Australian Broker Call *Extra* Edition – Dec 16, 2020

Daily Market Reports | Dec 16 2020

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

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

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publicationmay not be up to date, or yet awaiting another update by FNArena'steam of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ABY ADH APT APX AQZ CKF DSK DTC EML GEM(2) GNC HAS HLS LOV MSB MXI PNV(2) QHL SHV(2) SSG STO ZBT

ABY ADORE BEAUTY GROUP LIMITED

Household & Personal Products - Overnight Price: $5.20

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

Shaw and Partners considers Adore Beauty Group's first trading update post-IPO very positive. The company upgraded its first-half forecast revenue by 7% to circa $95.2m, prompting the broker to upgradeits FY21 sales forecast by 7%.

The broker notes the group is focusedon its key revenue drivers and seems to be doing everything right.The growth trajectory isexpected to continue with a clear runway ahead.

Shaw deems the company well-positioned for long-term growth, with a very attractive and large addressable and fragmented market.

The target price rises to $8.30 from $8.25. Buy rating is retained.

This report was published on December 2, 2020.

Target price is $8.30 Current Price is $5.20 Difference: $3.1
If ABY meets the Shaw and Partners target it will return approximately 60% (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 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 104.00.

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

ADH ADAIRS LIMITED

Furniture & Renovation - Overnight Price: $3.46

Wilsons rates ((ADH)) as Overweight (1) -

Adairs' trading update for the first 23 weeks of the first half disclosed continuing growth in sales, achieved in the face of broader inventory shortages. Mockas inventory levels remain below plan.

Wilsons forecasts first-halfsales and operating income to be $241.3m and $58.3m with 12.2% sales growth expected in the second half. The company has guided to first-half sales of $235-$245m.

Overweight rating is maintained with a target price of $4.13.

The report was published on December 8, 2020.

Target price is $4.13 Current Price is $3.46 Difference: $0.67
If ADH meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 15.00 cents and EPS of 33.30 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.39.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 21.00 cents and EPS of 33.70 cents.
At the last closing share price the estimated dividend yield is 6.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.27.

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: $110.00

Goldman Sachs rates ((APT)) as Neutral (3) -

Goldman Sachs has madesignificant upgrades to its FY21-23 forecasts for Afterpay after reviewing the company's November update, which was ahead of its previous forecasts in each geography.

While expectingthe competition to buildup in 2021, especially with the launch of similar products from PayPal and Shopify, the broker notes Afterpay's service seems to be resonating with consumers in all geographies. An example is Australia & New Zealand which have seen strong improvements.

Neutral rating is retained with the target price rising to $99.90 from $94.40.

This report was published on December 3, 2020.

Target price is $99.90 Current Price is $110.00 Difference: minus $10.1 (current price is over target).
If APT meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $98.36, suggesting downside of -10.6%(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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2200.00.

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 887.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 550.00.

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 235.0.

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

APX APPEN LIMITED

IT & Support - Overnight Price: $24.62

Wilsons rates ((APX)) as Overweight (1) -

Appen has downgraded its operating income guidance due to some of its large customers strategically reallocating resources away from existing, larger projects.

Wilsons expects the impact to be short-term with demand over the mediumto long-term expected to return back to prior levels. The broker has downgraded its FY20-22 operating income forecasts by -15-20%.

Overweight rating is retained with the target price falling to $32.11 from $43.99.

This report was published on December 11, 2020.

Target price is $32.11 Current Price is $24.62 Difference: $7.49
If APX meets the Wilsons target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $31.82, suggesting upside of 29.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 9.50 cents and EPS of 39.20 cents.
At the last closing share price the estimated dividend yield is 0.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.1, implying annual growth of 44.8%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 48.2.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.50 cents and EPS of 58.40 cents.
At the last closing share price the estimated dividend yield is 0.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.7, implying annual growth of 38.4%.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 34.8.

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

AQZ ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics - Overnight Price: $3.80

Wilsons rates ((AQZ)) as Market Weight (3) -

Alliance Aviation Services' operational activity increased in the second half. The company has guided to a first-half profit before tax of $26m.Wilsons notes the guidance implies flights hours slightly above the broker's previous forecast.

Wilsons expects the competitive environment to heat up in the near-term as other airlines emerge from covid-enforced shutdowns. Even so, the broker is optimistic about Alliance, noting the companypossesses significant growth momentum and goodwill this year.

Margins are expected to remain circa 10% above pre-covid levels.

The broker retains its Market Weight rating with the target price rising to $3.70 from $3.30.

This report was published on December 11, 2020.

Target price is $3.70 Current Price is $3.80 Difference: minus $0.1 (current price is over target).
If AQZ meets the Wilsons target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.35, suggesting upside of 14.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 15.60 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of 1.5%.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 18.40 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of 18.2%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.0.

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


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