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Australian Broker Call *Extra* Edition – Dec 09, 2020

Daily Market Reports | Dec 09 2020

This story features AMA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AMA

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)

AMA   APT   AX1   BWX   CAJ (2)   ELD (2)   HLO   IAG   IFL   IPH   JAN   LBL   LBY   MYX   NAN   NWL   NXS   PPS   TNE   UWL   WSP   Z1P  

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.81

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

AMA Group has sold its parts business – ACAD – for $70m. According to the company's latest update, the first quarter was ahead of expectations with operations in Victoria expected to return to full capacity by the end of December.

Bell Potter is pleased with the decision to sell the parts business given it has reduced the net debt below -$200m, effectively ensuring the covenant test on December 31 will be met. Also, the sale makes the company a pure-play in vehicle panel repair which may make it more attractive from a takeover perspective.

The Buy rating is unchanged and the target price is increased to $1 from $0.95.

This report was published on November 23, 2020.

Target price is $1.00 Current Price is $0.81 Difference: $0.19
If AMA meets the Bell Potter target it will return approximately 23% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 405.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.13.

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: $95.68

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

Wilsons believes the UK Lockdown 2.0 maybe another shot to the arm for Afterpay. The presence of tailwinds bodes well for a strong second quarter in the UK and therefore Afterpay UK.

Additionally, evidence suggests there may also be a pull-forward of purchase behaviour in the UK in the lead-up to Christmas, with recent consumer polls suggesting a preference to having December “locked down” rather than the structured tier-based restrictions proposed by the Johnson government.

Overweight rating retained with a target price of $113.94.

This report was published on November 23, 2020.

Target price is $113.94 Current Price is $95.68 Difference: $18.26
If APT meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $98.36, suggesting upside of 2.8%(ex-dividends)
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 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 854.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.4, 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 771.6.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 28.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 331.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.8, implying annual growth of 277.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 204.4.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.19

Bell Potter rates ((AX1)) as Buy (1) –

Accent Group's latest trading update covering the first 20 weeks of FY21 showed strong like for like sales growth, lifting by 15.7% (excluding store closures). Digital sales were up 129% versus last year. and continue to grow at more than 100%.

Bell Potter notes the company's growth plan is progressing strongly with store growth higher than expected at 66 net new stores. The broker considers the update is solid with all retail banners performing well with The Athlete's Foot and Skechers being the outperformers.

 Bell Potter retains its Buy rating with the target price rising to $2.15 from $1.85.

This report was published on November 23, 2020.

Target price is $2.15 Current Price is $2.19 Difference: minus $0.04 (current price is over target).
If AX1 meets the Bell Potter target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.98, suggesting downside of -9.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.20 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.5, implying annual growth of 11.5%.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 19.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.10 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of -1.7%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 19.4.

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

BWX    BWX LTD

Household & Personal Products – Overnight Price: $3.98

Moelis rates ((BWX)) as Buy (1) –

BWX has struck a new partnership with The Hut Group to accelerate a direct to consumer strategy in Europe and Asia. Moelis believes this makes strategic sense.

Management reaffirmed guidance for at least 10% revenue and earnings (EBITDA) growth, with a second half skew due to covid impacts in the first half.

The Buy rating is unchanged and the target price is $4.87.

This report was published on November 18, 2020.

Target price is $4.87 Current Price is $3.98 Difference: $0.89
If BWX meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.00 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.34.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.70 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.36.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.28

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

Capitol Health has announced the acquisition of Direct Radiology, a Victorian diagnostic imaging provider which has two highly profitable established clinics and a newly opened greenfields site. 

Total initial consideration is $12m and Shaw and Partners estimate FY22 accretion of around 5%. 

The broker believes the company is undervalued, the balance sheet is under-geared and there is latent value in strategic holdings.

The Buy rating is unchanged and the target increases to $0.32 from $0.31.

This report was published on November 17, 2020.

Target price is $0.32 Current Price is $0.28 Difference: $0.04
If CAJ meets the Shaw and Partners target it will return approximately 14% (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 0.80 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.00 cents and EPS of 2.00 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 14.00.

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


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

Wilsons maintains its Market Weight rating on Capitol Health with the target rising to $0.28 from $0.23.

Capitol Health's recovery from the pandemic is ahead of the broker's estimates and the acquisition of Direct Radiology is expected to be earnings accretive from FY22. The diagnostic imaging provider has $120m in balance sheet capacity.

With recent high-value M&A activity in the sector, the focus of growth may shift towards internal projects.

This report was published on November 23, 2020.

Target price is $0.28 Current Price is $0.28 Difference: $0
If CAJ meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.50 cents and EPS of 1.30 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.54.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 1.00 cents and EPS of 1.70 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 16.47.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $10.29

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

Elders reported a FY20 underlying profit 5% ahead of Bell Potter's forecast. The result was considered primarily driven by market share gains in livestock and a higher contribution from real estate.

The broker maintains a Buy rating with the target price increasing to $13.30 from $12.25, reflecting a lower net debt position and lower weighted average cost of capital (WACC) hurdle.

The report was published on November 17, 2020.

Target price is $13.30 Current Price is $10.29 Difference: $3.01
If ELD meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $12.89, suggesting upside of 25.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 25.00 cents and EPS of 78.80 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.1, implying annual growth of -0.9%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 28.00 cents and EPS of 85.80 cents.
At the last closing share price the estimated dividend yield is 2.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of 8.7%.
Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 12.0.

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


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

Wilsons considers Elders' FY20 result was very strong with earnings (EBIT) growth of 68%, driven by the AIRR acquisition, improved winter cropping activity and stronger livestock prices.

The broker highlights adjusted cash conversion improved to 85% from 46% in the previous corresponding period, and a historical average level of around 93%.

Wilsons assumes growth in FY21 is partly constrained by lower winter cropping activity (return to normal season), lower livestock prices (off a higher base), and higher cost growth.

The Underweight rating is unchanged and the target price is decreased to $8.57 from $8.75.

This report was published on November 17, 2020.

Target price is $8.57 Current Price is $10.29 Difference: minus $1.72 (current price is over target).
If ELD meets the Wilsons target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $12.89, suggesting upside of 25.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 26.00 cents and EPS of 71.70 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.1, implying annual growth of -0.9%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 30.00 cents and EPS of 74.40 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of 8.7%.
Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 12.0.

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

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.79

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

Helloworld Travel has acquired the cruise wholesaling specialist, CruiseCo, expected to be complementary to Helloworld's existing wholesale cruise business, Seven Oceans Cruising.

The company also renewed its partnership with Qantas to sell the national carrier’s fares and products until 2023. Bell Potter notes the contract indicates the importance of the travel agent distribution channel and its ability to drive volume and impact market share.

Helloworld Travel gives a diversified exposure to a rebound in travel bookings and Bell Potter believes the company is well placed to deal with the prolonged downturn given its current liquidity position and restructured cost-base.

Even so, the broker at this stage prefers companies with a direct sales model or those with larger corporate businesses that are leveraged to a rebound in domestic travel.

The Hold rating is unchanged and the target increased to $2.70 from $1.95.

This report was published on November 23, 2020.

Target price is $2.70 Current Price is $2.79 Difference: minus $0.09 (current price is over target).
If HLO 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 0.00 cents and EPS of minus 28.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.86.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.22.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $5.22

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

Post the unfavourable ruling on the business interruption (BI) insurance test case, Insurance Australia Group has decided to increase total the BI provisions to -$865m post-tax and raise up to $750m in new equity capital to strengthen its CET1 ratio.

Including the -$60m post-tax provision taken in FY20, the impact on the first half cash net profit would be around $805m, assesses Bell Potter.

The insurer has also identified items like higher customer refunds and prior period reserve strengthening that may further impact the net profit in the first half by around -$50-65m post-tax.

While the broker had previously forecast the insurer resuming dividend payments, this is unlikely now given its forecast statutory loss in the first half.

Hold rating is retained with the target price dropping to $5.20 from $5.60.

This report was published on November 23, 2020.

Target price is $5.20 Current Price is $5.22 Difference: minus $0.02 (current price is over target).
If IAG meets the Bell Potter target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.46, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 9.00 cents and EPS of minus 5.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 104.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -65.4%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 79.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 21.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of 383.3%.
Current consensus DPS estimate is 25.4, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 16.4.

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

IFL    IOOF HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $3.74

Bell Potter rates ((IFL)) as Downgrade to Hold from Buy (3) –

Bell Potter downgrades its recommendation to Hold from Buy given the recent short-term run in the share price. The target rises to $3.70 from $3.45.

The broker is cautious given the significant amount of work IOOF Holdings has before it with two major integrations in a sector that is going through a structural shift. 

IOOF is in the middle of seeking approvals for its $1,440m acquisition of National Australia Bank's ((NAB)) MLC wealth business.

Bell Potter is concerned about significant balance sheet demands over the year ahead, including the ANZ wealth integration costs, NAB MLC integration costs, ongoing remediation program, compliance one-off costs and the additional debt required to close the MLC deal.

This report was published on November 25, 2020.

Target price is $3.70 Current Price is $3.74 Difference: minus $0.04 (current price is over target).
If IFL meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.58, suggesting upside of 22.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 15.00 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.2, implying annual growth of -28.1%.
Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 22.00 cents and EPS of 33.90 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.3, implying annual growth of 3.6%.
Current consensus DPS estimate is 24.0, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 11.9.

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

IPH    IPH LIMITED

Legal – Overnight Price: $6.67

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

Canaccord Genuity considered IPH shares an ideal market hedge over the last nine months, expected to outperform on the way down and then rise again as the market rallies. Things didn't work out with the shares falling almost all the way down in March but lagging on the rebound.

Not boasting a strong technology story, IPH has underperformed the Small Ords Index by -25% since the beginning of March although the company reinforced the resilience of the business in its AGM.

Buy rating is retained with a target of $9.50.

This report was published on November 20, 2020.

Target price is $9.50 Current Price is $6.67 Difference: $2.83
If IPH meets the Canaccord Genuity target it will return approximately 42% (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 29.00 cents and EPS of 36.00 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 18.53.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 32.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.55

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

Janison Education's growth outlook is expected to benefit from key drivers including growth in platform revenue, strong execution from the Educational Assessment business acquired in March and new revenue opportunities from the partnership with LMS provider, D2L. 

Bell Potter notes Janison Education has been successful in expanding its gross margin profile led by growth from higher-margin platform revenues. The broker believes the company is well placed to deliver on its growth strategy over the next 6-12 months.

Bell Potter upgrades its recommendation to Buy from Hold with the target price rising to $0.45 from $0.42.

This report was published on November 25, 2020.

Target price is $0.45 Current Price is $0.55 Difference: minus $0.1 (current price is over target).
If JAN meets the Bell Potter target it will return approximately minus 18% (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 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 550.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.83.

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: $0.68

CCZ Equities rates ((LBL)) as 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, 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. 

This report was published on November 11, 2020.

Target price is $1.08 Current Price is $0.68 Difference: $0.4
If LBL meets the CCZ Equities target it will return approximately 59% (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 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.11.

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 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.53.

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

LBY    LAYBUY GROUP HOLDINGS LIMITED

Overnight Price: $1.31

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

Laybuy Group Holdings' first-half operating income was -NZ$8.1m, mostly in line with Bell Potter's forecast. October's gross merchant value (GMV) was up by 164% versus last year with November tracking at 175%.

The growth was led by improving bad debts and propelling its net transaction margin to 1.7% in the first half from -0.6% in the second half of FY20.

Despite this, the group continues to "fly under the radar". The broker argues the group deserves more attention at the current levels given its significant growth against many of the peers.

Bell Potter retains its Buy rating with a target of $3.00.

This report was published on November 24, 2020.

Target price is $3.00 Current Price is $1.31 Difference: $1.69
If LBY meets the Bell Potter target it will return approximately 129% (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 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.70.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.48.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.37

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

Mayne Pharma Group's four-month year to date update shows revenues were -9% lower relative to Bell Potter's expectation although operating income was slightly higher than last year.

Bell Potter cautions the ongoing revenue decline in the core generics business is not sustainable and the group needs meaningful revenue growth from its two new women’s health products and Tolsura.

The progress of both Nextstellis and Nuvaring down the regulatory pathway are crucial for long term earnings growth and to restore some market confidence in the company, adds the broker.

Bell Potter maintains its Hold rating with the target price rising to $0.34 from $0.32.

This report was published on November 25, 2020.

Target price is $0.34 Current Price is $0.37 Difference: minus $0.03 (current price is over target).
If MYX meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.37, suggesting downside of -0.7%(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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.7, 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.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.9, 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 19.5.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $6.88

Bell Potter rates ((NAN)) as Sell (5) –

Nanosonics' stated in its AGM that procedure volumes requiring the use of the Trophon device had largely recovered to pre-covid levels although new installs (a proxy for capital sales of new devices) over the first four months were down by -9% versus last year.

Also, GE Healthcare in North America is planning to resume purchasing capital equipment by the end of the first half given reduced inventory levels. This comes as a surprise to Bell Potter since the company hadn't disclosed the suspension of purchases. 

Since GE is the largest reseller of Trophon in the US market, the broker concludes the absence of regular replenishment orders will likely significantly effect the first-half revenues. 

Bell Potter retains its Sell rating with a target of $4.95.

This report was published on November 25, 2020.

Target price is $4.95 Current Price is $6.88 Difference: minus $1.93 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.82, suggesting downside of -15.5%(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 minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2293.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.3, implying annual growth of -2.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 208.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 221.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 163.6%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 79.1.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $16.17

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

Netwealth has guided to reach $8bn in platform net-flows for FY21 and reported $1.9 billion in the first quarter. The investment platform retains around 3.8% market share of the platform sector which, Bell Potter indicates, is a significant opportunity to grow

The broker sees Netwealth making continued inroads into the platform sector given the ongoing market dislocation. Earnings growth forecasts for FY21-23 upgraded by 2-9-3.5%.

Bell Potter maintains its Hold rating with the target price rising to $17.70 from $17.35.

The report was first published on November 25, 2020.

Target price is $17.70 Current Price is $16.17 Difference: $1.53
If NWL meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $13.90, suggesting downside of -14.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 18.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of 13.8%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 77.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 22.00 cents and EPS of 27.30 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.7, implying annual growth of 23.0%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 62.9.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.27

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

Wilsons maintains its Market Weight rating with a target of $1.19.

Wilsons is disappointed with the distribution agreement with 3M's wound care business due to problems during the acute phase of the pandemic, as wound care clinics closed and diverted patients to homecare/hospice settings.

The Next-3M deal's early termination gives Next Science scope to reassess some of its own promotional efforts.

Next Science is planning an independent launch for XPerience next year. If approved, the broker notes XPerience will be the only sterile rinse that can be left inside a surgical cavity to prevent biofilm formation and potentially protect against periprosthetic joint infection.

This report was published on November 24, 2020.

Target price is $1.19 Current Price is $1.27 Difference: minus $0.08 (current price is over target).
If NXS meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 7.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.28.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.89.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.72

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

Bell Potter looks at Praemium in the context of the recent local market gains of above 10% to date in the December quarter, and the positive mark-to-market impact this has on the total funds under management. 

The broker believes the key headwinds for Praemium are dissipating and tailwinds appear to be strengthening. The investment platform completed the acquisition of Powerwrap in November and is in the middle of a product/business integration, which includes $6m in cost-synergies.

The Buy rating is unchanged and the target price is increased to $0.90 from $0.85.

 This report was published on November 25, 2020.

Target price is $0.90 Current Price is $0.72 Difference: $0.18
If PPS meets the Bell Potter target it will return approximately 25% (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 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.35.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.40 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.69.

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

TNE    TECHNOLOGYONE LIMITED

IT & Support – Overnight Price: $8.79

Bell Potter rates ((TNE)) as Downgrade to Hold from Buy (3) –

TechnologyOne's FY20 result was in line with Bell Potter's forecasts with profit before tax growing by 8% to $82.5m. Revenue grew 4% to $299m, -1% below the broker's expected $301.6m. The final dividend was up 7% to 9.41c, below the 9.61c expected.

The company did not provide any specific guidance for FY21 although did say it expects strong profit growth to continue led by growth in SaaS recurring revenues and profit.

Bell Potter downgrades its recommendation to Hold from Buy with a target price of $10.00.

This report was published on November 25, 2020.

Target price is $10.00 Current Price is $8.79 Difference: $1.21
If TNE meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $8.72, suggesting downside of -0.8%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 14.20 cents and EPS of 22.80 cents.
At the last closing share price the estimated dividend yield is 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.7, implying annual growth of 14.9%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 38.7.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 16.30 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 10.1%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 35.2.

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: $1.44

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

Uniti Group acquired a retail service provider Harbour ISP, which specialises in the delivery of high-speed retail broadband services to housing estates and multi-dwelling units.

The acquisition of Harbour comes after the recent acceptance by the ACCC of Uniti's functional separation undertaking. This undertaking allows the group to be able to operate as both a wholesale and retail provider.

Canaccord Genuity considers the acquisition of Harbour both logical and strategic for Uniti Group as it moves to convert a pipeline of over 215k greenfield premises to active fibre-to-the-premise (FTTP) network connections.

The Buy rating is unchanged and the target rises to $2.15 from $2.10.

This report was published on November 20, 2020.

Target price is $2.15 Current Price is $1.44 Difference: $0.71
If UWL meets the Canaccord Genuity target it will return approximately 49% (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 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $3.13

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

Whispir has updated on its go-to-market for the US including its focus on the high-value, under-serviced SMEs.

Management indicated aspiring towards a goal to earn 50% of its revenue from offshore (30% from the US and 20% from South East Asia). Wilsons believes this could lead to an increase in the group revenue of around 15%, taking its FY23 forecasts to circa $95m from from about $82m.

The Overweight rating and target price of $5.10 are unchanged.

This report was published on November 19, 2020.

Target price is $5.10 Current Price is $3.13 Difference: $1.97
If WSP meets the Wilsons target it will return approximately 63% (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 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.18.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 142.27.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $5.29

Shaw and Partners rates ((Z1P)) as Buy (1) –

Quadpay in the US launched a chrome extension to pay-anywhere which allows customers to transact on any website using a form of Quadpay’s unique virtual card technology.

Quadpay and Zip Co core products are now available anywhere in their respective countries across apps, browsers and via merchant relationships.

The broker notes Zip has underperformed relative to peers and sits at the bottom of its historical trading range with respect to Afterpay ((APT)). The broker sees a fertile environment in December.

With Quadpay likely to be the fastest-growing US BNPL provider, Shaw and Partners remains bullish and reiterates its Buy rating with a target price of $10.45.

This report was published on November 23, 2020.

Target price is $10.45 Current Price is $5.29 Difference: $5.16
If Z1P meets the Shaw and Partners target it will return approximately 98% (excluding dividends, fees and charges).
Current consensus price target is $6.73, suggesting upside of 27.2%(ex-dividends)
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 2645.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -11.1, 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 N/A.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5290.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.4, 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: -0.1
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

AMA APT AX1 BWX CAJ ELD HLO IAG IFL IPH JAN LBL LBY MYX NAB NAN NWL NXS PPS TNE UWL WSP Z1P

For more info SHARE ANALYSIS: AMA - AMA GROUP LIMITED

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: AX1 - ACCENT GROUP LIMITED

For more info SHARE ANALYSIS: BWX - BWX LIMITED

For more info SHARE ANALYSIS: CAJ - CAPITOL HEALTH LIMITED

For more info SHARE ANALYSIS: ELD - ELDERS LIMITED

For more info SHARE ANALYSIS: HLO - HELLOWORLD TRAVEL LIMITED

For more info SHARE ANALYSIS: IAG - INSURANCE AUSTRALIA GROUP LIMITED

For more info SHARE ANALYSIS: IFL - IOOF HOLDINGS LIMITED

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For more info SHARE ANALYSIS: JAN - JANISON EDUCATION GROUP LIMITED

For more info SHARE ANALYSIS: LBL - LASERBOND LIMITED

For more info SHARE ANALYSIS: LBY - LAYBUY GROUP HOLDINGS, LIMITED

For more info SHARE ANALYSIS: MYX - MAYNE PHARMA GROUP LIMITED

For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: NWL - NETWEALTH GROUP LIMITED

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: PPS - PRAEMIUM LIMITED

For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: WSP - WHISPIR LIMITED

For more info SHARE ANALYSIS: Z1P - ZIP CO LIMITED