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Australian Broker Call *Extra* Edition – Sep 16, 2020

Daily Market Reports | Sep 16 2020

This story features APN PROPERTY GROUP, and other companies. For more info SHARE ANALYSIS: APD

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)

APD   APT   ASB   AVN   BIN (2)   BKL   ERF   GEM (2)   HUB   IDX   IMR   JLG (2)   MLD   MNF   MOZ   NAN (3)   OBL   PFP   PME   PPE   PRN (3)   PSI   RFF (2)   RHP   SOM   SSG   XRF  

APD    APN PROPERTY GROUP

Real Estate – Overnight Price: $0.53

Moelis rates ((APD)) as Reinstate coverage with Buy (1) –

APN Property Group's FY20 operating earnings were up circa 6% over FY19 with funds under management (FUM) of $2.7bn led by growth in APN Industria REIT and APN Convenience Retail REIT, although offset somewhat by a reduction in property security FUM due to covid-19.

Dividend guidance for FY21 is 2.5-2.8c, less than FY20's 3.15c. The broker notes the primary drivers are costs related to the launch of the Global REIT Income fund and the reduction in A-REIT FUM.

The broker believes the second half marks a low point for earnings with the company set to benefit from operating leverage as the business goes back to growth mode.

Moelis reinstates coverage with a Buy rating and a target price of $0.66.

This report was published on August 25, 2020.

Target price is $0.66 Current Price is $0.53 Difference: $0.13
If APD meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 2.70 cents and EPS of 2.90 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 18.28.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 3.10 cents and EPS of 3.40 cents.
At the last closing share price the estimated dividend yield is 5.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.59.

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

APT    AFTERPAY LIMITED

Business & Consumer Credit – Overnight Price: $75.01

Wilsons rates ((APT)) as Upgrade to Overweight (1) –

Afterpay pre-announced its key FY20 and Moelis notes its concerns around covid-19 related stresses along with the threat of competition in the core AU/US markets have been put to bed.

The broker expects a rising tide of growth catalysts that are yet to be priced in. Wilsons upgrades its rating to Overweight with the target price increasing to $94.16.

This report was published on August 24, 2020.

Target price is $94.16 Current Price is $75.01 Difference: $19.15
If APT meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $81.72, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 641.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, 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 1209.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 26.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 279.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 564.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 182.1.

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

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $3.29

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

Austal's FY20 results were solid and highlight the company’s defensive earnings profile, observes Goldman Sachs.

The broker considers Austal's multi-year outlook attractive with its investment thesis based on the underappreciated market perception of Austal's shipbuilding's strategic importance to the US Navy.

With the result, these drivers have been incrementally confirmed prompting Goldman Sachs to reiterate its Buy rating with the target price rising to $4.35 from $4.08.

This report was published on August 24, 2020.

Target price is $4.35 Current Price is $3.29 Difference: $1.06
If ASB meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $3.97, suggesting upside of 20.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 9.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.9, implying annual growth of -4.4%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.1, implying annual growth of 0.8%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 13.7.

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

AVN    AVENTUS GROUP

REITs – Overnight Price: $2.34

Moelis rates ((AVN)) as Buy (1) –

Aventus Group's FY20 earnings were down about -1% versus last year, considered a solid result by Moelis considering the impact of covid-19.

The broker notes the operating performance held up much better than expected. Rent collections were strong with circa 87% of rent collected through the covid-19 period between March-June.

The group did not provide any guidance but expects to reinstate distributions. The broker highlights there seems to be a preference to be conservative seen in the 66% payout ratio to help shore up the balance sheet.

Looking at the resilience of rent collections, the broker expects the payout ratios will be back to more normalised levels.

Expecting Aventus will continue to find yield support, Moelis reinstates coverage with a Buy rating and a target price of $2.43.

This report was published on August 25, 2020.

Target price is $2.43 Current Price is $2.34 Difference: $0.09
If AVN meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $2.66, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 15.50 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 6.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 75.7%.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 16.00 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.9, implying annual growth of 9.9%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 11.8.

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

BIN    BINGO INDUSTRIES LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.30

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

Bingo Industries reported a FY20 result slightly ahead of Goldman Sachs expectations. The report highlights to the broker an ability to effectively manage operations in challenging conditions.

The outlook commentary suggests macroeconomic headwinds will persist in FY21. This leads Goldman Sachs to lower EPS forecasts for FY21 and FY22 by -6.7% and -2.7%, respectively.

The analyst expects earnings to start to recover in FY22 and is comfortable the long-term strategy remains firmly intact.

The Neutral rating is unchanged and the target price is increased to $2.35 from $2.25

This report was published on August 25, 2020.

Target price is $2.35 Current Price is $2.30 Difference: $0.05
If BIN meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $2.56, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of -40.6%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 38.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 4.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 60.0%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 24.0.

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


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

Bingo Industries announced a much stronger-than-expected FY20 result, according to Shaw and Partners.

The broker believes the company is perhaps being too conservative and cautious with respect to FY21 earnings (EBITDA) guidance.

The analyst places the result into some perspective by showing group margin diminution over time. In FY18 it was 30.8% and then fell to 26.9% in FY19, before strongly bouncing back to a robust 31.3% in FY20.

The Hold rating is unchanged and the target price is increased to $2.50 from $2.40.

This report was published on August 26, 2020.

Target price is $2.50 Current Price is $2.30 Difference: $0.2
If BIN meets the Shaw and Partners target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $2.56, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 4.00 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of -40.6%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 38.3.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.00 cents and EPS of 12.00 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 19.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 60.0%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 24.0.

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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $63.69

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

Blackmores reported a profit (NPAT) of $18m, moderately below Wilsons' expectations. This was considered driven by China Exports and BioCeuticals, combined with a bigger than expected impact from raw material price increases.

There was no explicit guidance, but management expects profit growth in FY21, primarily driven by the second half.

Wilsons sees the success of Singles Day in China as an important near-term catalyst to rejuvenate the brand.

The Market Weight rating is unchanged. The target price is decreased to $64 from $70.5. 

This report was published on August 26, 2020.

Target price is $64.00 Current Price is $63.69 Difference: $0.31
If BKL meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $67.38, suggesting upside of 5.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 117.40 cents and EPS of 167.80 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 175.6, implying annual growth of 69.7%.
Current consensus DPS estimate is 118.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 36.3.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 177.40 cents and EPS of 253.40 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 238.2, implying annual growth of 35.6%.
Current consensus DPS estimate is 167.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 26.7.

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

ERF    ELANOR RETAIL PROPERTY FUND

REITs – Overnight Price: $0.81

Moelis rates ((ERF)) as Reinstate coverage with Buy (1) –

Impacted by covid-19, Elanor Retail Property Fund's FY20 funds from operations were down -9% versus last year. Moelis reports net tangible assets (NTA) fell -10% with valuations declining at Tweed Mall, Manning Mall and Gladstone Square.

Moeils believes this is a short term impact and will be recouped. The broker believes there to be a significant upside to the fund's share price provided a successful asset recycling program were to be executed.

Seeing limited downside from current levels, Moelis reinstates coverage on Elanor Retail Property Fund with a Buy rating and target price of $1.20.

This report was published on August 25, 2020.

Target price is $1.20 Current Price is $0.81 Difference: $0.39
If ERF meets the Moelis target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 8.30 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 10.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.71.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.70 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 10.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.27.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.00

Moelis rates ((GEM)) as Buy (1) –

G8 Education's first-half operating income was above consensus expectation with the second quarter supported by government subsidies, reports Moelis. Spot August occupancy levels at 69% were ahead of the broker's estimates.

The broker notes G8 Education's Singapore-based centres will be divested in the second half since they have been only marginally profitable.

2020 operating income is estimated to be $102m, helped by the JobKeeper and government transition payments in the third quarter ensuring a stronger second half.

The average occupancy for 2021 is assumed at 71.5%, considered conservative by the broker in the context of the 2019 occupancy level of 76% (as per August).

Moelis re-instates coverage with a Buy rating and target price of $1.38.

This report was released on 25 August 2020.

Target price is $1.38 Current Price is $1.00 Difference: $0.38
If GEM meets the Moelis target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting upside of 11.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

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 27.0.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.90 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.82.

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 3.8%.
Current consensus EPS estimate suggests the PER is 24.4.

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


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

G8 Education’s reported operating income which was materially ahead of Wilsons' estimate. The broker is pleased to note trading momentum has continued to improve since the initial national lockdown.

The broker estimates occupancy for the period could have been as high as 70% had Victoria not entered another lockdown.

Wilsons retains its Overweight rating due to G8 Education's attractive net debt and improving occupancy profile. The target price is $1.91.

This report was published on August 25, 2020.

Target price is $1.91 Current Price is $1.00 Difference: $0.91
If GEM meets the Wilsons target it will return approximately 91% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting upside of 11.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.22.

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 27.0.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.87.

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 3.8%.
Current consensus EPS estimate suggests the PER is 24.4.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $17.48

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

Hub24's results were 6% above Shaw and Partners expectations, with the platform business again a highlight.

The broker notes several takeaways including earnings (EBITDA) margins increasing to 38.6% from 33.3% and a strong balance sheet with cash of $34m. Additionally, funds under administration (FUA) increased 34% to $17.2bn and market share has increased to 1.94% from 1.3% in FY19.

The outlook remains strong, according to the analyst and management provided FUA guidance well ahead of the broker's estimate.

The Buy rating is unchanged and the target price is increased to $16.50 from $14.

This report was published on August 26, 2020.

Target price is $16.50 Current Price is $17.48 Difference: minus $0.98 (current price is over target).
If HUB meets the Shaw and Partners target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.91, suggesting downside of -9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 12.00 cents and EPS of 28.50 cents.
At the last closing share price the estimated dividend yield is 0.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.4, implying annual growth of 121.1%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 59.5.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 20.00 cents and EPS of 42.50 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.5, implying annual growth of 37.8%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 43.2.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $4.07

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

The FY20 profit result for Integral Diagnostics beat Wilsons' forecasts by 11%.

Channel checks by the broker suggest the competitive Queensland market is firing, and the analyst sees interesting upside developing in New Zealand with Ascot settling next week.

Wilsons understands the company took market share from hospitals in both PET/CT and MRI during covid-19. The company aims to keep those new referrer bases in oncology.

The broker highlights the margin outlook is likely to increase in FY21. The Overweight rating is unchanged and the target price is increased to $4.75 from $4.65

This report was published on August 26, 2020.

Target price is $4.75 Current Price is $4.07 Difference: $0.68
If IDX meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $4.71, suggesting upside of 15.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 13.00 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 50.4%.
Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 14.00 cents and EPS of 20.60 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 10.2%.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 19.8.

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

IMR    IMRICOR MEDICAL SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $2.15

Moelis rates ((IMR)) as Buy (1) –

Imricor Medical Systems' first half result did not generate any surprises with the company's second-quarter cashflows pre-released in July.

Moelis notes hospital shutdowns due to covid-19 and delays in the launch of new hospitals translated to disappointing revenue. Operating expenses were also lower but the broker expects this to normalise in the second half.

No formal guidance was provided but Moelis notes management is focused on executing its EU roll-out strategy in the second half. Management expects growth to accelerate in the last quarter of 2020.

Moelis retains its Buy rating with the target price raised slightly to $2.62 from $2.61.

This report was published on August 25, 2020.

Target price is $2.62 Current Price is $2.15 Difference: $0.47
If IMR meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 12.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.20.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.29.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $2.57

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

Johns Lyng Group has delivered FY20 earnings (EBITDA) ahead of June guidance.

Canaccord Genuity notes the earnings include strong organic growth in Business as Usual (BaU) work, which increased 27% during the period. The result was also considered to reflect the positive impact from the move into higher margin Strata Services during FY20.

The broker points out early gains have also been made on leveraging the Strata operations into the company’s established Insurance Building and Restoration Services (IB&RS) division.

Management is considering three acquisition opportunities and guidance also represents strong organic growth for FY21, highlights the analyst.

Canaccord Genuity lowers both FY21 and FY22 EPS forecasts by -5%. This is due to some headwinds for the Commercial Building Services (CBS) and Commercial Construction (CC) divisions.

The Buy rating is unchanged and the target price is decreased to $2.80 from $2.83.

This report was published on August 26, 2020.

Target price is $2.80 Current Price is $2.57 Difference: $0.23
If JLG meets the Canaccord Genuity target it will return approximately 9% (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 8.00 cents.
At the last closing share price the estimated dividend yield is 1.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.13.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.70.

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


Moelis rates ((JLG)) as Buy (1) –

Johns Lyng Group has delivered a strong FY20 result, demonstrating to Moelis both organic and acquisition growth over the year.

Business as Usual (BaU) margins improved by around 110 basis points, broadly driven by higher margin acquisitions and higher utilisation rates, notes the broker.

Management flagged additional strategic acquisitions under assessment. The group has experienced minimal impact on work from covid-19.

Moelis expects a number of key levers in FY21 to drive earnings. These include strong organic BaU revenue growth resulting from increased job volumes and EPS accretive acquisitions. Additionally, new cross-sell opportunities may materialise.

The Buy rating is unchanged and the target price is $3.20.

This report was published on August 26, 2020.

Target price is $3.20 Current Price is $2.57 Difference: $0.63
If JLG meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.50 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.96.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.30 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.77.

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: $0.89

Moelis rates ((MLD)) as Reinstate coverage with Buy (1) –

Maca's FY20 operating income was ahead of guidance despite the impact of covid-19 at Carabella. Strong cash flow conversion helped with normalisation of debtors and client repayment of loans, notes Moelis.

FY21 guidance points towards revenue of more than $850m with the outlook supported by a $2.3bn order book. The broker reinstates its earnings estimates which includes an FY21 revenue forecast broadly in line with the company's guidance.

The broker expects continued growth led by higher margin mining contract wins and potential near-term conversion of the tender pipeline.

Moelis reinstates its coverage with a Buy rating and a $1.31 target price.

This report was released on August 25, 2020.

Target price is $1.31 Current Price is $0.89 Difference: $0.42
If MLD meets the Moelis target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.00 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.54.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.20 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 6.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.36.

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

MNF    MNF GROUP LIMITED

Telecommunication – Overnight Price: $4.79

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

Canaccord Genuity believes the profit release for MNF Group may have disappointed some who were expecting a beat. However, that view is missing major structural benefits regarding increased activity by the company's new generation customers.

These are the revenues the company will look to develop in Singapore and will start to impact earnings in FY22 and FY23, projects the broker.

The second half confirms to the analyst the positive trends in the company's Global Wholesale business. No quantitative guidance was provided.

Canaccord Genuity views Global Wholesale revenues growth should continue, but growth in UCaaS, CPaaS and Collaboration represent a structural challenge to the company's audio conferencing business.

The Buy rating and target price of $6.90 are unchanged.

This report was published on August 26, 2020.

Target price is $6.90 Current Price is $4.79 Difference: $2.11
If MNF meets the Canaccord Genuity target it will return approximately 44% (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 7.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.77.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 10.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.74.

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

MOZ    MOSAIC BRANDS LIMITED

Apparel & Footwear – Overnight Price: $0.50

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

Mosaic Brands reported underlying earnings (EBITDA) well below consensus. Moelis notes potential tailwinds around an improved cost profile. Additionally, there are tax benefits due to prior period losses, once the store portfolio is right-sized.

The result included -$49m in rental provisions. The broker explains if the company is successful in re-negotiating by half, it could mean actual FY20 earnings closer to -$21.3m.

No quantitative guidance was provided. However, the company expects an improvement in trading conditions post September and believes it will return to sustainable profitability in FY21. The company noted there was sufficient banking headroom.

Moelis points out online sales as a  percentage of total sales increased to 14.7%, driven by an improved online offering across 14 categories.

The Market Weight rating is unchanged and the target price is decreased to $0.56 from $0.69.

Target price is $0.56 Current Price is $0.50 Difference: $0.06
If MOZ meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 12.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.91.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.17.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.91

Bell Potter rates ((NAN)) as Downgrade to Sell from Hold (5) –

FY20 revenue and earnings (EBIT) were below Bell Potter’s estimates for Nanosonics.

Revenues in the final four months of the fiscal year were significantly impacted by covid-19 closures of medical facilities in all key markets, notes the broker. This also resulted in a -20% decline in consumables sales during the fourth quarter.

There was a 35% increase in operating expenses relative to the 13% increase in revenues, which the broker states is clearly not sustainable. A large portion of the increase was R&D, which is yet to generate any revenue from a second product.

The analyst includes a large discount on the future revenues attached to product launches, which have again been delayed and deferred to FY22 from FY21.

The rating is downgraded to Sell from Hold. The target price is decreased to $4.95 from $5.52.

This report was published on August 25, 2020.

Target price is $4.95 Current Price is $5.91 Difference: minus $0.96 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.12, suggesting upside of 3.6%(ex-dividends)
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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 591.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.0, implying annual growth of 18.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 147.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 147.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 150.0%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 59.1.

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


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

Nanosonics reported a lower-than-expected result, which wasn’t surprising to Canaccord Genuity in the circumstances.

The ‘miss’ was in the consumable/service revenue lines. The broker explains the outcome could have been a lower profit, were it not for the quick circa -$4m cost reduction in the fourth quarter, relative to guidance.

A key point for the analyst relates to the ‘new product’ which has been pushed out at least another year.

The outlook for FY21 appears modest to Canaccord Genuity with a soft first half reflecting conditions in the fourth quarter FY20, with a rebound in the second half of FY21.

The broker suggests that given the product delay and $92m in cash, the merger and acquisition pathway may be followed.

The Hold rating is unchanged and the target price is decreased to $5.46 from $6.08.

This report was published on August 26, 2020.

Target price is $5.46 Current Price is $5.91 Difference: minus $0.45 (current price is over target).
If NAN meets the Canaccord Genuity target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.12, suggesting upside of 3.6%(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 0.07 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8442.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.0, implying annual growth of 18.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 147.8.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5910.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 150.0%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 59.1.

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


Wilsons rates ((NAN)) as Underweight (5) –

Nanosonics met Wilsons' revenue forecast, but FY20 earnings (EBITDA) missed by -5%.

A key points for the broker was management flagged a soft first half FY21, assuming protracted limitations on US hospital engagement. Additionally, lower sales to GE Healthcare are expected, as they rundown Trophon-2 inventory acquired over FY19/20.

Consumables performance was in-line with broker forecasts. The analyst notes the new product launch was delayed into FY22.

Wilsons lowers earnings (EBITDA) estimates by -45% in FY21 and -36% in FY22. The Underweight rating is unchanged and the target price is decreased to $3.90 from $4.50.

This report was published on August 26, 2020.

Target price is $3.90 Current Price is $5.91 Difference: minus $2.01 (current price is over target).
If NAN meets the Wilsons target it will return approximately minus 34% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.12, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 173.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.0, implying annual growth of 18.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 147.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 109.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 150.0%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 59.1.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $3.91

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

Omni Bridgeway's FY20 net profit was ahead of Goldman Sachs' expectations (excluding non-cash items). The broker is impressed with the company's healthy balance sheet.

To understand what's available to deploy and what is due in the next 12 months, the broker's focus is on cash and receivables, which combined were up 43% at June 30.

The broker considers Omni Bridgeway an attractive opportunity for investing in a market leader in an emerging global asset class. Moreover, the company is expected to be on the cusp of a transformation with earnings expected to shift to a more stable combination of management fees/performance fees.

FY21-22 estimates have been upgraded. Buy rating is maintained with the target price increasing to $5.80 from $5.70.

This report was published on August 24, 2020.

Target price is $5.80 Current Price is $3.91 Difference: $1.89
If OBL meets the Goldman Sachs target it will return approximately 48% (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 7.00 cents and EPS of 95.00 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.12.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 7.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.24.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $2.71

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

Propel Funeral Partners delivered a resilient FY20 earnings result, consistent with the June 15 update, according to Bell Potter.

Average revenue per funeral (ARPF) held up well during covid-19 restrictions. The broker explains the company was able to cushion the impact via a strong uptake of live streaming services and other mitigating services.

Bell Potter lowers EPS estimates for FY21, FY22 and FY23 by -7.7%, -9.4% and -9.3%, respectively. This is due to renewed social restrictions and lower near-term market funeral case volumes.

The company is delivering on its acquisition strategy and remains well placed to consolidate the death care industry, opines the analyst.

The Buy rating is unchanged and the target price is decreased to $3.50 from $3.65.

This report was published on August 25, 2020.

Target price is $3.50 Current Price is $2.71 Difference: $0.79
If PFP meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 11.00 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.83.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 12.10 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.66.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $26.02

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

There were no material surprises for Goldman Sachs in the FY20 results from Pro Medicus. The broker calculates transaction volumes still average around 90% of pre-pandemic utilisation, but are returning.

The company has continued to sign new contracts and complete implementations broadly on time. The analyst continues to view a run-rate of three new contracts per year as a realistic target, particularly as the majority of implementations can be performed remotely. Also, Visage 7 lends itself well to remote demonstration.

Overall, Goldman Sachs continues to see a positive runway for the company. This is based on the strength of its Visage 7 PACS technology and an increasing need for more efficient healthcare imaging systems going forward.

The Neutral rating is unchanged and the target price is increased to $25.90 from $24.

This report was published on August 25, 2020.

Target price is $25.90 Current Price is $26.02 Difference: minus $0.12 (current price is over target).
If PME meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 13.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 0.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 89.72.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 16.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 0.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.28.

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

PPE    PEOPLE INFRASTRUCTURE LTD

Jobs & Skilled Labour Services – Overnight Price: $2.80

Moelis rates ((PPE)) as Buy (1) –

People Infrastructure's underlying earnings (EBITDA) were above guidance, following a strong rebound in performance across May and June, notes Moelis.

The broker explains net cash was $9.9m following the April equity raise of around $17.5m and strong cashflow generation across May and June.

The analyst estimates FY21 earnings of $30.6m, which assumes the business returns to pre-covid-19 output across quarters 2Q-4Q.

Moelis sees a multi-year runway of organic and acquisitive growth ahead. This should lead to gradual margin expansion as the revenue mix shifts toward higher margin verticals and corporate costs amortised over larger revenues.

Demand for services are expected to be supported by the secular trends of an ageing population (healthcare) and digitisation (IT). The Broker re-instates coverage with a Buy rating and a target price price of $3.51.

This report was published on August 26, 2020.

Target price is $3.51 Current Price is $2.80 Difference: $0.71
If PPE meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 10.90 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.30 cents and EPS of 22.60 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.39.

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

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $1.25

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

Perenti Global reported earnings (EBITDA) 6% ahead of the Canaccord Genuity forecast. Segmentally, the Underground business continues to be the standout for the broker.

No specific guidance was provided, but management expects the second half to be stronger than the first half of FY21.

Canaccord Genuity increases FY21 earnings estimates by 4%, while the profit (NPATA) estimate falls by -9%. Additionally, the net debt forecast declines by -9%.

The Buy rating is unchanged. The target price is decreased to $1.71 from $1.81.

This report was published on August 25, 2020.

Target price is $1.71 Current Price is $1.25 Difference: $0.46
If PRN 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 7.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.36.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 11.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 8.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.17.

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


Moelis rates ((PRN)) as Buy (1) –

Perenti Global delivered a solid FY20 result despite challenging conditions, according to Moelis.

As per previous results, the Underground division continues to be the key earnings driver and contributor, highlights the broker. It comprised around 80% of group FY20 EBIT pre-corporate costs.

The analyst points out improved balance sheet metrics from prudent capital management.

No specific guidance was given by management for FY21. Moelis expects a softer first half, followed by a stronger second half.

Reinstated coverage with a Buy and target price of $1.33.

This report was published on August 25, 2020.

Target price is $1.33 Current Price is $1.25 Difference: $0.08
If PRN 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 7.00 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.56.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.35.

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


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

Perenti Global finished the year strongly, observes Wilsons, with earnings ahead of the broker's forecasts and net profit above the top end of guidance. The result was mostly led by better performance from the underground division.

The broker considers the outlook to be strong, although skewed towards the second half. Also, with about 85% of FY21 revenues locked away, the broker's optimism stems from recent wins and ramp-up in major contracts such as Sanbrado.

Current strength in the gold market is expected to set the business up for multi-year expansion.

The Overweight rating is maintained with a target price of $2.00.

The report was published on August 25, 2020.

Target price is $2.00 Current Price is $1.25 Difference: $0.75
If PRN meets the Wilsons target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 7.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.40.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 8.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.25.

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

PSI    PSC INSURANCE GROUP LIMITED

Insurance – Overnight Price: $2.86

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

PSC Insurance Group reported a solid FY20 result, according to Bell Potter. The company is considered to have performed remarkably well in the second half as pandemic economic headwinds prevailed.

The broker highlights organic revenue growth of $6.2m. This was broadly realised across each operating division and supported by ongoing premium hardening, as well as customer and Authorised Representative (AR) growth.

The company has provided preliminary FY21 guidance for underlying earnings (EBITDA) of $65-$70m.

Having completed a number of significant acquisitions in FY20, the broker highlights plans to focus on achieving strong organic growth gains in FY21.

The rating is upgraded to Buy from Hold and the target price is increased to $3.20 from $2.85.

This report was published on August 25, 2020.

Target price is $3.20 Current Price is $2.86 Difference: $0.34
If PSI 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 9.30 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.46.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.30 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $2.34

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

Rural Funds Group reported FY20 adjusted funds from operations (AFFO) in-line with the expectations of Bell Potter. Results were skewed to the first half reflecting the timing of the poultry divestment and expansion of the JBS facility.

FY21 DPU guidance is unchanged at 11.28 cents per unit, with FY21 AFFO per unit guidance of 11.7 cents per unit.

Bell Potter adjusts forecasts to reflect the sale of Mooral and Queensland property acquisitions. The net impact is downgrades to AFFO estimates of -14% in FY21 and -11% in FY22.

The Buy rating is unchanged and the target price is increased to $2.50 from $2.30.

This report was published on August 25, 2020.

Target price is $2.50 Current Price is $2.34 Difference: $0.16
If RFF 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 11.30 cents and EPS of 11.70 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.70 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.43.

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


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

The Rural Funds Group FY20 result was in-line with Wilsons' forecasts, with funds from operations (FFO) increasing 5% on the previous corresponding period.

The broker points to notable contracts of $98m for the sale of the Mooral almond orchard and the $81m purchase of land for a macadamia orchard in Maryborough in Queensland.

The company guided to FY21 FFO at 11.7cpu and DPU at 11.28 cents.

Wilsons increased valuation reflects longer term cashflow benefits from the macadamia orchard development plans.

The Overweight rating is unchanged and the target price is increased to $2.37 from $2.19.

This report was published on August 26, 2020.

Target price is $2.37 Current Price is $2.34 Difference: $0.03
If RFF meets the Wilsons target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.30 cents and EPS of 23.20 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.09.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 11.70 cents and EPS of 20.50 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.41.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $1.67

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

Shaw and Partners believe the FY20 result for Rhipe was better than the market reaction implied and beat guidance.

The broker maintains that including -$1.1m of bad and doubtful debt provisions against the operating profit for Japan was extremely conservative.

The analyst expects the SME cloud business will accelerate into the second half of FY21.  Shaw and Partners upgrades operating EPS estimates by 11% in FY21 and by 6% from FY22 onwards.

The Buy rating is unchanged and the target price is increased to $2.87 from $2.86.

This report was published on August 26, 2020.

Target price is $2.87 Current Price is $1.67 Difference: $1.2
If RHP meets the Shaw and Partners target it will return approximately 72% (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 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.88.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.20 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.06.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $1.96

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

Wilsons downgrades its rating to Market Weight from Overweight with a target price of $1.65.

The broker notes SomnoMed has emerged from the pandemic in a stronger financial position. Offshore, the broker reports the USA recovery remains sluggish versus Europe.

SomnoMed appears keen to push ahead with growth initiatives for the USA and the broker considers the company's ideas sound with its forecasts already assuming success with these campaigns.

No FY21 guidance was provided and the broker expects weaker cash flows. 

This report was published on August 25, 2020.

Target price is $1.65 Current Price is $1.96 Difference: minus $0.31 (current price is over target).
If SOM meets the Wilsons target it will return approximately minus 16% (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 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 178.18.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.26.

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

SSG    SHAVER SHOP GROUP LIMITED

Household & Personal Products – Overnight Price: $0.85

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

Shaw and Partners notes Shaver Shop Group has enjoyed four consecutive strong results in a row over the last 24 months, including the current record. The FY20 result was equally ahead of both the broker's estimates and market consensus.

Seeing the strong year to date trading momentum, the broker has revised earnings estimates for FY21-22. The immediate question in the mind of the broker is – how much of the covid-19 led sales pull forward demand in the second half of FY20 will come off.

Target price rises to $1.10 from $0.90 with a Buy recommendation.

This report was published on August 25, 2020.

Target price is $1.10 Current Price is $0.85 Difference: $0.25
If SSG meets the Shaw and Partners target it will return approximately 29% (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 5.00 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.04.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.00 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 7.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.77.

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

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting – Overnight Price: $0.30

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

XRF Scientific delivered FY20 earnings slightly below the Canaccord Genuity forecast. The fourth quarter was impacted by covid-19 lockdowns, particularly in Europe, South Africa and South America.

The broker remains bullish on the stock on cash performance, outlook and balance sheet. Additionally, there were strong second half margins in Consumables and Precious Metals.

The analyst highlights the Consumables business was supported by increased activity in the mining sector, in both exploration and production. Further, the broker explains the company is in a net cash position and is likely to benefit from the strong iron ore and gold markets through FY21-FY22.

The Speculative Buy rating is unchanged and the target price is increased to $0.34 from $0.33.

This report was published on August 26, 2020.

Target price is $0.34 Current Price is $0.30 Difference: $0.04
If XRF meets the Canaccord Genuity target it will return approximately 13% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.40 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

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

APD APT ASB AVN BIN BKL ERF GEM HUB IDX IMR JLG MLD MNF MOZ NAN OBL PFP PME PPE PRN PSI RFF RHP SOM SSG XRF

For more info SHARE ANALYSIS: APD - APN PROPERTY GROUP

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: ASB - AUSTAL LIMITED

For more info SHARE ANALYSIS: AVN - AVENTUS GROUP

For more info SHARE ANALYSIS: BIN - BINGO INDUSTRIES LIMITED

For more info SHARE ANALYSIS: BKL - BLACKMORES LIMITED

For more info SHARE ANALYSIS: ERF - ELANOR RETAIL PROPERTY FUND

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: IDX - INTEGRAL DIAGNOSTICS LIMITED

For more info SHARE ANALYSIS: IMR - IMRICOR MEDICAL SYSTEMS, INC

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: MLD - MACA LIMITED

For more info SHARE ANALYSIS: MNF - MNF GROUP LIMITED

For more info SHARE ANALYSIS: MOZ - MOSAIC BRANDS LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: PME - PRO MEDICUS LIMITED

For more info SHARE ANALYSIS: PPE - PEOPLE INFRASTRUCTURE LIMITED

For more info SHARE ANALYSIS: PRN - PERENTI GLOBAL LIMITED

For more info SHARE ANALYSIS: PSI - PSC INSURANCE GROUP LIMITED

For more info SHARE ANALYSIS: RFF - RURAL FUNDS GROUP

For more info SHARE ANALYSIS: RHP - RHIPE LIMITED

For more info SHARE ANALYSIS: SOM - SOMNOMED LIMITED

For more info SHARE ANALYSIS: SSG - SHAVER SHOP GROUP LIMITED

For more info SHARE ANALYSIS: XRF - XRF SCIENTIFIC LIMITED