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Australian Broker Call *Extra* Edition – Nov 13, 2020

Daily Market Reports | Nov 13 2020

This story features AUSSIE BROADBAND LIMITED, and other companies. For more info SHARE ANALYSIS: ABB

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)

ABB   AIM   CCP   CSX   EHE   GMA   GMG   GNX   IMD   ING   IRE   JBH   KZA   NAN (2)   NIC   PDL (2)   PPH   SCG   STG  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $1.95

Shaw and Partners rates ((ABB)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on Aussie Broadband with a Buy rating and target price of $2.44.

The broker points out, Aussie Broadband is the fastest growing retail service provider in Australia with FY21 revenues of $338m, up 78% organic growth. The broadband dividion also has 3.53% of the NBN market share and has emerged as a major player in the last 3 years.

During the June quarter, Aussie broadband added 44.1k net subs, up 80%. This saw the company take a record 14% of net NBN subscribers, up 930bps versus last year and increase its market share by 60 bps during the quarter.

The broker forecasts gross margins to rise 640bps by FY23 and operating income of $50m, up 300% on FY21.

This report was published on November 5, 2020.

Target price is $2.44 Current Price is $1.95 Difference: $0.49
If ABB meets the Shaw and Partners target it will return approximately 25% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 975.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.26.

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

AIM    ACCESS INNOVATION HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $1.08

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

Access Innovation, formed in 2003, utilises its technology platform to provide high accuracy, near real-time voice transcription services and has three main product lines: live enterprise, live broadcast and recorded.

Bell Potter initiates coverage on Access Innovation with a target of $1.30.

The broker is of the view the company’s next phase of growth will be led by its live enterprise product with its leverage to the proliferation of video content.

A robust revenue growth profile, gross margin expansion opportunity from accelerated growth in live enterprise and a market-leading platform focused on a compelling value proposition are additional factors that strengthen the broker’s view.

This report was published on November 5, 2020.

Target price is $1.30 Current Price is $1.08 Difference: $0.22
If AIM meets the Bell Potter target it will return approximately 20% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1080.00.

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

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $22.73

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

When it comes to Credit Corp Group, Canaccord Genuity advocates caution, stating the 4% growth in Australian collections is likely as good as it could get this year. The broker is worried about the operating pace of the company heading into FY22.

At its AGM, management reconfirmed FY21 net profit guidance of $60-$75m and almost flat net lending. This drives the broker's earnings forecasts downgrades in FY21-22.

Canaccord Genuity maintains its Buy rating. The target price is decreased to $19.70 from $19.90.

This report was published on November 6, 2020.

Target price is $19.70 Current Price is $22.73 Difference: minus $3.03 (current price is over target).
If CCP meets the Canaccord Genuity target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $19.90, suggesting downside of -12.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 53.00 cents and EPS of 107.00 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.7, implying annual growth of 279.2%.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 23.5.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 60.00 cents and EPS of 122.00 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.6, implying annual growth of 17.5%.
Current consensus DPS estimate is 56.7, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 20.0.

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

CSX    CLEANSPACE HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $6.30

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

CleanSpace Holdings has a differentiated product suite in the powered respiratory protection space.

These products have proven to be cost-effective for healthcare and industrial clients, while providing optimal airway protection and comfort for the user, notes Bell Potter.

Revenue growth is driven by improvement in installed base and ongoing consumables model. The analyst explains increased demand attributable to covid-19 has created a meaningful inflection point for the company in terms of acceleration of the installed base.

The company has doubled the installed base in the last two years. Bell Potter assesses the revenue base and growth rates have been reset structurally going forward, as a result of an acceleration during the pandemic.

Healthcare sales and demand has increased as respiratory protection equipment (RPE) for covid infection control remains a long-term concern. This should allow the company to see improved sales and mix-shift improvement until the virus is eliminated globally, explains the broker.

For the Industrials segment, the analyst believes broader awareness around the importance of RPE, primarily driven by litigation, could drive broader use.

Initiation of coverage with a Hold rating and target price of $6.75.

This report was published on November 3, 2020.

Target price is $6.75 Current Price is $6.30 Difference: $0.45
If CSX 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 0.00 cents and EPS of 18.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.87.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.13.

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

EHE    ESTIA HEALTH LIMITED

Aged Care & Seniors – Overnight Price: $1.44

Moelis rates ((EHE)) as Buy (1) –

Estia Health's first-quarter operating income was $7.2m including $0.8m in temporary funding. Spot occupancy till 31 October (ex-Victoria) was 93.2%.

The company revealed -$12.2m of covid-related costs were incurred during the quarter. The Mona Vale sale proceeds of $9.9m were received in November.

With the aged care industry facing a challenging environment, the broker notes Estia's balance sheet is well placed with more than $200m in available liquidity to absorb any further occupancy impacts.

The company is in capital preservation mode in FY21 with no final FY20 dividend declared and a reduction in capex for future greenfield projects.

Moelis has reduced its FY21 operating income by -7% to $63.7m, reflecting a lower than anticipated contribution during the quarter. Buy rating is maintained with the target falling to $2.02 from $2.16.

This report was published on November 6, 2020.

Target price is $2.02 Current Price is $1.44 Difference: $0.58
If EHE meets the Moelis target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $1.56, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.70 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of N/A.
Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.90 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.2, implying annual growth of 36.0%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 14.1.

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

GMA    GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED

Banks – Overnight Price: $2.19

Goldman Sachs rates ((GMA)) as No Rating (-1) –

Goldman Sachs observes Genworth Mortgage Insurance Australia’s third quarter net profit of $27.4m was largely driven by a better performance on investment income.

The new insurance written of $7.8bn was up 22% versus last year, reflecting the strong LMI flow performance across lender customers. Loss ratio fell to -63.5% versus 53% last year on account of covid-19.

The broker also notes the underwriting result during the quarter run-rates is circa 5% ahead of Goldman Sachs’s previous forecast, driven by better-than-expected growth in gross written premium.

Goldman Sachs does not have any rating for the stock.

This report was published on November 5, 2020.

Current Price is $2.19. Target price not assessed.
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 7.00 cents and EPS of minus 11.00 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 minus 19.91.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.25.

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

GMG    GOODMAN GROUP

Infra & Property Developers – Overnight Price: $19.36

Goldman Sachs rates ((GMG)) as Sell (5) –

Goodman Group’s development work in progress (WIP) was $7.3bn on 30 September, up from $6.5bn in June and $4.8bn in March.

The group had previously guided to the work in progress exceeding $7bn in the first half, so the number wasn’t a surprise to Goldman Sachs.

Management expects WIP to exceed $8bn by June 2021. Despite the very strong growth in WIP, the group expects development throughput to be circa $4bn in FY21, up only slightly vs FY20 levels.

This, believes the broker, reflects the ramp-up of new projects but also indicates the long-dated nature of the workbook.

Sell rating is retained with the target rising slightly to $12.24 from $11.12.

This report was published on November 5, 2020.

Target price is $12.24 Current Price is $19.36 Difference: minus $7.12 (current price is over target).
If GMG meets the Goldman Sachs target it will return approximately minus 37% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $19.39, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 32.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.7, implying annual growth of -22.7%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 30.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 69.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.7, implying annual growth of 11.0%.
Current consensus DPS estimate is 32.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 27.4.

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

GNX    GENEX POWER LIMITED

EV, Solar & Batteries – Overnight Price: $0.20

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

In Canaccord Genuity's view, a pathway remains in-tact for a financial close for Genex Power's pumped-hydro project in the December quarter.

The broker highlights the company ended the quarter with $61m in cash and $196m in debt.

The analyst highlights Jemalong solar is 85% complete and on track for a December quarter start-up and  the Kidston solar underperformance has led to an operation and maintenance (O&M) contractor change.

Finally, the Northern Australia Infrastructure Facility (NAIF) continues to support the project and has advised the company the NAIF Board will extend its $610m funding offer to January 31, 2021.

The Speculative Buy rating and target of $0.30 are unchanged.

This report was published on October 20, 2020.

Target price is $0.30 Current Price is $0.20 Difference: $0.1
If GNX meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.00.

Forecast for FY22:

Canaccord Genuity 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 9.09.

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

IMD    IMDEX LIMITED

Mining Sector Contracting – Overnight Price: $1.32

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

Bell Potter believes factors that indicate a recovery in global exploration expenditure in 2021 include strong capital markets, supporting commodity prices (gold and copper) and revenue by four emerging technologies.

Since Imdex’s earnings are highly leveraged to the above points, the broker expects a recovery in FY22-23.

Bell Potter upgrades its rating to Buy from Hold with the target rising to $1.45 from $1.38.

This report was published on November 5, 2020.

Target price is $1.45 Current Price is $1.32 Difference: $0.13
If IMD 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 1.90 cents and EPS of 4.50 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 29.33.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.70 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.60.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.22

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

Inghams Group’s latest trading update showed stronger trading volumes through the September quarter even as reduction in inventory levels continued despite covid-19 led disruption.

Feed cost recorded an increase in the quarter but management anticipates a reduction in prices in the second half.

The company also revised its dividend policy with the new pay-out ratio based on 60-80% of the net profit.

Goldman Sachs retains its Buy rating with a target of $3.80.

This report was published on November 5, 2020.

Target price is $3.80 Current Price is $3.22 Difference: $0.58
If ING meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $3.62, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of 96.5%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.1, implying annual growth of 18.4%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.8.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $9.89

Shaw and Partners rates ((IRE)) as Hold (3) –

Iress released a third-quarter update, reinstating guidance for FY20. Shaw and Partners has upgraded its forecasts by 2-3% and now expects segment profit of circa $152m.

Before getting too optimistic, the broker wants to wait for a clear signal margins have bottomed and can trend up.

Hold rating maintained for now with a target price of $10.81.

This report was published on November 5, 2020.

Target price is $10.81 Current Price is $9.89 Difference: $0.92
If IRE meets the Shaw and Partners target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $11.30, suggesting upside of 14.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 46.00 cents and EPS of 34.70 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.7, implying annual growth of 2.1%.
Current consensus DPS estimate is 43.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 25.6.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 47.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 4.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.9, implying annual growth of 5.7%.
Current consensus DPS estimate is 45.3, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 24.2.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $45.46

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

JB Hi-Fi provided a first quarter sales update which revealed continued benefit from favourable consumer trends, as well as government stimulus benefits, explains Bell Potter.

The broker makes no material changes to EPS forecasts and the 12-month price target is largely unchanged at $43.50 (previously $44.00).

The analyst warns the sales surge over recent months is clearly not sustainable and believes a more normalised outlook is not yet factored into the share price. 

The Sell rating is unchanged.

This report was published on October 30, 2020.

Target price is $43.50 Current Price is $45.46 Difference: minus $1.96 (current price is over target).
If JBH 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 $47.95, suggesting upside of 5.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 179.80 cents and EPS of 268.10 cents.
At the last closing share price the estimated dividend yield is 3.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 314.2, implying annual growth of 19.4%.
Current consensus DPS estimate is 208.0, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 166.70 cents and EPS of 250.40 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 256.3, implying annual growth of -18.4%.
Current consensus DPS estimate is 172.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 17.7.

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

KZA    KAZIA THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.95

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

After the recent quarterly report and earlier capital raise, Bell Potter highlights Kazia Therapeutics has effective cash at 30 September of around $26m.

The company is yet to disclose the full cost of GBM Agile, but the recent capital raise (for $25m) leaves the company well funded to execute the GBM Agile pivotal study.

The study is a phase II/III study designed for registration of paxalisib in glioblastoma. Glioblastoma is an aggressive type of cancer that can occur in the brain or spinal cord.

Paxalisib is a potent inhibitor of the PI3K pathway, and has been shown to have an anti-tumour effect in animal models of glioblastoma.

The PI3K pathway appears to be disordered in more than 85% of cases of glioblastoma, and so this appears to be a high-potential target for new glioblastoma therapies.

There are no changes to earnings and the Speculative Buy rating and $2 price target are unchanged.

This report was published on November 3, 2020.

Target price is $2.00 Current Price is $0.95 Difference: $1.05
If KZA meets the Bell Potter target it will return approximately 111% (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 15.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.17.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.31.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $6.37

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

Bell Potter notes Nanosonics has a material R&D expense for which there are no revenues in the forecast presently. Also, the launch of Nanosonics’ first new product has been delayed to FY22.

FX impact to the revenue may be another headwind.

The broker decides to maintain its sell recommendation due to insufficient data available on new products to justify the implied valuation from these potential revenue streams.

Bell Potter’s forecast for FY21 sees revenues declining in FY21 versus FY20, the first time in the company’s history.

Bell Potter retains its Sell rating with a target of $4.95.

This report was published on November 5, 2020.

Target price is $4.95 Current Price is $6.37 Difference: minus $1.42 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.80, suggesting downside of -8.9%(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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2123.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.3, implying annual growth of -2.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 193.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 205.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 163.6%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 73.2.

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


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

Nanosonics’ trading update gave a high-level glimpse of the business performance through the first four months of FY21.

The sales of consumables continued to recover through the first four months, up 4% versus last year. New hardware installations fell -9% versus last year.

Overall, Nanosonics sold 2,420 units in the US in FY20, well below its 3,000 target. Goldman Sachs notes this suggests Nanosonics has seen a steady recovery in both consumables and hardware month-on-month since June.

Goldman Sachs maintains its Neutral rating with a target of $5.50.

This report was published on November 5, 2020.

Target price is $5.50 Current Price is $6.37 Difference: minus $0.87 (current price is over target).
If NAN meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.80, suggesting downside of -8.9%(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 127.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.3, implying annual growth of -2.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 193.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 106.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 163.6%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 73.2.

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

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $0.91

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

Bell Potter's view that Nickel Mines is the preferred ASX-listed nickel exposure was reinforced by the September quarter performance. 

The update delivered record low costs and another strong production performance, highlights the broker.

Nickel in nickel pig iron (NPI) production was up 6% quarter-on-quarter, and just beat the analyst's forecast on higher Nickel in NPI grades. Lower power costs contributed to the record low cost performance and maintains the company’s strong track record of delivery.

Lower costs and higher production results in Bell Potter raising 2021 and 2022 earnings forecasts by 7% and 9%, respectively.

The Buy rating is unchanged and the target price is increased to $1.56 from $1.52.

This report was published on October 31, 2020.

Target price is $1.56 Current Price is $0.91 Difference: $0.65
If NIC meets the Bell Potter target it will return approximately 71% (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 2.93 cents and EPS of 11.42 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.97.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.93 cents and EPS of 24.16 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.77.

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

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $6.02

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

Pendal Group's FY20 cash net profit at $146.8m was a miss to Bell Potter’s forecast $159m. A final dividend of 22c was announced.

Bell Potter highlights Pendal is in the middle of some key changes in its business including how the company reports its profit and the company’s heavy investment in future growth with more teams, products and sales people.

In the short-term, the broker expects a hit to earnings from items above, offset by improving prospects on the net flow and performance fee front.

Bell Potter maintains its Buy rating with the target falling to $8.40 from $9.

This report was published on November 5, 2020.

Target price is $8.40 Current Price is $6.02 Difference: $2.38
If PDL meets the Bell Potter target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $6.69, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 40.00 cents and EPS of 46.60 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.3, implying annual growth of 6.3%.
Current consensus DPS estimate is 36.6, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 40.00 cents and EPS of 45.90 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.1, implying annual growth of 9.0%.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 13.1.

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


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

Pendal Group’s FY20 cash net profit of $146.8m was down -10% versus last year and -3.8% below Goldman Sachs's estimate. The final dividend was 22c, in-line with the broker and lifting the FY20 payout ratio to 81%.

Operating profit missed the broker’s forecast by -1.9% while expenses were in line.

The company’s comments on the outlook were mixed, notes the broker, with Pendal guiding to fixed cost growth of 8-10% in FY21 to fund strategic initiatives.

The company aims to increase its funds under management by 50% by FY25. Goldman Sachs retains its Buy rating with a target of $6.79.

This report was published on November 5, 2020.

Target price is $6.79 Current Price is $6.02 Difference: $0.77
If PDL meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $6.69, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 40.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.3, implying annual growth of 6.3%.
Current consensus DPS estimate is 36.6, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 47.00 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 7.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.1, implying annual growth of 9.0%.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.5
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: $7.24

Shaw and Partners rates ((PPH)) as Hold (3) –

Shaw and Partners sees Pushpay Holdings' first half as as "solid" performance.

The company has increased its full year guidance by 7% which, according to the broker, suggests tailwinds from covid are blowing strong and delivering great operating leverage in FY21.

While the broker takes comfort that incremental subscription revenue and take rates appear to be stabilising, other signals were mixed.

The broker’s revenue and operating income forecasts are below consensus for FY22-23.

Hold rating is maintained with a target price of $8.69.

This report was published on November 5, 2020.

Target price is $8.69 Current Price is $7.24 Difference: $1.45
If PPH meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $4.45, suggesting downside of -38.5%(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 19.18 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, 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 38.7.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 23.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.5, implying annual growth of 31.0%.
Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 29.6.

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

SCG    SCENTRE GROUP

REITs – Overnight Price: $2.68

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

With no community transmission of covid-19 cases, Scentre Group saw a strong pick-up in sales in the September quarter.

While sales in NSW declined due to low CBD visitation and continued consumer caution, sales in Queensland, Western Australia and Southern Australia picked up over the quarter.

Goldman Sachs is of the view this ramp up is a preview of the recovery likely to be seen in the group’s largest market once shoppers become more confident about containment of the virus.

Cash collection saw a solid pick-up during the quarter. The Buy rating is reaffirmed with a target of $3.54.

This report was published on November 5, 2020.

Target price is $3.54 Current Price is $2.68 Difference: $0.86
If SCG meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting downside of -10.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 9.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of -33.2%.
Current consensus DPS estimate is 7.2, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 18.0.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 7.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of 26.2%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 14.3.

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

STG    STRAKER TRANSLATIONS LIMITED

IT & Support – Overnight Price: $1.50

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

Straker Translations' second quarter update revealed a broad recovery across the majority of the company's market segments, observes Bell Potter. 

The broker explains the company has emerged from a period during the pandemic when weaker core revenues were offset by one-off covid-19 projects.

After the update, it’s considered the quality of the sales mix has improved and this suggests momentum has returned to the business which appears to be set up for a strong second half.

The analyst concedes it is hard to gauge the consistency of the revenue run-rate due to the project based nature of the business model. However, it’s considered the run-rate in September was a significant step-up versus July and August.

The Buy rating and target of $1.45 are unchanged.

This report was published on November 3, 2020.

Target price is $1.45 Current Price is $1.50 Difference: minus $0.05 (current price is over target).
If STG meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 68.18.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.57.

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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