Australian Broker Call *Extra* Edition – Sep 09, 2020

This story features AUSTRALIAN UNITY OFFICE FUND, and other companies. For more info SHARE ANALYSIS: AOF

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)

AOF   APZ   AVJ   BSA   BWX (2)   CAT   CDA (2)   ECF   ENN   GEM   HLS   HT1   ING   IRI   IVC   MLD   MVP   MYS   OML   ORA   OTW   PSQ   PWH (2)   RXP   SLC   SSM   SXL   VTG  

AOF    AUSTRALIAN UNITY OFFICE FUND

REITs – Overnight Price: $2.07

Moelis rates ((AOF)) as Hold (3) –

Australian Unity Office Fund's FY20 result showed funds from operations (FFO) of 17c and dividend of 15c. Rent collections were 92% in the June quarter with circa 11% of tenants asking for relief.

FY21 dividend guidance is for an unchanged 15c payout with no FFO guidance provided. Moelis estimates FFO will also remain flat in FY21.

The broker highlights the majority of the fund's income is from single-tenanted buildings with strong covenants and long-dated expires. From an overall portfolio perspective, short-term expiries are benign. Rents are also set at affordable levels that typically reflect large discounts to CBD premiums.

The balance sheet is robust, notes the broker, with comfortable gearing and low debt servicing costs. Hold rating retained with a target price of $2.42.

This report was published on August 24, 2020.

Target price is $2.42 Current Price is $2.07 Difference: $0.35
If AOF meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 15.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 7.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.00 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 7.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.76.

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

APZ    ASPEN GROUP

Real Estate – Overnight Price: $0.99

Moelis rates ((APZ)) as Reinstates coverage with a Buy rating (1) –

Aspen Group's FY20 earnings per share was 6.8c, up 30% year on year and in-line with the group's original guidance in the first quarter of FY20.

Moelis notes residential acquisitions increased Aspen's portfolio size by 36%. The broker considers the FY20 result as validation of Aspen Group's earnings resilience and operational improvements under new management.

FY21-22 earnings growth forecast of 7c and 7.8c. Moelis reinstates coverage with a Buy rating and target price of $1.16.

The report was published on August 24, 2020.

Target price is $1.16 Current Price is $0.99 Difference: $0.17
If APZ meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 6.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 6.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.20 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.03.

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

AVJ    AVJENNINGS LIMITED

Housing & Construction – Overnight Price: $0.54

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

AVJennings' FY20 revenue and net profit were below Baillieu's forecasts with flat net tangible assets (NTA). The muted result was led by a fall in apartment sales and the negative impact from covid-19 and the bushfires.

The broker considers the company well placed for recovery but downgrades its net profit forecasts for FY21-22. Impacted by stage 4 lockdowns in Victoria and growing cases in NSW and Queensland, the broker considers the outlook for FY21 uncertain.

Baillieu maintains its Hold rating with a target price of $0.45.

The report was published on August 24, 2020.

Target price is $0.45 Current Price is $0.54 Difference: minus $0.09 (current price is over target).
If AVJ meets the E.L. & C Baillieu target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 1.50 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.77.

Forecast for FY22:

E.L. & C Baillieu forecasts a full year FY22 dividend of 2.80 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 5.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.38.

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

BSA    BSA LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.26

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

BSA reported FY20 operating income of $22m,  a decline of circa -10% versus the prior period led by covid-19 related delays.

Canaccord Genuity believes the immediate outlook is one of caution. FY21 is expected to be a year of subdued growth.

Management aims at growing FY21 earnings, which could be increased more if a number of pending contracts were to materialise in the near term, comments the broker.

The broker retains its Buy rating with a target price of $0.45.

The report was published on August 25, 2020.

Target price is $0.45 Current Price is $0.26 Difference: $0.19
If BSA meets the Canaccord Genuity target it will return approximately 73% (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 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.67.

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: $4.69

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

BWX delivered a strong FY20 result even with a very uncertain second half, notes Bell Potter.

The progress was driven by an increase in total distribution footprint across North America, Asia Pacific and European markets and a steady increase in prices across the Sukin and Andalou brands.

A final dividend of 2.6c was declared. FY21 guidance remains unchanged with the company expecting revenue and operating income growth of at least 10%.

Bell Potter upgrades its rating to Buy from Hold with the target price increasing to $5.05 from $4.35.

This report was published on August 22, 2020.

Target price is $5.05 Current Price is $4.69 Difference: $0.36
If BWX meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.30 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 1.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.53.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.60 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.60.

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

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

Shaw and Partners observes BWX is one of the few companies on the ASX to retain and meet guidance for FY20 and applaud the company for doing so. However, the drivers of the result were materially different from when the budget was set.

The broker notes international brands are diluting Sukin’s growth trajectory and this could lead to BWX selling its international brands (Andalou and Fusion) for an estimated $120- $200m. The broker expects BWX to have $200m in excess capital in FY21.

The broker notes BWX is investing in a material international expansion around Sukin and Andalou/Mineral Fusion which requires FY23 revenues of $250-$280m, in the broker's view.

Shaw and Partners is positive on the quality and strength of BWX, but needs to see international delivering further gains and remains at Hold. The target price rises to $4.32 from $3.93.

This report was published on August 24, 2020.

Target price is $4.32 Current Price is $4.69 Difference: minus $0.37 (current price is over target).
If BWX meets the Shaw and Partners target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 5.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.75.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 8.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.68.

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

CAT    CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices – Overnight Price: $2.06

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

There were no surprises for Canaccord Genuity in Catapult Group International's result as it had been pre-released.

The broker notes subscription revenue remained resilient throughout the period, with the most notable impact from covid-19 on the company's new sales. The company's outlook is considered to have materially improved over the previous 12 months, despite an industry-wide slowdown.

The company achieved its long-standing free cashflow breakeven guidance a year ahead of expectations (set in 2018).

No FY21 revenue/earnings guidance was released. However, the company expects to retain its free cashflow position in FY21 enabling management to “take a more aggressive stance on growth” to expand its portfolio solution. This can be achieved through both organic (build) or inorganic (buy) opportunities, notes the broker.

The company announced a number of changes to its reporting and key financial metrics. This includes retiring the Annual Recurring Revenue (ARR) metric in favor of Annualised Contract Value (ACV) and ACV churn. Additionally, reporting contribution
margin (revenue less all variable costs) illustrating operating leverage and switching to US dollar accounting.

The Buy rating is unchanged and the target price is increased to $2.45 from $1.70.

This report was published on August 21, 2020.

Target price is $2.45 Current Price is $2.06 Difference: $0.39
If CAT meets the Canaccord Genuity target it will return approximately 19% (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 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 103.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 206.00.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $10.84

Canaccord Genuity rates ((CDA)) as Downgrade to Hold from Buy (3) –

Codan posted a "very strong" result that beat Canaccord Genuity's estimates by around 10%.

Strong demand for the company's metal detection products underpinned a strong second half, according to the broker. Margin expansion, strong cash generation and continued market market share gains in metal detection are considered highlights.

There was no specific guidance provided, but management did note a strong start to the year. The analyst increases EPS estimates for FY21 and FY22 by 12% and 11%, respectively.

The rating is downgraded to Hold from Buy given where the share price is trading relative to the target price. The target price is increased to $10.25 from $8.44.

This report was published on August 21, 2020.

Target price is $10.25 Current Price is $10.84 Difference: minus $0.59 (current price is over target).
If CDA meets the Canaccord Genuity 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:

Canaccord Genuity forecasts a full year FY21 dividend of 22.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.64.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 25.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.68.

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

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Moelis rates ((CDA)) as Hold (3) –

The FY20 result for Codan included a particularly strong May and June within the Metal Detection division, notes Moelis.

The broker estimates FY21 profit of $74.7m, which implies year-on-year growth of 8%.

Moelis sees a multi-year growth trajectory, supported by a long pipeline of self-funded new product releases and the potential for large and highly accretive acquisitions. Additionally, there is potential for ASX200 inclusion.

The Buy rating is maintained and the target price is $11.48

This report was published on August 21, 2020.

Target price is $11.48 Current Price is $10.84 Difference: $0.64
If CDA meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 27.30 cents and EPS of 41.50 cents.
At the last closing share price the estimated dividend yield is 2.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.12.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 32.50 cents and EPS of 49.60 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.85.

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

ECF   

Overnight Price: $1.01

Moelis rates ((ECF)) as Buy (1) –

Moelis notes the Eleanor Commercial Property Fund outperformed product disclosure statement (PDS) forecasts by around 9%, reflecting the acquisition of Garema Court in February, 2020.

No commentary was provided around the distribution. The broker assumes an 80% payout ratio, resulting in a DPU of 9.5 cents, reflecting an implied FY21 DPU yield of 9.5%. The Fund is calculated to be trading at an around -14% discount to NTA.

Moelis reinstates coverage with a conviction Buy, given the yield and exposure to attractive commercial markets. The price target is $1.24.

This report was published on August 21, 2020.

Target price is $1.24 Current Price is $1.01 Difference: $0.23
If ECF meets the Moelis target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 9.50 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 9.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.49.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.60 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 9.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.28.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $1.11

Moelis rates ((ENN)) as reinstates coverage with Buy (1) –

Elanor Investors Group's FY20 distributable income was $15.4m or circa 14.7c with a dividend of 9.5c. Moelis notes the group was not immune to the pandemic, with retail and hotels materially impacted.

On the bright side, Elanor Investors Group's accommodation assets showed a strong recovery. The group's recurring funds management revenue noted strong growth.

The broker expects covid-19 challenges to be in the past, providing tailwinds to an ongoing recovery in hotels. The two main challenges, according to the broker, are replacing the circa $10m income in FY20 from the sale of Cradle Mountain and Featherdale and selling down the Luxury Hotel Fund in the current climate. 

Moelis reinstates its coverage on the stock with a Buy rating. The target price is $1.55.

The report was published on August 24, 2020.

Target price is $1.55 Current Price is $1.11 Difference: $0.44
If ENN meets the Moelis target it will return approximately 40% (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 13.00 cents.
At the last closing share price the estimated dividend yield is 10.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.54.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 13.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 11.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.45.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.02

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

Canaccord Genuity is positive about G8 Education for a number of reasons including a good FY20 result, declining supply levels which are expected to continue and higher than expected current occupancy.

Even as covid-19 provides some uncertainty in the near term, the broker believes government support and improving occupancy levels will underpin earnings.

The broker notes long term organic growth will be backed by a maturing greenfield centre portfolio and cost efficiencies. Operating income estimates increased by 32% in 2020. 

Rating is upgraded to Buy from Hold. Target price rises to $1.42 from $1.38.

The report was published on August 25, 2020.

Target price is $1.42 Current Price is $1.02 Difference: $0.4
If GEM meets the Canaccord Genuity target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting upside of 9.6%(ex-dividends)
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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.7, implying annual growth of -72.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 27.6.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of 10.8%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 24.9.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $3.32

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

Telehealth services and covid-19 testing provided material relief notes Goldman Sachs, when reviewing the FY20 result for Healius. This occurred at a time when pathology and imaging volumes troughed at -30%-40% in early April.

The broker notes the substantial loss of -70.5m was heavily impacted by a large loss on disposal associated with the Medical Centres sale, which is due to provide a cash injection of $470m.

FY21 started strongly with pathology revenues up 25% in July, supported by covid-19 testing volumes. However, the analyst points out imaging revenues fell -4% in July, with further declines in August, suggesting at first glance, imaging remains constrained by elective surgery volumes.

The Neutral rating and target price of $3.16 are unchanged.

This report was published on August 21, 2020.

Target price is $3.16 Current Price is $3.32 Difference: minus $0.16 (current price is over target).
If HLS meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.48, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 2.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.6, implying annual growth of N/A.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of 8.3%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 19.6.

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

HT1    HT&E LIMITED

Out of Home Advertising – Overnight Price: $1.42

Canaccord Genuity rates ((HT1)) as Buy (1) –

The first half results for HT&E showed Australian Radio Network's (ARN) metro radio business continues to outperform the wider market and, thus, take share.

Canaccord Genuity reports the balance sheet remains robust with $90m net cash and around $25m of liquid oOh!media ((OML)) shares opportunistically acquired earlier this year.

The broker notes the Soprano Design business, in which the company holds 25%, operates in an area that has benefited from structural tailwinds during covid-19.

Digital investments contributed $2m to earnings where the broker had not expected anything and corporate costs were -$2m lower than the  broker's forecast.

The Buy rating and target price of $1.70 are unchanged.

This report was published on August 20, 2020.

Target price is $1.70 Current Price is $1.42 Difference: $0.28
If HT1 meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.32, suggesting downside of -7.2%(ex-dividends)
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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.4, implying annual growth of N/A.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.3, implying annual growth of 29.7%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 17.1.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.24

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

Inghams Group's FY20 net profit (NPATL) was broadly in line with Bell Potter's forecasts with operating income below the broker's estimate.

The company did not provide any firm earnings guidance, but the broker expects feed costs to moderate in June quarter FY21. Despite headwinds in the near term, the broker expects a material recovery in earnings from the second half of FY21.

FY21 net profit has been downgraded by -9% and upgraded by 5% in FY22.

Bell Potter retains its Buy rating with the target price increased to $4.10 from $4.00.

Target price is $4.10 Current Price is $3.24 Difference: $0.86
If ING meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $3.60, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.00 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 4.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.1, implying annual growth of 95.6%.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 20.00 cents and EPS of 31.30 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of 14.7%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.4.

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

IRI    INTEGRATED RESEARCH LIMITED

IT & Support – Overnight Price: $3.79

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

The FY20 profit result for Integrated Research was in-line with Bell Potter's forecast.

The consistent growth in both revenue and profit, implies to the broker a consistent profit margin of 21.7%. Cash flow conversion was considered good.

The company did not provide any FY21 guidance. The analyst modestly downgrades FY21 and FY22 EPS forecasts by -2% and -5%, respectively.

The Hold rating is unchanged and the target price remains at $4.17.

This report was published on August 20, 2020.

Target price is $4.17 Current Price is $3.79 Difference: $0.38
If IRI meets the Bell Potter target it will return approximately 10% (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 8.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.77.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.43.

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: $9.79

Moelis rates ((IVC)) as Hold (3) –

Moelis cites lower case volumes and reduced case average combined with operating deleverage for the underlying earnings falling -30% in the first half of FY20 for InvoCare.

No guidance was provided by management given the uncertain outlook.

The broker assumes second half earnings improve over the first half based on 2% higher volumes and a gradual recovery in case average. However, the second half estimate is still -25% below the previous corresponding period.

Moelis remains cautious given the weak outlook for volumes/pricing as well as heightened regulatory risk from the ACCC.

Coverage is re-instated with a Hold rating and a target price of $10.03.

This report was published on August 20, 2020.

Target price is $10.03 Current Price is $9.79 Difference: $0.24
If IVC meets the Moelis target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $10.79, suggesting upside of 10.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 43.80 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.85.

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 2.5%.
Current consensus EPS estimate suggests the PER is 38.1.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 31.30 cents and EPS of 32.60 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.03.

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 2.6%.
Current consensus EPS estimate suggests the PER is 28.1.

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

MLD    MACA LIMITED

Mining Sector Contracting – Overnight Price: $0.93

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

Maca's FY20 results noted strong margins in the mining segment with the civil business driving higher revenues. FY20 earnings were above guidance and FY21 guidance was above the broker's expectations.

Canaccord Genuity considers Maca well-positioned to win a huge amount of work in its mining and civil divisions in the coming months. FY21 is expected to be a year of earnings growth and catalysts in the form of contract wins, predicts the broker.

Canaccord Genuity retains its Buy recommendation with the target price increased to $1.27 from $1.13.

This report was published on August 24, 2020.

Target price is $1.27 Current Price is $0.93 Difference: $0.34
If MLD meets the Canaccord Genuity target it will return approximately 37% (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 5.00 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.82.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.56.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.40

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

The FY20 result for Medical Developments International was lower than Canaccord Genuity had expected.

The profit figure reflected lower sales of Penthrox in the EU, as a result of delayed launches in countries like Germany that would have generated a milestone payment, explains the broker.

The pandemic also impacted the company's distributor from contracting with new hospital customers in the second half. Additionally, the analyst notes an underlying reduction in volume due to lower sporting activity and people movement induced injuries.

The broker reduces FY21 profit estimates by around -27% and FY22 by around -35%. The Buy rating is unchanged and the target price is decreased to $8.61 from $10.38

This report was published on August 21, 2020.

Target price is $8.61 Current Price is $5.40 Difference: $3.21
If MVP meets the Canaccord Genuity target it will return approximately 59% (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 4.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 0.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 180.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 0.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 135.00.

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

MYS    MYSTATE LIMITED

Banks – Overnight Price: $3.85

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

MyState's FY20 net profit and earnings were higher than Bell Potter's forecast. No final dividend was announced. Impairment expenses were -$4.9m for the year.

The broker notes key components of the result were either broadly in line or ahead of the broker's expectations, indicating a strong performance despite covid-19. The only exception was the lower than expected level of CET1 capital.

The broker believes management opted for a conservative stance on capital and hence refrained from paying a dividend. Forecasts for FY21-22 are increased by 6% and 11%. 

The broker reiterates the Buy rating with the target price decreased to $4.10 from $4.50.

The report was published on August 21, 2020.

Target price is $4.10 Current Price is $3.85 Difference: $0.25
If MYS meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.00 cents and EPS of 39.30 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.80.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.68%.

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

OML    OOH!MEDIA LIMITED

Out of Home Advertising – Overnight Price: $1.06

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

The highlight of oOh!media's first-half result was the lower than estimated gearing, comments Canaccord Genuity. Due to limited revenue visibility, management refrained from offering guidance for the full year.

The broker is heartened to see better revenue pacing trends and maintains an estimated -24% year on year media revenue outturn for the second half.

The broker notes the company did not provide any specific revenue commentary for July, as opposed to radio operators HT&E and Southern Cross Media who both reported lower revenues year on year. 

Canaccord Genuity maintains its Hold rating with the target price increased to $1.05 from $0.81.

The report was published on August 24, 2020.

Target price is $1.05 Current Price is $1.06 Difference: minus $0.01 (current price is over target).
If OML meets the Canaccord Genuity target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.23, suggesting upside of 15.6%(ex-dividends)
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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 106.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.2, implying annual growth of -96.7%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 530.0.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 1.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.5, implying annual growth of 3150.0%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 16.3.

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

ORA    ORORA LIMITED

Paper & Packaging – Overnight Price: $2.28

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

Orora delivered FY20 results slightly ahead of Goldman Sachs forecasts.

Covid-19 represented a -$25m headwind to group earnings (EBIT), with the North American segment particularly impacted, notes the broker.

While management provided no FY21 guidance, recent stabilisation in North America and expectations for Australasia to return to growth in the second half FY21 were commented upon.

The company concluded the ongoing strategic review, electing to retain the existing core segments.

Goldman Sachs reduces EBIT estimates for FY21 and FY22 by -5%. The broker also forecasts a total capital return of $220m in FY21, consisting of $115m in share buybacks and $105m in dividends.

The Neutral rating is unchanged while the target price is decreased by -8% to $2.43.

This report was published on August 20, 2020.

Target price is $2.43 Current Price is $2.28 Difference: $0.15
If ORA meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.58, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of 417.2%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.1, implying annual growth of 14.0%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.3.

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $4.05

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

The FY20 earnings (EBITDA) for Over The Wire were 2% above Bell Potter's forecast. A positive surprise for the broker was the 13% rise in the fully franked final dividend to 2.25 cents.

Management didn't provide formal guidance but did state "our business performance is tracking well against our strategy".

Bell Potter downgrades FY21 and FY22 EPS forecasts by -7% and -11%, respectively. Despite this, the broker forecasts strong profit/EPS growth of 47% in FY21 and 30% in FY22.

The Hold rating is unchanged and the target price remains at $4.50.

This report was published on August 20, 2020.

Target price is $4.50 Current Price is $4.05 Difference: $0.45
If OTW meets the Bell Potter target it will return approximately 11% (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 4.30 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.52.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.30 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.89.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $1.89

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

Pacific Smiles Group's operating income and net profit were ahead of Bell Potter's forecast driven by higher other revenue and higher gross margins. Same centre patient fees growth declined -4.5% due to the impact of covid-19. No final dividend was announced.

The group has guided to FY21 operating income and patient fees both growing 15%. This is after assuming the current Victoria restrictions continue for now with the second half free of disruptions.

The broker feels the patient fees guidance is achievable and has upgraded its earnings growth forecasts in FY21-22 by circa 22% and 4%.

Bell Potter retains its Buy rating with the target price increased to $1.90 from $1.75.

This report was published on August 22, 2020.

Target price is $1.90 Current Price is $1.89 Difference: $0.01
If PSQ meets the Bell Potter target it will return approximately 1% (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 5.80 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.59.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.00 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $4.70

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

PWR Holdings' FY20 net profit fell -8% but was 8% above Bell Potter's estimate driven by higher operating income and lower D&A. Cash flow conversion is considered good and the final dividend was in-line at 4c (fully franked).

No FY21 guidance was given, as expected. The company stated the outlook to be positive except for the key unknown (covid-19). The broker continues to forecast a strong rebound in FY21 with revenue and net profit growth of 29% and 38%.

The broker reiterates its Buy rating with the target price increased to $5.25 from $5.

This report was published on August 21, 2020.

Target price is $5.25 Current Price is $4.70 Difference: $0.55
If PWH meets the Bell Potter target it will return approximately 12% (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 8.80 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.11.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.70 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.52.

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

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Moelis rates ((PWH)) as Initiation of coverage with Buy (1) –

PWR Holdings' FY20 revenue and operating income were broadly flat. Net profit was lower than last year by -7.8%. A final dividend of 4c was announced, bringing the total FY20 dividend to 5.9c.

Moelis views PWR's result as solid given the difficult macro-economic conditions facing the business. Management was diligent in minimising the impact of covid by reducing staff working days and utilisation of government stimulus programs.

The broker expects a strong first half in FY21 in motorsport given Formula 1 remains on track for 17 races (from its original plan of 22).

Moelis initiates coverage with a Buy rating and a target price of $5.07.

This report was published on August 24, 2020.

Target price is $5.07 Current Price is $4.70 Difference: $0.37
If PWH 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 9.30 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.27.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.40 cents and EPS of 22.70 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.70.

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

RXP   

Overnight Price: $0.42

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

RXP Services is a digital technology and IT services company which is an early adopter of the agile approach, which involves iterative and incremental development. The company has progressively shifted its work specialisations towards digital innovative work.

The second half results for the company represented a strong improvement on the first half according to Shaw and Partners. However, previous guidance for growth in FY20 was not met.

The FY20 results were an improvement across cash flow and the BS, highlights the analyst, and as a result the company is in a stronger position. However, the company has demonstrated little growth over the past three years and to generate a higher multiple, growth needs to return, suggests the broker.

No guidance was provided although the group is targeting top and bottom line growth. The Hold rating is unchanged and the target price is decreased to $0.43 from $0.47.

This report was published on August 21, 2020.

Target price is $0.43 Current Price is $0.42 Difference: $0.01
If RXP meets the Shaw and Partners target it will return approximately 2% (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 2.70 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 6.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.08.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 3.00 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 7.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $1.08

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

Superloop's FY20 earnings were in line with expectations although the composition of the result was slightly different than anticipated, observes Canaccord Genuity.

Connectivity was slightly softer than expected while the rest of the business exceeded the broker's forecasts. Operationally, the company expects the turnaround time for generating revenue from new customers to shorten.

One of the things highlighted by the result was the company's rapid transition towards positive free cash flow. The company completed its network build phase and is now monetising its investment, notes the broker, who sees a long-dated revenue growth profile for the company.

The broker maintains its Buy rating with a target price of $1.32.

This report was published on August 24, 2020.

Target price is $1.32 Current Price is $1.08 Difference: $0.24
If SLC meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $1.27, suggesting upside of 17.9%(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 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.91

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

While the FY20 result for Service Stream looked solid, Bell Potter states growth appears like it will be more difficult to achieve moving forward.

Reasons for this include a likely peak in NBN activation volumes in FY20 and completion of NBN construction revenue in FY20.

Additionally, wireless revenue suggests to the broker customers are not rushing to upgrade mobile towers and covid-19 restrictions/costs are impacting work and dampening margins.

However, cashflow was considered solid and provided support for the total dividend for FY20 of 9cps.

The result was supported by another strong contribution from NBN Activation & Assurance revenue, in what the broker says was a strong year for NBN activations.

Bell Potter notes the share price is likely to remain supported by a solid fully franked dividend yielding 4.8%.

The Hold rating and target price of $2.05 are unchanged.

This report was published on August 20, 2020.

Target price is $2.05 Current Price is $1.91 Difference: $0.14
If SSM meets the Bell Potter target it will return approximately 7% (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 9.00 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.47.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.00 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.36.

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

SXL    SOUTHERN CROSS MEDIA GROUP

Print, Radio & TV – Overnight Price: $0.16

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

The FY20 result for Southern Cross Media Group illustrates to Canaccord Genuity how important the $16m of JobKeeper support was to a company with high fixed costs.

The broker highlights how the highly dilutive equity raising substantially increased the share count and was a factor in the suspension of the dividend.

However, the worst of the media market looks to the analyst to have been in April and May, with revenue trends showing distinct improvements in June and July. Metro radio was considered to underperform the wider market in the second half, although regional radio stands out as a better performer and may continue to be so.

The Hold rating and price target of $0.18 remain unchanged.

This report was published on August 20, 2020.

Target price is $0.18 Current Price is $0.16 Difference: $0.02
If SXL meets the Canaccord Genuity target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $0.17, suggesting upside of 8.3%(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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.7, implying annual growth of 70.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 9.4.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of -11.8%.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 15.6%.
Current consensus EPS estimate suggests the PER is 10.7.

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

VTG    VITA GROUP LIMITED

Telecommunication – Overnight Price: $1.11

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

Vita Group reported a better-than-expected FY20 result with a $10.2m benefit with respect to the government’s JobKeeper subsidy. Revenues were 3% ahead of Canaccord Genuity's estimates. 

The balance sheet remains sound, helped by stimulus measures, wage reductions and cancellation of the interim dividend. The broker notes the group retains a healthy financial position. Management has identified ongoing optimising of the ICT 105 Telstra store network.

Led by a good FY20 result and wage subsidy support, the broker increases its FY21-22 earnings forecasts.

Buy rating maintained with a target price of $1.50.

This report was published on August 25, 2020.

Target price is $1.50 Current Price is $1.11 Difference: $0.39
If VTG meets the Canaccord Genuity target it will return approximately 35% (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 5.00 cents and EPS of 15.50 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.16.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.65.

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

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