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

Daily Market Reports | Dec 16 2020

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

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)

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 upgrade its FY21 sales forecast by 7%.

The broker notes the group is focused on its key revenue drivers and seems to be doing everything right. The growth trajectory is expected 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. Mocka’s inventory levels remain below plan.

Wilsons forecasts first-half sales 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 made significant 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 expecting the competition to build up 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 medium to 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 company possesses 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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.14

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

Collins Foods delivered a strong first half result, observes Wilsons, with net profit growth of 15% driven by exceptional trading performance in KFC Australia.

Same-store sales growth in KFC Australia has continued at a strong pace early in the second half while the broker notes KFC Europe has regressed due to renewed covid restrictions.

Management has also confirmed progress on enhancing store profitability for Taco Bell with the store rollout recommencing. Continuing to see good value, Wilsons retains its Overweight rating with the target rising to $11.62 from $10.87.

The report was published on December 2, 2020.

Target price is $11.62 Current Price is $10.14 Difference: $1.48
If CKF meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in May.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 23.00 cents and EPS of 47.40 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.39.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 24.00 cents and EPS of 47.70 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.26.

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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $1.86

Canaccord Genuity rates ((DSK)) as Initiation of coverage with Buy (1) –

Canaccord Genuity initiates coverage of Dusk Group with a Buy rating and a target price of $2.25.

The company is an Australian specialty retailer of home fragrance products including candles, reed and ultrasonic diffusers, air purifiers, essential oils and fragrance-related homewares.

The company currently has 115 company-owned and operated stores across Australia, including a growing online presence via its website.

With FY20 sales of approximately $100m, the company estimates its share of the Australian home fragrance market at 22%.

Canaccord Genuity believes the company has been successful due to its national presence and focus on internal product development.

Additional reasons are investment in an engaging omni-channel shopping experience and Dusk rewards (the company’s ‘pay-to-join’ loyalty program which currently has over 550,000 members).

Given attractive store economics (payback under 12 months), the broker considers a key catalyst should be the store rollout (to 145 from 115 in Australia and 15 new stores in New Zealand).

This report was published on November 16, 2020.

Target price is $2.25 Current Price is $1.86 Difference: $0.39
If DSK meets the Canaccord Genuity target it will return approximately 21% (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 20.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 10.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.64.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 16.00 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 8.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.30.

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $1.33

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

A trading update for Damstra Holdings, the workplace management solutions provider, was overall ahead of Shaw and Partners estimates.

After completing the acquisition of Vault Intelligence (VLT), the company has reiterated its own guidance as well as  consolidated guidance for VLT (now included). Now FY21 revenue is expected to grow 60-70% versus 30-40% previously.

Importantly for the broker, the business is tracking well and the company has likely bought prudently.

The company has further advised that synergies have been upgraded by 25% to $5m and will be fully run-rating by the third quarter FY21.

According to the analyst, the company has multiple growth drivers including the fever detection product and a full covid spectrum and site tracking capability.

Additionally, in FY21 the company has added ports, education and client functions to an already strong infrastructure, utilities, construction, telecommunications and mining portfolio.

The Buy rating is maintained and the target price is increased to $2.43 from $2.36.

This report was published on November 17, 2020.

Target price is $2.43 Current Price is $1.33 Difference: $1.1
If DTC meets the Shaw and Partners target it will return approximately 83% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 26.60.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $4.11

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

Wilsons notes EML Payments' gift & incentives business is one of the most volatile segments, especially this year. The broker estimates the segment's influence over EML’s financials will dilute to 34% from 69% of revenue in FY21 from FY19.

Despite this, the broker considers the segment meaningful. A survey conducted by the broker concluded the business has the potential to surprise to the upside in FY21.

The Overweight rating and target price of $4.55 are unchanged.

This report was published on December 7, 2020.

Target price is $4.55 Current Price is $4.11 Difference: $0.44
If EML meets the Wilsons target it will return approximately 11% (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 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.37.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.78.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.19

Canaccord Genuity rates ((GEM)) as Downgrade to Hold from Buy (3) –

G8 Education's latest trading update was mixed, observes Canaccord Genuity.

While operational performance was positive, with year to date operating income of $98m well above Canaccord's estimated $76m for 2020, this was outweighed by concerns regarding underpayment of wages over a six-year period amounting to $50-$80m.

The net effect is the broker's 2021 operating income estimate remains relatively unchanged.

Rating is downgraded to Hold from Buy with the price target rising slightly to $1.45 from $1.42.

The report was published on December 10, 2020.

Target price is $1.45 Current Price is $1.19 Difference: $0.26
If GEM meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $1.09, suggesting downside of -8.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 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 14.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.5, implying annual growth of -52.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of -33.8%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.7.

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


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

G8 Education's latest update highlighted continuing wage cost issues which disappointed Wilsons. On the bright side, operational momentum was strong led by higher occupancy, traction in portfolio optimisation and the centre improvement program.

On account of an attractive balance sheet, better occupancy profile and impending divestment of poorly performing centres, Wilsons retains its Overweight rating with the target price falling to $1.60 from $1.91.

This report was published on December 8, 2020.

Target price is $1.60 Current Price is $1.19 Difference: $0.41
If GEM meets the Wilsons target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $1.09, suggesting downside of -8.1%(ex-dividends)
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 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.5, implying annual growth of -52.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of -33.8%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.7.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $4.36

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

The December 2020 ABARES crop report coupled with GrainCorp's harvest updates indicate an upward bias in consensus earnings in FY21-22, observes Bell Potter.

The 2020-21 winter crop forecast has been upgraded to 28.6mt from 24.4mt versus the broker's previous forecast of 27.9mt. Forecast for summer crop has been retained at 3.7mt. Net profit estimates have been upgraded for FY21-23 by 4-24%.

Buy rating is retained with the target price rising to $5.05 from $4.85.

This report was published on December 1, 2020.

Target price is $5.05 Current Price is $4.36 Difference: $0.69
If GNC meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $5.08, suggesting upside of 16.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 18.00 cents and EPS of 33.50 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of -82.5%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 8.00 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.1, implying annual growth of 3.4%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 16.1.

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

HAS    HASTINGS TECHNOLOGY METALS LTD

Rare Earth Minerals – Overnight Price: $0.16

Canaccord Genuity rates ((HAS)) as Initiation of coverage with Buy (1) –

Canaccord Genuity initiates coverage of Hastings Technology Metals with a speculative Buy rating and a target price of $0.25.

Hastings is a mineral development company with its primary asset the Yangibana Rare Earths project, located in the Gascoyne Region of Western Australia.

The Yangibana project hosts total resources of 21mt at 1.12% total rare earth oxide (TREO), with reserves of 12.2mt at 1.14% TREO.

The broker highlights a key feature of the project is a rare earth element distribution with a high concentration of higher value neodymium and praseodymium, essential for the manufacture of rare earth permanent magnets.

The high NdPr/TREO ratio results in a higher rare earth basket price versus peers and improved operating margins/project economics, explains the analyst.

Research by Canaccord suggests Yangibana is the only greenfield, ex-China, Light Rare Earth (LREE) development project capable of achieving production by 2023. This is a period when supply shortfalls in the NdPr market are considered likely by the broker.

This report was published on November 16, 2020.

Target price is $0.25 Current Price is $0.16 Difference: $0.09
If HAS meets the Canaccord Genuity target it will return approximately 56% (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 minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $3.91

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

Healius' investor update covering October-November was encouraging, observes Goldman Sachs. The company confirmed its capital management plans pos the sale of its Medical Centres. New profitability targets were set for FY23 with a margin upside of 300bps over FY19-23.

Goldman notes successful disposal of the Medical Centres has repaired the balance sheet and gives the company more strategic headroom than seen in many years. 

The broker considers Healius one of the few value-oriented stocks in the Australian healthcare sector and believes it should be considered a core holding ahead of 2021.

The Buy rating is reiterated with the target price rising to $4.40 from $3.16.

This report was published on December 9, 2020.

Target price is $4.40 Current Price is $3.91 Difference: $0.49
If HLS meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.11, suggesting upside of 5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 9.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of N/A.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.3, implying annual growth of -19.9%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 22.6.

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

LOV    LOVISA HOLDINGS LIMITED

Luxury – Overnight Price: $10.78

Canaccord Genuity rates ((LOV)) as Hold (3) –

Lovisa Holdings is set to more than double its presence in Europe by acquiring 84 retail stores from German accessories wholesaler, beeline. The company will be assuming the lease obligations, fit-outs and store team for negligible consideration.

Canaccord Genuity believes this deal enables the company to benefit from the work of securing appropriate sites (already done), while also trading with leases that will be closer to renewal than if the company rolled out new stores itself.

Against an uncertain global backdrop with fairly full forward multiples, Canaccord maintains there are better risk/reward opportunities in either online global or domestic retailers.

The analyst adjusts FY21-23 EPS forecasts by -1%, 18% and 20%, respectively.

The Hold rating is unchanged and the target is increased to $11.10 from $7.00.

This report was published on November 16, 2020.

Target price is $11.10 Current Price is $10.78 Difference: $0.32
If LOV meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $12.27, suggesting upside of 13.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 13.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.5, implying annual growth of 112.3%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 47.9.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 29.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.1, implying annual growth of 69.3%.
Current consensus DPS estimate is 23.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 28.3.

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

MSB    MESOBLAST LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.85

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

Mesoblast has sold its rights to remestemcel-L to Europe's big Pharma Novartis. Mesoblast will receive US$50m upfront along with receiving up to US$50m on attaining certain manufacturing milestones related. 

Bell Potter notes over the next 12 months, the company expects to receive US$32.5m in milestones from partner Grunenthal for back pain product and US$105m from partner Novartis

The Buy rating is maintained with the target rising to $7.40 from $7.00.

This report was published on November 30, 2020.

Target price is $7.40 Current Price is $3.85 Difference: $3.55
If MSB meets the Bell Potter target it will return approximately 92% (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 10.62 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.26.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 13.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.46.

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

MXI    MAXITRANS INDUSTRIES LIMITED

Automobiles & Components – Overnight Price: $0.30

Canaccord Genuity rates ((MXI)) as Upgrade to Buy from Hold (1) –

MaxiTrans Industries has provided guidance for first half underlying profit (NPBT) of $7.2-8.3m. This represents a significant improvement on the previous corresponding period, notes Canaccord Genuity.

The broker believes the result reflects a focus on reducing overheads during FY20 and ongoing operational efficiencies.

The analyst highlights production volume is improving across the Trailer Solutions business, and the MaxiParts business continues to show positive momentum.

Canaccord lifts EPS forecasts for FY21 to 5c from 1c, and for FY22 to 4c from 2c.

On the back of an improved year-to-date performance, Canaccord increases its target price to $0.45 from $0.32.

The rating is upgraded to Buy from Hold.

This report was published on November 16, 2020.

Target price is $0.45 Current Price is $0.30 Difference: $0.15
If MXI meets the Canaccord Genuity target it will return approximately 50% (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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.82

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

Hold rating is retained with the target rising to $3.20 from $2.40.

Bell Potter notes Polynovo is bringing development for its breast augmentation and reconstruction product suite in-house. The company is no longer in an agreement with its US partner Establishment Labs for the research and development for the products.

Bell Potter believes this will give Polynovo more control over its product development and timelines but on the flipside, will require a level of investment that was not previously included in the broker's forecasts. The broker views this announcement as net neutral for now.

This report was published on December 1, 2020.

Target price is $3.20 Current Price is $3.82 Difference: minus $0.62 (current price is over target).
If PNV meets the Bell Potter target it will return approximately minus 16% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1910.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 224.71.

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


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

Wilsons maintains its Overweight rating on Polynovo with the target lifted to $4.00 from $3.35.

Polynovo's bid to diversify beyond Novosorb BTM is enhanced by the company taking back its breast reconstruction portfolio from Establishment Labs and planning an expedited development campaign, assesses Wilsons.

Furthermore, the addition of GPO/IDN contract access along with the Syntrel (hernia) launch next year will see Polynovo build new channels.

This report was published on December 2, 2020.

Target price is $4.00 Current Price is $3.82 Difference: $0.18
If PNV meets the Wilsons target it will return approximately 5% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1273.33.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 106.11.

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

QHL    QUICKSTEP HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $0.08

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

Quickstep Holdings has announced the acquisition of Boeing Defence Australia’s aerospace maintenance, repair and overhaul (MRO) capability based in Melbourne for $2.64m (debt-funded).

Post-acquisition, the company expects to be able to offer a broad spectrum of manufacturing and design capability to its customers.

Canaccord Genuity believes the acquisition aligns with management’s strategy of diversifying the revenue base of the business from purely build to print into MRO, which is higher gross margin.

Separately, the company and Boeing Defence Australia have agreed to commence discussions on a long-term agreement that would develop a broader, ongoing collaboration in both the military and commercial aerospace segments.

The broker views this as a continuation of the progression of this relationship, albeit it may indicate a modest acceleration of the timeline.

The Buy rating and target of $0.14 are unchanged.

This report was published on November 14, 2020.

Target price is $0.14 Current Price is $0.08 Difference: $0.06
If QHL meets the Canaccord Genuity target it will return approximately 75% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 80.00.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $5.20

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

Select Harvests' FY20 net profit at $25m was slightly ahead of Bell Potter's estimated $23.6m. Post the result, Bell Potter has downgraded its net profit forecasts for FY21-22 by -15% reflecting a slower release of water cost pressures and lower almond price assumption.

The company did not provide any formal guidance on almond prices or volumes for FY21.

The Hold rating is intact with the target price reducing to $6.10 from $6.25.

This report was published on November 30, 2020.

Target price is $6.10 Current Price is $5.20 Difference: $0.9
If SHV meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 14.00 cents and EPS of 22.20 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.42.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 18.00 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.81.

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


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

Select Harvests confirmed a significant earnings decline in FY20 led by lower almond prices and higher water costs.

Wilsons expects total almond production costs to decline over the medium-term with lower water costs and scale benefits expected to offset the unwind of cost capitalisation of the orchards.

The broker continues to assume a recovery in the almond price although is uncertain about the timing. This leads to a downgrade in the FY21 net profit forecast of -26%.

Wilsons retains its Market Weight rating with a target price at $6.32.

This report was published on December 1, 2020.

Target price is $6.32 Current Price is $5.20 Difference: $1.12
If SHV meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 9.90 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.89.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 24.50 cents and EPS of 44.50 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.69.

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

SSG    SHAVER SHOP GROUP LIMITED

Household & Personal Products – Overnight Price: $1.06

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

Macquarie observes Shaver Shop Group has been very consistent during the last 27 months with five consecutive strong results in a row, from the first half of FY19 to the second quarter of FY21 to date. 

The group acquired the last six franchised stores for $13m, funded from its net cash position of $21m, which are expected to be immediately earnings accretive.

FY21-22 earnings forecasts have been upgraded by circa 30%, Target price rises to $1.30 from $1.10 with a Buy recommendation.

This report was published on December 4, 2020.

Target price is $1.30 Current Price is $1.06 Difference: $0.24
If SSG meets the Shaw and Partners target it will return approximately 23% (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 5.00 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.72.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 7.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.83.

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

STO    SANTOS LIMITED

NatGas – Overnight Price: $6.39

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

Looking at Santos' investor day update, Shaw and Partners notes the company has done a good job of maintaining performance across its base business. Going ahead, the broker believes the company is positioning itself well for a period of disciplined growth.

Santos lowered its 2020 production cost guidance to US$8-8.50/boe, slightly lower than Shaw's expected US$8.6/boe, while upgrading the production guidance to 87-89mmboe, slightly higher than the broker's 87.5mmboe.

Buy rating reaffirmed with a target price of $6.00.

This report was published on December 2, 2020.

Target price is $6.00 Current Price is $6.39 Difference: minus $0.39 (current price is over target).
If STO meets the Shaw and Partners target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.75, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 14.84 cents and EPS of 28.51 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of N/A.
Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 30.7.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 7.86 cents and EPS of 32.29 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of 56.7%.
Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 19.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ZBT    ZEBIT INC

Business & Consumer Credit – Overnight Price: $1.01

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

Shaw and Partners retains its Buy recommendation on Zebit and a target price of $2.00.

Shaw notes Zebit has set a solid track record, generating circa US$200m in sales since its incorporation in 2015. This translates to historical growth rates of circa 100% per annum with all key operating metrics strong and improving significantly over time.

Total registered users were up from 143k in FY17 to 807k in FY20 with gross margins improving from to 27.2% in FY20 from 18.7% in FY17. Some key drivers include reducing customer acquisition cost, optimisation of approval rates and lower credit losses. 

Historically, December has been the strongest trading month and the broker estimates the month will contribute about 40% of the fourth-quarter sales.

This report was published on December 7, 2020.

Target price is $2.00 Current Price is $1.01 Difference: $0.99
If ZBT meets the Shaw and Partners target it will return approximately 98% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 9.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.10.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.27.

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

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

For more info SHARE ANALYSIS: ABY - ADORE BEAUTY GROUP LIMITED

For more info SHARE ANALYSIS: ADH - ADAIRS LIMITED

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: APX - APPEN LIMITED

For more info SHARE ANALYSIS: AQZ - ALLIANCE AVIATION SERVICES LIMITED

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: DSK - DUSK GROUP LIMITED

For more info SHARE ANALYSIS: DTC - DAMSTRA HOLDINGS LIMITED

For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

For more info SHARE ANALYSIS: GNC - GRAINCORP LIMITED

For more info SHARE ANALYSIS: HAS - HASTINGS TECHNOLOGY METALS LIMITED

For more info SHARE ANALYSIS: HLS - HEALIUS LIMITED

For more info SHARE ANALYSIS: LOV - LOVISA HOLDINGS LIMITED

For more info SHARE ANALYSIS: MSB - MESOBLAST LIMITED

For more info SHARE ANALYSIS: MXI - MAXITRANS INDUSTRIES LIMITED

For more info SHARE ANALYSIS: PNV - POLYNOVO LIMITED

For more info SHARE ANALYSIS: QHL - QUICKSTEP HOLDINGS LIMITED

For more info SHARE ANALYSIS: SHV - SELECT HARVESTS LIMITED

For more info SHARE ANALYSIS: SSG - SHAVER SHOP GROUP LIMITED

For more info SHARE ANALYSIS: STO - SANTOS LIMITED

For more info SHARE ANALYSIS: ZBT - ZEBIT, INC