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Australian Broker Call *Extra* Edition – Dec 23, 2020

Daily Market Reports | Dec 23 2020

This story features ADACEL TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: ADA

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)

ADA   ADI   ALU   APE   APX   CCX   CGC   CIP   DOW   EVS   GEM   INA   JBH   KGN   LIC   LNK   MAD   MAQ   MCP   MQG   MTS   NEC   PFP   PLT   PSI   PWH   QAN   QIP   SDV   SYD   TLX   TNE   VEA   VTH   WHC  

ADA    ADACEL TECHNOLOGIES LTD

Software & Services – Overnight Price: $0.92

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

Adacel Technologies has received an additional order valued at more than US$2.7m from an existing customer. The order is for the next 12 months and Bell Potter assumes only a portion will fall in FY21 with the remainder in FY22.

The broker's forecasts remain intact as it continues to expect FY21 profit before tax of $6.7m, well within the guidance range of $6.5-7m.

Buy rating maintained. Target price is increased to $1.15 from $1.05.

This report was published on December 10, 2020.

Target price is $1.15 Current Price is $0.92 Difference: $0.23
If ADA 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 4.50 cents and EPS of 6.50 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.15.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 5.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.78.

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

ADI    APN INDUSTRIA REIT

REITs – Overnight Price: $2.99

Moelis rates ((ADI)) as Downgrade to Hold from Buy (3) –

The APN Industria REIT has acquired three assets, one in Adelaide, one near Brisbane and one near Melbourne for a combined consideration of $108.1m. The acquisitions were funded via a mix of debt and equity.

The REIT also completed its latest asset valuation process for the entire portfolio, noting an uplift of circa 8% for 2020.

Looking at the recent share price strength, Moelis downgrades its rating to Hold from Buy with the target price rising to $3.03 from $2.81.

This report was published on December 11, 2020.

Target price is $3.03 Current Price is $2.99 Difference: $0.04
If ADI meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.30 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.18.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.30 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.74.

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

ALU    ALTIUM LIMITED

Hardware & Equipment – Overnight Price: $34.36

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

Altium will be divesting its tasking business for US$110m to FSN Capital, a European private equity firm. Expected to close in the first quarter of 2021, the divestment will help Altium focus on the adoption of Altium 365, considered the "transformational growth engine" for the business.

Goldman Sachs notes the transaction will likely have a one-time positive impact on earnings and would further strengthen Altium's balance sheet.

Neutral rating is reaffirmed with a target price of $36.35.

This report was published on December 14, 2020.

Target price is $36.35 Current Price is $34.36 Difference: $1.99
If ALU meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $36.46, suggesting upside of 6.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 60.97 cents and EPS of 62.42 cents.
At the last closing share price the estimated dividend yield is 1.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of N/A.
Current consensus DPS estimate is 50.1, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 62.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 78.39 cents and EPS of 71.13 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.3, implying annual growth of 15.5%.
Current consensus DPS estimate is 56.9, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 54.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $12.96

Moelis rates ((APE)) as Buy (1) –

Eagers Automotive posted a materially stronger than expected update, guiding to FY20 profit before tax of $195-$205m. The guidance excludes the impact of the lease accounting changes and the benefits of JobKeeper.

Also, the company will be divesting Daimler Trucks to US-based truck operator Velocity Vehicle Group for a consideration of $108m. The deal is expected to complete in the first quarter of FY21.

Moelis is pleased the company has decided to get rid of the "lumpier" trucks earnings and believes the divestment will help Eagers become more efficient and have a more consistent earnings stream.

Moelis maintains its Buy rating with the target price increased to $16.35 from $13.50.

This report was published on December 15, 2020.

Target price is $16.35 Current Price is $12.96 Difference: $3.39
If APE meets the Moelis target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $13.88, suggesting upside of 7.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of 48.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.1, implying annual growth of N/A.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 48.70 cents and EPS of 66.60 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.3, implying annual growth of 29.5%.
Current consensus DPS estimate is 39.6, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.8.

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

APX    APPEN LIMITED

IT & Support – Overnight Price: $24.54

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

Appen has downgraded its 2020 operating income guidance to $106-$109m from $125-$130m driven by the lack of spending by customers that is usually expected at this time of year, mainly on account of the pandemic.

This impact is particularly notable in California where most of Appen's biggest customers are located.

Bell Potter considers this situation more temporary than permanent and expects a return to more normal spending patterns in 2021-22. Earnings forecasts reduced by circa -16% for 2020-22.

Hold rating retained. Target falls to $27.50 from $33.75.

This report was published on December 11, 2020.

Target price is $27.50 Current Price is $24.54 Difference: $2.96
If APX meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $31.82, suggesting upside of 29.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 10.00 cents and EPS of 51.40 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.74.

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 48.0.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 14.00 cents and EPS of 69.10 cents.
At the last closing share price the estimated dividend yield is 0.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.51.

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 34.7.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $3.58

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

Goldman Sachs highlights City Chic Collective's acquisition of Evans (in the UK) is consistent with the company's goal of building a global footprint focused on the plus-sized market.

The broker estimates the acquisition price is broadly in line with what City Chic would have had to pay to acquire Catherines. The deal delivers strategic benefits including immediate scale in the UK and a strong platform for cross-selling Avenue and City Chic products, adds the broker.

Goldman Sachs retains its Buy rating with the target price rising to $4.25 from $4.00.

This report was published on December 21, 2020.

Target price is $4.25 Current Price is $3.58 Difference: $0.67
If CCX meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $3.95, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of 85.4%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 40.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.00 cents and EPS of 14.00 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 25.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 25.8%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 32.0.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $4.01

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

Costa Group Holdings has signed a lease implementation deed for the farms it currently leases from Vitalharvest Freehold Trust ((VTH)). The new agreement would provide long term certainty for the group, notes Goldman Sachs.

The company expects the new leases to be value accretive over the medium-longer term. The broker believes Costa is capable of potentially improving earnings from the farms tied to this agreement over the medium to long term. 

Goldman Sachs maintains its Neutral rating with the target price rising to $3.45 from $3.30.

This report was published on December 18, 2020.

Target price is $3.45 Current Price is $4.01 Difference: minus $0.56 (current price is over target).
If CGC meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.63, suggesting downside of -9.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 8.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 35.8.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 51.8%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 23.6.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.08

Moelis rates ((CIP)) as Upgrade to Buy from Hold (1) –

Centuria Industrial REIT has acquired three cold storage logistics facilities for a combined $171.1m and a combined weighted average lease expiry of 6.4 years. The acquisitions were funded via existing debt facilities and a circa $125m capital raise.

Moelis notes when combined with the October acquisition of Ormeau, earnings per unit increase moderately. The REIT also divested an asset at Boondall for $39.6m.

With key exposures to manufacturing, transport, logistics and consumer staples, Centurial Industrial is considered a highly attractive exposure and Moelis upgrades its rating to Buy from Hold with the target price unchanged at $3.33.

This report was published on December 9, 2020.

Target price is $3.33 Current Price is $3.08 Difference: $0.25
If CIP meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.31, suggesting upside of 7.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.00 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of -20.0%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 17.90 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of -2.2%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 17.5.

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

DOW    DOWNER EDI LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $5.30

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

Downer EDI will sell 70% of its laundries business to Adamantem Capital for $155m. Goldman Sachs notes the announcement is consistent with the company's previously announced strategy to move to a more capital-light, services-focused business model.

The broker continues to see value in Downer's position as a macro-insulated urban services provider and retains a Buy ratiing. The target rises to $5.70 from $5.10.

This report was published on December 2, 2020.

Target price is $5.70 Current Price is $5.30 Difference: $0.4
If DOW meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $5.46, suggesting upside of 3.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 15.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.8, implying annual growth of N/A.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 27.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 21.9%.
Current consensus DPS estimate is 22.4, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 12.9.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.18

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

Envirosuite considers the EMS business acquisition "outstanding" with the business more resilient than expected. On the flip side, the company noted delays in new capital spend by some airport clients which is impacting its project revenue.

Bell Potter does not expect the company's non-recurring revenue to increase and led by this expectation, has reduced its revenue forecasts for FY21-23 by -1-6%.

The Buy rating and target price of $0.275 are unchanged.

This report was published on November 30, 2020.

Target price is $0.28 Current Price is $0.18 Difference: $0.095
If EVS meets the Bell Potter target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 180.00.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.14

Moelis rates ((GEM)) as Buy (1) –

G8 Education's occupancy recovered in December versus August, albeit remaining below last year levels. Moelis is pleased with the recovery (ex-Victoria) and believes occupancy may return to 2019 levels by around the first half of 2022.

Year to date operating performance was strong, observes Moelis. The only blip was the one-off cost of $50-80m as part of G8's employee payment remediation program (pre-tax).

Moelis reaffirms its Buy rating and target price of $1.38.

This report was published on December 9, 2020.

Target price is $1.38 Current Price is $1.14 Difference: $0.24
If GEM meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.09, suggesting downside of -4.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.90.

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 17.5.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.80 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.52.

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 3.3%.
Current consensus EPS estimate suggests the PER is 26.5.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.84

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

Ingenia Communities Group's latest update was positive regarding its holidays business.

With forward bookings up 70% (in value terms) versus last year and revenue expected to lift by 10% for the first half, the group's holiday assets are performing strongly, observes Goldman Sachs.

The broker expects the current strength to continue over the forecast period and sees upside over the medium term.

Buy rating. Target price rises to $5.50 from $5.45.

This report was published on December 15, 2020.

Target price is $5.50 Current Price is $4.84 Difference: $0.66
If INA meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.00.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 25.00 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 19.36.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $47.68

Bell Potter rates ((JBH)) as Upgrade to Hold from Sell (3) –

Bell Potter expects negative like for like sales for JB Hi-Fi from the fourth quarter of FY21 onwards as the company begins to cycle significant comps. Coupled with this are macro risks including increased unemployment post-JobKeeper, risks of renewed restrictions and economic stress.

Bell Potter expects a circa 28% year on year sales surge in the first half, followed by a -18% contraction in the second half.

Noting the stock's valuation is fair at current levels after the share price fell by almost -14%, Bell Potter upgrades its rating to Hold from Sell. The target rises to $43.65 from $43.50.

This report was published on December 10, 2020.

Target price is $43.65 Current Price is $47.68 Difference: minus $4.03 (current price is over target).
If JBH meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $48.39, suggesting upside of 1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 192.70 cents and EPS of 287.30 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 315.6, implying annual growth of 19.9%.
Current consensus DPS estimate is 209.2, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 15.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 171.50 cents and EPS of 257.70 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 265.3, implying annual growth of -15.9%.
Current consensus DPS estimate is 179.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 18.0.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

KGN    KOGAN.COM LTD

Retailing – Overnight Price: $18.06

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

Kogan.com has acquired Mighty Ape, a New Zealand based online retailer,  for $122.4m. Mighty Ape is currently New Zealand’s highest-ranked retailer for customer experience and expects $137.7m in sales in FY21, up 43.7% versus last year.

Canaccord Genuity notes many strategic rationales for the acquisition including the potential for huge revenue and cost synergies. The broker estimates potential immediate opex synergies of $2m. FY21-23 group sales forecasts have been increased by 5-12%.

The broker maintains a Buy rating with the target price rising to $25 from $24.

This report was published on December 3, 2020.

Target price is $25.00 Current Price is $18.06 Difference: $6.94
If KGN meets the Canaccord Genuity target it will return approximately 38% (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 42.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.10.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 50.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.44.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $12.49

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

Lifestyle Communities has acquired a site at Woodlea in Victoria. This acquisition will be its twenty-third community and seventh in Melbourne's North West, allowing the company to maintain a strong pipeline in the high-growth area.

The community is expected to have circa 180 homes with settlements from late 2022. According to Goldman Sachs, the acquisition strengthens Lifestyle's pipeline with six communities in planning and another five being developed.

The broker expects the company to be settling about 425 new homes per year on average over the medium term. 

Goldman Sachs maintains the Buy rating. The target price is increased to $12.35 from $11.80.

This report was published on December 21, 2020.

Target price is $12.35 Current Price is $12.49 Difference: minus $0.14 (current price is over target).
If LIC meets the Goldman Sachs target it will return approximately minus 1% (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 6.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 0.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.85.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 0.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.53.

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

LNK    LINK ADMINISTRATION HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $5.55

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

Link Administration issued a first-half operating net profit after tax and amortisation guidance of $57m, in line with Goldman Sachs's estimated $57.1m.

Further, Goldman Sachs notes the group’s efficiency program appears to be tracking to schedule with the global transformation program targeting $75m in annualised cost-out by the end of FY22.

While the higher efficiency targets pose upside risk to the broker's medium-term forecasts, Goldman Sachs wants to see the company attain its near-term efficiency milestones before becoming too optimistic.

Neutral rating retained with the target price rising slightly to $4.39 from $4.38.

The report was first published on December 9, 2020.

Target price is $4.39 Current Price is $5.55 Difference: minus $1.16 (current price is over target).
If LNK meets the Goldman Sachs target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.51, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.80%.
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 20.2, implying annual growth of N/A.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 27.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 15.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.2, implying annual growth of 44.6%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.0.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.93

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

Mader Group's operating income margins have improved and are expected to return to pre-covid levels in the second half. The group is expanding its trade upgrade apprenticeship program to target unfilled demand in Western Australia due to tight labour markets.

A return to international travel would be a material earnings tailwind for the company, suggests Bell Potter. Also, a recovery in coal markets could see better-operating conditions over the next 12 months.

Bell Potter reaffirms its Buy rating with the target rising to $1.26 from $1.25.

This report was published on November 30, 2020.

Target price is $1.26 Current Price is $0.93 Difference: $0.33
If MAD meets the Bell Potter target it will return approximately 35% (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 5.08 cents and EPS of 13.65 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.82.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.66 cents and EPS of 17.27 cents.
At the last closing share price the estimated dividend yield is 6.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.38.

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

MAQ    MACQUARIE TELECOM GROUP LIMITED

Telecommunication – Overnight Price: $52.99

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

Macquarie Telecom provided first-half operating income guidance of $36-$37m and expects its second half will be relatively flat compared to the first due to investment in sales and operational resources.

Bell Potter has raised its FY21 operating income forecast by 7.2% to $72.8m. The broker has also increased its capex forecasts in anticipation of the group beginning to build IC3 West by FY23.

While historically operating on a net cash position, the higher focus on wholesale co-location is expected to see Macquarie Telecom run a material net debt position, anticipates the broker.

The Hold rating is unchanged and the target price is increased to $55.55 from $55.25.

This report was published on December 3, 2020.

Target price is $55.55 Current Price is $52.99 Difference: $2.56
If MAQ meets the Bell Potter target it will return approximately 5% (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 58.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.27.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 34.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 152.71.

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

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $1.39

Moelis rates ((MCP)) as Buy (1) –

McPherson's CEO and Managing Director, Laurie McAllister resigned (effective 9th of December) with non-executive director, Grant Peck appointed as interim CEO while the board conducts a search for a permanent CEO.

The board indicated that post the Global Therapeutics acquisition, the company is in a strong position for future growth. Moelis does not regard the resignation as an indication of more bad news to come.

The Buy rating is maintained with the target price falling to $1.30 from $3.39.

This report was published on December 10, 2020.

Target price is $1.30 Current Price is $1.39 Difference: minus $0.09 (current price is over target).
If MCP meets the Moelis target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.50 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 5.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.64.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.20 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.53.

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

MQG    MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $137.25

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

Macquarie Group will acquire the US-based asset and wealth manager Waddell & Reed for US$1.7bn via Macquarie Asset Management. The deal is expected to be complete by mid-2021 post which the wealth management business will be sold to LPL Financial.

Bell Potter notes the acquisition is consistent with the group’s strategy to develop a global asset management capability. The broker has increased the group's expected profit in FY24 and ahead by 3% when cost synergies are expected to fully kick in.

The broker retains its Buy rating with the target price rising to $150 from $148.

The report was published on December 3, 2020.

Target price is $150.00 Current Price is $137.25 Difference: $12.75
If MQG meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $137.83, suggesting upside of 0.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 355.00 cents and EPS of 589.00 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 616.0, implying annual growth of -22.1%.
Current consensus DPS estimate is 380.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 525.00 cents and EPS of 812.00 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 786.8, implying annual growth of 27.7%.
Current consensus DPS estimate is 544.3, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.4.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.50

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

Metcash's first-half results showed operating income at $203m, 10.5% ahead of Goldman Sachs's estimate. The key surprise was the hardware segment with the underlying operating income margin growth strong at circa 130bps.

In the short term, Goldman Sachs expects earnings growth to remain strong across all divisions led by covid-driven demand. As working capital normalises, the company's strong net cash position is expected to reduce to $60m by the end of FY21.

The Buy rating is unchanged with the target price rising to $3.92 from $3.45.

This report was published on December 7, 2020.

Target price is $3.92 Current Price is $3.50 Difference: $0.42
If MTS meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.88, suggesting upside of 10.8%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 4.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.7, implying annual growth of N/A.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 17.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 4.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.9, implying annual growth of -7.3%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.3.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $2.29

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

Nine Entertainment's first half to date update included operating income guidance of more than 40% growth versus last year, ahead of the previous guidance of 30% growth and Goldman Sachs's previous first-half estimate of $320m.

The positive update is supported by Nine's metro FTA TV revenue that is expected to grow by 20% in the second quarter or 1% for the first half. Australian advertising spend has bounced back strongly and TV revenue is up 15%. 

The Buy rating is unchanged with the target price rising to $2.95 from $2.25.

This report was published on December 17, 2020.

Target price is $2.95 Current Price is $2.29 Difference: $0.66
If NEC meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $2.73, suggesting upside of 19.2%(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 13.00 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of N/A.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.9, implying annual growth of 5.7%.
Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 17.8.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $2.89

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

Bell Potter shares its forecasts for the first half of Propel Funeral Partners. The broker expects first-half revenue to be $58.4m, up circa 2.5% versus last year. Based on a 75-85% payout ratio, a dividend of 5.8c is expected.

The broker has a positive view on the company based on the acquisition opportunities available to it, a fragmented market and an expected normalisation in funeral volumes.

The Buy rating is retained with the target price unchanged at $3.50.

This report was published on December 11, 2020.

Target price is $3.50 Current Price is $2.89 Difference: $0.61
If PFP meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.80 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 4.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.77.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.10 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.80.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.04

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

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

Plenti Group secured a $100m warehouse facility and has upsized its exiting Automotive warehouse facility by $125m. Wilsons notes the facility will support the group's growth in personal loan and renewable energy loan originations and reduce its funding costs.

No change to the earnings forecast.

This report was published on December 11, 2020.

Target price is $1.50 Current Price is $1.04 Difference: $0.46
If PLT meets the Wilsons target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.76.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.52.

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

PSI    PSC INSURANCE GROUP LIMITED

Insurance – Overnight Price: $3.02

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

PSC Insurance Group recently raised $60m, with the funds to be used for providing additional liquidity for near term acquisition opportunities. The group highlighted it has a pipeline of commercial broking acquisitions under evaluation in Australia and the UK.

Bell Potter notes post-raising, the insurance group has ample funding headroom to supplement growth via acquisitions over the medium-term while continuing to be supported by a rate hardening across a range of commercial insurance lines.

Buy rating is retained with the target price rising to $3.40 from $3.20.

This report was published on December 5, 2020.

Target price is $3.40 Current Price is $3.02 Difference: $0.38
If PSI meets the Bell Potter target it will return approximately 13% (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 9.20 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.42.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.50 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.27.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $4.60

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

PWR Holdings expects first-half operating income of $10-$11.5m representing growth of 32-51% versus last year.

The latest guidance is above the one provided in October that pegged operating income as broadly the same as last year's $7.6m. Hence, Bell Potter is pleased with the update even though the latest guidance is still below its forecast of $12.6m.

The company repaid $5m of debt and now has over $12m in cash. Buy rating maintained. Target price is unchanged at $5.25.

This report was published on December 11, 2020.

Target price is $5.25 Current Price is $4.60 Difference: $0.65
If PWH meets the Bell Potter target it will return approximately 14% (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 8.80 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.29.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.70 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.54.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $4.80

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

The latest trading update from Qantas disclosed a revenue drop of at least- $11bn in FY21. International travel is expected to remain at a standstill until July 2021 and the airline thinks it will take years to fully recover.

For the first half of FY21, Qantas expects to be close to break-even at the operating income and net cash flow positive in the second half. The airline has decided to outsource the remainder of its ground handling operations to deliver savings of $100m pa.

Domestic demand is forecast to increase to 68% of pre-covid levels in December, expected to rise to almost 80% in the third quarter. Qantas hopes to maintain its domestic market share of above 70%.

Buy rating retained with a target price of $5.28.

This report was published on December 3, 2020.

Target price is $5.28 Current Price is $4.80 Difference: $0.48
If QAN meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $5.21, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -51.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 46.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of N/A.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 17.5.

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

QIP    QANTM INTELLECTUAL PROPERTY LIMITED

Legal – Overnight Price: $1.12

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

Underpinned by industry drivers that are relatively resilient, Bell Potter observes the impact of the pandemic on Qantam Intellectual Property's earnings has been limited.

The company has come up with a business transformation plan that, assesses the broker, would provide an avenue to the company to strengthen its margin performance and in turn offer to the broker's medium and long term forecasts.

The Buy rating is unchanged with a target price of $1.60.

This report was published on November 30, 2020.

Target price is $1.60 Current Price is $1.12 Difference: $0.48
If QIP meets the Bell Potter target it will return approximately 43% (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 7.00 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.98.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 7.60 cents and EPS of 10.60 cents.
At the last closing share price the estimated dividend yield is 6.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.57.

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

SDV    SCIDEV LTD

Overnight Price: $0.78

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

Canaccord Genuity initiates coverage of SciDev with a Buy recommendation and a price target of $1.14.

SciDev operates in the chemicals industry and has clients in the mining, oil and gas, construction and water treatment industries. The company's solutions involve efficient waste management enabling clients to save money along with increasing plant productivity.

The company generates revenue by providing advisory services to clients around chemical dosage optimisation, leasing technology that measures metrics in the processing procedure and selling the chemicals that are used in the separation process.

The broker also believes SciDev will complement its high organic growth rate with bolt-on acquisitions. Furthermore, the company is supported by sustainability tailwinds and the broker believes the trends around climate change and water scarcity should support the company's growth due to the associated social benefits.

The business model has seen revenue increase by 8x over the last two years and the broker expects this to continue in the near term.

This report was published on December 10, 2020.

Target price is $1.14 Current Price is $0.78 Difference: $0.36
If SDV meets the Canaccord Genuity target it will return approximately 46% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 78.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

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

SYD    SYDNEY AIRPORT HOLDINGS LIMITED

Infrastructure & Utilities – Overnight Price: $6.32

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

Sydney Airport will not be paying any distribution for the year, which does not surprise Goldman Sachs.

Passenger data for November showed total passengers declining by -91% versus last year, a slight increase from last month's -94.3%. Domestic passenger numbers were down -87% while International travellers fell -96.9%.

Sydney Airport Holdings' rating is retained at Buy with a target price of $7.02.

This report was published on December 17, 2020.

Target price is $7.02 Current Price is $6.32 Difference: $0.7
If SYD meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $6.08, suggesting downside of -3.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.5, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 13.60 cents and EPS of 0.00 cents.
At the last closing share price the estimated dividend yield is 2.15%.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.1, implying annual growth of N/A.
Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 301.0.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.88

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

Wilsons maintains its Overweight rating with the target rising to $4.76.

Following Telix’s pre-investigational new drug meeting, the US FDA came back early with its feedback. Telix will now move ahead with a smaller, cleaner phase III trial design, Wilsons notes.

The ProstACT trial will enroll about 390 patients with PSMA-expressing, metastatic, castrate resistant prostate cancer. The trial will compare the standard of care plus or minus personalised dosing with TLX591.

The report was published on December 3, 2020.

Target price is $4.76 Current Price is $3.88 Difference: $0.88
If TLX meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
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 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 121.25.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.60.

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

TNE    TECHNOLOGYONE LIMITED

IT & Support – Overnight Price: $8.32

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

Bell Potter has increased its SaaS fees forecasts for TechnologyOne while decreasing its on-premise annual licences forecasts. The net impact is a modest reduction in its total revenue forecasts.

Even so, the broker sees this as positive considering the higher share of SaaS fees implies improving revenue mix quality and higher margins. Change to earnings forecasts is negligible.

Bell Potter maintains its Hold rating with a target price of $10.00.

This report was published on November 30, 2020.

Target price is $10.00 Current Price is $8.32 Difference: $1.68
If TNE meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $9.20, suggesting upside of 10.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 14.20 cents and EPS of 22.70 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of 15.4%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 36.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 16.30 cents and EPS of 25.80 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 9.6%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 33.3.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $1.94

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

The federal government's announced interim cash subsidy for Australian refiners, commencing from January 1, 2021 till July 1, 2021, will support the Australian refining industry in the face of continued weak refining margins, believes Goldman Sachs.

The broker estimates the subsidy would add circa $30m to Goldman Sachs's 2021 operating income forecast for Viva Energy Group. The group remains the broker's preferred pick to this thematic and also trades at a discount to its closest peer Ampol ((ALD)).

Buy rating is maintained. Target price rises to $2.40 from $2.15.

This report was released on December 14, 2020.

Target price is $2.40 Current Price is $1.94 Difference: $0.46
If VEA meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $2.17, suggesting upside of 11.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 97.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, implying annual growth of -87.9%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 277.1.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of 757.1%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 32.3.

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

VTH    VITALHARVEST FREEHOLD TRUST

Real Estate – Overnight Price: $0.97

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

Bell Potter downgrades its rating on Vitalharvest Freehold Trust to Hold from Buy with a target price of $1.00.

The downgrade is driven by the recent appreciation in the share price to a level broadly comparable with Macquarie Infrastructure and Real Assets' (MIRA) offer price of $1 per share for the Trust.

Another reason is the general support for the MIRA proposal with the responsible entity, board and asset manager throwing their support behind it.

This report was published on December 9, 2020.

Target price is $1.00 Current Price is $0.97 Difference: $0.03
If VTH 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 5.10 cents and EPS of 5.50 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.64.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.70 cents and EPS of 6.20 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.65.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $1.62

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

Whitehaven Coal's investor briefing focussed on the latest outlook for Narrabri. Production and cost outlook for the mine is materially de-risked. Annual cost savings of $50m were also flagged.

No changes were made to the miner's FY21 guidance. The Buy rating is unchanged with a target price of $2.15.

This report was published on December 11, 2020.

Target price is $2.15 Current Price is $1.62 Difference: $0.53
If WHC meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $1.76, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 81.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.9, implying annual growth of N/A.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 55.9.

Market Sentiment: 0.4
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

ADA ADI ALD ALU APE APX CCX CGC CIP DOW EVS GEM INA JBH KGN LIC LNK MAD MAQ MCP MQG MTS NEC PFP PLT PSI PWH QAN QIP SDV SYD TLX TNE VEA VTH WHC

For more info SHARE ANALYSIS: ADA - ADACEL TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: ADI - APN INDUSTRIA REIT

For more info SHARE ANALYSIS: ALD - AMPOL LIMITED

For more info SHARE ANALYSIS: ALU - ALTIUM

For more info SHARE ANALYSIS: APE - EAGERS AUTOMOTIVE LIMITED

For more info SHARE ANALYSIS: APX - APPEN LIMITED

For more info SHARE ANALYSIS: CCX - CITY CHIC COLLECTIVE LIMITED

For more info SHARE ANALYSIS: CGC - COSTA GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: CIP - CENTURIA INDUSTRIAL REIT

For more info SHARE ANALYSIS: DOW - DOWNER EDI LIMITED

For more info SHARE ANALYSIS: EVS - ENVIROSUITE LIMITED

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP

For more info SHARE ANALYSIS: JBH - JB HI-FI LIMITED

For more info SHARE ANALYSIS: KGN - KOGAN.COM LIMITED

For more info SHARE ANALYSIS: LIC - LIFESTYLE COMMUNITIES LIMITED

For more info SHARE ANALYSIS: LNK - LINK ADMINISTRATION HOLDINGS LIMITED

For more info SHARE ANALYSIS: MAD - MADER GROUP LIMITED

For more info SHARE ANALYSIS: MAQ - MACQUARIE TELECOM GROUP LIMITED

For more info SHARE ANALYSIS: MCP - MCPHERSON'S LIMITED

For more info SHARE ANALYSIS: MQG - MACQUARIE GROUP LIMITED

For more info SHARE ANALYSIS: MTS - METCASH LIMITED

For more info SHARE ANALYSIS: NEC - NINE ENTERTAINMENT CO. HOLDINGS LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: PSI - PSC INSURANCE GROUP LIMITED

For more info SHARE ANALYSIS: PWH - PWR HOLDINGS LIMITED

For more info SHARE ANALYSIS: QAN - QANTAS AIRWAYS LIMITED

For more info SHARE ANALYSIS: QIP - QANTM INTELLECTUAL PROPERTY LIMITED

For more info SHARE ANALYSIS: SDV - SCIDEV LIMITED

For more info SHARE ANALYSIS: SYD - SYDNEY AIRPORT

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED

For more info SHARE ANALYSIS: VEA - VIVA ENERGY GROUP LIMITED

For more info SHARE ANALYSIS: VTH - VITALHARVEST FREEHOLD TRUST

For more info SHARE ANALYSIS: WHC - WHITEHAVEN COAL LIMITED