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Australian Broker Call *Extra* Edition – Dec 01, 2020

Daily Market Reports | Dec 01 2020

This story features APN CONVENIENCE RETAIL REIT, and other companies. For more info SHARE ANALYSIS: AQR

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)

AQR   ARX (2)   AVH   BRG   CPU   CQE   CSX   EGH   EHL   GNC (3)   IFM   IMR   LBL   NEC   PAL   SHJ   SHV   STG   UWL   VMT   XRO  

AQR    APN CONVENIENCE RETAIL REIT

REITs – Overnight Price: $3.69

Moelis rates ((AQR)) as Upgrade to Buy from Hold (1) –

APN Convenience Retail REIT reaffirmed its funds from operations and dividend guidance. The addition of two accretive acquisitions since the REIT's August results makes Moelis expect the outcome will be more towards the top-end of the REIT's FFO guidance.

The broker also believes a handful of similar acquisitions in the near-term could result in an upward revision to this range.

Moelis has upgraded its rating to Buy from Hold with the target price rising slightly to $4.07 from $4.06.

This report was published on November 13, 2020.

Target price is $4.07 Current Price is $3.69 Difference: $0.38
If AQR meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 22.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 5.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.77.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 22.60 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 6.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.11.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.26

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

Bell Potter maintains its Buy rating with a valuation of $2.

Aroa Biosurgery announced positive results from a study assessing Myriad’s clinical utility and safety. Also, Tela Bio announced a positive third-quarter result with revenue up 51% versus the second quarter.

Bell Potter believes these two pieces of positive newsflow would drive interest in the stock.

A strong sales strategy of the OviTex product line by Tela Bio continues to impress the broker. In the near-term, Bell Potter expects upward pressure on the stock.

This report was published on November 13, 2020.

Target price is $2.00 Current Price is $1.26 Difference: $0.74
If ARX meets the Bell Potter target it will return approximately 59% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 78.75.

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


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

Wilsons suggests Aroa Biosurgery’s marketing partner for OviTex -TELA Bio – made good progress in the third quarter and signed up at least 25 new health trust-affiliated hospitals. Due to this, OviTex sales were 17% ahead of Wilsons' model.

The broker is pleasantly surprised at TELA’s success in hernia repair and expects TELA’s ordering patterns to rebalance towards higher ASP devices in the second half. 

Overweight rating is maintained with a target price of $2.

This report was published on November 13, 2020.

Target price is $2.00 Current Price is $1.26 Difference: $0.74
If ARX meets the Wilsons target it will return approximately 59% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.06.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.00.

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

AVH    AVITA THERAPEUTICS, INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.81

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

The first quarter results released by Avita Therapeutics showed revenue from product sales were 23% ahead of Bell Potter’s forecast.

The earnings (EBIT) loss was consistent with the broker’s forecast.

It’s apparent to the analyst more hospitals and a greater spread of surgeons are adopting the Recell procedure.

The broker highlights a key pending decision on the transitional pass through payment from the US Centers for Medicare & Medicaid Services (CMS). 

This would allow hospitals to obtain reimbursement for treatment of patients in outpatient clinics. The potential approval is due in mid-December.

Bell Potter increases the FY21 EPS forecast by 25%, with similar increases for FY22 and FY23.

The Buy rating and $15 target are unchanged.

This report was published on November 12, 2020.

Target price is $15.00 Current Price is $5.81 Difference: $9.19
If AVH meets the Bell Potter target it will return approximately 158% (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 182.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.18.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 124.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.66.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $24.08

Wilsons rates ((BRG)) as Underweight (5) –

Breville Group updated its FY21 operating income guidance to between $128-$132m, in line with consensus estimates. While region-specific updates were not provided, Wilsons expects challenges from North America and Europe with Australia and New Zealand doing well.

The group's expansion in Europe is expected to continue in the second half with the addition of Italy and Portugal. Also, the broker thinks the group's proprietary internet of things (IoT) platform may offer market share growth upside in the medium-term.

Rating is maintained at Underweight with the target price rising to $18 from $16.90.

This report was published on November 13, 2020.

Target price is $18.00 Current Price is $24.08 Difference: minus $6.08 (current price is over target).
If BRG meets the Wilsons target it will return approximately minus 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.63, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 42.50 cents and EPS of 65.40 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.9, implying annual growth of 26.5%.
Current consensus DPS estimate is 43.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 37.7.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 42.50 cents and EPS of 70.70 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.1, implying annual growth of 12.8%.
Current consensus DPS estimate is 49.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 33.4.

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $14.28

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

Computershare provided a trading update indicating a better start to the year than expected, assesses Goldman Sachs.

While acknowledging the update only showed a mild improvement, it should be received well in the broker's view.

Management reaffirmed FY21 guidance.

The Buy rating is unchanged and the target price is $14.42

This report was published on November 11, 2020. 

Target price is $14.42 Current Price is $14.28 Difference: $0.14
If CPU meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $13.43, suggesting downside of -5.9%(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 73.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.0, implying annual growth of N/A.
Current consensus DPS estimate is 57.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 83.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.8, implying annual growth of 9.9%.
Current consensus DPS estimate is 52.9, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 18.8.

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

CQE    CHARTER HALL SOCIAL INFRASTRUCTURE REIT

Childcare – Overnight Price: $3.00

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

Charter Hall Social Infrastructure REIT announced the off-market acquisition of an $80m asset leased to the South Australian Government Emergency Services Command Centre.

Upon development completion, the asset is expected to be leased to the South Australian Government (85%) and occupied by four government emergency services agencies.

The acquisition solidifies the analyst's view the REIT is positioned for a solid growth outlook. This is because the balance sheet
is considered strong with ample headroom and liquidity to pursue investment opportunities,

The broker assumes an equity raise in FY22, which will leave gearing around the mid-point of the targeted 30-40% range.

The Buy rating is unchanged and the target increased to $3.35 from $3.23.

This report was published on November 11, 2020.

Target price is $3.35 Current Price is $3.00 Difference: $0.35
If CQE meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

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: $5.61

Bell Potter rates ((CSX)) as Upgrade to Buy from Hold (1) –

Bell Potter upgrades CleanSpace Holdings to a Buy rating from Hold, due to current weakness in the share price attributable to positive vaccine news. The broker believes the weakness fails to incorporate inherent, durable sales tailwinds in FY21 and FY22. 

Bell Potter hasn't incorporated changes to forecasts based on the uncertainty on vaccine timing, but remains confident in the near-term revenue growth opportunity.

Subsequently, CleanSpace \has upgraded its first-half sales and operating income by circa 10%-30% with management anticipating revenue of $34m-$36m, up from $31.8m. This is led by volume growth expected from a resurgence in covid cases in Europe and the US.

The broker expects revenue to be slightly higher than the upgraded guidance. More clarity on the geographic split suggests sales are split evenly between North America, Europe, and Asia Pacific. 

Target unchanged at $6.75.

These reports were published on November 11 and 13, 2020.

Target price is $6.75 Current Price is $5.61 Difference: $1.14
If CSX 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 24.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.62.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 20.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.64.

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

EGH    EUREKA GROUP HOLDINGS LIMITED

Aged Care & Seniors – Overnight Price: $0.44

Taylor Collison rates ((EGH)) as Speculative Buy (2) –

With 90% of rental income backed by government funding, Taylor Collison finds Eureka Group's steady growth profile attractive.

Adding up the group's recent acquisitions, cost reductions and the strong performance from Tasmanian assets leads the broker to forecast an underlying earnings growth forecast of 33% for FY21.

Given the group's growth profile and defensive nature of earnings, Taylor Collison considers Eureka Group is undervalued.

Outperform rating is retained. This report was published on November 6, 2020.

Current Price is $0.44. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 1.20 cents and EPS of 3.20 cents.
At the last closing share price the estimated dividend yield is 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 1.30 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.58.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $1.04

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

Emeco Holdings has guided to an operating income of $115-$118m in the first half, circa 6%-8.8% above Bell Potter's estimated $108.5m.

Bell Potter expects the first half of FY21 to be the low point for Emeco's earnings and expects the business will benefit from a vaccine-led recovery in global industrial production over the next 12 months.

Considering Emeco's improved balance sheet and undervalued commodity exposure, Bell Potter retains its Buy rating with the target price rising to $1.58 from $1.40.

 This report was published on November 13, 2020.

Target price is $1.58 Current Price is $1.04 Difference: $0.54
If EHL meets the Bell Potter target it will return approximately 52% (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 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.20.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.17.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $4.37

Bell Potter rates ((GNC)) as Upgrade to Buy from Hold (1) –

GrainCorp's FY20 net loss of -$15.9m was less than Bell Potter's expectation of -$20.7m. Revenue was up 5% versus last year. 

Bell Potter has materially upgraded its net profit forecasts to reflect a stronger crop outlook as well as a stronger expected return in the oilseed processing assets. Overall, the net profit is expected to rise by 66% in FY21. 

The rating is upgraded to Buy from Hold with the target price unchanged at $4.85.

This report was published on November 13, 2020.

Target price is $4.85 Current Price is $4.37 Difference: $0.48
If GNC meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.00, suggesting upside of 14.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 18.00 cents and EPS of 32.30 cents.
At the last closing share price the estimated dividend yield is 4.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of -83.9%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 8.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of 9.9%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.4.

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


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

GrainCorp’s FY20 result came in below Goldman Sachs forecasts, driven by softer than expected agribusiness earnings.

The company’s decision to pay a 7 cent final dividend was a positive surprise to the broker.

Management did not provide formal guidance other than highlighting expectations for a very strong winter crop. They also cited ABARES similarly positive expectations for the following summer crop.

The Neutral rating is unchanged and the target price is $4.66.

This report was published on November 12, 2020.

Target price is $4.66 Current Price is $4.37 Difference: $0.29
If GNC meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $5.00, suggesting upside of 14.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of -83.9%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of 9.9%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.4.

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


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

GrainCorp's FY20 result was lower than expected with the operating income -17% below Wilsons' forecast. The current winter crop, core to the company's positive outlook, seems to be on track according to management. 

However, Wilsons assesses there to be some uncertainty over grain receivals market share and the underlying margins, limiting earnings visibility. At this stage, the broker assumes FY21 margins will be in line with FY17.

Even so, the share price is considered marginally cheap by the broker and Market Weight rating is retained. The target price is $4.17.

This report was published on November 13, 2020.

Target price is $4.17 Current Price is $4.37 Difference: minus $0.2 (current price is over target).
If GNC meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.00, suggesting upside of 14.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 8.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of -83.9%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 9.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of 9.9%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.4.

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

IFM    INFOMEDIA LTD

Automobiles & Components – Overnight Price: $1.91

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

Bell Potter conveys key highlights from Infomedia’s investor day. This includes the expectation that stronger revenue in the second half FY21 should follow a weaker first half. This is a result of recent wins in Europe, Asia Pacific and the Americas.

Additionally, business conditions have picked up since August, and there have been recent signings of partnership agreements with peer automotive software companies in the Americas.

The broker makes no changes to forecasts and the Hold rating and $1.85 target are unchanged.

 This report was published on November 12, 2020.

Target price is $1.85 Current Price is $1.91 Difference: minus $0.06 (current price is over target).
If IFM 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 3.50 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.20.

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 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.81.

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

IMR    IMRICOR MEDICAL SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $2.45

Moelis rates ((IMR)) as Buy (1) –

Imricor Medical Systems announced a $30m capital raise and third quarter cashflow result.

Moelis highlights that since the first half result in August, the company has signed on another five hospitals across Germany, Netherlands and France, bringing the total number of customers to eight.

The company is currently in advanced discussions with 12 additional sites with at least six expected to sign up before the end of the year. 

While covid-19 has led to short term disruptions, the broker believes the long-term opportunity remains unchanged, with a very large addressable market available.

The Buy rating is unchanged and the target price moves to $3.19 as Moelis believes the extra capital will accelerate expansion into new indications.

This report was published on November 16, 2020.

Target price is $3.19 Current Price is $2.45 Difference: $0.74
If IMR meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 10.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.48.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.15.

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

LBL    LASERBOND LIMITED

Mining Sector Contracting – Overnight Price: $0.71

CCZ Equities rates ((LBL)) as Initiation of coverage with Buy (1) –

CCZ Equities initiates coverage on Laserbond with a Buy rating and a target price of $1.08.

Laserbond reduces the maintenance costs for critical machinery via a process called laser cladding which enables the machinery to be protected from harsh conditions and improves its wear life.

With abrasion wear estimated to cost up to 4% of Australia's GDP, amounting to circa $30bn per annum, CCZ Equities believes there is significant potential in the industry.

Also, Laserbond is working in an industry with high barriers to entry, suggests the broker, and has strong growth prospects backed by the company’s intellectual property that has been built over two decades of experience.

The broker expects considerable profit growth in FY21. 

Target price is $1.08 Current Price is $0.71 Difference: $0.37
If LBL meets the CCZ Equities target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 1.33 cents and EPS of 4.50 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.78.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.77 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.03.

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

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $2.30

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

Nine Entertainment guided to first-half operating income of $326m at its AGM, well ahead of Goldman Sachs's first-half estimates. The figure represents 72% of the broker's current operating income estimates for the year.

The broker believes Nine Entertainment is well-positioned for growth in the second half with operating income expected to grow by 53% to $221m led by a strong performance from Domain and as Stan continues to build its subscriber base.

The company expects FTA costs to decline by -4% year on year in FY21. BVOD revenue growth remains strong at 25%, largely in-line with the broker's forecasts.

The Buy rating is unchanged and the target price is $2.25.

This report was published on November 12, 2020.

Target price is $2.25 Current Price is $2.30 Difference: minus $0.05 (current price is over target).
If NEC 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 $2.71, suggesting upside of 17.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.0, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.1, implying annual growth of 10.0%.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 19.0.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PAL    PALLA PHARMA LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.80

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

Palla Pharma is an opiate manufacturer, contracting farmers in Australia and Eastern Europe to grow opium poppies for manufacturing narcotic raw material and opiate-based API globally.

The company recently completed trials necessary to support its application to the UK medicines regulator to manufacture and sell Codeine Phosphate/ Paracetamol tablets. If nothing unfavourable is found, Palla Pharma believes this will lead to a considerable strong revenue uplift in FY21.

The UK market makes for an attractive investment, assesses the broker, with revenue for every kilo of Codeine Phosphate sold in the tablet form being about 2.4 times higher than that sold as an active pharmaceutical ingredient.  

The company expects to be operating income positive from the first quarter in FY21. The broker believes the company's loss of low margin non-opiate tableting revenue in FY20 is a necessary step towards Palla Pharma becoming a profitable business.

The broker retains its Buy rating with the target price dropping to $1.24 from $1.37.

The report was published on January 31, 2020.

Target price is $1.24 Current Price is $0.80 Difference: $0.44
If PAL meets the CCZ Equities target it will return approximately 55% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.89.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 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 11.59.

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

SHJ    SHINE JUSTICE LTD

Legal – Overnight Price: $0.90

Moelis rates ((SHJ)) as Buy (1) –

After AGM commentary was in-line with the FY20 result, Moelis leaves estimates unchanged and retains a Buy rating on Shine Justice with a target price of $1.19.

The broker considers the company's class action pipeline is strong with 16 current and 21 in the pipeline.

Following a successful judgement in FY21 (Mesh class action) for one of Australia's largest product liability cases, the broker expects recovery of costs. Also, the company believes a strong pipeline of member claims is expected to follow from this for a number of years.

Guidance was reaffirmed for FY21.

This report was published on November 16, 2020.

Target price is $1.19 Current Price is $0.90 Difference: $0.29
If SHJ meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.80 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.43.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.00.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $5.89

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

Bell Potter adjusts forecasts to reflect Select Harvests' recent acquisition of the Piangil orchard and FY20 earnings (EBIT) guidance.

The acquisition cost of -$155m (inclusive of year one capex) is partially funded by a $120m capital raising. The acquisition is expected to be mid to high single digit EPS accretive on a FY22 basis, assuming an almond price of $6.50-7.00/kg.

Bell Potter adjusts forecasts to include updated FY20 operating guidance, the Piangil acquisition and a slightly lower almond price assumption. The net impact is forecast EPS downgrades of -13% in FY20, -21% in FY21, and -16% in FY22.

The Hold rating is unchanged.

The target price is increased to $6.25 from $6.10 as earnings downgrades are mitigated by an extension in orchard life span (from 27 years to 33 years), and a lower discount rate used by the analyst.

This report was published on November 12, 2020.

Target price is $6.25 Current Price is $5.89 Difference: $0.36
If SHV meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 17.00 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.57.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 21.00 cents and EPS of 34.30 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.17.

Market Sentiment: 1.0
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: $1.49

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

Straker Translations has announced a strategic partnership with IBM which will see the company provide translation capabilities for IBM Cloud services, IBM Adaptive Translation services and IBM Global Media Localisation.

The initial term of the agreement is two years with an option for an additional two years. The agreement expands the company's current relationship with IBM from one language (Spanish) to 55 languages. 

The agreement relies on the integration of the company's translation platform into IBM’s technology platforms.

The broker views this as overwhelmingly positive because it validates the application of the technology and AI to the translation process. It's also considered to present a material step-change in the company’s organic growth profile.

Management anticipates an around 30% increase to the cost base to handle the expanded workflow.

The analyst expects this will generate at least NZ$15m revenue per annum and expects a NZ$2.5m contribution in the fourth quarter FY21, ramping up to NZ$12m in FY22, before reaching a full run-rate of NZ$15m in FY23.

The Buy rating is unchanged and the target increases to $2.10 from $1.45.

This report was published on November 12, 2020.

Target price is $2.10 Current Price is $1.49 Difference: $0.61
If STG meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).
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 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.38.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.11.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $1.56

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

Uniti Group looks to have finally prevailed in the pursuit of OptiComm ((OPC)), subject to approval by the Federal Court of Australia.

Canaccord Genuity believes the bigger picture is the creation of a credible, scaled competitor for NBN in the new residential category.

The company has announced $10m of annualised cost savings from the transaction, and the broker estimates this will be fully realised in FY23.

The analyst increases EPS forecasts for FY21 and FY22 by 9% and 11%, respectively.

The Buy rating is unchanged and the target is decreased to $2.10 from $2.20.

This report was published on November 12, 2020.

Target price is $2.10 Current Price is $1.56 Difference: $0.54
If UWL meets the Canaccord Genuity target it will return approximately 35% (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 7.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.75.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 9.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.14.

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

VMT    VMOTO LIMITED

Automobiles & Components – Overnight Price: $0.43

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

Vmoto's chairman Phillip Campbell will step down which according to CCZ Equities' signals the company is potentially looking to enter a new phase of growth. The broker remains very optimistic around future prospects.

In addition, Vmoto's third-quarter achieved record sales, leading CCZ Equities to update its full-year financial forecasts to reflect this.

With sales momentum expected to continue through FY21, the broker retains its Buy recommendation with the target price rising to $0.72 from $0.70.

This report was published on November 6, 2020.

Target price is $0.72 Current Price is $0.43 Difference: $0.29
If VMT meets the CCZ Equities target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.50.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.19.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $132.50

Wilsons rates ((XRO)) as Downgrade to Market Weight from Overweight (3) –

Xero posted a subscriber growth of 19%, 2% above Wilsons' forecast with operating income growing at 34% to $142m, materially ahead of the broker's forecast. Wilsons considers the result solid especially given the volatility of the period from March to September.

Some of the factors the result highlights, suggests Wilsons, is the non-discretionary nature of Xero's offering and the operating leverage of the business. Going ahead, the broker expects operating income forecast to rise in FY21 but fall in FY22-FY23.

The broker downgrades its rating to Market Weight from Overweight with the target price rising to $115.91 from 88.09.

This report was published on November 13, 2020.

Target price is $115.91 Current Price is $132.50 Difference: minus $16.59 (current price is over target).
If XRO meets the Wilsons target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $104.16, suggesting downside of -21.4%(ex-dividends)
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 63.59 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 208.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.1, 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 281.3.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 65.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 200.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.4, implying annual growth of 19.7%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 234.9.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
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

AQR ARX AVH BRG CPU CQE CSX EGH EHL GNC IFM IMR LBL NEC PAL SHJ SHV STG UWL VMT XRO

For more info SHARE ANALYSIS: AQR - APN CONVENIENCE RETAIL REIT

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: AVH - AVITA MEDICAL INC

For more info SHARE ANALYSIS: BRG - BREVILLE GROUP LIMITED

For more info SHARE ANALYSIS: CPU - COMPUTERSHARE LIMITED

For more info SHARE ANALYSIS: CQE - CHARTER HALL SOCIAL INFRASTRUCTURE REIT

For more info SHARE ANALYSIS: CSX - CLEANSPACE HOLDINGS LIMITED

For more info SHARE ANALYSIS: EGH - EUREKA GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: EHL - EMECO HOLDINGS LIMITED

For more info SHARE ANALYSIS: GNC - GRAINCORP LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: IMR - IMRICOR MEDICAL SYSTEMS, INC

For more info SHARE ANALYSIS: LBL - LASERBOND LIMITED

For more info SHARE ANALYSIS: NEC - NINE ENTERTAINMENT CO. HOLDINGS LIMITED

For more info SHARE ANALYSIS: PAL - PALLA PHARMA LIMITED

For more info SHARE ANALYSIS: SHJ - SHINE JUSTICE LIMITED

For more info SHARE ANALYSIS: SHV - SELECT HARVESTS LIMITED

For more info SHARE ANALYSIS: STG - STRAKER TRANSLATIONS LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: VMT - VMOTO LIMITED

For more info SHARE ANALYSIS: XRO - XERO LIMITED