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

Daily Market Reports | Nov 18 2020

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

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


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