Australian Broker Call *Extra* Edition – Dec 04, 2020

Daily Market Reports | Dec 04 2020

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

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

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)

A2M ABA ABB ADA AMA APT BET BRG CSR CXL DSK EHL GNC GUD IGL IPD LOV MAQ NEA OPY PLT PNV RDY RMC SHL TLS UMG(2) UWL

A2M THE A2 MILK COMPANY LIMITED

Dairy - Overnight Price: $13.06

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

The key takeaway from a2 Milk's latest update was the retention of revenue guidance at NZ$1.8-$1.9bn and operating income margin guidance at 31%. The company did highlight the forecast is uncertainwith the turnaround expected in the second half dependent on a number of assumptions.

There were also comments around restructuring the corporate daigou incentive program which in Bell Potter's view could suggest a redistribution of marginback to channel partners to stimulate demand.

Th broker leaves its forecasts intact. Headwinds for the daigou channel look material to the broker and even though a2 Milk has been stocking the China offline channel at an unprecedented rate, the broker does not think this would be enough.

The Sell rating and $12.70 target are unchanged.

This report was published on November 19, 2020.

Target price is $12.70 Current Price is $13.06 Difference: minus $0.36 (current price is over target).
If A2M meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.66, suggesting upside of 16.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 48.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.0, 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 26.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 54.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.9, implying annual growth of 17.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 22.4.

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

ABA AUSWIDE BANK LTD

Banks - Overnight Price: $6.10

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

Auswide Bank's latest update shows net profit over the four months to 31 October up 34% to $7.4m with $25.2m as net interest revenue and a loan book worth $3.4bn (up 8%).

Bell Potter notes the strong momentumwas led by a stable net interest margin, growth in loans and deposits ahead of system growth, and ongoing cost discipline.

The broker considers the update a "dream start"to FY21 that should comfortably ensure the bank's track record in generating profitable growth remains unbroken. The bank's net interest margin is already ahead of the FY21 target of 1.97%.

Bell Potter retains its Buy rating with the target price increased to $6.50 from $5.70.

This report was published on November 18,2020.

Target price is $6.50 Current Price is $6.10 Difference: $0.4
If ABA meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 24.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.20.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 28.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.51.

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

ABB AUSSIE BROADBAND LIMITED

Telecommunication - Overnight Price: $2.03

Shaw and Partners rates ((ABB)) as Buy (1) -

According to the Australian Competition and Consumer Commission (ACCC), Aussie Broadband's market share was 3.94% in the first quarter, up 46% versus last year. Total connections (residential + business) for the group were 308.7k, a year on year growth rate of 87%.

Shaw and Partners points out the company represents exposure to the fastest organically growing telco on the Australian stock exchange.

Noting Aussie Broadband has multiple levers for growth along with material gross margin upside, Shaw reiterates its Buy recommendation with a target price of $2.44.

This report was published on November 13, 2020.

Target price is $2.44 Current Price is $2.03 Difference: $0.41
If ABB meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1015.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.42.

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

ADA ADACEL TECHNOLOGIES LTD

Software & Services - Overnight Price: $0.82

Bell Potter rates ((ADA)) as Buy (1) -

Adacel Technologieshas upgraded its FY21profit before tax by 3% to $6.5-$7m. The company's backlog and high probability contracts represent over 80% of forecast revenues for the year.

With the excess capital now in the business, the company has decidedto pay out between50-60% of profit before tax in dividends or return of capital or both, notes Bell Potter. The company also plans to restart its share buyback program.

The broker's FY21 earnings forecast has been upgraded by 4%.

Buy rating maintained. Target price is increased to $1.05 from $0.95.

This report was published on November 18,2020.

Target price is $1.05 Current Price is $0.82 Difference: $0.23
If ADA meets the Bell Potter target it will return approximately 28% (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 4.50 cents and EPS of 6.50 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.62.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 6.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.39.

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

AMA AMA GROUP LIMITED

Automobiles & Components - Overnight Price: $0.76

Canaccord Genuity rates ((AMA)) as Buy (1) -

AMA has divested its Automotive Components & Accessories Division (ACAD) for circa$70m to GUD Holdings ((GUD)). Theproceeds will be used to reduce the group's current debt levels and helprecommence industry consolidation within panel repair operations in FY21.

At itsAGM, the company disclosed the business is currently operating at/near pre-covid levels across states and is expected to move towards pre-covid levels by 2020-end.

On the back of a number of moving parts including the ACAD divestment, increased acquisition activity and synergies being realised in FY22, Canaccord Genuityadjusts its FY22 earnings forecasts upwards by circa 7%.

Buy rating is retained with the target rising to $0.95 from $0.85.

This report was published on November 20, 2020.

Target price is $0.95 Current Price is $0.76 Difference: $0.19
If AMA meets the Canaccord Genuity target it will return approximately 25% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

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

APT AFTERPAY LIMITED

Business & Consumer Credit - Overnight Price: $96.20

Bell Potter rates ((APT)) as Buy (1) -

Bell Potter observes Afterpay delivered yet another upbeat commentary at its AGM. Growth has accelerated goinginto Christmas season and the broker looks forward to what it deems will be Afterpay's most transformational period.

The next six months will likely see Afterpayoperating in the EU, launch banking products and also be ready to launchin Asia. This will catapultAfterpay from a single product multi-market provider to a truly global fintech and retail-tech innovator..

The Buy rating is unchanged and the target price is increased to $140 from $137.

This report was published on November 18, 2020.

Target price is $140.00 Current Price is $96.20 Difference: $43.8
If APT meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $94.09, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 562.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 753.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 33.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 283.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.6, implying annual growth of 266.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 205.2.

Market Sentiment: 0.2
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: $0.71

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

BetmakersTechnology Group has received approval from the New Jersey Racing Commission (NJRC) to run a fixed odds pilot program from January 2021.

While not a game changer, Canaccord Genuity believes this step will encouragemore wagering operators and racetracks to join Betmakers Global Racing Network,facilitatinga rapid ramp-up of wagering volumes and revenues eventually.

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

This report was published on November 19, 2020.

Target price is $0.62 Current Price is $0.71 Difference: minus $0.09 (current price is over target).
If BET meets the Canaccord Genuity target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for 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 71.00.

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


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