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Australian Broker Call *Extra* Edition – Sep 23, 2020

Daily Market Reports | Sep 23 2020

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

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

360   ABA   APA   APX (2)   AX1   BGA   BVS   CAJ   CCX (2)   CUV   CWY   DTC (2)   EXP   FDV   FLT   GDF   GDG   GOZ   HMC   KZA   LME   MAD   MAH   MAQ   MTS   NEC   NSR   NUC   PBP   PFP   PNV   PVS   RDY   REG   RIC   RMC   RMY   SRG   SVW   WHC   WPR   WSP   WZR  

360    LIFE360 INC

Software & Services – Overnight Price: $4.10

Moelis rates ((360)) as Buy (1) –

Life360's first half revenue was up 54% versus last year with its operating income better than Moelis expected. The key positive was the membership offering showing strong initial results, suggests the broker.

Moelis has increased its FY20-22 revenue estimates to reflect the impact of the membership offering and higher indirect monetisation of international users.

The broker thinks Life360 continues to execute well and sees several drivers over the near term like the return to user growth, membership offering and indirect monetisation.

Believing the stock offers good value, Moelis reiterates its Buy rating with the target price increasing to $4.75 from $4.05.

This report was published on August 27, 2020.

Target price is $4.75 Current Price is $4.10 Difference: $0.65
If 360 meets the Moelis target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in November.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 17.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.56.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 14.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.26.

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

ABA    AUSWIDE BANK LTD

Banks – Overnight Price: $4.74

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

Auswide Bank's FY20 result, ahead of Bell Potter's forecast, is considered good by the broker. The bank announced a 10.75c fully franked final dividend. The net profit forecasts are materially increased for FY21-23 due to a combination of better top-line growth and cost discipline.

The broker notes the bank's track record of generating profitable growth remains unbroken and that its FY21 outlook is positive, expecting a stable net interest margin (NIM). 

Bell Potter retains its Buy rating with the target price increased to $5.50 from $5.15.

This report was published on August 27, 2020.

Target price is $5.50 Current Price is $4.74 Difference: $0.76
If ABA meets the Bell Potter target it will return approximately 16% (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 23.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 4.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.53.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 26.00 cents and EPS of 46.00 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.30.

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

APA    APA GROUP

NatGas – Overnight Price: $10.27

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

The APA Group result was in-line with forecasts by Goldman Sachs, but guidance was weaker than the broker expected.

A softer FY21 guidance is driven by a post-pandemic weakening in Australian and US CPI figures, which feeds through contract pricing, explains the broker. Additionally, continued delays in Orbost commissioning is having an impact.

Goldman Sachs highlights the existing portfolio has surplus funding capacity. The Neutral rating is unchanged and the target price is decreased to $10.10 from $10.90.

This report was published on August 26, 2020.

Target price is $10.10 Current Price is $10.27 Difference: minus $0.17 (current price is over target).
If APA meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $11.24, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 50.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of -1.5%.
Current consensus DPS estimate is 50.2, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 39.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 51.50 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.6, implying annual growth of 15.5%.
Current consensus DPS estimate is 53.2, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 33.8.

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

APX    APPEN LIMITED

IT & Support – Overnight Price: $31.47

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

Appen's first-half net profit grew 20% and was slightly ahead of Bell Potter's forecast, although the operating income was -9% below forecast due to lower revenue. An interim dividend of 4.5c (50% franked) was announced which was -10% below the broker's expected 5c.

The broker expects 2020 revenue will be around $670m. The broker has downgraded its earnings forecasts for 2020-22 driven by modest reductions in its revenue forecasts along with slight increases in its D&A forecasts.

Bell Potter rates the stock as Hold with the target price rising to 37.50 from $31.25.

This report was published on August 27, 2020.

Target price is $37.50 Current Price is $31.47 Difference: $6.03
If APX meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $36.58, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 12.00 cents and EPS of 63.80 cents.
At the last closing share price the estimated dividend yield is 0.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.8, implying annual growth of 80.8%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 50.9.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.00 cents and EPS of 84.50 cents.
At the last closing share price the estimated dividend yield is 0.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.8, implying annual growth of 37.6%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 37.0.

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


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

Appen’s first-half result was a largely solid result given current market conditions, observes Wilsons, with its core Relevance business proving reliable yet again.

The company reiterated its FY20 guidance, leading the broker to leave its FY20-22 forecasts mostly intact. The broker believes Appen is well-placed to capitalise on the arms race in artificial intelligence and machine learning over the short and medium-term.

Wilsons retains its Overweight recommendation with the target price rising to $43.99 from $42.56.

This report was published on August 28, 2020.

Target price is $43.99 Current Price is $31.47 Difference: $12.52
If APX meets the Wilsons target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $36.58, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 9.50 cents and EPS of 50.40 cents.
At the last closing share price the estimated dividend yield is 0.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.8, implying annual growth of 80.8%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 50.9.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.50 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 0.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.8, implying annual growth of 37.6%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 37.0.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $1.58

Bell Potter rates ((AX1)) as Buy (1) –

Accent Group's FY20 operating income was ahead of Bell Potter's forecast. The company delivered a robust performance with management able to steer the company exceptionally well, suggests the post-event commentary.

Bell Potter notes a combination of adaption to online and effective cost management techniques helped to achieve the robust result. Digital sales lifted by 142% in the fourth quarter and the group's contactable customer database grew by 2m with more than half of the the new customers shopping online.

The broker has strengthened its near-term sales forecasts due to the strong momentum with the effect its FY21 earnings forecast has increased with no material change for FY22-23.

Noting Accent Group is well positioned to leverage off the online shift while growing its store footprint, Bell Potter retains its Buy rating with the target price rising to $1.85 from $180.

This report was produced on August 27, 2020.

Target price is $1.85 Current Price is $1.58 Difference: $0.27
If AX1 meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $1.81, suggesting upside of 19.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 9.60 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.1, implying annual growth of 7.7%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.7.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.30 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, implying annual growth of -2.7%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 14.1.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.30

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

Bega Cheese is engaged in the processing, manufacturing and distribution of dairy and associated products to both Australian and international markets.

The company's FY20 operating income was above Bell Potter's expectations and at the upper end of its guidance. Bell Potter considers Bega's reduction in net debt an impressive turnaround.

While the company did not provide any formal earnings guidance, the broker highlights a reduction in milk intake is expected in FY21 with costs on the lower side due to initiatives.

The broker has downgraded its net profit forecasts by -6% in FY21 and -5% in FY22 due to higher second half depreciation charges. 

Bell Potter retains its Hold rating with the target price rising to $5.15 from $4.85.

This report was published on August 27, 2020.

Target price is $5.15 Current Price is $5.30 Difference: minus $0.15 (current price is over target).
If BGA meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.00 cents and EPS of 17.90 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.61.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 13.00 cents and EPS of 25.50 cents.
At the last closing share price the estimated dividend yield is 2.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.78.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $3.42

Wilsons rates ((BVS)) as Downgrade to Underweight from Overweight (5) –

Bravura Solutions posted softer top-line growth than Wilsons expected. Total revenue growth of 6.4% in FY20 comprised 5% acquisitive growth and only 1% organic growth.

The broker estimates Wealth Management fell -6% while Funds Administration grew 16%. The analyst is concerned about the ability of the company to grow.

Wilsons lowers profit (NPAT) estimates for FY21 and FY22 by -13% and -19%, respectively.

The rating is downgraded to Underweight from Market Weight and the target price is decreased to $3.22 from $5.07.

This report was published on August 27, 2020.

Target price is $3.22 Current Price is $3.42 Difference: minus $0.2 (current price is over target).
If BVS meets the Wilsons target it will return approximately minus 6% (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 10.90 cents and EPS of 16.20 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 21.11.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 11.80 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.43.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.27

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

Capitol Health's FY20 result was ahead of Shaw and Partners' expectations and was strong across all lines from cash flow, margins, and organic growth. The broker considers Capitol Health to have the best balance sheet in the sector with minimal gearing.

Earnings forecasts have been upgraded for FY21-22.The broker notes the company has circa 20-25% of earnings outside of Victoria at a full run-rate and remains conservative about FY21 owing to varying run-rates and a hard lockdown in Victoria in the first quarter of FY21.

Buy rating reaffirmed by Shaw and Partners with the target price increasing to $0.31 from $0.27.

This report was published on August 28, 2020.

Target price is $0.31 Current Price is $0.27 Difference: $0.04
If CAJ meets the Shaw and Partners target it will return approximately 15% (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 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.30 cents and EPS of 1.90 cents.
At the last closing share price the estimated dividend yield is 4.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.21.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $3.13

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

City Chic Collective's FY20 operating income was ahead of Bell Potter's estimates and in-line with the company’s July update. Avenue is off to a resilient start with its FY20 result mostly in-line with the broker.

Bell Potter considers Catherine's e-commerce acquisition attractive due to its large customer base, attractive valuation and synergies that could save about $7m over the next 2-3 years.   

Bell Potter downgrades its earnings forecast for FY21 while keeping FY22 intact. Material upside is expected from the US expansion, online shift and the realisation of synergies from Avenue/Catherines.

Bell Potter holds onto the Buy rating for now, with the target price increased to $3.95 from $3.40.

The report was published on August 27, 2020.

Target price is $3.95 Current Price is $3.13 Difference: $0.82
If CCX meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.78, suggesting upside of 22.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 6.70 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of 85.4%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 34.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.20 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 25.8%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 27.5.

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


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

City Chic Collective reported FY20 operating income of $29.3m, in-line with its recent pre-release. Wilsons attributes the lower gross margins to the cycling of Avenue, which had made a full contribution in the second half of FY20.

No guidance was provided and the broker considers like for like sales growth as the key focus.

The broker expects the underlying physical store and online trading to remain volatile near-term and has revised earnings forecasts accordingly.

Wilsons maintains its Overweight rating with a target price of $3.94.

This report was published on August 28, 2020.

Target price is $3.94 Current Price is $3.13 Difference: $0.81
If CCX meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.78, suggesting upside of 22.8%(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 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of 85.4%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 34.6.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 25.8%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 27.5.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $23.10

Moelis rates ((CUV)) as Buy (1) –

Clinuvel Pharmaceuticals FY20 results were "decent", observes Moelis, and mostly on expected lines. While costs increased to support further R&D, the broker notes the business remained profitable. A final dividend of 2.5c was declared.

No guidance was provided but the outlook commentary pointed to growth coming from the expansion into new EU geographies and new product development.

The broker notes the US launch is progressing faster than expected. This, along with a large revenue opportunity in Mitsubishi Tanabe’s EPP treatment candidate prompts the broker to reinstate earnings.

Moelis reaffirms its Buy rating with a target price of $27.77.

The report was published on August 27, 2020.

Target price is $27.77 Current Price is $23.10 Difference: $4.67
If CUV meets the Moelis target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 1.70 cents and EPS of 20.30 cents.
At the last closing share price the estimated dividend yield is 0.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 113.79.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 3.50 cents and EPS of 41.40 cents.
At the last closing share price the estimated dividend yield is 0.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.80.

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

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.18

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

Cleanaway Waste Management reported FY20 earnings above the Goldman Sachs forecast. This was considered to be primarily driven by a strong margin performance in a tough operational backdrop.

The broker highlights group earnings (EBITDA) margins expanded and sees room for this to continue into FY21.

The result shows the analyst the company's ability to execute should virus impacts endure longer than expected.

The Neutral rating is unchanged and the target price is increased to $2.45 from $2.33.

This report was published on August 26, 2020

Target price is $2.45 Current Price is $2.18 Difference: $0.27
If CWY meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $2.53, suggesting upside of 17.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs 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 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.0, implying annual growth of 45.5%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 2.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.2, implying annual growth of 15.0%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 23.4.

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $1.83

Moelis rates ((DTC)) as Upgrade to Buy from Hold (1) –

Damstra Holdings' FY20 operating income was below Moelis's estimate due to the exclusion of the share-based compensation from the pre-reported figure.

The company has guided towards FY21 revenue of $33m-$35m, considered light by the broker since it doesn’t include any assumptions of cross-selling.

The broker is pleased with the interest being shown in Damstra's fever detection units which also supports the robust outlook for FY21. Moreover, the cross-selling opportunity appears to be playing out with management indicating strong demand from existing clients.

Moelis upgrades its rating to Buy from Hold with the target price increasing marginally to $2.09 from $2.04.

This report was published on August 27, 2020.

Target price is $2.09 Current Price is $1.83 Difference: $0.26
If DTC meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 183.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 152.50.

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


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

Damstra Holdings, founded in 2002 and headquartered in South Yarra, provides workplace management solutions. FY20 was a materially positive year with the group delivering on growth likely to accelerate through FY21.

With guidance for 30-40% growth in FY21, Damstra Holdings is already run-rating guidance. Shaw and Partners expects the sales function to strengthen in FY21 with sites opening up and customer activity increasing.

The broker highlights Damstra is trading at a discount to its listed software peers. Buy rating retained with the target price upgraded to $2.05 from $1.80.

This report was published on July 9, 2020.

Target price is $2.05 Current Price is $1.83 Difference: $0.22
If DTC meets the Shaw and Partners target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.45.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.40 cents and EPS of 4.80 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 38.13.

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

EXP    EXPERIENCE CO LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.22

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

Experience's FY20 operating income fell -73.2% year on year, but proved slightly higher than Wilsons expected. The broker is not surprised since the company was facing challenging trading conditions in the second half led by the bushfires, covid-19 and continued travel restrictions.

Wilsons expects the business will achieve 60% of its FY19 volumes in FY21 before normalising in FY22. The broker awaits signs of stability in domestic and global tourism markets before becoming more constructive on the company's prospects.

Wilsons reaffirms its Market Weight rating with the target price reducing to $0.14 from $0.16.

This report was published on August 28, 2020.

Target price is $0.14 Current Price is $0.22 Difference: minus $0.08 (current price is over target).
If EXP meets the Wilsons target it will return approximately minus 36% (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 minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 73.33.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 11.00.

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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $1.29

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

Frontier Digital Ventures delivered a positive first half, comments Bell Potter. Even as the impact of the lockdowns was visible in revenue declines of -12%, the broker notes cost reduction measures ensured the group operating losses remained largely consistent on a yearly basis.

The broker notes the company is beginning to see a normalisation in site traffic, sparking a return to revenues.

The broker is confident Frontier Digital Ventures looks well-positioned to emerge positively from the pandemic, while a strong cash position makes it well-capitalised to pursue M&A opportunities to support a stronger recovery.

Bell Potter retains its Hold (Speculative) rating with a target price of $1.18. 

The report was published on August 27, 2020.

Target price is $1.18 Current Price is $1.29 Difference: minus $0.11 (current price is over target).
If FDV meets the Bell Potter target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.61.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.75.

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

FLT    FLIGHT CENTRE LIMITED

Travel, Leisure & Tourism – Overnight Price: $13.40

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

Flight Centre delivered a loss of -$510m, at the lower end of its guided range. This was led by the second half which saw operating conditions deteriorate significantly due to the pandemic.

The total transaction value (TTV) and revenue ended the year down -35% and -38% respectively. The broker suggests the highlight of the result was the performance of its corporate business which delivered a positive operating profit of $74m across FY20.

The FY20 result has led the broker to adjust its recovery profile to reflect the uncertainty facing the outlook for travel. Its net profit loss forecast for FY21 has increased while its earnings forecasts for FY22-23 have been downgraded by about -26%.

The broker is attracted to Flight Centre due to its diversified exposure to the recovery of global travel. Also, the broker expects earnings to be restored at higher margins due to the removal of structural costs.

Bell Potter upgrades its rating to Buy from Hold with the target price reducing to $16 from $17.

This report was published on August 27, 2020.

Target price is $16.00 Current Price is $13.40 Difference: $2.6
If FLT meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $13.34, suggesting upside of 3.8%(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 minus 112.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -95.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 23.00 cents and EPS of 44.10 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.5, implying annual growth of N/A.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 42.1.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.05

Moelis rates ((GDF)) as Buy (1) –

Garda Property Group delivered a solid result against the pandemic backdrop, according to Moelis. The main negative was considered a higher interest expense following the completion of Botanicca.

Gearing remains fairly comfortable for the broker at 36.7%.

The Group has guided to $0.72 DPU paid in quarterly installments, which is expected to equate to a payout ratio of between 95% and 100%.

Moelis reinstates coverage with a Buy rating and a target price of $1.18.

This report was published on August 27, 2020.

Target price is $1.18 Current Price is $1.05 Difference: $0.13
If GDF meets the Moelis target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.20 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.82.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.50 cents and EPS of 8.10 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 12.96.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $0.79

Moelis rates ((GDG)) as No Rating (-1) –

Generation Development Group's FY20 net funds under management (FUM) increased by circa 20%. Moelis notes the momentum from a record June quarter has continued into FY21. The group is now pursuing emerging acquisition opportunities.

The broker thinks FY20 proved the resilience of the group's existing FUM. Given Generation Development Group has a commanding market share, the broker expects the operating leverage to increase and the net profit margin to grow to 26% in FY23.

Moelis reaffirms its Buy Rating with a target price of $1.08.

This report was published on August 28, 2020.

Target price is $1.08 Current Price is $0.79 Difference: $0.29
If GDG meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 2.00 cents and EPS of 2.90 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.24.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.00 cents and EPS of 3.70 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.35.

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

GOZ    GROWTHPOINT PROPERTIES AUSTRALIA

Infra & Property Developers – Overnight Price: $3.35

Moelis rates ((GOZ)) as Buy (1) –

Growthpoint Properties Australia delivered FY20 funds from operations (FFO) down -5.2% on the previous corresponding period. This reflects both the impact of covid-19 and a relatively more conservative position with a reduced payout ratio, according to Moelis.

The broker describes rent collections as robust at 96% for the office portfolio and 98% for the industrial portfolio. 

Total rent abatements were -$0.8m, with deferrals of -$2m. The analyst explains the strong outcome was driven by limited exposure to SME's.

The FY21 DPU guidance of 20 cents appears conservative to Moelis, though there does remain an element of uncertainty around the outlook for office markets.

Moelis reinstates coverage with a Buy rating and a target price of $3.81.

This report was published on August 26, 2020.

Target price is $3.81 Current Price is $3.35 Difference: $0.46
If GOZ meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.34, suggesting downside of -0.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 20.00 cents and EPS of 24.10 cents.
At the last closing share price the estimated dividend yield is 5.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of -44.2%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 22.30 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 6.66%.
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 23.3, implying annual growth of 18.3%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 14.4.

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

HMC    HOME CONSORTIUM LIMITED

Real Estate – Overnight Price: $3.27

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

Home Consortium delivered pro-forma funds from operations (FFO) for FY20 which were 8% ahead of Goldman Sachs' expectations.

The broker explains the main drivers of the beat were higher net property income and lower corporate expenses.

The company also provided an update on two strategic initiatives. Firstly, the establishment of a separately-listed Daily Needs REIT to be formed in late 2020/early 2021, with an initial portfolio size of around $550m.

Secondly, a proposed formation of a healthcare and wellness wholesale fund, to be initially seeded with $150m of existing seed assets from the company's balance sheet. Goldman Sachs does not currently allow for the formation of either vehicle in estimates or valuation.

The analyst forecasts FY21 FFO of 15.4 cents. The Buy rating is unchanged and the target price is increased to $3.66 from $3.56.

This report was published on August 26, 2020.

Target price is $3.66 Current Price is $3.27 Difference: $0.39
If HMC meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.34, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of N/A.
Current consensus DPS estimate is 14.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of 42.1%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.8.

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

KZA    KAZIA THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.95

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

Kazia Therapeutics is the developer of a new chemical entity called paxalisib, specifically designed for the treatment of Glioblastoma (GBM). 

Kazia's FY20 result saw the company spending -$9.5m on clinical trials to develop its two drug candidates. The company reported a net loss of -$12.4m. Bell Potter notes cash levels are sufficient to fund the company till early 2021.

The company estimates the global market for Glioblastoma to be US$1.5bn which has led the broker to increase its selling price estimate for Paxalisib.

Buy rating retained. Target rises to $1.50 from $1.

This report was published on August 27, 2020.

Target price is $1.50 Current Price is $0.95 Difference: $0.55
If KZA meets the Bell Potter target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 12.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.60.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.98.

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

LME    LIMEADE INC

Cloud services – Overnight Price: $1.52

Moelis rates ((LME)) as Buy (1) –

Limeade, the employee experience software as a service provider, reported its first-half results with both revenue and operating loss better than Moelis feared.

Moelis notes the company continues to grow its pipeline with interest in employee well-being, engagement and communication growing due to the pandemic. As a result, the total annualised pipeline was up 56% in June versus September 2019.

Revenue estimates increased for FY20-22. The broker acknowledges it is encouraging to see the top of funnel metrics growing but notes conversion remains difficult given the pandemic.

Moelis maintains its Buy rating with the target price increasing slightly to $1.80 from $1.72.

The report was published on August 28, 2020.

Target price is $1.80 Current Price is $1.52 Difference: $0.28
If LME meets the Moelis target it will return approximately 18% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 54.25.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.65 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.27.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.82

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

Mader Group's FY20 result was strong, comments Bell Potter, with its net profit ahead of the broker's forecast. Group revenue grew by 30% despite the decline in International revenue due to covid-19 workforce repatriations.

The broker considers FY21 outlook to be positive with growth driven by strong demand expected in Western Australian iron ore and gold, on yop of encouraging growth prospects in the US.

Risks include travel restrictions that are hampering efficient interstate allocation of workers. The broker has increased its earnings forecasts for FY21-22.

Bell Potter reaffirms its Buy rating with the target price increasing to $1.24 from $1.22.

This report was published on August 27, 2020.

Target price is $1.24 Current Price is $0.82 Difference: $0.42
If MAD meets the Bell Potter target it will return approximately 51% (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 5.16 cents and EPS of 14.31 cents.
At the last closing share price the estimated dividend yield is 6.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.73.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.90 cents and EPS of 17.55 cents.
At the last closing share price the estimated dividend yield is 7.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.67.

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

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.27

Moelis rates ((MAH)) as Buy (1) –

Macmahon Holdings' operating income was in-line with its guidance with capex below the guidance due to some capex deferral into FY21. According to the broker, the result represents another year of management delivering on guidance.

The company has guided to FY21 revenue of $1.4-$1.5bn, supported by a $4.5bn order book with $1.2bn for delivery in FY21. The broker believes Macmahon's FY21 operating income guidance looks very achievable.

Moelis reinstates coverage with a Buy rating with a target price of $0.37.

This report was released on 28 August 2020.

Target price is $0.37 Current Price is $0.27 Difference: $0.1
If MAH meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.60 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 2.22%.
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 0.50 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 1.85%.
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

MAQ    MACQUARIE TELECOM GROUP LIMITED

Telecommunication – Overnight Price: $45.70

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

Macquarie Telecom Group's FY20 results revealed a 6th consecutive year of operating income growth, observes Bell Potter, with the company continuing to benefit from increased demand for its cloud, data centre (DC) and government services.

The group expects another year of operating income growth in FY21 with demand for its services accelerated from the increase in people working from home

The broker expects the group's opportunities will improve considerably due to large hyperscale customers and its soon to be completed IC3 East DC development.

Bell Potter retains its Buy rating with the target price increasing to $52.40 from $51.25.

This report was published on August 27, 2020.

Target price is $52.40 Current Price is $45.70 Difference: $6.7
If MAQ meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 45.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.22.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 41.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 109.33.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $2.86

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

A trading update from Metcash demonstrates to Goldman Sachs accelerating growth toward the end of the first quarter 2021 for all three divisions.

The broker now expects strong growth to continue to the end of this half and moderate over the second half.

Goldman Sachs upgrades profit (NPAT) estimates for FY21 by 7.5%, and notes a 4.2% dividend yield and a strong net cash position.

The Buy rating is unchanged and the target price is increased by 5.5% to $3.45.

This report was published on August 26, 2020.

Target price is $3.45 Current Price is $2.86 Difference: $0.59
If MTS meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.39, suggesting upside of 17.8%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 13.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of N/A.
Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.3, implying annual growth of -1.5%.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 14.2.

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

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $1.68

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

Nine Entertainment reported underlying earnings (EBITDA) just -2% below Goldman Sachs estimate, but earnings were roughly at the mid-point of recent company guidance.

The broker highlights a strong cash performance and a final dividend of 2 cents, in-line with the forecast.

Lower TV revenues were partly offset by stronger radio/publishing cost performances. The highlight for the analyst was the result of Stan, which grew active subscribers by 400,000 in the second half to 2.2m.

The FY21 outlook is beholden to many variables. The broker expects positive subscription revenue to continue at Stan and digital trends to continue at Metro Media. 

The Buy rating is unchanged and the target price is $1.85.

This report was published on August 27, 2020.

Target price is $1.85 Current Price is $1.68 Difference: $0.17
If NEC meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $2.11, suggesting upside of 25.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of N/A.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of 26.4%.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.3.

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

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $1.86

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

The National Storage REIT FY20 result was roughly in-line with Goldman Sachs' expectations. The broker notes depressed revenue per available metre (RevPAM) growth in the difficult pandemic environment.

The REIT introduced FY21 midpoint EPS guidance of 8cps, in-line with the analyst's growth expectation. 

Goldman Sachs sees signs in the earnings result of a recovery in the operating metrics post-covid-19, as portfolio occupancy has risen to 81.5% in August from depressed FY20 levels.

The Sell rating is unchanged and the target price is decreased to $1.54 from $1.56.

This report was published on August 26, 2020.

Target price is $1.54 Current Price is $1.86 Difference: minus $0.32 (current price is over target).
If NSR meets the Goldman Sachs target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.79, suggesting downside of -2.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of -44.1%.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 3.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 21.5.

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

NUC    NUCHEV LIMITED

Dairy – Overnight Price: $1.95

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

Nuchev's full-year result was a touch softer than Wilsons' forecasts with an operating loss of -$7.8m led by a challenging environment. The broker believes the external environment will remain volatile in the near-term due to channel dislocation.

The broker remains confident of structural growth in the business led by growth in the goat infant formula segment and strength in the Oli6’s brand.

Nuchev expects considerable growth in revenue and volume in FY21, but the broker expects the rate of growth to be moderate relative to FY20.

Wilsons retains its Overweight rating with a target price of $3.46.

This report was published on August 28, 2020.

Target price is $3.46 Current Price is $1.95 Difference: $1.51
If NUC meets the Wilsons target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.19.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.08.

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

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.81

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

Shaw and Partners concludes Probiotec's FY20 result marked a strong performance. Operating income was up 78% year on year and ahead of Shaw and Partners' estimate as well as company guidance.

Probiotic's largest category is cough and cold and because of social distancing in Victoria and lesser demand in other states, this category has seen slower demand. Management has been conservative due to this, downgrading its earnings forecast guidance for FY21. 

The broker expects an accretive acquisition within the next 6 months. Buy rating reaffirmed with the target price rising to $2.54 from $2.43.

The report was published on August 28, 2020.

Target price is $2.54 Current Price is $1.81 Difference: $0.73
If PBP meets the Shaw and Partners target it will return approximately 40% (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 4.70 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.02.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.90 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

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: $2.83

Moelis rates ((PFP)) as Initiation of coverage with Hold (3) –

Propel Funeral Partners delivered operating earnings (EBITDA) that were -4% down on pre-covid-19 expectations of Moelis. 

The broker considers this a good result achieved via dynamic opex cost control and subsidy assistance.

The near non existence of influenza in Australia this winter has had a serious impact on volumes across the industry, points out the analyst.

The approximately 1,200 funerals reported in July suggests to Moelis that volumes remain weak. However, the broker notes the company has recovered its average revenue per funeral to exceed pre-pandemic levels.

Moelis reinstates coverage with a Hold rating and a target price of $3.14.

This report was published on August 26, 2020.

Target price is $3.14 Current Price is $2.83 Difference: $0.31
If PFP meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 11.70 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.25.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.90 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.65.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.21

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

The FY20 results for Polynovo were in-line with Wilsons forecasts.

The broker assesses the core push into verified burn and trauma centres can potentially double US revenue. A full year contribution from Europe with ANZ growth and new territories supports a similar outlook for rest of the world (ROW) sales.

The broker's FY21 forecast sees the company push past 100 US hospitals, which is ample critical mass to drive deeper engagement with national group purchasing organisations (GPO). The analyst expects hospital access and US sales rep productivity could both increase materially again from that point.

The Overweight rating is maintained and the target price is decreased to $2.80 from $2.90.

This report was published on August 27, 2020.

Target price is $2.80 Current Price is $2.21 Difference: $0.59
If PNV meets the Wilsons target it will return approximately 27% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2210.00.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 66.97.

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

PVS    PIVOTAL SYSTEMS CORPORATION

Hardware & Equipment – Overnight Price: $1.08

Moelis rates ((PVS)) as Buy (1) –

Pivotal Systems' first-half operating income was relatively stable and in line with Moelis's expectations. The company reiterated its guidance of growth with the market growing and Pivotal Systems continuing to win share.

The broker considers the industry outlook to be positive despite covid and supports the near term growth forecast. Some key near term catalysts include Pivotal's revenue growth and improvement in gross margin and cash flows.

Moelis reaffirms its Buy rating with the target price rising slightly to $1.49 from $1.48.

This report was published on August 28, 2020.

Target price is $1.49 Current Price is $1.08 Difference: $0.41
If PVS meets the Moelis target it will return approximately 38% (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 8.55 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.63.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.12.

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

RDY    READYTECH HOLDINGS LTD

Software & Services – Overnight Price: $1.81

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

ReadyTech posted a strong set of results across both Education and Workforce Solutions segments, notes Wilsons.

The company's FY21 guidance points to mid-teens revenue growth and an operating income margin between 37%–39%. The broker believes FY21 revenue guidance is conservative and will be easily achieved and expects a 39%-40% margin.

Wilsons maintains its Overweight rating with the target price decreasing to $2.60 from $3.18.

This report was released on 27 August 2020.

Target price is $2.60 Current Price is $1.81 Difference: $0.79
If RDY meets the Wilsons target it will return approximately 44% (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 10.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.92.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.21.

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

REG    REGIS HEALTHCARE LIMITED

Aged Care & Seniors – Overnight Price: $1.09

Moelis rates ((REG)) as Re-istate coverage with Buy (1) –

Regis Healthcare's FY20 operating income was -6% below its pre-covid estimates with occupancy drifting lower post-covid. Moelis expects the net debt to decrease in FY21 with inflows from ramp-up facilities. With the company in capital preservation mode, no final dividend was declared.

FY21 operating income is expected to decline by -13%. Even as the sector faces a highly challenging near-term environment, Moelis believes the company can handle occupancy pressures should they occur.

The broker believes Regis Healthcare is well-placed to captialise on the industry consolidation expected to take place across 2021-22. 

Moelis re-instates coverage with a Buy rating, alongside a target price of $2.06. 

This report was published on August 28, 2020.

Target price is $2.06 Current Price is $1.09 Difference: $0.97
If REG meets the Moelis target it will return approximately 89% (excluding dividends, fees and charges).
Current consensus price target is $1.27, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 3.70 cents and EPS of 4.10 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of 244.0%.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 24.7.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.50 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of 60.5%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 15.4.

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

RIC    RIDLEY CORPORATION LIMITED

Agriculture – Overnight Price: $0.78

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

Ridley Corp delivered an encouraging FY20 result, in the opinion of Wilsons, with operating income ahead of the broker's forecast, driven by cost reduction measures.

Gearing remains high but is expected to reduce materially in FY21 with higher earnings, lower working capital and the broker's assumption of nil dividend. 

Ridley Corp did not provide any guidance. Wilsons assumes flat volumes and margins in FY21 with volumes growth resuming from FY22.

Finding the valuation attractive, Wilsons retains its Overweight rating with a target price of $1.11.

This report was published on August 27, 2020.

Target price is $1.11 Current Price is $0.78 Difference: $0.33
If RIC meets the Wilsons target it will return approximately 42% (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 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 3.00 cents and EPS of 7.00 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 11.14.

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

RMC    RESIMAC GROUP LTD

Banks – Overnight Price: $1.32

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

Resimac Group reported a 79% increase in FY20 net profit which was above Bell Potter's forecast. A final dividend of 1.8c (fully franked) was announced. Resimac saw a jump in net interest income, benefitting from a funding tailwind, points out the broker.

Bell Potter has increased its earnings forecasts for FY21-22 after including the funding and cost tailwinds. Buy retained with the target price increasing to $2.05 from $1.80.

The report was published on February 27, 2020.

Target price is $2.05 Current Price is $1.32 Difference: $0.73
If RMC meets the Bell Potter target it will return approximately 55% (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 3.50 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.25.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.81.

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

RMY    RMA GLOBAL LIMITED

Real Estate – Overnight Price: $0.24

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

RMA Global's FY20 result was in-line with Bell Potter's estimates.

The broker reports RMA Global launched a mortgage broker vertical within the rate my agent platform which will allow brokers to collect reviews linked to property transactions and provide access to the platforms promotional suite.

Moreover, during the fourth quarter lockdowns, the company saw its promoter product revenues grow by circa 40%.

In FY21, the broker sees substantial scope to accelerate revenue generation within the market, which is yet to be factored into its forecasts. Earnings forecast upgraded for FY21-22.

Bell Potter maintains its Buy rating with a target price of $0.35.

This report was published on August 27, 2020

Target price is $0.35 Current Price is $0.24 Difference: $0.11
If RMY meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.63.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.82.

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

SRG    SRG GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.33

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

SRG Global's FY20 result was largely in-line with its guidance with FY21 operating income guidance almost 31%-45% above last year levels. This was led by more than $200m worth of work won since 1 July 2020.

Shaw and Partners takes note of SRG's attractive trading multiples, along with the fact it's considered a strong and competitive company with a broader reach and diverse mix of clients and work.

Buy rating maintained. Target price is $0.45

This report was published on August 28, 2020.

Target price is $0.45 Current Price is $0.33 Difference: $0.12
If SRG meets the Shaw and Partners target it will return approximately 36% (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 2.00 cents and EPS of 3.10 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 10.65.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.00 cents and EPS of 4.30 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 7.67.

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

SVW    SEVEN GROUP HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $17.20

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

Seven Group Holdings reported FY20 results ahead of Goldman Sachs' expectations, reflecting healthy mining activity levels, comments the analyst.

The result shows the broker continued execution by the company at the sub-segment (eg Coates) and group (cash conversion of 81%) levels. Additionally, WesTrac was considered to show continued strength in underlying earnings.

The analyst expects operating tailwinds to remain intact or strengthen over the next several years.

Goldman Sachs remains positive on the drivers of the company's industrial services core in mining activity/investment and east coast infrastructure spend.

The Buy rating is unchanged and the target price is increased to $20.90 from $20.50.

This report was published on August 26, 2020.

Target price is $20.90 Current Price is $17.20 Difference: $3.7
If SVW meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $20.85, suggesting upside of 21.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 42.00 cents and EPS of 140.00 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.3, implying annual growth of 271.5%.
Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 59.00 cents and EPS of 168.00 cents.
At the last closing share price the estimated dividend yield is 3.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 146.5, implying annual growth of 16.0%.
Current consensus DPS estimate is 42.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 11.8.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $0.98

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

With production pre-reported, Whitehaven Coal’s results proved broadly in-line with Wilsons' forecasts.

The broker's previous assumptions of more normalised production have been pushed out on revised guidance.

The balance sheet concerns the analyst, as cash losses are building at current coal prices, with only debt headroom of around $360m.

Wilsons unwinds Vickery and Winchester South from valuations, given the balance sheet and difficulties locking down a joint venture partner. This alone decreases the valuation for the company by -$1.

The Overweight rating is unchanged and the target price is decreased to $2.50 from $4.

This report was published on August 27, 2020.

Target price is $2.50 Current Price is $0.98 Difference: $1.52
If WHC meets the Wilsons target it will return approximately 155% (excluding dividends, fees and charges).
Current consensus price target is $1.56, suggesting upside of 66.4%(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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.9, implying annual growth of N/A.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 3.00 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of N/A.
Current consensus DPS estimate is 2.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 21.4.

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

WPR    WAYPOINT REIT

REITs – Overnight Price: $2.71

Moelis rates ((WPR)) as Hold (3) –

Waypoint REIT's first-half result was robust, comments Moelis, highlighting the defensive nature of the service station asset class. 99.9% of rent was collected and gearing remained conservative.

FY20 distributable earnings guidance has been upgraded and a 100% payout assumption implies a dividend yield of 5.6%. While Waypoint REIT offers a resilient and growing cash flow stream, the broker notes it trades on a relatively tight implied cap rate.

Moelis reinstates coverage with a Hold rating and target price of $2.78.

This report was published on August 28, 2020.

Target price is $2.78 Current Price is $2.71 Difference: $0.07
If WPR meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.74, suggesting upside of 2.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 15.10 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of -35.0%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 15.90 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 5.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of 4.6%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 16.9.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $3.70

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

With prospectus targets met, and in some cases exceeded, Whispir enters FY21 with several positives, according to Wilsons.

These include an accelerated, pre-existing secular trend of improved communications and digital transformation. Additionally, the company has a bolstered executive management team and many existing and potential new clients with which to capitalise on opportunities.

The company has guided to FY21 revenue of $47.5m-$51m. The analyst sees operating leverage will become increasingly evident with revenue growth (23%) outpacing operating expense growth (14%).

The broker believes that just the willingness to provide guidance in the current environment highlights the company's confidence in its ability to grow.

The Overweight rating is unchanged and the target price is increased to $5.10 from $4.41.

This report was published on August 27, 2020.

Target price is $5.10 Current Price is $3.70 Difference: $1.4
If WSP meets the Wilsons target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.68.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 168.18.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.19

Moelis rates ((WZR)) as Hold (3) –

Wisr's FY20 revenue and net profit were slightly below Moelis's forecast due to higher costs. The result included -$4.1m in provision for expected credit losses but notwithstanding this, the broker feels Wisr executed well through the initial stages of the pandemic.

Moelis's net profit estimates for FY21-22 have been downgraded on increased cost assumptions. While limited guidance was given, the broker expects growth led by several drivers including additional marketing investment, less conservative underwriting and the reopening of Victoria.

Moelis maintains its Hold rating with the target price decreasing slightly to $0.26 from $0.28.

The report was published on August 27, 2020.

Target price is $0.26 Current Price is $0.19 Difference: $0.07
If WZR meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.88.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.27.

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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