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

Daily Market Reports | Dec 04 2020

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

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 uncertain with 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 margin back 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 momentum was 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 Technologies has upgraded its FY21 profit 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 decided to pay out between 50-60% 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)). The proceeds will be used to reduce the group's current debt levels and help recommence industry consolidation within panel repair operations in FY21.

At its AGM, 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 Genuity adjusts 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 going into 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 Afterpay operating in the EU, launch banking products and also be ready to launch in Asia. This will catapult Afterpay 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) –

Betmakers Technology 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 encourage more wagering operators and racetracks to join Betmakers’ Global Racing Network, facilitating a 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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $24.64

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

Breville Group's management stated in its latest update that the group continues to experience healthy demand for its products across geographies.

Provided there is no material change in market conditions, the company expects FY21 operating income to be consistent with the current consensus forecast range of $128-$132m. Goldman Sachs sits right in the middle of this range at $130.1m.

Since Breville has a clear, scalable strategy in multiple geographies along with a long runway for growth, the broker is optimistic about the outlook and retains its Buy rating with a target price of $31.

The report was published on November 12, 2020.

Target price is $31.00 Current Price is $24.64 Difference: $6.36
If BRG meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $27.80, suggesting upside of 12.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 47.00 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.9, implying annual growth of 28.5%.
Current consensus DPS estimate is 44.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 38.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 58.00 cents and EPS of 83.00 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.6, implying annual growth of 13.4%.
Current consensus DPS estimate is 50.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 33.6.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CSR    CSR LIMITED

Building Products & Services – Overnight Price: $4.94

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

CSR's Australian strategy day focused mostly on the core building products offering with no additional outlook guidance.

Management identified customer-focused solutions and supply chain initiatives as the next opportunities although refrained from providing any quantitative guidance.

Goldman Sachs highlights that while residential housing forms the majority of group revenues at circa 72%, more growth is likely to come from non-residential markets.

Since there is no change in the overall strategy, Goldman Sachs sticks with its Neutral rating with the target price unchanged at $4.64.

This report was published on November 12, 2020.

Target price is $4.64 Current Price is $4.94 Difference: minus $0.3 (current price is over target).
If CSR meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.13, suggesting upside of 3.3%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 20.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 4.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.3, implying annual growth of 19.3%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of 0.3%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.3.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $1.02

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

For the first 4 months to October, Calix's sales revenue increased by 333% to $5.8m, in line with Bell Potter's forecast. Most of the uplift was due to the inclusion of the IER acquisition which grew by 6% versus the pre-acquisition period.

Gross margin growth was higher than expected at 30%.

With Calix's second manufacturing plant upgraded in the US and two more upgrades set for FY21, sales growth and margin expansion are expected to continue.

A Speculative Buy rating is reiterated with the target price increased to $1.31 from $1.15.

This report was published on November 19, 2020.

Target price is $1.31 Current Price is $1.02 Difference: $0.29
If CXL 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 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 56.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.33.

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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $1.70

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

Shaw and Partners initiates coverage on Dusk Group with a Buy recommendation and a target price of $2.25.

Dusk is a leader in the Australian home fragrance market with a market share of circa 22%. Sales are expected to increase by 5.8% in FY21. The company's track record of revenue and earnings growth has the broker very impressed. 

Furthermore, Shaw finds Dusk to be performing in a very attractive and large, albeit fragmented, market. The fragmented nature of the market will aid the company to garner more market share and to pursue and drive scale, suggests the broker.

Target price is $2.25 Current Price is $1.70 Difference: $0.55
If DSK meets the Shaw and Partners target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 15.00 cents and EPS of 22.60 cents.
At the last closing share price the estimated dividend yield is 8.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.52.

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: $1.10

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

Emeco Holdings' management provided an initial outlook for the first half, pointing to signs of stabilization in coal. The company's operating income guidance of $115-118m is close to Goldman Sachs's estimated $119m.

Goldman considers Emeco's valuation discount as an over-capitalization of negative coal sentiment, a view further bolstered when looking at the company’s improved balance sheet position post-equity raise. 

Buy rating is retained with a target price of $1.20.

This report was published on November 12, 2020.

Target price is $1.20 Current Price is $1.10 Difference: $0.1
If EHL meets the Goldman Sachs target it will return approximately 9% (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 10.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 9.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.11.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 27.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 24.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.58.

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: $4.49

Goldman Sachs rates ((GNC)) as Upgrade to Buy from Neutral (1) –

Goldman Sachs came away from GrainCorp's FY20 results incrementally confident of the company’s progress to improve through-the-cycle earnings post the United Malt ((UMG)) de-merger. A pending bumper crop is considered already widely understood by the market.

Goldman Sachs sees room for the stock to re-rate as the market better appreciates long-run earnings power. Accordingly, the broker lifts the rating to Buy from Neutral.

The broker raises the target price to $5.34 from $4.66 as a result of rolling forward a near-term valuation component, gains in the company’s UMG stake and a revision of net debt.

This report was published on November 14, 2020.

Target price is $5.34 Current Price is $4.49 Difference: $0.85
If GNC meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $5.08, suggesting upside of 12.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of -82.5%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.1, implying annual growth of 3.4%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.6.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.32

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

GUD Holdings acquired AMA Group's ((AMA)) ACAD business division for $70m, funded by raising equity.

Looking at the operating income margin at circa 11%, Wilsons suggests there appears to be significant room for improvement, especially in the smaller brands.

While ACAD provides GUD Holdings with customer and channel diversification, the broker believes the fragmented nature of different brands, locations and distribution networks implies the company may require more resources to execute ACAD's advantage effectively.

Viewing the share price as broadly reflecting fair value, Wilsons maintains its Market Weight rating with the target falling to $12.10 from $12.60.

This report was published on November 20, 2020.

Target price is $12.10 Current Price is $11.32 Difference: $0.78
If GUD meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $12.95, 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 56.00 cents and EPS of 71.20 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.6, implying annual growth of 32.1%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 57.00 cents and EPS of 72.70 cents.
At the last closing share price the estimated dividend yield is 5.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.6, implying annual growth of 6.0%.
Current consensus DPS estimate is 54.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 16.0.

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

IGL    IVE GROUP LIMITED

Media – Overnight Price: $1.35

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

IVE Group has reaffirmed earnings guidance and the company’s intention to conduct an on-market buy-back program. The program is for up to 10% of the company's ordinary shares over the 12 month period starting from December 1, 2020. 

The buy-back program is planned to be in addition to a resumption of dividend payments.

Bell Potter upgrades underlying EPS forecasts for FY21, FY22 and FY23 by 8.1%, 5.1% and 5.1%, respectively. 

These upgrades occur after the analyst forecasts the buy-back will be for 5% of shares. In addition, margin estimates are slightly increased to reflect the reaffirmed guidance.

The Buy rating is unchanged and the target price is increased to $1.38 from $1.10.

This report was published on November 14, 2020.

Target price is $1.38 Current Price is $1.35 Difference: $0.03
If IGL meets the Bell Potter target it will return approximately 2% (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 12.50 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 9.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.87.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.80 cents and EPS of 21.60 cents.
At the last closing share price the estimated dividend yield is 9.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.25.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.14

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

Wilsons maintains its Overweight rating with the target lifting to $0.22 from 0.14.

Phoenix Healthcare recently placed its first order for five of ImpediMed's SOZO units and will be implementing an HF-Dex assessment program early next year.

ImpediMed's recent contract wins with AstraZeneca and new SOZO sales into NSW Health’s lymphoedema prevention program has prompted the broker to add revenue worth $4.5m to its estimates for FY22.

This report was published on November 19, 2020.

Target price is $0.22 Current Price is $0.14 Difference: $0.08
If IPD meets the Wilsons target it will return approximately 57% (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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.83.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 12.73.

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

LOV    LOVISA HOLDINGS LIMITED

Luxury – Overnight Price: $11.44

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

Lovisa Holdings has announced the acquisition of the European retail store network of ‘beeline GmbH’. This is expected to add around 84 stores to the company’s global store network across six European countries.

The company has also entered into a put option in relation to the acquisition of beeline France (includes 30 stores).

Bell Potter believes this is an attractive acquisition and the Buy rating is supported by positive sales momentum heading into Christmas.

The broker increases FY22 and FY23 EPS forecasts by 16.9% and 21.1%.

The Buy rating is unchanged and the target price is increased to $13.50 from $10.

This report was published on November 14, 2020.

Target price is $13.50 Current Price is $11.44 Difference: $2.06
If LOV meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $12.27, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 7.60 cents and EPS of 21.40 cents.
At the last closing share price the estimated dividend yield is 0.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.5, implying annual growth of 112.3%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 50.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 27.50 cents and EPS of 42.20 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.1, implying annual growth of 69.3%.
Current consensus DPS estimate is 23.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 29.7.

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

MAQ    MACQUARIE TELECOM GROUP LIMITED

Telecommunication – Overnight Price: $49.80

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

Macquarie Telecom has been awarded a 10MW data centre contract.

Bell Potter believes a successful contract commissioning would almost completely de-risk the company's IC3 East development, with the data centre facility now around 90% contracted.

This launches the company as a major wholesale co-location provider, according to the broker. It is considered strategically important as the company has historically been stronger in retail co-location.

While a significantly positive contract win, Bell Potter largely sees this as being already priced in.

The Hold rating is unchanged and the target price is increased to $55.25 from $52.40.

This report was published on November 14, 2020.

Target price is $55.25 Current Price is $49.80 Difference: $5.45
If MAQ meets the Bell Potter target it will return approximately 11% (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 42.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 117.18.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 291.23.

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

NEA    NEARMAP LTD

Software & Services – Overnight Price: $2.21

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

Nearmap's guidance for annualised contract value (ACV) for FY21 ranges between $120m-$128m, implying 13-20% year on year growth (on a constant currency basis).

Goldman Sachs's FY21 ACV forecast of $122.7m falls within this range and while the growth rate is below the company’s medium-to-long term target of 20-40%, the company expects growth to accelerate FY22 onwards. 

Management also highlighted a medium-to-long term churn rate target of less than 10%.

Goldman Sachs retains its rating at Neutral with a target price of $2.95. 

This report was published on November 12, 2020.

Target price is $2.95 Current Price is $2.21 Difference: $0.74
If NEA meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $3.15, suggesting upside of 41.3%(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 minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.9, 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 N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.7, 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 N/A.

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

OPY    OPENPAY GROUP LTD

Business & Consumer Credit – Overnight Price: $2.62

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

Openpay's October trading was strong with active customers increasing by 143% to 390,000. Momentum continued into November with total transaction value up 11% to $915k during the early part of the month.

Shaw and Partners highlights the second quarter is shaping up to be potentially massive with material seasonal growth given the Christmas season. Recent contract wins with Kogan ((KGN)), JD Sports Australia and Just Group ((PMV)) have helped boost the momentum. 

The Buy rating is maintained with a target price of $5.

This report was published on November 18, 2020.

Target price is $5.00 Current Price is $2.62 Difference: $2.38
If OPY meets the Shaw and Partners target it will return approximately 91% (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 29.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 23.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.20.

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: $1.10

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

Wilsons retains its Overweight rating with a target of $1.50.

Plenti Group posted a net loss of -$3.4m in the first half of the financial year, 20.9% ahead of the group's guidance. The beat was a result of stronger credit performance and better cost management.

While not expecting the cost ratios to continue in the second half, Wilsons believes the result highlights the high-quality technology – a significant competitive advantage. Noting encouraging loan book growth, the broker has included commercial automotive loans in its forecasts.

This report was published on November 18, 2020.

Target price is $1.50 Current Price is $1.10 Difference: $0.4
If PLT meets the Wilsons target it will return approximately 36% (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 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.67.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.33.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.36

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

Wilsons maintains its Overweight rating on Polynovo with the target lifted to $3.35 from $2.80.

The broker assesses the addition of GPO/IDN contracts have the potential to lift US business development and sales rep productivity by 20%. With the company having signed its first major GPO account, the broker sees further contract wins likely over the next 12 months.

Polynovo has expanded into seven countries since August and Wilsons thinks with the Novosorb BTM business on a solid earnings footing, other development campaigns are well placed to deliver new launches in both FY22-FY23.

This report was published on November 19, 2020.

Target price is $3.35 Current Price is $3.36 Difference: minus $0.01 (current price is over target).
If PNV meets the Wilsons target it will return approximately minus 0% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1120.00.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.33.

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

RDY    READYTECH HOLDINGS LTD

Software & Services – Overnight Price: $2.09

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

ReadyTech has announced the acquisition of Open Office for $54m. The company is a local government and Justice Case software solutions provider with operations in A&NZ and the UK. 

Wilsons expects the proposed transaction will add revenue diversification as well as offer a beachhead to a future UK expansion.

Wilsons anticipates the deal to be low-double digit earnings accretive, and revises its target price to $2.79 from $2.60.

The Overweight rating is unchanged.

This report was published on November 13, 2020.

Target price is $2.79 Current Price is $2.09 Difference: $0.7
If RDY meets the Wilsons target it will return approximately 33% (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 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.69.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.60.

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

RMC    RESIMAC GROUP LTD

Banks – Overnight Price: $1.89

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

Bell Potter increases Resimac Group earnings forecasts by 44.4% in FY21 and 34.3% in FY22 to largely incorporate an uplift in net interest margin assumptions from quantitative easing measures.

The company’s first half FY21 normalised net profit guidance of $48-53m underlines the tailwind from quantitative easing measures, notes the broker. Guidance is considered to imply an increase of around 75% on the second half FY20.

The analyst predicts the FY21 result is also likely to benefit from a lower impairment charge.

The Buy rating is unchanged and the target price is increased to $2.50 from $2.05.

This report was published on November 16, 2020.

Target price is $2.50 Current Price is $1.89 Difference: $0.61
If RMC meets the Bell Potter target it will return approximately 32% (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 23.10 cents.
At the last closing share price the estimated dividend yield is 2.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.18.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 22.70 cents.
At the last closing share price the estimated dividend yield is 2.38%.
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

SHL    SONIC HEALTHCARE LIMITED

Healthcare services – Overnight Price: $32.86

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

Sonic Healthcare's latest update disclosed the company's group revenue growth continued to accelerate through October and is now up 33% versus last year.

While too early to assess the impact from covid, management nevertheless expects a materially lower headwind than during the first wave of the virus.

Also, with covid testing volumes more than offsetting volatility elsewhere, the company has nearly reached the broker's annual forecast within four months.

As a result, Goldman Sachs has upgraded the FY21 forecasts materially with expected revenue up 12% and operating income forecast up 41%. 

Rating is retained at Buy with the target price rising to $36.80 from $34.50.

The report was published on November 12, 2020.

Target price is $36.80 Current Price is $32.86 Difference: $3.94
If SHL meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $37.07, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 143.00 cents and EPS of 221.00 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 203.0, implying annual growth of 82.7%.
Current consensus DPS estimate is 138.6, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 108.00 cents and EPS of 155.00 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.2, implying annual growth of -27.0%.
Current consensus DPS estimate is 107.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 22.0.

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

TLS    TELSTRA CORPORATION LIMITED

Telecommunication – Overnight Price: $3.03

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

Telstra is creating three separate legal entities comprising InfraCo Fixed (NBN payments, fibre & property), InfraCo Towers and ServeCo (estimated to make $5bn in operating earnings in FY23).

Telstra has updated its FY23 return on invested capital target to circa 8% from 7%, higher than Goldman Sachs's 7.1%. If Telstra achieves this, the company will be able to deliver an underlying operating income of more than $7.5bn versus the broker's expected $7.3bn.

Goldman Sachs reaffirms its Buy rating with the target price falling to $3.60 from $3.90.

This report was published on November 12, 2020.

Target price is $3.90 Current Price is $3.03 Difference: $0.87
If TLS meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $3.49, suggesting upside of 14.6%(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 14.00 cents.
At the last closing share price the estimated dividend yield is 5.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.4, implying annual growth of -12.4%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 22.7.

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 21.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.2, implying annual growth of 6.0%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 21.4.

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

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $4.41

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

While United Malt Group's FY20 net profit was down -30% versus last year and operating income fell -18%, both metrics were better than expected by Bell Potter. 

FY21 is expected to be impacted by the pandemic and additional corporate overheads. Even with headwinds over the near term, Bell Potter suggests the earnings trajectory is clear. 

The group's operating income is expected to be $185-195m by FY23 led by the reversal of covid-related headwinds and UK growth initiatives which the broker expects will add circa $15m in operating income.

The Hold rating is maintained. The target price is increased to $4.85 from $4.20.

The report was published on November 19, 2020.

Target price is $4.85 Current Price is $4.41 Difference: $0.44
If UMG meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.81, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.00 cents and EPS of 19.40 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 22.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.1, implying annual growth of 19.6%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 14.00 cents and EPS of 25.30 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 33.8%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 16.1.

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


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

United Malt Group delivered a stronger-than-expected result, observes Wilsons, driven by the performance in its warehouse and distribution segment. Operating cash flow was also materially above the broker's expectations.

Even with demand still below pre-covid levels, fourth-quarter sales volumes are broadly in line with last year. The broker considers the group's commentary on sales volumes conservative and sees potential for further cost reductions.

Attracted to United Malt’s quality asset base and a defensive revenue profile, Wilsons retains its Overweight rating with the target price rising to $5.24 from $4.81.

With the rally in the share price narrowing the valuation gap, the broker has decided to remove the stock from Wilsons' conviction insights.

This report was published on November 19, 2020.

Target price is $5.24 Current Price is $4.41 Difference: $0.83
If UMG meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $4.81, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.50 cents and EPS of 19.60 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.1, implying annual growth of 19.6%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 13.50 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 33.8%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 16.1.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $1.53

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

Uniti Group's acquisition of the retail service provider Harbour ISP for a consideration of $9.25m equates to an operating income multiple of around 3x including synergies, which Bell Potter expects will be realised by the end of FY21.

The acquisition enables Uniti to own and operate RSPs in addition to being a wholesale broadband provider. The broker expects an acquisition similar to Harbour ISP in each of FY22-23.

The Buy rating is unchanged and the target increased to $1.85 from $1.80.

This report was published on November 18, 2020.

Target price is $1.85 Current Price is $1.53 Difference: $0.32
If UWL meets the Bell Potter target it will return approximately 21% (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 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.38.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.79.

Market Sentiment: 1.0
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

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

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For more info SHARE ANALYSIS: LOV - LOVISA HOLDINGS LIMITED

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For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

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For more info SHARE ANALYSIS: PMV - PREMIER INVESTMENTS LIMITED

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For more info SHARE ANALYSIS: RMC - RESIMAC GROUP LIMITED

For more info SHARE ANALYSIS: SHL - SONIC HEALTHCARE LIMITED

For more info SHARE ANALYSIS: TLS - TELSTRA CORPORATION LIMITED

For more info SHARE ANALYSIS: UMG - UNITED MALT GROUP LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED