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Australian Broker Call *Extra* Edition – Dec 11, 2020

Daily Market Reports | Dec 11 2020

This story features ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED, and other companies. For more info SHARE ANALYSIS: ACF

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)

ACF   ARX (2)   BGA   BVS (2)   BWX   CGF   FPH   HVN   IRI   MYX   NAN   PDL   VHT   WTC  

ACF    ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services – Overnight Price: $0.39

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

Acrow Formwork & Construction Services has started FY21 on a strong note, observes Bell Potter, with activity levels tracking well above prior record levels.

According to the broker, this reflects positive momentum in the Australian civil infrastructure market. Furthermore, it also points towards the company successfully repositioning the business away from the highly competitive two-storey residential scaffolding market. 

With the exit from this market and the Uni-span integration now complete, Bell Potter believes the company's medium-term earnings profile has de-risked significantly.

The Buy rating is unchanged and the target price is increased to $0.40 from $0.36.

This report was published on November 27, 2020.

Target price is $0.40 Current Price is $0.39 Difference: $0.01
If ACF meets the Bell Potter target it will return approximately 3% (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 2.20 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 5.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.83.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.40 cents and EPS of 4.40 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.86.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.22

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

Bell Potter maintains its Buy rating with a price target of $2.00.

Aroa Biosurgery's first-half result was in line with its guidance, with the operating loss of -$2.3m slightly higher than Bell Potter's forecast. Management continues to expect revenue for the second half will beat that of the first half.

The broker views this outlook conservative, especially given the growth that Tela Bio is experiencing. Going ahead, the broker expects Myriad to be a key sales driver for Aroa.

This report was published on November 27, 2020.

Target price is $2.00 Current Price is $1.22 Difference: $0.78
If ARX meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.04.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 76.25.

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


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

Despite the first-half results being somewhat underwhelming, Wilsons notes the second-quarter exit run-rates suggest Aroa Biosurgery is on track to meet or exceed its second-half guidance.

Tela Bio’s ordering patterns are expected to rebalance towards higher ASP devices in the second half. Also, Aroa has decided to go ahead with its manufacturing expansion on the strength of Tela’s demand signals. 

Overweight rating is maintained with a target price of $2.00.

This report was published on November 27, 2020.

Target price is $2.00 Current Price is $1.22 Difference: $0.78
If ARX meets the Wilsons target it will return approximately 64% (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 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.92.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.76.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.35

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

Bega Cheese has acquired Lion Dairy & Drinks for $536m. The transaction is expected to be complete by the end of January 2021. The deal will be funded with a mix of debt and equity. 

The company expects the transaction to be double-digit earnings accretive in FY22 with synergies estimated to be $41m per annum, driven by corporate reorganisation, operational benefits and a cultural alignment between the two businesses.

Goldman Sachs considers the acquisition a good strategic fit for Bega Cheese but notes delivery of the synergies will be key to the earnings accretion. 

Neutral rating is maintained with a target price of $4.90.

This report was published on November 27, 2020.

Target price is $4.90 Current Price is $5.35 Difference: minus $0.45 (current price is over target).
If BGA meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

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 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.32.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.58.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $3.26

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

Bravura Solutions notes higher uncertainty pertaining to deal closures versus prior years due to the wider impact of the pandemic.

On account of the stalled Brexit negotiations and the second wave of UK lockdowns, Bravura expects net profit in FY21 to be significantly weighted to the second half. Goldman Sachs forecasts net profit of $38.2m in FY21, down -5% from $40.1m in FY20.

The broker believes Bravura is well-positioned due to its strong market position along with a high degree of recurring revenue. Furthermore, a net cash position gives the company a buffer in uncertain times.

Goldman Sachs maintains its Buy rating with a target of $4.50.

This report was published on November 25, 2020.

Target price is $4.50 Current Price is $3.26 Difference: $1.24
If BVS meets the Goldman Sachs target it will return approximately 38% (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 12.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.38.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.11.

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


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

At its FY20 AGM, Bravura Solutions warned of delayed contract closings due to covid. The company indicated FY21 net profit could be similar to that of FY20 although weighted towards the second half.

Wilsons has reduced the FY21-23 net profit forecasts by -5-10% to reflect the likelihood of contract wins being delayed into the second half. 

Underweight rating is retained with the target price decreased to $2.97 from $3.22.

This report was published on November 25, 2020.

Target price is $2.97 Current Price is $3.26 Difference: minus $0.29 (current price is over target).
If BVS meets the Wilsons target it will return approximately minus 9% (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 9.90 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.18.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 11.20 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.52.

Market Sentiment: 0.5
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: $4.17

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

BWX re-affirmed FY21 revenue and earnings (EBITDA) growth guidance of at least 10%, with covid-19 disruptions and distribution gains expected to skew earnings to the second half.

The company announced a strategic partnership with an e-commerce provider to accelerate a direct to consumer strategy in Europe and Asia.

Bell Potter makes no material changes to forecasts, retains the Buy rating and increases the target price to $5.20 from $5.05.

This report was published on November 18, 2020.

Target price is $5.20 Current Price is $4.17 Difference: $1.03
If BWX 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 5.20 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.59.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.60 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 1.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.12.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $5.86

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

Bell Potter believes the worst is behind Challenger. As the prospect of a vaccine draws closer, the risks associated with the balance sheet of the company are significantly reduced, believes the broker.

In fact, the broker notes Challenger has ample capital which gives the company more wriggle room to redeploy the funds in attractive assets and potentially improve margins.

The broker expects a pre-tax profit of $438m in FY21 which is at the top end of the guidance range between $390-$440m.

The target price rises to $6.60 from $4.70.

This report was published on November 25, 2020.

Target price is $6.60 Current Price is $5.86 Difference: $0.74
If CGF meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.67, suggesting downside of -20.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 20.60 cents and EPS of 45.40 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.6, implying annual growth of N/A.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 23.40 cents and EPS of 51.80 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.3, implying annual growth of 9.6%.
Current consensus DPS estimate is 24.6, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 13.9.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $29.97

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

Fisher and Paykel Healthcare reported a net profit of NZ$225M in the first half, 30% ahead of Wilsons' forecasts.

Wilsons believes demand growth will endure post-covid. The broker sees upside for OptiFlow utilisation in the core markets of USA and western Europe.

New high-flow nasal cannula (HFNC) placements have increased within emergency departments due to the pandemic. The broker believes the demand for these HFNC units will not subside even after things go back to normal.

Wilsons maintains its Overweight rating with a target price of $36.95.

The report was published on November 26, 2020.

Target price is $36.95 Current Price is $29.97 Difference: $6.98
If FPH meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is N/A
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 32.07 cents and EPS of 69.89 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.2, implying annual growth of N/A.
Current consensus DPS estimate is 37.9, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 40.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 33.96 cents and EPS of 65.18 cents.
At the last closing share price the estimated dividend yield is 1.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.0, implying annual growth of -9.8%.
Current consensus DPS estimate is 43.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 45.4.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $4.58

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

Harvey Norman's sales update year to date to November 21 disclosed revenue growth of 28.2% versus last year.

Comparable sales growth was up 27.5% for the period with strong double-digit growth in all regions except Singapore and Malaysia. Australia recorded 30.4% over the same period. 

Goldman Sachs' Buy rating is maintained with a target of $5.05

This report was published on November 25, 2020.

Target price is $5.05 Current Price is $4.58 Difference: $0.47
If HVN meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $5.14, suggesting upside of 12.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 22.00 cents and EPS of 39.00 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 11.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.7, implying annual growth of 19.2%.
Current consensus DPS estimate is 33.1, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 24.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.2, implying annual growth of -26.8%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 13.4.

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

IRI    INTEGRATED RESEARCH LIMITED

IT & Support – Overnight Price: $3.27

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

Integrated Research's update disclosed revenues for the first four months of FY21 were less than last year, led by the lengthening sales cycle due to the ongoing global uncertainty; and a strengthening AUD versus USD.

Bell Potter expects a relatively flat result in FY21 – both in terms of revenue and profit. Growth is expected to resume again in FY22 and beyond.

The rating is downgraded to Hold from Buy with the target price falling to $3.75 from $4.25.

This report was published on November 25, 2020.

Target price is $3.75 Current Price is $3.27 Difference: $0.48
If IRI meets the Bell Potter target it will return approximately 15% (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 7.30 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.53.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 7.80 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.23.

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

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

Mayne Pharma Group's FY21 revenue to date is -5% below Wilsons' first-half estimate. The operating income was slightly above last year levels and in line with the broker's model.

Generics business continues to struggle for organic growth, observes the broker, especially in the absence of new product approvals while the Specialty business faces higher competition.

With the business not taking any momentum into the second half, the broker expects modest downgrades. Even so, Wilsons retains its Market weight rating with a target price of $0.33.

This report was published on November 24, 2020.

Target price is $0.33 Current Price is $0.37 Difference: minus $0.04 (current price is over target).
If MYX meets the Wilsons target it will return approximately minus 11% (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:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.43.

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:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.56.

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: $7.14

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

Nanosonics provided an update for the first four months of FY21. The company noted second wave impacts have not been as severe as the first wave.

The company's FY21 consumables sales run-rate is up 4% from last year and is mostly in line with Wilsons' model. The US installed base run-rate implies circa 1,220 placements for the first half versus the 1,100 expected.

Capital sales are expected to be less than the broker's forecasts since GE hasn't placed any Trophon orders so far this half. The broker expects modest downgrades in FY21.

Wilsons maintains its Underweight rating with a price target of $3.90.

This report was published on November 24, 2020.

Target price is $3.90 Current Price is $7.14 Difference: minus $3.24 (current price is over target).
If NAN meets the Wilsons target it will return approximately minus 45% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.82, suggesting downside of -18.6%(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 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 210.00.

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 216.4.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 132.22.

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 82.1.

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

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $6.87

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

Bell Potter finds Pendal Group attractive and expects earnings forecasts upgrades to the tune of 4-8%. The broker believes the timing is ideal given the bad news is largely out and the environment seems to be improving for performance fees. 

Pendal has flagged more investment into its teams and infrastructure and has guided to fixed investment increase of between 8-10% in FY21 along with a one-off $12-$16m investment in its platform over the next three years.

Bell Potter maintains its Buy rating with the target rising to $8.90 from $8.40.

This report was published on November 26, 2020.

Target price is $8.90 Current Price is $6.87 Difference: $2.03
If PDL meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $6.69, suggesting downside of -2.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 42.00 cents and EPS of 48.60 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.3, implying annual growth of 6.3%.
Current consensus DPS estimate is 36.6, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 42.00 cents and EPS of 48.90 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.1, implying annual growth of 9.0%.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices – Overnight Price: $1.33

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

Volpara Health Technology's half-year result showed revenue of $9.5m, up 38% versus last year. Gross margin improved modestly to 91% while the operating loss of -$9.8m was higher than last year (-$8.0m).

The company did not provide any earnings guidance, as expected. Bell Potter notes there are multiple events that will be unfolding over the course of the second half which are likely to have a bearing on revenues including the roll out of a covid vaccine in the US.

Buy recommendation retained with the target unchanged at $1.75.

This report was published on November 26, 2020.

Target price is $1.75 Current Price is $1.33 Difference: $0.42
If VHT meets the Bell Potter target it will return approximately 32% (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 5.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.11.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.79.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $30.40

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

WiseTech Global stated the recovery which started in June has continued into FY21 with improving momentum. CargoWise user numbers were close to pre-covid levels by the end of July and have been trending upwards since.

The company has maintained its FY21 revenue guidance of $470-510m and operating income between $155-180m.

Bell Potter has upgraded its earnings forecasts for FY21-23 by 5-6% led by the improving momentum in the market, the growing market share of WiseTech and increased demand amongst large customers.

The Sell rating is maintained and the target price is increased to $27.5 from $25.

This report was published on November 27, 2020.

Target price is $27.50 Current Price is $30.40 Difference: minus $2.9 (current price is over target).
If WTC meets the Bell Potter target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.89, suggesting downside of -14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.90 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 0.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 121.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of -44.1%.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 108.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.60 cents and EPS of 33.80 cents.
At the last closing share price the estimated dividend yield is 0.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 89.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.3, implying annual growth of 47.0%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 73.6.

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

ACF ARX BGA BVS BWX CGF FPH HVN IRI MYX NAN PDL VHT WTC

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: BGA - BEGA CHEESE LIMITED

For more info SHARE ANALYSIS: BVS - BRAVURA SOLUTIONS LIMITED

For more info SHARE ANALYSIS: BWX - BWX LTD

For more info SHARE ANALYSIS: CGF - CHALLENGER LIMITED

For more info SHARE ANALYSIS: HVN - HARVEY NORMAN HOLDINGS LIMITED

For more info SHARE ANALYSIS: IRI - INTEGRATED RESEARCH LIMITED

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

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: PDL - PENDAL GROUP LIMITED

For more info SHARE ANALYSIS: VHT - VOLPARA HEALTH TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: WTC - WISETECH GLOBAL LIMITED