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

Daily Market Reports | Oct 05 2020

This story features AMA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AMA

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)

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 with a 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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.28

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

Aroa Biosurgery develops and commercialises Endoform, a proprietary soft tissue regeneration platform. According to Bell Potter, it provides a "holy grail" solution to the trade-off between safety, efficacy and cost with currently available synthetic and biologic wound dressings and surgical meshes.

Aroa Biosurgery's trading update was strong, observes Bell Potter, highlighting a -9% decline in revenues year to date versus last year. The broker anticipates a more pronounced covid impact in the first half than forecast, but still expects FY21 revenues to remain flat versus the last year.

The broker assesses the first half of FY21 could see a circa -20% decline in revenues. Localised second-wave breakouts of covid-19 may not have a material impact on sales growth, believes the broker, since these would result in relatively short-term “brown-outs” of elective procedures.

Bell Potter reaffirms its Buy rating with a target price of $2.10.

This report was published on September 14, 2020.

Target price is $2.10 Current Price is $1.28 Difference: $0.82
If ARX meets the Bell Potter target it will return approximately 64% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.71.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 98.46.

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


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

Aroa Biosurgery's latest update confirmed better than expected trading over the first half. Aroa's United States-based surgical partner, TELA Bio's activity levels were above pre-covid levels in August and September despite softness in some regions

Recoveries were seen in both OviTex (hernia portfolio marketed by TELA Bio) and Appulse. Wilsons is confident product sales in the second half will be higher than last year.

The Overweight rating is unchanged with a target price of $2.

This report was published on September 14, 2020

Target price is $2.00 Current Price is $1.28 Difference: $0.72
If ARX meets the Wilsons target it will return approximately 56% (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 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.29.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.11.

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 daigou demand. In the longer term, the analyst says the company goes up the risk-reward spectrum with the localisation strategy. 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 Collective announced 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 management’s assessment of the value of the assets.

Bell Potter is pleased with the retailer's decision of not overpaying, noting the winning bid was 2.5x higher 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 Collective was unsuccessful in winning a court run auction for the Catherines e-commerce assets as it was 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 was the 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's balance 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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.36

Bell Potter rates ((CGC)) as Initiation of coverage with Buy (1) –

Costa Group Holdings is Australia’s largest horticultural company with operations across the supply chain from farming and packing to marketing and distribution. Globally, the group operates circa 5,300Ha of farming assets across five categories – berries, avocados, citrus, tomatoes and mushrooms.

Bell Potter views the group favourably due to the expansion and maturation of the international berry operations, maturation of the avocado orchards leading to lower per unit costs, and stronger volumes and non-recurrence of seasonal factors impacting the citrus, tomato and berry operations in 2019-20.

In the near term, the broker sees the group a beneficiary of the stronger year on year pricing comparisons across the majority of its portfolio.

Bell Potter initiates coverage with a Buy rating and a target price of $4.05.

This report was published on September 18, 2020.

Target price is $4.05 Current Price is $3.36 Difference: $0.69
If CGC meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.63, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 7.00 cents and EPS of 11.70 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 28.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 30.0.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.00 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 51.8%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 19.8.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.22

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

Trading conditions for the core KFC Australia business are robust in Wilsons' view. These conditions are aided by trends like consumer preference for contactless sales channels and higher ticket size, adds the broker.

These factors serve to aid the broker's expectations of sustained earnings growth in FY21.

KFC Europe and Taco Bell also continue to offer significant growth potential, observes Wilsons, and are key drivers driving the broker's estimated group earnings growth from FY23.

Continuing to see good value, Wilsons retains its Overweight rating with a target price of $10.87.

The report was published on September 16, 2020.

Target price is $10.87 Current Price is $10.22 Difference: $0.65
If CKF meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in May.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 23.00 cents and EPS of 46.10 cents.
At the last closing share price the estimated dividend yield is 2.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.17.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 24.00 cents and EPS of 48.20 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.20.

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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $1.07

Moelis rates ((GDI)) as Buy (1) –

GDI Property Group's results delivered funds from operations (FFO) of 8.22cps and paid a distribution of 7.75cps, in-line with expectations, according to Moelis.

The broker identifies key drivers of a marginal fall in NTA as including the write-off of stamp duty for the consolidated GDI No 46 (IDOM) trust, which was partially offset by the valuation of Westralia Square.

Guidance by management is for DPU of 7.75cps.

The analyst believes the group remains well placed to benefit from a strengthening Perth market, with material valuation upside where successful leasing can be executed.

Moelis reinstates coverage with a Buy rating and target price of $1.48.

This report was published on September 9, 2020.

Target price is $1.48 Current Price is $1.07 Difference: $0.41
If GDI meets the Moelis target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.80 cents and EPS of 5.40 cents.
At the last closing share price the estimated dividend yield is 7.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.81.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.80 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 7.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.90.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $3.72

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

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) released updated 2020/21 harvest forecasts that upgraded the winter harvest expectations by 13% for the east coast of Australia. The agency also released initial summer harvest guidance for the same period.

Goldman Sachs sees the update as providing further confirmation on the strong lead up into FY21. However, the broker also forecasts the majority of earnings leverage is absorbed by the crop derivative contract.

The Neutral rating is unchanged and the target price is increased to $4.66 from $4.53.

This report was published on September 8, 2020.

Target price is $4.66 Current Price is $3.72 Difference: $0.94
If GNC meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $4.59, suggesting upside of 23.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 286.2.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.0, implying annual growth of 1438.5%.
Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.6.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $8.92

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

Iluka Resources' demerger of the Mining Area C iron ore royalty will be called Deterra Royalties ((DRR)), with existing shareholders receiving one share in Deterra for every Iluka share.

After the demerger, Iluka will hold 20% of Deterra necessitating an additional 20% issue of Deterra shares.

Goldman Sachs' estimates do not include the proposed Deterra demerger and the broker has pushed out the timing of the capacity payment associated with the South Flank ramp-up to July 2022, lowering its 2021 earnings forecast.

The Buy rating is maintained. The price target remains at $10.10

This report was published on September 18, 2020.

Target price is $10.10 Current Price is $8.92 Difference: $1.18
If ILU meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $9.99, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 5.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 0.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.8, implying annual growth of N/A.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 18.7.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 24.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.5, implying annual growth of 55.9%.
Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 12.0.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.24

Bell Potter rates ((IMM)) as Initiation of coverage with Buy (1) –

Immutep is a clinical-stage biopharmaceutical company, focusing on developing novel immunotherapies for treating cancer and autoimmune diseases. Its core technology is based on LAG-3 (lymphocyte activation gene-3) protein, a key mediator of the immune system.

Validation of its technology is provided by a number of high-quality trials with Big Pharma. Validation of LAG-3 in immuno-oncology (IO) is expected near term through pivotal trial results from the most advanced player BMS’ anti-LAG-3 asset relatlimab.

Bell Potter expects the company to be the leader and only pure-play LAG-3 company to benefit from this validation. The broker forecasts peak in-market sales of US$3bn across 3 cancer indications and a US$1bn licensing deal in FY22.

Bell Potter initiates coverage on Immutep with a Buy rating and a target price of $0.60.

This report was published on September 17, 2020.

Target price is $0.60 Current Price is $0.24 Difference: $0.36
If IMM meets the Bell Potter target it will return approximately 150% (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 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.69.

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

JHX    JAMES HARDIE INDUSTRIES N.V.

Building Products & Services – Overnight Price: $33.52

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

The US Census Bureau’s Characteristics of New Homes Survey (2019) showed the largest growth since 2014 in fibre cement siding.

While the survey relates to US new homes constructed, Goldman Sachs's estimate of total 2019 US volume growth of 5.1% implies share gains offset the -3% decline in detached housing starts.

The broker finds the US opportunity attractive and continues to believe there is room for better-than-market growth for James Hardie given vinyl still accounts for about 23% of the total new siding market and the South remains a high growth near-term opportunity.

The broker is positive on the long-term outlook and retains a terminal growth target of 30% siding share and 90% fibre cement share.

Buy rating retained with the target price increasing to $37.35 from $37.23.

This report was published on September 18, 2020.

Target price is $37.35 Current Price is $33.52 Difference: $3.83
If JHX meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $35.22, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 125.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 121.1, 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 27.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 76.54 cents and EPS of 151.60 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 137.2, implying annual growth of 13.3%.
Current consensus DPS estimate is 73.1, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 24.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
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 update shows growth continuing into August with sales up by more than 117%, and gross 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

LBL    LASERBOND LIMITED

Mining Sector Contracting – Overnight Price: $0.61

Canaccord Genuity rates ((LBL)) as No Rating (-1) –

LaserBond is an Australian engineering technology business with revenue growing organically at double-digit rates over a number of years. The company boasts of a high-quality customer base, which Canaccord Genuity believes ensures business.

The broker views the growth outlook in both revenue and earnings as robust. Along with the current trajectory, the broker highlights growth options in international markets, where the company has started to make headway.

The broker's forecasts are consistent with management which aims at achieving a revenue target of $40m. The broker is valuing the business based on its growth outlook and believes there is potential to increase materially in value.

Canaccord Genuity initiates coverage with a Buy rating and a target price of $0.90.

This report was published on September 16, 2020.

Target price is $0.90 Current Price is $0.61 Difference: $0.29
If LBL meets the Canaccord Genuity target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 1.20 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 1.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.25.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.30 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.20.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.68

Goldman Sachs rates ((NAN)) as Initiation of coverage with Neutral (3) –

Goldman Sachs believes Nanosonics has successfully transitioned from a disruptive, niche technology provider to a proven leader in its field. However, the broker also states management must deliver on various aspects of execution to justify the current premium valuation.

The broker thinks Nanosonics' technology is used in about 20% of addressable facilities and estimates the market at around 140m cycles per year. Incremental upside is expected to be challenging, being on an already high level and the broker forecasts slower growth over FY20-23.

The broker sees risk around the timing and impact of the new product and capital replacement cycle.

Goldman Sachs initiates coverage with a Neutral rating and a target price of $5.5.

This report was published on September 17, 2020.

Target price is $5.50 Current Price is $5.68 Difference: minus $0.18 (current price is over target).
If NAN meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.12, suggesting upside of 7.7%(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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 113.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.0, implying annual growth of 18.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 142.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 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 94.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of 150.0%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 56.8.

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $19.39

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

News Corp's simplification agenda continues to progress and the company has appointed Tracey Fellows as head of Digital Real Estate to work towards having the full value of its real estate investments recognised by investors.

Operationally, Goldman Sachs notes news’ businesses are shifting towards digital while implementing productivity programs to offset revenue headwinds.

The company re-iterated there is no need for any extra investment from Foxtel which remains on a course towards increased revenue and profitability.

Goldman Sachs retains its Buy rating with a target price of $25.60.

This report was published on September 18, 2020.

Target price is $25.60 Current Price is $19.39 Difference: $6.21
If NWS meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $24.72, suggesting upside of 27.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 44.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.3, implying annual growth of N/A.
Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 49.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 64.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.6, implying annual growth of 61.8%.
Current consensus DPS estimate is 29.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 30.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $4.02

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

Goldman Sachs believes Redbubble will continue to benefit from structural tailwinds like the migration to online commerce, on top of a strong market position. The broker thinks the group's growth will be materially higher than Australia's GDP.

The company does not have any inventory risk and has a well-established supply and logistic network, adds the broker. Goldman Sachs believes the potential long term upside for the company could be more as execution becomes more consistent. 

Earnings have been upgraded for FY21-22. Goldman Sachs retains its Buy rating with the target price reducing to $5.20 from $5.45.

This report was published on September 17, 2020.

Target price is $5.20 Current Price is $4.02 Difference: $1.18
If RBL meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.71.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.55.

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

SKF    SKYFII LTD

Software & Services – Overnight Price: $0.17

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

Skyfii will be acquiring Blix, an Australia-based venue analytics business dealing in servicing SMB-format retail venues with customers including Porsche, Volkswagen, Hyundai, Toyota, Swarovski.

The company expects Blix to be positive in 12 months and is looking to cross-sell various parts of Blix’s CountSmart technology to its existing global customer footprint.

Skyfii expects to deliver considerable double-digit organic growth and a positive operating income. The company has guided to starting FY21 on significant momentum.

Canaccord Genuity notes Skyfii generates software-like margins and should be compared to its domestic software peers. The broker expects multiple rerating based on the company passing the critical $20m annual recurring revenue milestone in FY22, along with more accretive bolt-on acquisitions in FY21.

Canaccord Genuity keeps the rating unchanged at Buy with a target price of $0.30.

This report was published on September 18, 2020.

Target price is $0.30 Current Price is $0.17 Difference: $0.13
If SKF meets the Canaccord Genuity target it will return approximately 76% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 85.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 170.00.

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

TDI    360 CAPITAL DIGITAL INFRASTRUCTURE FUND

Wealth Management & Investments – Overnight Price: $1.70

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

Moelis notes 360 Capital Digital Infrastructure Fund's investment focus is solely on Data Centres. The FibreconX dark fibre project has been divested at cost, estimated by the broker at circa $3m.

The fund has also taken a circa 25m passive investment stake in Airtrunk, a consortium that owns & operates hyper-scale data centres across the Asia Pacific.

The broker notes the fund offers exposure to a portfolio of data centre assets, managed by well-credentialed industry professionals at a discount to the current net asset value. With the strategy of the fund now more clearly defined, the analysts suggest the market can gain confidence in the future profile of the portfolio.

This prompts the broker to reinstate its coverage with a Buy rating and a target price of $2.01.

This report was published on September 15, 2020.

Target price is $2.01 Current Price is $1.70 Difference: $0.31
If TDI meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 1.20 cents and EPS of 4.50 cents.
At the last closing share price the estimated dividend yield is 0.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.78.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 3.30 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.61.

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


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

360 Capital Digital Infrastructure Fund's FY20 sales and earnings per share were in-line with Shaw and Partners' forecasts.

The broker has materially revised its FY21 forecasts upwards to account for the changes while also reducing its distribution forecast since it believes the cash can be put to better use in the current environment.

The news of FibreconX's divestment surprised Shaw and Partners, although the broker acknowledges this will significantly lower 360 Capital Digital Infrastructure Fund's risk profile. This will be achieved by moving towards a streamlined profile focusing solely on data centres and may appeal to a broader range of institutional investors, according to the broker.

Shaw and Partners retains its Buy rating with a target price of $1.99.

This report was published on September 16, 2020.

Target price is $1.99 Current Price is $1.70 Difference: $0.29
If TDI meets the Shaw and Partners target it will return approximately 17% (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 15.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.04.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 19.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.81.

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

TPW    TEMPLE & WEBSTER GROUP

Furniture & Renovation – Overnight Price: $12.10

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

Goldman Sachs believes Temple and Webster Group will continue to benefit from structural tailwinds like the migration to online commerce, with a strong market position.

The broker thinks the group's growth will be materially higher than Australia's GDP. Earnings have been upgraded for FY21-22.

Goldman Sachs retains its Buy rating with the target price increasing to $11.50 from $9.70.

This report was published on September 17, 2020.

Target price is $11.50 Current Price is $12.10 Difference: minus $0.6 (current price is over target).
If TPW meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.00.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.18.

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

TTM    TITAN MINERALS LIMITED

Gold & Silver – Overnight Price: $0.13

Canaccord Genuity rates ((TTM)) as No Rating (-1) –

Canaccord Genuity initiates coverage with a Buy rating and a target price of $0.25.

Titan Minerals is a mineral exploration company focused on the Dynasty Gold and Copper Duke porphyry project, located in southern Ecuador.

The project features a non-JORC resource of 2.1moz, notes Canaccord Genuity. The broker believes the presence of halo gold mineralisation and higher vein density may mean a much larger resource base and lead to a commercial-scale mine development program.

Also, the Dynasty project area is considered to be very under-drilled. Titan Minerals is expected to commence an extensive resource drilling program in September 2020 so as to better define and expanding its resources.

This report was published on September 15, 2020.

Target price is $0.25 Current Price is $0.13 Difference: $0.12
If TTM meets the Canaccord Genuity target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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

VUK    VIRGIN MONEY UK PLC

Banks – Overnight Price: $1.27

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

Bell Potter thinks the Bank of England's base rate may head into negative territory in 2021. This could affect depositors’ confidence and make mortgage lending unprofitable, plus it will have a greater impact on banks with a greater reliance on retail deposit funding.

Virgin Money UK ticks both the boxes, notes the broker.

Bell Potter feels the overall outlook for Virgin Money UK will be more challenging in FY21 given reduced flexibility to reprice liabilities, among other things. The broker has halved its FY20 profit after tax forecast due to higher expected impairment losses on credit exposures.

Bell Potter reinstates its Hold rating. The target price reduces to $1.80 from $2.00.

The report was published on September 18, 2020.

Target price is $1.80 Current Price is $1.27 Difference: $0.53
If VUK meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $1.70, suggesting upside of 33.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 16.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 7.9.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.38 cents and EPS of 24.42 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 22.5%.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 6.5.

This company reports in GBP. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WCG    WEBCENTRAL GROUP LIMITED

IT & Support – Overnight Price: $0.14

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

Webcentral Group (previously known as ARQ Group) is a leading provider of online services in Australia.

The company has received a non-binding indicative proposal from 5G Networks ((5GN)) to acquire all of the shares of the company. The consideration under the proposal is one 5GN share for every 12 Webcentral shares, which based on the current share price of $2.01 equates to around $0.17 per share, calculates Bell Potter. 

Bell Potter lifts the earnings multiple for the company to arrive at a valuation of $0.15. However, this is a discount to the current share price and the rating is lowered by the broker. 

Bell Potter acknowledges the risk to the new Sell rating is that another bidder, Web.com, increases its cash bid.

The rating is downgraded to Sell from Hold and the target price is increased to $0.15 from $0.10.

This report was published on September 9, 2020.

Target price is $0.15 Current Price is $0.14 Difference: $0.01
If WCG meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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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5GN AMA ARX BUB CCX CGC CKF DRR GDI GNC ILU IMM JHX KGN LBL NAN NWS RBL SKF TDI TPW TTM VUK WCG

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

For more info SHARE ANALYSIS: AMA - AMA GROUP LIMITED

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For more info SHARE ANALYSIS: BUB - BUBS AUSTRALIA LIMITED

For more info SHARE ANALYSIS: CCX - CITY CHIC COLLECTIVE LIMITED

For more info SHARE ANALYSIS: CGC - COSTA GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: DRR - DETERRA ROYALTIES LIMITED

For more info SHARE ANALYSIS: GDI - GDI PROPERTY GROUP

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For more info SHARE ANALYSIS: KGN - KOGAN.COM LIMITED

For more info SHARE ANALYSIS: LBL - LASERBOND LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: NWS - NEWS CORPORATION

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For more info SHARE ANALYSIS: TDI - 360 CAPITAL DIGITAL INFRASTRUCTURE FUND

For more info SHARE ANALYSIS: TPW - TEMPLE & WEBSTER GROUP LIMITED

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For more info SHARE ANALYSIS: VUK - VIRGIN MONEY UK PLC

For more info SHARE ANALYSIS: WCG - WEBCENTRAL GROUP LIMITED