implying annual growth of -53.9%.
Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 37.7.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 35.80 cents and EPS of 45.40 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.9, implying annual growth of 35.8%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.7.

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

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $3.26

Moelis rates ((MCP)) as Buy (1) –

Given McPhersons pre-reported its key financials in July, the result was as expected for Moelis.

The company delivered a very strong FY20 underlying profit (PBT) result which was significantly ahead of guidance. This was due to stronger-than-expected Dr LeWinn's China sales and improved sales and profitability from Multix, notes the broker.

The analyst reports no formal guidance was provided, but trading in FY21 has been strong to date.

Moelis sees Dr LeWinn's sales into China as the key driver of growth and value. The Buy rating is reinstated and the target price is $3.53.

This report was published on August 19, 2020.

Target price is $3.53 Current Price is $3.26 Difference: $0.27
If MCP meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 11.30 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.12.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.50 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.62.

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


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

The McPherson’s result was pre-reported. FY20 was a strong year with a stronger than expected second half and export performance, comments Shaw and Partners.

Dr LeWinn’s continues to shine and be a massive profit driver, notes the broker, with FY20 revenue up 75% and export revenues exceeding the joint venture target two years early.

The broker highlights McPherson's has a clean balance sheet and is experiencing a step change in company earnings with Dr LeWinn’s into China.

The Buy rating is maintained and the target price is $3.66.

This report was published on August 20, 2020.

Target price is $3.66 Current Price is $3.26 Difference: $0.4
If MCP meets the Shaw and Partners target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 12.20 cents and EPS of 17.30 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 18.84.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 14.00 cents and EPS of 19.90 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.38.

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

MFD    MAYFIELD CHILDCARE LIMITED

Childcare – Overnight Price: $0.71

Canaccord Genuity rates ((MFD)) as Hold (3) –

Mayfield Childcare’s first-half result was ahead of Canaccord Genuity's expectations and considered reasonably good looking at the time of impact of covid-19 on demand during the June quarter.

There was no guidance provided due to the uncertainty created by the Stage 4 lockdown. Based on the result, the broker is reasonably optimistic the company's profitability will continue to recover in the second half.

Even as the stock looks reasonably cheap, looking at the uncertainty around the lockdowns and Mayfield's exposure to Victoria, Canaccord Genuity retains its Hold rating with the target price increased slightly to $0.96 from $0.95.

The report was published on August 19, 2020.

Target price is $0.96 Current Price is $0.71 Difference: $0.25
If MFD meets the Canaccord Genuity target it will return approximately 35% (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 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.14.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 6.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 8.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.45.

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: $11.01

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

The Monadelphous Group's FY20 result was not as bad as anticipated by Bell Potter. The result reflected material impacts from covid-19 and associated mitigation measures.

Impacts included supply chain disruptions to the Engineering Construction business and a reduction in activity levels in the Maintenance & Industrial Services business.

The broker considers all of the above largely old news and highlights the positives were new news on better-than-expected revenue, margins and final dividend.

The analyst notes cashflow was particularly strong and enabled the company to declare a 13cps final dividend, whilst also increasing the net cash balance to $116.4m (including all lease liabilities).

Bell Potter's main concern is the claim by Rio Tinto ((RIO)) for -$493m for losses and damages, but believes a mutually agreeable solution will be found.

The Buy rating is maintained and the target price is increased to $11.90 from $11.05.

This report was published on August 18, 2020.

Target price is $11.90 Current Price is $11.01 Difference: $0.89
If MND meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $10.93, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 48.00 cents and EPS of 58.80 cents.
At the last closing share price the estimated dividend yield is 4.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of 47.5%.
Current consensus DPS estimate is 41.9, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 51.00 cents and EPS of 65.60 cents.
At the last closing share price the estimated dividend yield is 4.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.0, implying annual growth of 10.5%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.5.

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


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

Monadelphous Group's FY20 result demonstrated strong execution and balance sheet management, comments Goldman Sachs.

Capex levered work was among the most impacted, as expected. Goldman Sachs is pleased with the company's ability to perform despite these headwinds.

The broker expects pandemic related revenue and margin headwinds to ease in FY21 and has revised its FY21 operating income up 10.4% on a stronger near term sales/margin outlook.

Target price raised to $11.00 from $9.60 due to Monadelphous' stronger than expected net debt position. Neutral rating maintained.

Target price is $11.00 Current Price is $11.01 Difference: minus $0.01 (current price is over target).
If MND meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.93, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 39.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of 47.5%.
Current consensus DPS estimate is 41.9, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 56.00 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.0, implying annual growth of 10.5%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.5.

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

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $2.13

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

Money3 Corp's FY20 result was slightly better than expected by Canaccord Genuity. Increased provisioning and higher write-offs were also in-line but looking at strong cash collections performance, were more of pre-emptive steps, says the analyst.

The broker points out Money3’s competitors are smaller private businesses with higher costs of funding and reduced access to capital. This, with relatively low gearing, puts the company in a unique position to grow the loan book, the analyst suggests.

Canaccord Genuity retains its Buy rating with the target price increased to $2.45 from $2.30.

This report was published on August 18, 2020.

Target price is $2.45 Current Price is $2.13 Difference: $0.32
If MNY meets the Canaccord Genuity target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 11.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.83.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 13.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.26.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $17.09

Canaccord Genuity rates ((MP1)) as Buy (1) –

The broker notes guidance for earnings (EBITDA) exiting FY21 potentially at breakeven provides fresh impetus for the stock, in addition to management at the company guiding towards slower growth in operational expenses.

Canaccord was pleased to notice the gross margin picked up in FY20, as expected, while noting management's suggestion network growth in the form of new data centre connections will slow in FY21.

The sales team will be focusing on increasing port usage, explains the analyst. The Hold rating is unchanged. The target price is increased to $17.15 from $15.50.

The report was published on August 20, 2020.

Target price is $17.15 Current Price is $17.09 Difference: $0.06
If MP1 meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $14.93, suggesting downside of -12.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 74.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -20.3, 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 FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 142.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.8, 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: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NEA    NEARMAP LTD

Software & Services – Overnight Price: $3.04

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

Nearmap reported its FY20 result with all of annualised contract value (ACV), revenues and cash earnings (EBITDA) in-line with Canaccord Genuity's expectations.

The broker considers it a remarkable result, against the backdrop of a volatile macroeconomic backdrop.

The company expects to finish FY21 in a similar cash position to 30 June, 2020 with incremental ACV/cash gross profit growth reinvested in growth initiatives.

The analyst notes strong momentum into the end of the financial year continued, as trading for the first seven weeks is consistent with growth in the same period in FY20.

The Buy rating is unchanged. The target price is increased to $3.30 from $3.20.

The report was first published on August 20, 2020.

Target price is $3.30 Current Price is $3.04 Difference: $0.26
If NEA meets the Canaccord Genuity target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $2.68, suggesting downside of -11.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.6, 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 FY22:

Canaccord Genuity forecasts a full year FY22 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 152.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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: 1.0
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: $0.49

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

Praemium's FY20 operating income (EBITDA) and net profit (NPAT) were both ahead of Bell Potter's estimates. The company delivered a good result in a difficult environment, comments Bell Potter.

Increased investment in the Australian business has helped the company gain more than expected revenue. The broker expects higher net flows in a more normalised environment. 

Cash earnings forecasts increased for FY21-23. Buy rating retained with the target price increased to $0.62 from $0.59.

The report was published on August 14, 2020.

Target price is $0.62 Current Price is $0.49 Difference: $0.13
If PPS meets the Bell Potter target it will return approximately 27% (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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.10 cents and EPS of 2.20 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.27.

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


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

Pramium's FY20 operating income result was above Shaw's forecast. The broker considers the overall result "very good".

FY21 operating income (EBITDA) estimate reduced by -5% due to uncertainty around covid-19 into the first half and maybe even the second half. 

The company is considered an attractive investment prospect and continues to disrupt financial services in the wealth management sector.

Momentum from a strong second half FY19 continued into FY20 and led to exiting FY20 on a strong note, highlights the broker. Buy (High Risk) rating with a target price of $0.65.

This report was published on August 17, 2020.

Target price is $0.65 Current Price is $0.49 Difference: $0.16
If PPS meets the Shaw and Partners target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.79.

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

TNK    THINK CHILDCARE GROUP

Childcare – Overnight Price: $0.78

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

Think Childcare Group's first half earnings have comfortably exceeded expectations, according to Canaccord Genuity.

Despite the challenges of covid-19, the company managed to generate positive occupancy levels and complemented that with strong cost management, explains the broker.

The broker notes the company has strengthened its growth profile and provided upbeat 2020 earnings guidance.

The Buy rating is maintained and the target price is decreased to $1.24 from $1.31.

This report was published on August 20, 2020.

Target price is $1.24 Current Price is $0.78 Difference: $0.46
If TNK meets the Canaccord Genuity target it will return approximately 59% (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 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.83.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 5.60 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 7.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.84.

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


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

Think Childcare Group announced first half earnings ahead of Wilsons expectations, with the numbers favourably impacted by JobKeeper and rental relief.

While the broker is disappointed by a -27.3% downgrade to the earnings guidance range, the analyst sees a number of positives in the result.

Positives include the Nido quality centres strategy, no apparent impact on demand from Victorian covid-19 and the visibility around the company has improved.

Additionally, the company is trading at a -66.7% discount to G8 Education ((GEM)) on a 12 month forward PE basis, finds the broker. The Overweight rating is maintained and the target price is increased to $1.67 from $1.38.

This report was published on August 20, 2020.

Target price is $1.67 Current Price is $0.78 Difference: $0.89
If TNK meets the Wilsons target it will return approximately 114% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 6.00 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 7.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.03.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 10.00 cents and EPS of 18.90 cents.
At the last closing share price the estimated dividend yield is 12.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.13.

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

WPR    WAYPOINT REIT

REITs – Overnight Price: $2.62

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

Waypoint REIT (formerly Viva Energy REIT) expects 4-4.25% growth in distributable earnings in FY20, up from 3-3.75% previously. Goldman Sachs expects the REIT to grow at the top end of the newly announced range.

The upgrade has strengthened the broker's positive view on the service station sector and highlights the secure cashflow, backed by long-term, triple net leases on fixed rental escalations, with minimal near-term lease expiries.

Buy rating retained with a target price of $3.07.

The report was published on August 14, 2020.

Target price is $3.07 Current Price is $2.62 Difference: $0.45
If WPR meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.74, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of -35.0%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of 4.6%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 16.6.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $28.35

Bell Potter rates ((WTC)) as Sell (5) –

The WiseTech Global result was above Bell Potter estimates, and the final dividend was 10% above forecast.

FY21 guidance is consistent with the broker's estimates, but the analyst notes guidance assumes industrial production growth rebounds and returns to pre-pandemic growth levels in the second half of FY21.

Bell Potter upgrades FY21 and FY22 EPS forecasts by 6%. The Sell rating is maintained and the target price is increased to $25 from $17.75.

This report was published on August 19, 2020.

Target price is $25.00 Current Price is $28.35 Difference: minus $3.35 (current price is over target).
If WTC meets the Bell Potter target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $24.87, suggesting downside of -12.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.60 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 0.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 118.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of -44.1%.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 100.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.30 cents and EPS of 32.10 cents.
At the last closing share price the estimated dividend yield is 0.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 88.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.4, implying annual growth of 47.3%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 68.5.

Market Sentiment: -0.2
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

5GN ARB COH GEM IMD INA IVC MCP MFD MND MNY MP1 NEA PPS RIO TNK WPR WTC

For more info SHARE ANALYSIS: 5GN - 5G NETWORKS LIMITED

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: COH - COCHLEAR LIMITED

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

For more info SHARE ANALYSIS: IMD - IMDEX LIMITED

For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP

For more info SHARE ANALYSIS: IVC - INVOCARE LIMITED

For more info SHARE ANALYSIS: MCP - MCPHERSON'S LIMITED

For more info SHARE ANALYSIS: MFD - MAYFIELD CHILDCARE LIMITED

For more info SHARE ANALYSIS: MND - MONADELPHOUS GROUP LIMITED

For more info SHARE ANALYSIS: MNY - MONEY3 CORPORATION LIMITED

For more info SHARE ANALYSIS: MP1 - MEGAPORT LIMITED

For more info SHARE ANALYSIS: NEA - NEARMAP LIMITED

For more info SHARE ANALYSIS: PPS - PRAEMIUM LIMITED

For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED

For more info SHARE ANALYSIS: TNK - THINK CHILDCARE GROUP LIMITED

For more info SHARE ANALYSIS: WPR - WAYPOINT REIT LIMITED

For more info SHARE ANALYSIS: WTC - WISETECH GLOBAL LIMITED