Australian Broker Call *Extra* Edition – Oct 05, 2020

Daily Market Reports | Oct 05 2020

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

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

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)

AMA ARX(2) BUB CCX(2) CGC CKF GDI GNC ILU IMM JHX KGN LBL NAN NWS RBL SKF TDI(2) TPW TTM VUK WCG

AMA AMA GROUP LIMITED

Automobiles & Components - Overnight Price: $0.63

Moelis rates ((AMA)) as Hold (3) -

Moelis reports FY20 normalised earnings for AMA Group were broadly in-line with July guidance. The analyst notes positive signs of a recovery in repair volumes as domestic travel restrictions are lifted.

The broker feels the stock may continue to trade at a discount until confirmation of a recovery in volumes and margins, and further deleveraging of the balance sheet. Additionally, a delivery of Capital SMART earnings and synergies is considered important.

Moelis reinstates coverage witha Hold rating and a target price of $0.72.

This report was published on September 9, 2020.

Target price is $0.72 Current Price is $0.63 Difference: $0.09
If AMA 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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.50.

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

BUB BUBS AUSTRALIA LIMITED

Dairy - Overnight Price: $0.71

Wilsons rates ((BUB)) as Market Weight (3) -

The FY20 result for Bubs Australia was moderately below the earnings (EBITDA) forecast of Wilsons, driven by a -6% sales miss.

No explicit guidance was given. The company completed a placement to fund the localisation strategy and acquisition, growth initiatives and new markets and products.

The broker sees the near-term outlook as remaining volatile due to travel restrictions impacting daigoudemand. In the longer term, the analyst says the company goes up the risk-reward spectrum with the localisationstrategy. Additionally, it's considered the tighter partnership with Beingmate will likely accelerate the market access to general trade and double the company's addressable market.

The Market weight rating is unchanged and the target price is decreased to $0.85 from $0.93.

This report was published on September 8, 2020.

Target price is $0.85 Current Price is $0.71 Difference: $0.14
If BUB meets the Wilsons target it will return approximately 20% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 118.33.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 177.50.

Market Sentiment: 0.0
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: $2.83

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

City Chic Collectiveannounced it has not been successful in winning the court-run auction for the e-commerce assets of Catherines. The winning bid was US$40.8m which was above managements assessment of the value of the assets.

Bell Potter is pleased with the retailer's decision of not overpaying, noting the winning bid was 2.5xhigher versus what City Chic paid for Avenue. The broker believes withdrawing from the Catherines auction and preserving capital for other acquisition prospects will deliver a stronger longer-term growth outcome.

Bell Potter holds onto the Buy rating with the target price decreasing to $3.70 from $3.95.

The report was published on September 17, 2020.

Target price is $3.70 Current Price is $2.83 Difference: $0.87
If CCX meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $3.78, suggesting upside of 33.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter 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 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.28.

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 0.7%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.70 cents and EPS of 13.00 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 21.77.

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 1.9%.
Current consensus EPS estimate suggests the PER is 25.3.

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


Goldman Sachs rates ((CCX)) as Buy (1) -

City Chic Collectivewas unsuccessful in winning a court run auction for the Catherines e-commerce assets as itwas not the highest bidder.

Goldman Sachs notes its forecasts did not include any contribution from Catherines, but admits investors may be disappointed by the news. However, with the retail landscape globally under pressure due to covid, the broker finds it unlikely this asset wasthe last opportunity.

The retailer's balance sheet is very strong and positions it to benefit from any further opportunities that may emerge, states the broker. Also,City Chic'sbalance sheet strength meant the company could have paid the reported sale price of Catherines, but the company showed financial discipline, highlights the broker.

Goldman Sachs retains its Buy rating with a target price of $4.

This report was published on September 17, 2020.

Target price is $4.00 Current Price is $2.83 Difference: $1.17
If CCX meets the Goldman Sachs target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $3.78, suggesting upside of 33.7%(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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.44.

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 0.7%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 7.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.58.

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 1.9%.
Current consensus EPS estimate suggests the PER is 25.3.

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

KGN KOGAN.COM LTD

Retailing - Overnight Price: $20.02

Canaccord Genuity rates ((KGN)) as Buy (1) -

Kogan.com's latest trading updateshows growth continuing into August with sales up by more than 117%, andgross profit increasing by more than 165%.

With Kogan's gross profit growth exceeding its gross sales growth, Canaccord Genuity infers the company continues to expand its gross profit margin driven by elevated growth in its highest margin private label business. The broker highlights the number of active customers increased to 2.5m, which is the primary driver of Kogan's growth/earnings.

Earnings forecasts for FY21-23 have been revised upwards.

The broker believes Kogan won't disappoint investor expectations in the short term. At the margin, Kogan's monthly growth rate should become easier to cycle with the slowdown experienced in the first half, expects the broker.

The broker maintains its Buy rating with a target price of $24.

This report was published on September 16, 2020.

Target price is $24.00 Current Price is $20.02 Difference: $3.98
If KGN meets the Canaccord Genuity target it will return approximately 20% (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 37.00 cents and EPS of 52.00 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 38.50.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 42.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.37.

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


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