Australian Broker Call *Extra* Edition – Nov 11, 2020

Daily Market Reports | Nov 11 2020

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

360   A2M   A4N   ALX   ANP   APT (2)   ASB   AT1   BUB   DUB   EML   FDV   GEM   HLO   HUO   IFL   IMM   JAN   MCP   MFD   MLD   MP1   MVP   NIC   NUC   NXS   OPY   PPH   PWH   RMY   SOM   VHT  

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.10

Taylor Collison rates ((ANP)) as Initiation of coverage with Outperform & Accumulate (2) -

Taylor Collison initiates coverage of Antisense Therapeutics, which is seeking a cure for fatal inherited muscle wasting disease - Duchenne muscular dystrophy (DMD).

The lead drug, ATL1102 blocks a key inflammatory signal which facilitates survival, proliferation and migration of white blood cells from the bloodstream to the site of inflammation.

The company recently reported very encouraging signs of efficacy from a Phase II study and plans to initiate a randomised Phase IIb study of ATL1102 in non-ambulant (wheelchair bound) DMD patients in Europe in H121. 

The company has received positive feedback from European regulators and if the results are positive the study could potentially support an application for marketing approval in Europe.

The company is also working to determine the appropriate clinical development and regulatory path in the US.

The initiation starts with an Outperform rating and target price of $0.27.

This report was published on October 27, 2020.

Target price is $0.27 Current Price is $0.10 Difference: $0.17
If ANP meets the Taylor Collison target it will return approximately 170% (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 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.67.

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

APT    AFTERPAY LIMITED

Business & Consumer Credit - Overnight Price: $93.18

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

Bell Potter observes Afterpay delivered yet another strong quarter. This is expected to be followed by an acceleration into the Christmas period with an uplift in customers already visible.

The September quarter's gross margin value was up 115% versus last year, in line with the broker's forecast.

The broker highlights Afterpay's Stripe Integration under which Stripe will work with Afterpay in getting its users to ‘switch-on’ Afterpay as an option. The broker considers this a part of the growth and defence strategy against Paypal and its intentions to enter the space.

The Buy rating is unchanged and the target price is increased to $137 from $121.

This report was published on October 29, 2020.

Target price is $137.00 Current Price is $93.18 Difference: $43.82
If APT meets the Bell Potter target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $92.38, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 16.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 571.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, 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 1096.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 291.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 398.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 219.8.

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


Goldman Sachs rates ((APT)) as Neutral (3) -

Goldman Sachs looks into Afterpay's first-quarter update. The broker finds Afterpay's operating momentum robust although customer additions in the US at 6.5m were below the broker's 6.7m.

One of the reasons the broker is optimistic is because the December quarter in the US is seasonally very strong. While Afterpay continues to execute strongly, the broker expects competition to rise with Paypal and Shopify entering the battle.

Goldman Sachs is not worried and expects Afterpay to remain amongst the leading providers in the Buy Now Pay Later sector.

Neutral rating is retained with the target price rising to $94.40 from $93.45.

This report was published on October 28, 2020.

Target price is $94.40 Current Price is $93.18 Difference: $1.22
If APT meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $92.38, suggesting downside of -0.9%(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 1863.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, 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 1096.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 465.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.4, implying annual growth of 398.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 219.8.

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

AT1    ATOMO DIAGNOSTICS LIMITED

Medical Equipment & Devices - Overnight Price: $0.33

Canaccord Genuity rates ((AT1)) as Buy (1) -

Atomo Diagnostics reported a positive first quarter that met Canaccord Genuity’s expectations. Cash receipts were considered strong and resulted in a maiden cash flow positive position.

While the performance was primarily due to covid-19-related product sales, progress is being made with OEM customers across the FebriDX, HIV and pregnancy products, which the broker believes should contribute in the second half.

The analyst notes a number of opportunities are building in the US and India, as well as new applications and/or customers that might make a small contribution in the fourth quarter.

The Buy rating and target price of $0.78 are unchanged.

This report was published on October 30, 2020.

Target price is $0.78 Current Price is $0.33 Difference: $0.45
If AT1 meets the Canaccord Genuity target it will return approximately 136% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

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

DUB    DUBBER CORPORATION LIMITED

Cloud services - Overnight Price: $1.41

Shaw and Partners rates ((DUB)) as Buy (1) -

Shaw and Partners re-iterates its Buy rating with a target price of $1.85.

Dubber Corp raised capital worth $35m which, along with its existing capital sees the company in a record balance sheet position. Shaw and Partners believes this step will boost growth.

A material announcement by the company, notes the broker, is the integration of Dubber's call recording solutions and AI services across the Microsoft Teams platform. This will create a pipeline of users available and carriers that can cross-sell into customer bases, suggests the broker.

The agreement also sees Dubber Corp as the only unified public call recording solution enabled with Teams.

Shaw and Partners highlights Dubber has triple leverage, higher carriers, more average users per carrier and likely average revenue per user uplift. Furthermore, this is considered to be one of the few companies listed that can grow faster as it gets bigger.

This report was published on October 29, 2020.

Target price is $1.85 Current Price is $1.41 Difference: $0.44
If DUB meets the Shaw and Partners target it will return approximately 31% (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 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.12.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.37.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit - Overnight Price: $3.51

Wilsons rates ((EML)) as Overweight (1) -

Wilsons is becoming increasingly concerned regarding EML Payments’ exposure to Europe. 

France, Germany, Ireland, the UK, and Italy are all implementing varying forms of lockdowns and restrictions. Risks may arise from a weaker holiday season for the company warns the broker.

The analyst reminds these markets in aggregate make up more than 70% of PFS’ (2018) revenues and EML Payments has around 50% of its Mall portfolio (by volume) spread across Continental Europe. 

The Overweight rating and target price of $4.55 are unchanged.

This report was published on October 30, 2020.

Target price is $4.55 Current Price is $3.51 Difference: $1.04
If EML meets the Wilsons target it will return approximately 30% (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 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.06.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.43.

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


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