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

Daily Market Reports | Oct 09 2020

This story features ATLAS ARTERIA, and other companies. For more info SHARE ANALYSIS: ALX

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)

ALX   APE   API   APX   APZ   ARX   BPT   BRG   BXB   CAJ   JAN   JLG   LBY   LLC   MIN   MVP   NHC (2)   NWS   NXS (2)   OPY   PAL   PAR   PMV (2)   PNV   RHC   RHP (2)   SMP   SSM   YOJ  

ALX    ATLAS ARTERIA

Infrastructure & Utilities – Overnight Price: $6.36

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

With the summer holiday period in France over, Goldman Sachs has a clearer picture of post-covid normalised traffic levels. Atlantia owned Abertis Infrastructure's traffic data for the week ending 20 September show traffic volumes on its French toll roads were -7.7% below prior last year levels.

Goldman Sachs has slightly tempered its view on the traffic recovery at APRR, owned by Atlas Arteria. With traffic volumes stabilising after the summer holiday period at 90-95% of pre-covid levels, the broker has slightly lowered its near term traffic forecasts for Atlas Arteria.

The broker also highlights the risk of another wave and the possibility of a reintroduction of movement restrictions, but also believes the direct impact on toll roads will be materially different to that seen during the first outbreak and lockdown measures that ensued.

Goldman Sachs retains its Buy rating with the target price falling to $7.91 from $8.17.

This report was published on September 24, 2020.

Target price is $7.91 Current Price is $6.36 Difference: $1.55
If ALX meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $7.03, suggesting upside of 10.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 22.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.2, implying annual growth of 828.0%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 27.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 38.00 cents and EPS of 27.00 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 23.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.5, implying annual growth of 109.1%.
Current consensus DPS estimate is 35.6, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.1.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $11.06

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

Bell Potter updated its forecasts for Eagers Automotive looking at the recently announced properties to be acquired for -$105m along with compensation of around $30m from General Motors for the closure of Holden in Australia.

Some potential catalysts highlighted by the broker include the reopening of Victoria and higher new vehicle sales forecast in October and November with supply improving. Earnings forecasts for 2020-22 have been upgraded.

The rating is maintained at Hold and the target price is increased to $10.25 from $9.50.

This report was published on September 23, 2020.

Target price is $10.25 Current Price is $11.06 Difference: minus $0.81 (current price is over target).
If APE meets the Bell Potter target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.32, suggesting downside of -15.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 7.50 cents and EPS of 41.10 cents.
At the last closing share price the estimated dividend yield is 0.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of N/A.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 39.4.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.00 cents and EPS of 47.40 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.5, implying annual growth of 51.2%.
Current consensus DPS estimate is 26.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 26.0.

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

API    AUSTRALIAN PHARMACEUTICAL INDUSTRIES

Health & Nutrition – Overnight Price: $1.03

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

Australian Pharmaceutical Industries will report its FY20 result in late October. Bell Potter anticipates the second-half earnings to be virtually decimated in the clear skincare clinics business and in retail (Priceline).

The company's circa 17 skin clinics in Victoria were either closed or operating under restrictions for most of the second half, points out the broker. 

The company's wholesale business is expected to have had a strong second half, but Bell Potter does not think earnings from wholesale will offset losses in the other divisions.

Looking at the difficult trading conditions, the broker assumes the company will suspend its final dividend to conserve capital. Due to these reasons, Bell Potter lowers its target price to $0.85 from $1.09 and downgrades its recommendation to Sell from Hold.

This report was published on September 21, 2020.

Target price is $0.85 Current Price is $1.03 Difference: minus $0.18 (current price is over target).
If API meets the Bell Potter target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.15, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.3, implying annual growth of -43.8%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 7.80 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 7.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of 47.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 11.1.

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

APX    APPEN LIMITED

IT & Support – Overnight Price: $35.20

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

In Bell Potter's view, there is a lack of short-term catalysts for Appen and potentially little news between now and the 2020 result in February. The broker does not see much prospect of an upgrade to the company's 2020 guidance after a slightly weaker-than-expected first half of 2020.

The broker has modestly downgraded its Appen forecasts for 2020-22 due to changes in currency forecasts.

Bell Potter rates the stock as Hold with the target price reducing to $33.75 from 37.50.

This report was published on September 21, 2020.

Target price is $33.75 Current Price is $35.20 Difference: minus $1.45 (current price is over target).
If APX meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $36.58, suggesting upside of 3.9%(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 61.50 cents.
At the last closing share price the estimated dividend yield is 0.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.24.

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 0.3%.
Current consensus EPS estimate suggests the PER is 55.2.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.00 cents and EPS of 82.10 cents.
At the last closing share price the estimated dividend yield is 0.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.87.

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 40.1.

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

APZ    ASPEN GROUP

Real Estate – Overnight Price: $1.06

Taylor Collison rates ((APZ)) as Speculative Buy (2) –

Taylor Collison continues to view Aspen Group as undervalued on an asset basis, especially since a large proportion of its tenants are essential workers and receive government subsidies which underpin earnings.

The broker points out with affordable housing under-supplied, the group continues to see strong demand for new home sales and low-cost rental options. Also, management is great at acquiring assets well below replacement cost and the broker expects this to continue.

Aspen's competitive advantage is believed to be the (somewhat) protected nature of its earnings that the broker forecasts will grow irrespective of varying economic conditions.

Taylor Collison retains its Outperform rating with a target price of $1.23.

This report was published on September 3, 2020.

Target price is $1.23 Current Price is $1.06 Difference: $0.17
If APZ meets the Taylor Collison target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 7.00 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.33.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 8.00 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 7.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.65.

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: $1.33

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

Aroa Biosurgery develops and commercialises Endoform, a proprietary soft tissue regeneration platform.

Bell Potter reports Tela Bio, the distributor for Aroa’s OviTex (product in hernia and reconstructive surgery) presented studies at the American Hernias Society providing impressive data for the use of OviTex outside the initial target complex Hernia cases.

The distributor validated the use of OviTex in the broader hernia setting and justified further market share expansion. The broker is pleased with Aroa and Tela’s commitment to generating high-quality clinical data as this will drive physician uptake.

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

This report was published on September 29, 2020.

Target price is $2.10 Current Price is $1.33 Difference: $0.77
If ARX 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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 47.50.

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 102.31.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.40

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

Beach Energy is building a track record of delivering what is promised, observes Shaw and Partners.

Since it acquired Lattice Energy in FY18, the broker notes Beach Energy has delivered in-line or ahead of expectations. Also, the company has entered FY21 with a balance sheet that is net cash with high margin existing operations.

The company continues to be the broker's top pick in the energy sector on the premise the company is materially undervalued and presents an asymmetric commodity leverage opportunity.

Buy recommendation is retained with a target price of $1.90.

This report was published on September 28, 2020.

Target price is $1.90 Current Price is $1.40 Difference: $0.5
If BPT meets the Shaw and Partners target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $1.89, suggesting upside of 35.2%(ex-dividends)
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 13.30 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.3, implying annual growth of -34.9%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.50 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 27.3%.
Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 7.7.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $27.54

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

Despite achieving strong growth in FY20, Breville Group's sales in the first quarter are above Baillieu's forecasts and are likely to accelerate in the fourth quarter, suggests the analyst.

If correct, this acceleration will be led by the group's strong organic growth along with its expansion into Italy, Portugal and Mexico in FY21.

Baillieu highlights the group has built a global platform to achieve growth and the major drivers will be geographic expansion and new product development.

In the near term, the broker expects the company to be a beneficiary of accelerated home-related sales.

Baillieu retains its Hold rating with the price target lifted to $27.50 from $26.00.

The report was published on September 22, 2020.

Target price is $27.50 Current Price is $27.54 Difference: minus $0.04 (current price is over target).
If BRG meets the E.L. & C Baillieu target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.86, suggesting downside of -2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 44.00 cents and EPS of 67.30 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.6, implying annual growth of 25.9%.
Current consensus DPS estimate is 43.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 43.3.

Forecast for FY22:

E.L. & C Baillieu forecasts a full year FY22 dividend of 51.50 cents and EPS of 78.70 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.6, implying annual growth of 12.6%.
Current consensus DPS estimate is 49.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 38.5.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $10.67

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

Goldman Sachs observes the pandemic impacted Bramble’s CHEP businesses, especially the automotive and industrial services and Kegstar businesses.

These businesses saw revenues evaporate from mid-March 2020 due to lock-down restrictions and Brambles quantified the impact to be a circa -300bps drag on group growth.

Goldman Sachs notes a solid rebound in European automotive production activity and leading indicators suggest an improvement. The broker expects Brambles to update its guidance with its first-quarter result in October.

Buy rating is reiterated with a target price of $13.67.

The report was published on September 25, 2020.

Target price is $13.67 Current Price is $10.67 Difference: $3
If BXB meets the Goldman Sachs target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $12.23, suggesting upside of 14.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 29.41 cents and EPS of 52.94 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.2, implying annual growth of N/A.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 33.82 cents and EPS of 61.77 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.3, implying annual growth of 11.5%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 18.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
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: $0.25

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

The Victorian government announced the number of elective surgeries will increase by 50% and be back towards normal in about November.

Shaw and Partners notes there is a backlog of more than 60,000 elective surgeries within Victoria and expects demand to return as movement returns and higher GP attendances are recorded. 

Enlitic (AI radiology solution) has been awarded a contract to pilot its AI platform with the US Defence Innovation Unit (US Defence Healthcare). The broker takes this to be a validation of Enlitic's technology.

Shaw and Partners notes Capitol Health is in a strong position and expects healthier volumes. Looking at the strong balance sheet, the broker feels there is significant upside potential. 

Buy rating reaffirmed by Shaw and Partners with a target price of $0.31.

This report was published on September 23, 2020.

Target price is $0.31 Current Price is $0.25 Difference: $0.06
If CAJ meets the Shaw and Partners target it will return approximately 24% (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 0.80 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.86.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.00 cents and EPS of 1.90 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.16.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.40

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

Janison Education released a positive first-quarter trading update noting group revenue growth of 50% and $1.4m in operating income.

Management highlighted a material increase in the sales and marketing cost line, rising to 16% from 8% of revenue. Bel Potter notes the majority of these costs were added late in the quarter and the broker does not expect this to be repeated across the final three-quarters of FY21.

The digitalisation of the assessment market is in its infancy, assesses the broker, and presents a huge market opportunity for Janison Education Group's future growth. The broker thinks the group's ability to use its market-leading digital technology makes for a compelling investment case.

For the time being, Bell Potter maintains its Hold recommendation with the target price rising to $0.42 from $0.40.

This report was published on September 28, 2020.

Target price is $0.42 Current Price is $0.40 Difference: $0.02
If JAN meets the Bell Potter target it will return approximately 5% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.57.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $2.80

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

The outlook for Johns Lyng Group is strong, suggets Goldman Sachs, with over 90% of FY21 operating income forecast from its core business as usual (BaU) work.

Some drivers over the short-medium term include increasing work volume from existing contracts and panels, potential new contract wins and M&A.

Goldman Sachs's FY21 forecasts incorporate conservative catastrophe (CAT) work which could be a source of upside risk as the company enters the key catastrophe event period from November to April.

Goldman Sachs maintains a Buy rating with the target price increasing to $3.35 from $3.06.

This report was published on September 25, 2020.

Target price is $3.35 Current Price is $2.80 Difference: $0.55
If JLG meets the Goldman Sachs target it will return approximately 20% (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 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.00.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.11.

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

LBY    LAYBUY GROUP HOLDINGS LIMITED

Overnight Price: $1.59

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

Bell Potter initiates coverage on Laybuy Group Holdings with a Buy (Speculative) recommendation. The valuation is set at $2.40.

The group is an established buy now pay later (BNPL) provider and is one of the leading players in New Zealand. The business has a rapidly growing presence in the UK which Bell Potter notes will become its largest market this quarter.

Overall, the broker expects the gross merchant value to more than double in FY21 and continue its robust trajectory in FY22.

Bell Potter believes there is significant opportunity in the BNPL sector and sees Laybuy Group Holdings as well placed to be one of the beneficiaries.

This report was published on September 22, 2020.

Target price is $2.40 Current Price is $1.59 Difference: $0.81
If LBY meets the Bell Potter target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 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 17.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.38.

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

LLC    LENDLEASE GROUP

Infra & Property Developers – Overnight Price: $11.95

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

Goldman Sachs estimates a sustainable earnings growth rate for Lendlease Group of circa 7% per annum, in line with the sustainable growth rate the broker calculated for Goodman Group ((GMG)).

The broker flags the group's business model will increasingly shift towards that of Goodman Group and should result in a more consistent rate of earnings per share growth over time.

Also, the broker feels it is Goodman Group's consistency of earnings growth rather than quality which is driving most of its multiple re-ratings over the last few years.

The Buy rating is unchanged and the target price is increased to $16.74 from $16.37.

This report was published on September 23, 2020.

Target price is $16.74 Current Price is $11.95 Difference: $4.79
If LLC meets the Goldman Sachs target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $13.89, suggesting upside of 16.3%(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 94.00 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.3, implying annual growth of N/A.
Current consensus DPS estimate is 34.1, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 16.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 67.00 cents and EPS of 135.00 cents.
At the last closing share price the estimated dividend yield is 5.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.6, implying annual growth of 34.1%.
Current consensus DPS estimate is 46.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 12.5.

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

MIN    MINERAL RESOURCES LIMITED

Iron Ore – Overnight Price: $25.43

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

Goldman Sachs initiates coverage on Mineral Resources with a Neutral rating and a target price of $26.

Mineral Resources is a diversified Australian resources company. Goldman Sachs notes it boasts of a well established high margin mining services division with long-term tier-1 contracts, expected to grow by more than 70% by FY25.

The second is its iron business which is low capital intensity and has high operating costs with greenfield expansion options 

The third business relates to lithium production from the Mt Marion and Wodgina mines in JVs with global lithium companies Ganfeng and Albemarle. The broker notes the company is well-positioned to benefit from recovering prices.

Mineral Resources has a strong balance sheet, points out Goldman Sachs and has generated an impressive return on invested capital of 27% since listing.

The broker forecasts a 61% operating income growth in FY21 due to the strength in iron ore pricing and material volume growth across the mining services and commodities divisions over the next 3-5 years.

Target price is $26.00 Current Price is $25.43 Difference: $0.57
If MIN meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $25.53, suggesting upside of 0.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 169.00 cents and EPS of 345.00 cents.
At the last closing share price the estimated dividend yield is 6.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 331.5, implying annual growth of -37.8%.
Current consensus DPS estimate is 120.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 7.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 97.00 cents and EPS of 194.00 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 13.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 219.4, implying annual growth of -33.8%.
Current consensus DPS estimate is 93.5, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 11.6.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.27

Moelis rates ((MVP)) as Hold (3) –

Medical Developments International took back Mundipharma's distribution rights on 1 September 2020. Under the agreement, the company will pay Mundipharma -EUR3m upfront, with an additional 5% royalty on sales capped at -EUR5m.

From 1 March 2021, Medical Developments International will sell Penthrox directly into EU markets.

The broker found the FY20 result of the company was mixed, impacted by covid with operating income and net profit at $2.7m and $0.4m. No final dividend was declared, bringing the full-year payout to 2c, less than FY19's 4c.

While no quantified guidance was given, Moelis believes the company's strategic priorities centre predominantly around the direct to market EU strategy for Penthrox.

While direct distribution increases the earnings potential for the company, Moelis is cautious ahead of the appointment of a new CEO and maintains its Hold rating with a target of $5.56.  

The report was published on September 24, 2020.

Target price is $5.56 Current Price is $5.27 Difference: $0.29
If MVP meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1756.67.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 175.67.

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

NHC    NEW HOPE CORPORATION LIMITED

Coal – Overnight Price: $1.30

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

New Hope Corp reported an underlying operating income of $290m for FY20, -16% lower than Goldman Sachs forecast as well as market consensus. The miss was due to higher than expected site-related costs across both the Bengalla and New Acland coal mines.

No guidance has been given for FY21. No final dividend was declared with management conserving capital to weather an extended downturn in the thermal coal market.

The broker likes that New Hope Corp is a low-cost Australian thermal coal producer and offers a potential 35% production increase to 15mtpa from FY21 levels. 2021-22 earnings per share forecasts have been downgraded due to higher site costs and interest.

Buy rating retained with the target price lowered to $1.6 from $2.

This report was published on September 22, 2020.

Target price is $1.60 Current Price is $1.30 Difference: $0.3
If NHC meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $1.28, suggesting downside of -1.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 3.80 cents and EPS of 5.50 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 185.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.90 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 1114.3%.
Current consensus DPS estimate is 3.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 15.3.

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


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

New Hope Corp's FY20 results reflected the sharp decline in coal prices seen over the past 6 months. But what left broker Wilsons surprised was the magnitude of write-downs taken at year-end, totalling -$346m along with seeking debt waivers from lenders.

On a positive note, thermal coal prices have been rising and Wilsons believes prices can rise more with seaborne trading conditions and demand normalising. The Queensland election is a meaningful share price catalyst, according to the broker.

Also, Wilsons is of the view the best times to buy resources stocks are when commodity prices are low and the broker maintains its Overweight rating with the target price decreasing to $1.90 from $2.50.

This report was published on September 23, 2020.

Target price is $1.90 Current Price is $1.30 Difference: $0.6
If NHC meets the Wilsons target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $1.28, suggesting downside of -1.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Wilsons forecasts a full year FY21 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 325.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 185.7.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 5.60 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 1114.3%.
Current consensus DPS estimate is 3.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 15.3.

Market Sentiment: 0.0
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: $19.71

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

News Corp's update on its Dow Jones business saw no monetisation plans/financial targets announced but Goldman Sachs was encouraged by the outlook provided.

The broker lists out some key revenue opportunities including the company's aim of doubling its subscriber base in the US.

The broker also points towards a range of price points, including the core premium, new, lower-priced products and ‘C-Suite‘ memberships products. Given Dow Jones' premier status, the broker believes it is well-positioned for a recovery in B2B digital advertising.

Earnings forecasts for FY21-23 have been revised upwards. Given a constructive outlook, Goldman Sachs retains its Buy rating with the target price rising to $26.70 from $25.60.

This report was published on September 22, 2020.

Target price is $26.70 Current Price is $19.71 Difference: $6.99
If NWS meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $24.72, suggesting upside of 25.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 29.41 cents and EPS of 44.12 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.2, implying annual growth of N/A.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 50.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 29.41 cents and EPS of 64.71 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.4, implying annual growth of 61.7%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 31.1.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.21

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

Bell Potter initiates coverage on Next Science with a Buy rating and a valuation of $1.65.

Next Science's proprietary XBIO technology is leveraged across a variety of clinical and surgical applications, notes Bell Potter, to address biofilm which is a major burden to healthcare systems.

The company has three approved products with distribution agreements with 3M and Zimmer.

The broker expects XPerience, Next’s surgical wash, to be approved in the first half and be the key value driver for the company.

This report was published on September 25, 2020.

Target price is $1.65 Current Price is $1.21 Difference: $0.44
If NXS meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).
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 10.74 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.27.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 10.44 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.59.

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


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

Wilsons maintains its Overweight rating with the price target reducing to $2.10 from $2.87. The delay in the FDA approval timeframe for XPerience led to a surprise capital raising of $15m.

Wilsons notes the additional work Next Science is doing to secure the major market approvals next year and considers Xperience to be approvable as a medical device.

XPerience’s pending FDA approval is viewed as a first ‘umbrella’ approval in that it looks sufficient to form a business in the prevention of periprosthetic joint infection. 

This report was published on September 24, 2020.

Target price is $2.10 Current Price is $1.21 Difference: $0.89
If NXS meets the Wilsons target it will return approximately 74% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.04.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.00.

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

OPY    OPENPAY GROUP LTD

Business & Consumer Credit – Overnight Price: $3.22

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

Openpay Group's August trading update shows active customers were up 147% versus last year while active merchants increased by 40%. The total transaction value was up by 88% to $22.7m. 

Shaw and Partners notes future drivers include penetrating the much larger UK market and the strengthening presence in New Zealand. Other catalysts include penetrating new verticals like education and memberships and increasing the customer repeat transaction rate.

The Buy rating is maintained. The target price is raised to $5 from $4.25.

This report was published on September 22, 2020.

Target price is $5.00 Current Price is $3.22 Difference: $1.78
If OPY meets the Shaw and Partners target it will return approximately 55% (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 minus 29.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.07.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 23.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.76.

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

PAL    PALLA PHARMA LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.73

CCZ Equities rates ((PAL)) as Buy (1) –

Palla Pharma is an opiate manufacturer, contracting farmers in Australia and Eastern Europe to grow opium poppies for manufacturing narcotic raw material and opiate-based API globally.

The company is in transition and undergoing short-term pain, points out CCZ Equities. The broker adds Palla Pharma's loss of low margin non-opiate tabletting revenue in FY20 is a necessary step towards the company becoming a profitable business.

The broker expects strong earnings growth in the coming years with Palla Pharma increasing production across the portfolio. The commencement of marketing authorisation sales are expected to be a turning point for the company.

The broker retains its Buy rating with the target price rising to $1.37 from $1.27.

The report was published on January 31, 2020.

Target price is $1.37 Current Price is $0.73 Difference: $0.64
If PAL meets the CCZ Equities target it will return approximately 88% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.22.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.24.

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

PAR    PARADIGM BIOPHARMACEUTICAL

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.97

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

Paradigm Biopharmaceuticals took a significant step forward with its clinical program for Zilosul via positive feedback from a European Medicines Authority (EMA) scientific advice meeting.

The authority agreed on all the major points of the phase 3 trial design. There will be approximately 400 patients enrolled in the European study with recruitment likely to begin in early 2021, reports Bell Potter.

Bell Potter upgrades its rating to Buy (Speculative) from Hold Buy with the valuation increasing to $3.36 from $3.30.

This report was published on September 28, 2020.

Target price is $3.36 Current Price is $2.97 Difference: $0.39
If PAR meets the Bell Potter target it will return approximately 13% (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 18.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.32.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 18.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.80.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $22.81

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

Premier Investments' second-half operating income of $61m was up 14% versus last year, although sales fell -18% year on year.

The rise in operating income was due to the tilt to online, which is materially higher-margin and accounted for a larger proportion of sales, on top of temporary cost reductions in rent and wages.

Since the result was materially ahead of Bell Potter's forecast plus looking at the positive start to FY21, the broker's FY21-23 earnings forecasts have been increased.

The broker believes the company will successfully navigate through the pandemic disruptions and come out stronger.

Buy rating retained with the price target increasing to $22.00 from $18.50.

Target price is $22.00 Current Price is $22.81 Difference: minus $0.81 (current price is over target).
If PMV meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.82, suggesting downside of -8.7%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 85.50 cents and EPS of 108.30 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.4, implying annual growth of 9.8%.
Current consensus DPS estimate is 72.4, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 93.60 cents and EPS of 115.20 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.6, implying annual growth of 7.5%.
Current consensus DPS estimate is 83.2, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 22.2.

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


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

Premier Investments' FY20 result showed a strong earnings performance with net profit of $140.4m despite disruption from covid-19.

Goldman Sachs highlights this performance was underpinned at the net profit line by wage subsidies and at the operating cash flow level from lower cash payments on rental obligations. 

The broker expects FY21 cash flow to remain constrained due to the expected normalisation of working capital and delayed payment of the interim FY20 dividend (leading to three payouts in FY21). Even so, the company is expected to maintain a strong net cash position.

FY21-22 net profit forecasts have been upgraded. Goldman Sachs maintains its Neutral rating with a target price of $18.60.

This report was published on September 27, 2020.

Target price is $18.60 Current Price is $22.81 Difference: minus $4.21 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.82, suggesting downside of -8.7%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 71.00 cents and EPS of 92.00 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.4, implying annual growth of 9.8%.
Current consensus DPS estimate is 72.4, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 71.00 cents and EPS of 85.00 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.6, implying annual growth of 7.5%.
Current consensus DPS estimate is 83.2, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 22.2.

Market Sentiment: 0.4
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: $2.37

Bell Potter rates ((PNV)) as Initiation of coverage with Hold (3) –

Bell Potter initiates coverage on Polynovo with a Hold rating and a price target of $2.40.

Polynovo's Novosorb BTM (biologic temporizing matrix) product generated impressive sales growth in wounds and trauma, observes Bell Potter which convinces the broker the current trajectory is durable.

In the broker's view, the larger value proposition for the stock lies in physicians using the product beyond severe burns, into other wounds, surgical and reconstructive applications.

The broker recognises the growth opportunities from expanding beyond the burn category, but assesses this is largely priced in. 

This report was published on September 25, 2020.

Target price is $2.40 Current Price is $2.37 Difference: $0.03
If PNV meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 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 592.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 107.73.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $69.49

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

After the restrictions were imposed, Ramsay Healthcare entered into the National Framework Agreement which ensured viability but drove margins to broadly 0% with the organisation operating on a cost-recovery basis. Volumes began recovering in mid-August and are tracking around 85%.

Currently, Ramsay expects 90-95% of pre-covid volumes by October-end. The company expects the NHS agreement to be withdrawn by end-December provided there is no material second wave, but the broker isn't too sure about this.

Assuming the agreement is withdrawn in December and there are no further restrictions on volumes, management sees strong pent-up demand driving second half volumes above pre-covid levels.

Goldman Sachs retains its Neutral rating with a target price of $63.

This report was published on September 23, 2020.

Target price is $63.00 Current Price is $69.49 Difference: minus $6.49 (current price is over target).
If RHC meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $68.52, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 149.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 196.3, implying annual growth of 49.8%.
Current consensus DPS estimate is 105.1, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 35.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 238.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 270.8, implying annual growth of 38.0%.
Current consensus DPS estimate is 143.6, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 25.7.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $1.87

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

Rhipe has acquired Parallo, a New Zealand based IT services provider specialising in infrastructure and cloud deployment technologies.

Parallo helps independent software vendors (ISVs) and software as a service (SaaS) businesses to manage security, performance, availability and costs.

Bell Potter is pleased and believes this deal makes a lot of sense as it helps expand Rhipe's position as a value-added service provider and provides exposure to the high growth SaaS market.

According to Bell Potter, Rhipe continues to evolve as a proxy to the penetration of cloud computing across the APAC region. Management believes the business to be well-positioned for the next phase of growth.

Bell Potter retains its Buy rating with the target price rising to $2.35 from $2.30.

This report was published on September 21, 2020.

Target price is $2.35 Current Price is $1.87 Difference: $0.48
If RHP meets the Bell Potter target it will return approximately 26% (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 3.00 cents and EPS of 4.70 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.79.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 6.50 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 28.77.

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


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

Rhipe has acquired Parallo, a New Zealand based IT services and cloud deployment provider that provides a range of public cloud, migration, MSP and deployment services.

Shaw and Partners notes the company's earnings are majorly recurring. The broker expects Rhipe to undertake more acquisitions in FY21 and by 2020 end.

The first half of FY21 is expected to be strong. Shaw and Partners notes the company is trading at exceptional value, especially when viewed as a licensing business growing 35% per annum with an earnings stream that is mostly recurring.

The Buy rating is unchanged with a target price of $2.87.

This report was published on September 22, 2020.

Target price is $2.87 Current Price is $1.87 Difference: $1
If RHP meets the Shaw and Partners target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.38.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.20 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.98.

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

SMP    SMARTPAY HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.58

CCZ Equities rates ((SMP)) as Buy (1) –

Smartpay Holdings' August update reported Australian lead generation and new customer acquisition to be at record levels with August 2020 revenue up 12%. Both transactions per terminal and average transaction value were above pre-covid levels.

CCZ Equities expects a strong September quarter with a boost to trading activity once Victorian lockdowns are lifted. The company expects the total Australian transacting terminals to exceed 5,000 as Victoria emerges from lockdown.

The broker estimates Smartpay Holdings added 250-300 transacting terminals in the month of August which is labeled "impressive" given the Victorian market was closed.

A Buy rating is maintained with a target price of NZ$0.80.

This report was published on September 21, 2020.

Current Price is $0.58. Target price not assessed.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 617.02.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.64.

This company reports in NZD. 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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.14

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

NBN Co announced $4.5bn of new network investments, including additional fibre laid out for FTTN connections, upgrades across other NBN network technologies and another -$700m investment to improve its business network.

Service Stream is a core delivery partner for NBN and Bell Potter assesses there is likely to be significant scope for the company to increase its services to NBN over the current investment phase, which extends to 2023. However, the broker also cautions the company is likely to face significant competition in securing new work.

The broker believes NBN’s major investment plans will turn the sentiments to new opportunities in front of Service Stream and lifts its earnings forecasts for FY22-23.

The rating is upgraded to Buy from Hold with the target price rising to $2.30 from $2.05.

This report was published on September 23, 2020.

Target price is $2.30 Current Price is $2.14 Difference: $0.16
If SSM meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 9.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.97.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.36.

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

YOJ    YOJEE LIMITED

Software & Services – Overnight Price: $0.21

Euroz rates ((YOJ)) as Speculative Buy (1) –

Yojee Limited focuses on developing a sharing-economy based logistics platform in the Asia-Pacific region.

The company aims at more than 1 million planned deliveries this financial year, while announcing August deliveries are up 23% on July. 

Euroz notes this level of volume growth is after the go live for the company's e-commerce logistics on 24 June and most of this was from the Kuehne and Nagel agreement alone.

Yojee is also strengthening its platform enterprise capabilities and the broker highlights there are now over 450 APIs.

Euroz maintains its Speculative Buy recommendation with a target price of $0.43.

This report was published on September 10, 2020.

Target price is $0.43 Current Price is $0.21 Difference: $0.22
If YOJ meets the Euroz target it will return approximately 105% (excluding dividends, fees and charges).

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

ALX APE API APX APZ ARX BPT BRG BXB CAJ GMG JAN JLG LBY LLC MIN MVP NHC NWS NXS OPY PAL PAR PMV PNV RHC RHP SMP SSM YOJ

For more info SHARE ANALYSIS: ALX - ATLAS ARTERIA

For more info SHARE ANALYSIS: APE - EAGERS AUTOMOTIVE LIMITED

For more info SHARE ANALYSIS: APX - APPEN LIMITED

For more info SHARE ANALYSIS: APZ - ASPEN GROUP LIMITED

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: BPT - BEACH ENERGY LIMITED

For more info SHARE ANALYSIS: BRG - BREVILLE GROUP LIMITED

For more info SHARE ANALYSIS: BXB - BRAMBLES LIMITED

For more info SHARE ANALYSIS: CAJ - CAPITOL HEALTH LIMITED

For more info SHARE ANALYSIS: GMG - GOODMAN GROUP

For more info SHARE ANALYSIS: JAN - JANISON EDUCATION GROUP LIMITED

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

For more info SHARE ANALYSIS: LBY - LAYBUY GROUP HOLDINGS, LIMITED

For more info SHARE ANALYSIS: LLC - LENDLEASE GROUP

For more info SHARE ANALYSIS: MIN - MINERAL RESOURCES LIMITED

For more info SHARE ANALYSIS: MVP - MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: NHC - NEW HOPE CORPORATION LIMITED

For more info SHARE ANALYSIS: NWS - NEWS CORPORATION

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

For more info SHARE ANALYSIS: PAL - PALLA PHARMA LIMITED

For more info SHARE ANALYSIS: PAR - PARADIGM BIOPHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: PMV - PREMIER INVESTMENTS LIMITED

For more info SHARE ANALYSIS: PNV - POLYNOVO LIMITED

For more info SHARE ANALYSIS: RHC - RAMSAY HEALTH CARE LIMITED

For more info SHARE ANALYSIS: RHP - RHIPE LIMITED

For more info SHARE ANALYSIS: SMP - SMARTPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: SSM - SERVICE STREAM LIMITED

For more info SHARE ANALYSIS: YOJ - YOJEE LIMITED