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Australian Broker Call *Extra* Edition – Nov 18, 2020

Daily Market Reports | Nov 18 2020

This story features AUSWIDE BANK LIMITED, and other companies. For more info SHARE ANALYSIS: ABA

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)

ABA   BET   BUB   CAT   CSX   EVO   HLA   IFM   ING   JIN   MCP   MMM   MQG (2)   PCK   PLT   PWH   RCL   SUN   VCX  

ABA    AUSWIDE BANK LTD

Banks – Overnight Price: $5.87

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

Auswide Bank  provided an upbeat second quarter trading update representing to Bell Potter a dream start to FY21.

The broker highlights statutory profit (NPAT) increased by 36% to $5.57m in the quarter due to strong loan book growth of 7% and tighter funding costs resulting in a 10 basis point improvement in net interest margin (NIM). 

The Bank's August outlook for FY21 targeted stable NIM. This has now been exceeded and appears to put some of the major banks’ NIM management to shame, according to the analyst.

Bell Potter increases statutory NPAT forecasts for FY21-FY24 by 4%, 6%, 7% and 6%, respectively. This is based on better top-line outcomes, ongoing cost discipline and stable asset quality.

Bell Potter retains its Buy rating with the target price increased to $5.70 from $5.50.

This report was published on November 4, 2020.

Target price is $5.70 Current Price is $5.87 Difference: minus $0.17 (current price is over target).
If ABA 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 June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 23.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.49.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 27.00 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.98.

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

BET    BETMAKERS TECHNOLOGY GROUP LTD

Gaming – Overnight Price: $0.48

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

Canaccord Genuity observes the passing of a Bill in the US state of New Jersey to define and authorise fixed odds race wagering products provides a clear regulatory pathway for Betmakers to conduct activities under its exclusive 10-year agreement with the NJ Horsemen and the operator of Monmouth Park racetrack.

The Bill will be reviewed and voted on in the General Assembly. While the regulatory process does not entirely remove the uncertainty regarding the timing of New Jersey fixed odds racing going live, the broker believes it gives the relevant stakeholders the confidence that they can press forward with arrangements in anticipation of a fixed-odds race wagering market being established in the state.

Canaccord Genuity retains its Buy recommendation with a target price of $0.62.

This report was published on November 9, 2020.

Target price is $0.62 Current Price is $0.48 Difference: $0.14
If BET meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.00 cents.

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 48.00.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.73

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

Bubs Australia confirmed a soft first quarter against the backdrop of an industry struggling with channel dislocation due to a decline in the Daigou channel.

The core infant milk formula segment grew 9% led by new products and distribution network. Wilsons considers the near-term trading conditions challenging but concedes it sees positive signs in Bubs' cross-border e-commerce (CBEC) performance.

In the long run, the broker sees the potential success of Bubs' China label strategy as key to its investment thesis (still 1-2 years away).

The Market weight rating is unchanged with a target price of $0.65.

This report was published on November 2, 2020.

Target price is $0.65 Current Price is $0.73 Difference: minus $0.08 (current price is over target).
If BUB meets the Wilsons target it will return approximately minus 11% (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 minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 66.36.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 182.50.

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

CAT    CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices – Overnight Price: $2.12

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

Catapult Group International issued a business update illustrating to Canaccord Genuity strong cash collections despite a challenging macro-economic environment.

The broker highlights an elevated cash balance likely removes perceived liquidity concerns. Management noted the ability to “take a more aggressive stance on growth” as the company passes through the critical free cash flow (FCF) breakeven milestone.

At the FY20 results, management noted a number of sales opportunities had been pushed into FY21 following the second wave of infections in key geographies.

Canaccord Genuity reduces FY21 and FY22 revenue forecast by -5% and -7%, respectively. The Buy rating and target of $2.45 are unchanged.

This report was published on November 9, 2020.

Target price is $2.45 Current Price is $2.12 Difference: $0.33
If CAT meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 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 70.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Market Sentiment: 1.0
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: $6.43

Wilsons rates ((CSX)) as Initiation of coverage with Market Weight (3) –

Wilsons initiates coverage on CleanSpace Holdings with a Market Weight rating and a target of $6.50. CleanSpace designs, manufactures and sells respiratory protection equipment for industrial and healthcare settings.

Wilsons believes the pandemic accelerated CleanSpace’s long-planned shift towards healthcare and has led to a dramatic lift in the FY21 estimated profit and operating scale.

Wilsons' FY21 outlook implies CleanSpace will double its revenue while tripling its operating income from FY20 levels.

This report was published on November 2, 2020.

Target price is $6.50 Current Price is $6.43 Difference: $0.07
If CSX meets the Wilsons target it will return approximately 1% (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 17.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.74.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.46.

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

EVO    EVOLVE EDUCATION GROUP LIMITED

Software & Services – Overnight Price: $0.14

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

Evolve Education Group has provided underlying earnings (EBITDA) guidance for the nine months to September 30 –  well ahead of Canaccord Genuity’s forecast.

Highlights for the broker included well performing Australian centres and better-than-expected occupancy in New Zealand. Management also mentioned some green shoots are evident in New Zealand, particularly around wage efficiencies.

The analyst likes the stock for the lack of gearing on the balance sheet, which should support inorganic growth. Additionally, the mooted turnaround of the New Zealand portfolio is considered to support strong organic growth.

The broker increases 2020 and 2021 earnings forecasts by 63% and 22%, respectively. The Buy rating is unchanged and the target increases to NZ$0.22 from NZ$0.17.

This report was published on November 8, 2020.

Current Price is $0.14. Target price not assessed.
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 0.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.27.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.23 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.42.

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

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $1.25

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

Healthia will be acquiring The Optical Company (TOC), an optical business that owns and operates 41 optical stores, in addition to the Australian Eyewear Distributors.

According to Canaccord Genuity, the move is strategic and will help Healthia establish a third allied health pillar to be leveraged into additional allied health industries. Healthia will pay $43m for The Optical Company with a historical FY20 operating income multiple of 7.5x.

A Buy recommendation is retained with the target price rising to $1.70 from $1.50.

This report was published on November 11, 2020.

Target price is $1.70 Current Price is $1.25 Difference: $0.45
If HLA meets the Canaccord Genuity target it will return approximately 36% (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 4.00 cents and EPS of 12.00 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 10.42.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 6.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.33.

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

IFM    INFOMEDIA LTD

Automobiles & Components – Overnight Price: $1.77

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

Infomedia's strategic contract with Ford Europe to provide the next-generation electronic parts catalogue (EPC) product in the region is worth about $14m over a period of five years.

Bell Potter concedes the contract may represent only around 3% of the total annual revenue, it still is a significant development, especially given Ford is a shareholder in the incumbent EPC provider to Ford globally.

There may be potential for Ford to move to Infomedia’s EPC product in other regions outside of just Europe, suggests the broker.

Bell Potter retains its Buy rating with the target price rising to $1.85 from $1.75.

This report was published on November 6, 2020.

Target price is $1.85 Current Price is $1.77 Difference: $0.08
If IFM 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 3.50 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.40.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 6.20 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.55.

Market Sentiment: 1.0
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: $3.26

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

The outlook for Inghams Group continues to improve, observes Goldman Sachs, with easing covid-related channel disruption.

The broker thinks the current stock price is attractive given the group's strong competitive position in the ANZ poultry markets and falling feed costs that are expected to deliver a tailwind for the company’s cost input from through the second half into FY22.

Wholesale channels improved relative to the last quarter and the retail channel remains strong, observes the broker. While the broker does not consider the strong retail channel momentum sustainable, Goldman Sachs does expect overall poultry volumes to continue to grow at 3-4%. 

Goldman Sachs retains its Buy rating with a target of $3.95.

This report was published on November 6, 2020.

Target price is $3.95 Current Price is $3.26 Difference: $0.69
If ING meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.62, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.52.

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 4.3%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 18.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.54.

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 5.3%.
Current consensus EPS estimate suggests the PER is 13.0.

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

JIN    JUMBO INTERACTIVE LIMITED

Gaming – Overnight Price: $13.57

Goldman Sachs rates ((JIN)) as Initiation of coverage with Buy (1) –

Goldman Sachs initiates coverage on Jumbo Interactive with a Buy rating alongside a target price of 14.50.

Jumbo Interactive is a leading digital lottery retailer in Australia via its exclusive online reseller agreement with Tabcorp Holdings ((TAH)) which stretches back more than 15 years.

In 2019, Jumbo Interactive launched its ‘Powered by Jumbo’ SaaS business which provides end-to-end digital solutions to lottery operators in Australia and abroad. In FY20, the company had $349m in total transaction value while delivering strong operating income margins.

The broker sees this as a capital light, high return on equity business, effectively operating as an online distribution arm within the high-barriers-to-entry lottery industry.

The broker remains constructive on the outlook and estimates more than 16% in three years compounded annual growth rate (CAGR).

This report was published on November 8, 2020.

Target price is $14.50 Current Price is $13.57 Difference: $0.93
If JIN meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 33.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.87.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 42.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.23.

Market Sentiment: 1.0
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: $2.23

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

McPherson's issued a first quarter update and announced the acquisition of Global Therapeutics from Blackmores ((BKL)) for $27m.

The acquisition is expected to deliver $20m in revenues and around $3.7m in earnings (EBIT) on an annualised basis, excluding synergies. Management believes the acquisition is likely to be accretive on both gross margins and operating margins post consolidation.

Shaw and Partners views margins as likely to rise as the company transitions Global Therapeutics’ manufacturing out of the current high-cost manufacturing arrangements.

The broker forecasts the company as likely having $60-70m of balance sheet capacity post issuance. This is considered to allow further merger and acquisition activity and could add a further 20% upside to EPS.

The Buy rating is unchanged and the target is reduced to $3.09 from $3.45.

This report was published on November 4, 2020.

Target price is $3.09 Current Price is $2.23 Difference: $0.86
If MCP meets the Shaw and Partners target it will return approximately 39% (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 9.50 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.68.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 11.80 cents and EPS of 19.60 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.38.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $2.19

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

Marley Spoon had an impressive quarter, observes Canaccord Genuity, with revenue growth 8% above the broker's forecast. Gross profit rose 154% to $32m versus the June quarter.

Post the outperformance, improved customer acquisition and higher retention, Marley Spoon has narrowed its revenue growth guidance to between 90-100% from 80-100%.

The broker still thinks this is conservative as circa 65% of the company's revenue via its exposure to the US and Europe experiences a second wave of infections.

The broker maintains the Buy (speculative) rating with a target price of $4.20.

The report was published on November 2, 2020.

Target price is $4.20 Current Price is $2.19 Difference: $2.01
If MMM meets the Canaccord Genuity target it will return approximately 92% (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 minus 4.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.45.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 200.73.

This company reports in EUR. 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

MQG    MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $139.68

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

Macquarie Group's first-half result includes a profit of $985m, higher than Bell Potter's expected $952m and higher than guidance of $947-955m. An interim dividend of 135c, higher than the broker's 130c, was declared.

Bell Potter isn't surprised as the result was largely pre-empted in a previous trading update. Also, while higher than guided, the profit was still -32% lower versus last year driven by lower fees and commissions, lower lease income and losses in aircraft leasing.

Bell Potter considers the group a longer-term "cash and growth” story, deeming it the only game in town when it comes to post-pandemic recovery and its number one pick.

The broker retains its Buy rating with the target price rising to $148 from $135.

The report was published on November 6, 2020.

Target price is $148.00 Current Price is $139.68 Difference: $8.32
If MQG meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $136.87, suggesting downside of -2.0%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 355.00 cents and EPS of 592.00 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 616.3, implying annual growth of -22.1%.
Current consensus DPS estimate is 380.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 22.7.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 525.00 cents and EPS of 802.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 780.9, implying annual growth of 26.7%.
Current consensus DPS estimate is 541.7, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.9.

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


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

Macquarie Group's first-half cash earnings were down -32% versus last year but 3% above Goldman Sachs's estimate. An interim dividend of 135c was also more than what the broker expected.

While the result was broadly along expected lines, the composition of the result was not, with a better than expected trading income, performance fees and asset realisations offset by higher credit impairments and costs.

Goldman Sachs thinks the current valuations point to a particularly strong rebound in FY22.

The stock is rated as Neutral with the target price rising to $136.81 from $131.45.

This report was published on November 8, 2020.

Target price is $136.81 Current Price is $139.68 Difference: minus $2.87 (current price is over target).
If MQG meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $136.87, suggesting downside of -2.0%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 350.00 cents and EPS of 578.00 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 616.3, implying annual growth of -22.1%.
Current consensus DPS estimate is 380.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 22.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 580.00 cents and EPS of 873.00 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 780.9, implying annual growth of 26.7%.
Current consensus DPS estimate is 541.7, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.9.

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

PCK    PAINCHEK LIMITED

Medical Equipment & Devices – Overnight Price: $0.09

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

PainChek's September quarter result reflected the impact of covid-19 on its business. Funded dementia beds increased by circa 9.8% on a quarterly basis to 41,137. This is still below the 50k threshold PainChek needs to recognise the $1.25m received in the last quarter as revenue.

Canaccord Genuity notes both enrollments and on-boarding slowed considerably in the quarter, reflecting covid-19 restrictions. With restrictions easing, the broker expects enrollment and on-boarding to re-accelerate.

New business in the disability segments commenced which the broker notes to be a new market opportunity. The Buy rating and target price of $0.49 remain unchanged.

This report was published on November 2, 2020.

Target price is $0.49 Current Price is $0.09 Difference: $0.4
If PCK meets the Canaccord Genuity target it will return approximately 444% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 90.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.00.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.14

Wilsons rates ((PLT)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage of Plenti Group Limited, a leading technology focused non-bank lender, with an Overweight rating and target price of $1.50.

The group continues to achieve attractive loan origination growth in the consumer automotive ($12.1b) and personal ($6.7b) loan segments, highlights the broker. Along the way, the group has improved its average borrower credit score and reduced risk.

In the analyst’s opinion, proof of concept has come with the introduction of a warehouse facility from an institutional bank which has materially reduced funding costs. It’s also considered to position the group well for profitability in the first half of 2023.

Wilsons is particularly impressed with the 960 basis point year-on-year net loss after tax (NLAT) margin expansion in FY20, despite a 34.2% increase to the cost base (fixed and variable).

The group will report first half results on November18, 2020.

This report was published on November 9, 2020.

Target price is $1.50 Current Price is $1.14 Difference: $0.36
If PLT meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.91.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 142.50.

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: $4.61

Moelis rates ((PWH)) as Downgrade to Hold from Buy (3) –

PWR Holdings' AGM commentary provided a first-half outlook stating the company is optimistic about its operating income being broadly in line with the last period.

In contrast, Moelis anticipated out of cycle growth following an expected 17 event season versus 12 events in the last year.

Further, company commentary suggests limited visibility on near-term earnings, leading the broker to revise its full-year estimates to reflect uncertainty from covid-19 with operating income in FY21 trimmed down to $27m from $31.9m.

Moelis downgrades its rating to Hold from Buy rating, with the target falling to $5.03 from $5.07.

This report was published on November 2, 2020.

Target price is $5.03 Current Price is $4.61 Difference: $0.42
If PWH meets the Moelis target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.60 cents and EPS of 15.10 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 30.53.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.60 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.01.

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

RCL    READCLOUD LIMITED

Education & Tuition – Overnight Price: $0.55

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

Canaccord Genuity notes the September quarter typically represents a seasonal low in the company's cash flow cycle. Sure enough, cash receipts during this September quarter were $0.2m while cash burn was -$0.9m.

The period from July-October is also low-key before the 2021 school year commencing in November.

ReadCloud has secured 16 direct secondary school signings which the broker estimates could add circa 10k users at full penetration. The company has also signed 14 schools to adopt its VET platform, which could add circa 2.4k VET users, adds the broker.

Via a combination of new schools and increasing penetration from existing school customers, the broker expects ReadCloud to add circa 36k customers in FY21. 

The Buy rating is maintained with the target price rising to $0.72 from $0.68.

The report was published on November 2, 2020.

Target price is $0.72 Current Price is $0.55 Difference: $0.17
If RCL meets the Canaccord Genuity target it will return approximately 31% (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 55.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.50.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $9.73

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

Suncorp Group's latest update on catastrophe costs after the recent storms through Queensland and NSW estimates costs from the large event at -$277-337m for the first half.

The bankinsurer has increased its FY21 allowance to $475m for the first half. The broker considers the circa -$200m event cost flagged by the group for the recent hail storms surprisingly high.

Goldman Sachs believes it fairly common for Suncorp Group to exceed its allowance in the first half and make up for it in the second half.

Buy rating is retained with a target price of $10.86.

This report was published on November 6, 2020.

Target price is $10.86 Current Price is $9.73 Difference: $1.13
If SUN meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $10.64, suggesting upside of 9.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Current consensus EPS estimate is 64.7, implying annual growth of -10.1%.
Current consensus DPS estimate is 45.2, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY22:

Current consensus EPS estimate is 69.4, implying annual growth of 7.3%.
Current consensus DPS estimate is 53.8, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 14.0.

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

VCX    VICINITY CENTRES

REITs – Overnight Price: $1.67

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

No FY21 earnings guidance was provided in Vicinity Centres' first-quarter update on account of the uncertainty due to covid-19. The REIT did state it intends to pay a distribution for the first half assuming no further deterioration in market conditions.

Goldman Sachs expected the September quarter to be difficult given Vicinity's exposure to Victoria and CBD assets, but with no community transmission in the states, the quarterly sales growth was strong.

Even in the midst of difficult trading conditions, the broker highlights Vicinity's strong balance sheet provides it with the capacity to meet near-term obligations and avoid forced asset divestments. 

Goldman Sachs retains its Buy rating with a target price of $1.74.

This report was published on November 6, 2020.

Target price is $1.74 Current Price is $1.67 Difference: $0.07
If VCX meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $1.48, suggesting downside of -11.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of N/A.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of 28.1%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.6.

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


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

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

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

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CHARTS

ABA BET BKL BUB CAT CSX EVO HLA IFM ING JIN MCP MMM MQG PCK PLT PWH RCL SUN TAH VCX

For more info SHARE ANALYSIS: ABA - AUSWIDE BANK LIMITED

For more info SHARE ANALYSIS: BET - BETMAKERS TECHNOLOGY GROUP LIMITED

For more info SHARE ANALYSIS: BKL - BLACKMORES LIMITED

For more info SHARE ANALYSIS: BUB - BUBS AUSTRALIA LIMITED

For more info SHARE ANALYSIS: CAT - CATAPULT GROUP INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: CSX - CLEANSPACE HOLDINGS LIMITED

For more info SHARE ANALYSIS: EVO - EVOLVE EDUCATION GROUP LIMITED

For more info SHARE ANALYSIS: HLA - HEALTHIA LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: ING - INGHAMS GROUP LIMITED

For more info SHARE ANALYSIS: JIN - JUMBO INTERACTIVE LIMITED

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

For more info SHARE ANALYSIS: MMM - MARLEY SPOON AG

For more info SHARE ANALYSIS: MQG - MACQUARIE GROUP LIMITED

For more info SHARE ANALYSIS: PCK - PAINCHEK LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: PWH - PWR HOLDINGS LIMITED

For more info SHARE ANALYSIS: RCL - READCLOUD LIMITED

For more info SHARE ANALYSIS: SUN - SUNCORP GROUP LIMITED

For more info SHARE ANALYSIS: TAH - TABCORP HOLDINGS LIMITED

For more info SHARE ANALYSIS: VCX - VICINITY CENTRES