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

Daily Market Reports | Nov 11 2020

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

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

360   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  

360    LIFE360 INC

Software & Services – Overnight Price: $3.51

Bell Potter rates ((360)) as Buy (1) –

Bell Potter considers Life360's latest update "remarkable" especially when looked at against the context of a global pandemic. The company is growing with better cash-flows and has upgraded its guidance. Overall subscriptions rose with more than 40,000 added during the quarter.

The broker highlights higher value subscriptions grew 11% of total subscriptions, hinting the model is working well. The broker believes this proves Life360 can grow with nominal user-acquisition spend and through word-of-mouth with moderate advertising.

Bell Potter increases the target price to $7.70 from $7. The Buy rating is unchanged.

This report was published on October 29, 2020.

Target price is $7.70 Current Price is $3.51 Difference: $4.19
If 360 meets the Bell Potter target it will return approximately 119% (excluding dividends, fees and charges).
The company's fiscal year ends in November.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 6.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.98.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 342.44.

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

A2M    THE A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $14.32

Bell Potter rates ((A2M)) as Sell (5) –

Bell Potter makes no material changes to forecasts or target price for a2 Milk after analysing recent competitor news flow.

The broker concludes the daigou trade is the largest infant milk formula (IMF) revenue share for the company and the headwinds look material.

Also, shipments to Hong Kong demonstrate year-on-year declines throughout the first quarter. The Sell rating and $12.70 target are unchanged.

This report was published on October 30, 2020.

Target price is $12.70 Current Price is $14.32 Difference: minus $1.62 (current price is over target).
If A2M meets the Bell Potter target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.12, suggesting upside of 12.6%(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 48.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.8, 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 28.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 54.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.2, implying annual growth of 20.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 23.4.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

A4N    ALPHA HPA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.32

Bell Potter rates ((A4N)) as Buy (1) –

Alpha HPA’s first project involves supplying high purity alumina to the lithium-ion battery and light-emitting diode (LED) manufacturing sectors.

Bell Potter notes Alpha HPA continues to grow its product suite and demonstrate the benefits across a range of lithium-ion battery and LED lighting applications. The potential product range includes 99.99% (4N) high purity alumina (HPA), boehmite and two high-purity aluminium pre-cursers.

Such high purity products improve product performance/manufacturing processes in each application, remarks the broker. The company's market outreach programs suggest a strong demand outlook.

The Speculative Buy recommendation is retained with the target price rising to $0.42 from $0.35.

This report was published on October 29, 2020.

Target price is $0.42 Current Price is $0.32 Difference: $0.1
If A4N meets the Bell Potter target it will return approximately 31% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 160.00.

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 24.62.

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

ALX    ATLAS ARTERIA

Infrastructure & Utilities – Overnight Price: $6.70

Goldman Sachs rates ((ALX)) as Downgrade to Neutral from Buy (3) –

After France and Germany re-imposed lock downs for covid-19, Goldman Sachs decides to lower the rating for Atlas Arteria to Neutral from Buy.

The broker adjusts traffic forecasts for the French (APRR/ADELAC) and German (Warnow Tunnel) toll road assets to account for the immediate four week lockdown, with a subsequent more gradual recovery thereafter. 

These assets represented circa 94% of proportional earnings in 2019.

Consequently, earnings (EPS) forecasts for FY20-22 are -12-28% lower and the 12 month target price is cut by-19% to $6.10.

This report was published on October 29, 2020.

Target price is $6.10 Current Price is $6.70 Difference: minus $0.6 (current price is over target).
If ALX 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 $7.01, suggesting upside of 4.6%(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 8.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.5, implying annual growth of 400.0%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 53.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 28.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.6, implying annual growth of 200.8%.
Current consensus DPS estimate is 33.9, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 17.8.

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

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

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $2.72

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

On October 28, Austal announced its initial FY21 earnings guidance, forecasting operating income at $125m, slightly below Goldman Sachs's $132m on account of a lower expected top line.

The broker feels the current guidance is conservative and continues to think of Austal as the broker's top engineering and construction pick, with the stock providing an attractive multi-year backlog opportunity.

The Buy rating is unchanged with the target falling to $4.28 from $4.35.

This report was published on October 28, 2020.

Target price is $4.28 Current Price is $2.72 Difference: $1.56
If ASB meets the Goldman Sachs target it will return approximately 57% (excluding dividends, fees and charges).
Current consensus price target is $3.90, suggesting upside of 43.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of -3.2%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.6, implying annual growth of -2.5%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 11.5.

Market Sentiment: 0.3
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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.72

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

Bubs Australia’s first-quarter gross revenues were down -34% versus last year, driven by a -59% contraction in adult goat products (impacted by Daigou activity). Infant formula sales were up 9% year on year but down -54% versus the June quarter.

To Bell Potter, it looks like inventory management during the period between March and September was executed better than at some peers. The broker is heartened to see the highest investment ever made by the company to ramp up its brand.

Considering the company is still in the early stage of its product life cycle, Bell Potter retains its Hold rating with the target price declining to $0.80 from $0.85.

This report was published on November 2, 2020.

Target price is $0.80 Current Price is $0.72 Difference: $0.08
If BUB meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 72.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 120.00.

Market Sentiment: -1.0
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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $1.27

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

Bell Potter observes Frontier Digital Ventures' third-quarter update exhibited a recovery in revenue across its portfolio.

Cost base rationalisation at the beginning of the pandemic led to better operating leverage across the portfolio with 9 of 12 companies reporting positive operating income during the third quarter. All of this culminated in the company achieving its first positive operating income quarter ($0.3m).

The broker views the company favourably and expects strong post-covid growth along with seeing upside from the optimisation of recent acquisitions. Earnings growth forecasts have been upgraded for FY20-22.

Bell Potter retains its Hold (Speculative) rating with a price target of $1.40.

This report was published on October 29, 2020.

Target price is $1.40 Current Price is $1.27 Difference: $0.13
If FDV meets the Bell Potter target it will return approximately 10% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.36.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.22.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.25

Wilsons rates ((GEM)) as Overweight (3) –

G8 Education announced the completion of the sale of its Singapore business which comprised of 17 centres and was flagged at the first half result.

The assets were divested for approximately $9.0m. The proceeds are expected to be used to reduce debt.

Wilsons are encouraged by the formal completion of this transaction, which had been considered a positive catalyst given the limited earnings contribution the centres made and the ability to reallocate the capital towards more profitable projects.

The broker believes the risk/reward is firmly to the upside in the medium-term at current levels, due to a more attractive earnings profile, comfortable debt position and attractive 2-3 year forward valuation multiples.

The Market Weight rating and target price of $1.91 are unchanged.

This report was published on October 21, 2020.

Target price is $1.91 Current Price is $1.25 Difference: $0.66
If GEM meets the Wilsons target it will return approximately 53% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting downside of -10.6%(ex-dividends)
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 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.7, implying annual growth of -72.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 33.8.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of 10.8%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 30.5.

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

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.24

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

Helloworld Travel has released a September quarter trading update highlighting another difficult quarter for travel, notes Bell Potter. The result was buoyed by signs of gradual improvement across the month of September (versus July/August).

The broker likes the diversified exposure to a rebound in travel and the company remains sufficiently capitalised to see out the prolonged downturn. However, at this stage of the recovery the analyst prefers larger corporate businesses more leveraged to a rebound in the domestic arena.

Bell Potter’s FY22 and FY23 EPS forecasts have been adjusted by -22% and 4%, respectively. The Hold rating is unchanged and the target decreased to $1.95 from $2.10.

This report was published on October 31, 2020.

Target price is $1.95 Current Price is $2.24 Difference: minus $0.29 (current price is over target).
If HLO meets the Bell Potter target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.92.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.68.

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

HUO    HUON AQUACULTURE GROUP LIMITED

Aquaculture – Overnight Price: $2.77

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

Huon Aquaculture's latest update expects a step-change in FY21 production volumes, at lower costs. However, the pricing environment is also expected to be bleak due to temporary over-supply issues.

Bell Potter translates this to imply the company is not likely to see much earnings growth in FY21 compared to last year. Operating income forecasts for the years FY21-23 have been downgraded. 

The Hold rating is unchanged with the target price reduced to $2.90 from $3.45.

This report was published on November 2, 2020.

Target price is $2.90 Current Price is $2.77 Difference: $0.13
If HUO 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 minus 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.95.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 10.70 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.89.

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

IFL    IOOF HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $3.35

Bell Potter rates ((IFL)) as Upgrade to Buy from Sell (1) –

Bell Potter believes the share price for IOOF Holdings has overshot on the way down and has more than captured downside risks. As a result, the Sell rating is upgraded to a Buy and the target price is increased to $3.45 from $3.40.

The broker highlights this is more of a trading opportunity and remains overall concerned around business prospects, and how the business is appearing more mature.

September quarter highlights for Bell Potter included most divisions largely in-line with expectations, and total net-flows of -$2.2bn vs -$1.8bn in the June quarter.

An upgrade to EPS forecasts by the analyst is largely driven by a lower uptake of the SPP, and as such less shares on issue.

This report was published on October 30, 2020.

Target price is $3.45 Current Price is $3.35 Difference: $0.1
If IFL meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $4.66, suggesting upside of 39.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.8, implying annual growth of -24.3%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 21.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 6.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.3, implying annual growth of -1.6%.
Current consensus DPS estimate is 24.0, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.5
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: $0.28

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

Immutep is a clinical-stage biopharmaceutical company, focusing on developing novel immunotherapies for treating cancer and autoimmune diseases.

The company's core technology is based on LAG-3 (lymphocyte activation gene-3) protein, a key mediator of the immune system.

One of the largest healthcare diagnostic companies in the world, LabCorp has entered into an Immuno-oncology diagnostics collaboration with Immutep.

Bell Potter is extremely pleased and suggests LabCorp’s interest in the company in itself is a huge validation of Immutep's expertise in LAG-3. The broker adds Immutep couldn't have hoped for a better partner.

Bell Potter maintains its Buy rating and a target price of $0.60.

This report was published on November 2, 2020.

Target price is $0.60 Current Price is $0.28 Difference: $0.32
If IMM meets the Bell Potter target it will return approximately 114% (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 8.75.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.38.

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: $0.37

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

A trading update reinforces CCZ Equities' view the investment made into developing a scalable and secure assessment platform will allow for significant uplifts in revenue, with relatively stable fixed costs.

Janison Education reported 53% growth in first quarter revenue versus the previous corresponding period, driven by 68% growth in assessment revenue. 

Key drivers of platform revenue growth in FY21 include the PISA Based Tests for Schools (PBTS) program, the D2L partnership, expansion of clients in the higher education sector and ICAS.

The Buy rating is unchanged and the target price is increased to $0.49 from $0.47.

This report was published on October 27, 2020.

Target price is $0.49 Current Price is $0.37 Difference: $0.12
If JAN meets the CCZ Equities target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.86.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 123.33.

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

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $2.24

Moelis rates ((MCP)) as Buy (1) –

McPhersons’s has acquired Global Therapeutics, a herbal supplements company via raising $36.5m. Moelis is of the view the acquisition, while not the obvious choice, represents McPherson's first foray into health and wellness.

Furthermore, the broker highlights the acquisition gives McPherson's an option to expand sales into the pharmacy channel by using its distribution network at a reasonable price. The key value driver remains Dr LeWinn’s and its sales into China, adds the broker.

The company is confident it is on track to deliver $48-50m in sales to China this year. The Buy rating is maintained with the target price reducing to $3.39 from $3.57.

This report was published on October 29, 2020.

Target price is $3.39 Current Price is $2.24 Difference: $1.15
If MCP meets the Moelis target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 11.20 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.66.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.40 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17.

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

MFD    MAYFIELD CHILDCARE LIMITED

Childcare – Overnight Price: $0.82

Canaccord Genuity rates ((MFD)) as Upgrade to Buy from Hold (1) –

Canaccord Genuity upgrades earnings (EBITDA) estimates for Mayfield Childcare by 47% and 21% for 2020 and 2021, respectively, on a positive trading update and guidance by management.

Occupancy levels were also considered very positive by the broker, given 100% of the portfolio is in Victoria. This is considered to bode well post-lockdown and business is likely to improve into the year end.

The analyst increases the target price to $1.12 from $0.96 and turns positive on the childcare sector generally after the profit reporting season.

The rating is increased to Buy from Hold.

This report was published on October 30, 2020.

Target price is $1.12 Current Price is $0.82 Difference: $0.3
If MFD meets the Canaccord Genuity target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.83.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 8.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 9.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.31.

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

MLD    MACA LIMITED

Mining Sector Contracting – Overnight Price: $0.83

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

Canaccord Genuity views Maca as a lower-risk, higher-quality and cleaner investment as a result of the Carabella Resources Bluff Coal project being placed on care and maintenance.

The company had already opted to impair an owed amount of -$48m in FY20, but still, the company’s share price has suffered under uncertainty over a potential conclusion to the work, argues the broker.

The analyst estimates the amount owing is around -$35m and notes the company expects to receive this full amount. This is the only debt on the project, so it has first ranking on the assets and tenements. 

Otherwise, the company is performing strongly and Canaccord Genuity sees ongoing likelihood of further contract wins in both the mining and civil segments.

The Buy rating is unchanged and the target price is decreased to $1.19 from $1.27.

This report was published on October 30, 2020.

Target price is $1.19 Current Price is $0.83 Difference: $0.36
If MLD meets the Canaccord Genuity target it will return approximately 43% (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 5.00 cents and EPS of 13.50 cents.
At the last closing share price the estimated dividend yield is 6.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.15.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 6.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.55.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $14.12

Canaccord Genuity rates ((MP1)) as Buy (1) –

Canaccord Genuity assesses Megaport reported weaker-than-expected revenue and monthly recurring revenue (MRR) figures for the first quarter.

The broker lowers revenue and earnings forecasts due to the lower-than-expected MRR. It's considered the business remains in a high growth mode.

The analyst notes the trading update reiterates the company’s objective to exit FY21 at an earnings (EBITDA)-positive run-rate, suggesting the quarter represents little more than an out of character blip.

The Buy rating is unchanged and the target price is decreased to $16.55 from $17.15.

This report was published on October 22, 2020.

Target price is $16.55 Current Price is $14.12 Difference: $2.43
If MP1 meets the Canaccord Genuity target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $15.15, suggesting upside of 7.3%(ex-dividends)
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 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -22.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 94.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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: $6.19

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

Bell Potter believes covid-19 weakened the sale of Penthrox in FY20 while also delaying the US and China approval process for Penthrox.

On the bright side, the broker notes covid-19 also benefited Medical Developments International's respiratory business which had a record year.

Another key change was taking away EU distribution rights for Penthrox from Mundipharma. The terms of separation terms were fair believes the broker.

Going ahead, the broker suggests execution risk is key given the company's limited experience in sales and marketing.

The Buy rating is maintained. The target price is decreased to $7.50 from $8.97.

The report was published on November 2, 2020.

Target price is $7.50 Current Price is $6.19 Difference: $1.31
If MVP meets the Bell Potter target it will return approximately 21% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 154.75.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 143.95.

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

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $0.88

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

The September quarter activities report for Nickel Mines was an excellent one, according to Shaw and Partners.

Nickel production was up 41% as the company moves to 80% from 60% ownership of the Hengjaya and Ranger RKEF projects. Costs have reduced to US$7,201/t which is a new record low. 

Meanwhile, the nickel price strengthened to US$15,600/t over the quarter and so the company is now generating over US$8,000/t margins, highlights the broker.

The company is the largest pure exposure to nickel on the ASX and in Shaw and Partners view the cheapest. The Buy rating and target price of $1.33 are unchanged.

This report was published on October 30, 2020.

Target price is $1.33 Current Price is $0.88 Difference: $0.45
If NIC meets the Shaw and Partners target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 4.25 cents and EPS of 8.06 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.92.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 10.40 cents and EPS of 13.92 cents.
At the last closing share price the estimated dividend yield is 11.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.32.

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

NUC    NUCHEV LIMITED

Dairy – Overnight Price: $1.34

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

Wilsons expected subdued trading in Nuchev’s first quarter, but the quantum of decline was larger than expected.

The decline was magnified by excessive inventory level in the corporate daigou channel, and disruptions from transition to new cross border distributors, explains the broker.

Wilsons states the investment thesis around the structural growth prospects in the business remains intact. 

The broker forecasts net cash bottoming out at the end of FY23 at $7m before the expectation of positive operating cash flow in the first half of 2024.

The Overweight rating is unchanged and the target price is decreased to $2.10 from $3.46.

This report was published on October 30, 2020.

Target price is $2.10 Current Price is $1.34 Difference: $0.76
If NUC meets the Wilsons target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.38.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.63.

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: $1.16

Bell Potter rates ((NXS)) as Downgrade to Hold from Buy (3) –

Bell Potter downgrades its rating to Speculative Hold from Speculative Buy with the valuation reducing to $1.30 from $1.65.

The downgrade was led by disappointing receipts from customers which implies the company is unlikely to meet its circa $2m revenue forecast for this half, states Bell Potter.

Also, the company did not benefit from improving patient volumes following the initial covid-driven pause on elective procedures. The broker has lowered its FY20 earnings forecast by -11% to account for the weak quarter.

The company will also require additional capital worth $35m in 2021 to fund the ongoing marketing for the Xperience surgical wash product.

This report was published on October 29, 2020.

Target price is $1.30 Current Price is $1.16 Difference: $0.14
If NXS meets the Bell Potter target it will return approximately 12% (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 11.87 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.78.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 10.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.15.

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: $2.69

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

Openpay Group reported strong first-quarter metrics with active customers up 145% versus last year and active merchants up 35%. The total transaction value increased by 95% to $68m, with revenue up 68% over the last year.

Shaw and Partners notes the momentum in the UK remains strong. The broker expects the second quarter to shape up to be massive because of the Christmas holiday season and the recent wins from Kogan, JD Sports Australia and Just Group. 

The Buy rating is maintained with a target price of $5.

This report was published on October 29, 2020.

Target price is $5.00 Current Price is $2.69 Difference: $2.31
If OPY meets the Shaw and Partners target it will return approximately 86% (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 9.24.

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 11.50.

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

PPH    PUSHPAY HOLDINGS LIMITED

Software & Services – Overnight Price: $7.36

Shaw and Partners rates ((PPH)) as Initiation of coverage with Hold (3) –

Shaw and Partners initiates coverage on Pushpay Holdings with a Hold rating and a target price of $8.69.

Pushpay Holdings provides digital giving and church management system software for faith-based organisations in North America and Australia & NZ. The covid led push to digital giving has benefited Pushpay in FY21, observes the broker.

The broker also notes digital penetration rates have been maintained which suggests upside risk to the current FY21 guidance.

Given existing relationships with large churches, the broker is of the view early success might come in this segment but waits to see more evidence of the cross-sell working first.

This report was published on October 29, 2020.

Target price is $8.69 Current Price is $7.36 Difference: $1.33
If PPH meets the Shaw and Partners target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $4.45, suggesting downside of -39.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 20.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, 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 37.4.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 24.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.7, implying annual growth of 25.4%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 29.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $4.78

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

Bell Potter is of the view PWR Holdings' will record growth in the first half of the year which implies a stronger second quarter. The company may even post very strong growth if all the elite motorsports’ seasons are completed, adds the broker.

The broker continues to forecast strong operating growth over FY21-23. Operating income in the first half of this year is expected to grow 65% despite the relatively flat first quarter.

The broker reiterates its Buy rating with a target price increased of $5.25.

This report was published on November 2, 2020.

Target price is $5.25 Current Price is $4.78 Difference: $0.47
If PWH meets the Bell Potter target it will return approximately 10% (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 8.80 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.56.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.70 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 2.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.87.

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

RMY    RMA GLOBAL LIMITED

Real Estate – Overnight Price: $0.28

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

RMA Global's first-quarter update was considered solid by Bell Potter with the US claimed profiles growing about 32% to circa 75,200 agents during the first quarter.

This translates to an average rate of circa 6,000 agents per month, notes the broker, almost double the average rate during FY20.

It looks like the agent subscription runoff seen in the last quarter of FY20 is now over, suggests Bell Potter, with the number of agents rising during the September quarter, driving a 10% uplift in the quarterly subscription revenues to circa $1.56m. 

Bell Potter maintains its Buy rating with the target price rising slightly to $0.36 from $0.35.

This report was published on November 2, 2020

Target price is $0.36 Current Price is $0.28 Difference: $0.08
If RMY meets the Bell Potter target it will return approximately 29% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.45.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $2.19

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

SomnoMed announced first quarter revenues of $13.7m which was -6% below the previous corresponding period (pcp), but 61% higher than the fourth quarter covid low point of $8.5m. This was broadly in-line with the estimates of Wilsons.

North American sales were $4.5m, down -14% versus the pcp, with activity levels 75-85% versus pre-covid levels. European sales were flat at $7.9m, with most jurisdictions at or above pre-covid levels. APAC sales were $1.3m, down -4% versus the pcp, with volumes having normalised.

At this stage it is difficult for the broker to disaggregate backlog from genuine organic demand. Recoveries have been strongest in
jurisdictions with more centralized health systems, notes the analyst.

The Market Weight rating and target price of $1.65 are unchanged.

This report was published on October 21, 2020.

Target price is $1.65 Current Price is $2.19 Difference: minus $0.54 (current price is over target).
If SOM meets the Wilsons target it will return approximately minus 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 199.09.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.15.

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

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices – Overnight Price: $1.34

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

Volpara Health Technology's quarterly cash collected was -5% lower than the June quarter. The net cash outflows reduced by circa -$270K.

Bell Potter notes the company delivered on its commitment to reduce costs with the gross level of cash payments for the September quarter lower than 6 months prior.

The company announced Project Thumb whereby Volpara will include thumbnail radiological images of each client’s mammogram in the notification letters sent to clients. Key to this will be the ability to highlight changes in these images over time.

The broker expects this to become a major point of sustainable competitive advantage going ahead.

Buy recommendation retained with the target unchanged at $1.75.

This report was published on October 29, 2020.

Target price is $1.75 Current Price is $1.34 Difference: $0.41
If VHT meets the Bell Potter target it will return approximately 31% (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 5.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.32.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.05.

This company reports in NZD. 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


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.

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CHARTS

360 A2M A4N ALX ANP APT 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

For more info SHARE ANALYSIS: 360 - LIFE360, INC

For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED

For more info SHARE ANALYSIS: A4N - ALPHA HPA LIMITED

For more info SHARE ANALYSIS: ALX - ATLAS ARTERIA

For more info SHARE ANALYSIS: ANP - ANTISENSE THERAPEUTICS LIMITED

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: ASB - AUSTAL LIMITED

For more info SHARE ANALYSIS: AT1 - ATOMO DIAGNOSTICS LIMITED

For more info SHARE ANALYSIS: BUB - BUBS AUSTRALIA LIMITED

For more info SHARE ANALYSIS: DUB - DUBBER CORPORATION LIMITED

For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED

For more info SHARE ANALYSIS: FDV - FRONTIER DIGITAL VENTURES LIMITED

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

For more info SHARE ANALYSIS: HLO - HELLOWORLD TRAVEL LIMITED

For more info SHARE ANALYSIS: HUO - HUON AQUACULTURE GROUP LIMITED

For more info SHARE ANALYSIS: IFL - IOOF HOLDINGS LIMITED

For more info SHARE ANALYSIS: IMM - IMMUTEP LIMITED

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

For more info SHARE ANALYSIS: MCP - MCPHERSON'S LIMITED

For more info SHARE ANALYSIS: MFD - MAYFIELD CHILDCARE LIMITED

For more info SHARE ANALYSIS: MLD - MACA LIMITED

For more info SHARE ANALYSIS: MP1 - MEGAPORT LIMITED

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

For more info SHARE ANALYSIS: NIC - NICKEL MINES LIMITED

For more info SHARE ANALYSIS: NUC - NUCHEV PTY LIMITED

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

For more info SHARE ANALYSIS: PPH - PUSHPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: PWH - PWR HOLDINGS LIMITED

For more info SHARE ANALYSIS: RMY - RMA GLOBAL LIMITED

For more info SHARE ANALYSIS: SOM - SOMNOMED LIMITED

For more info SHARE ANALYSIS: VHT - VOLPARA HEALTH TECHNOLOGIES LIMITED