article 3 months old

Australian Broker Call *Extra* Edition – Feb 02, 2021

Daily Market Reports | Feb 02 2021

This story features ARB CORPORATION LIMITED, and other companies. For more info SHARE ANALYSIS: ARB

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)

ARB   ARX   ASG (2)   AVN   AX1   DSK   FPH   HUO   MOZ   MP1   NCK   PLT   PNI   RDY   SKF   SSG   SSM   TGR   WSP   WZR   ZBT  

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $34.85

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

ARB Corp's trading update showed both accelerating sales and margin expansion in the second quarter. With a strong order book and easing new vehicle supply constraints, Wilsons expects a favourable near-term outlook.

The broker sees prospects for sales growth via a continued shift to SUVs and penetration of export markets. The company did not provide any explicit guidance, but management stated the company has a positive short term outlook based on record sales in December 2020.

Wilsons maintains its Overweight rating with the target rising to $39.75 from $33.50.

This report was published on January 27, 2021.

Target price is $39.75 Current Price is $34.85 Difference: $4.9
If ARB meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $31.76, suggesting downside of -8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 46.50 cents and EPS of 114.70 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.9, implying annual growth of 50.3%.
Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.3.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 52.50 cents and EPS of 99.40 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.9, implying annual growth of -10.2%.
Current consensus DPS estimate is 56.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 36.0.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.08

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

Wilsons maintains its Overweight rating with a target of $2 on Aroa Biosurgery.

Business performance over the third quarter met Wilsons' expectations, providing evidence of receding headwinds. With performance subdued by extrinsic factors, the broker believes the time may be right to accumulate the stock.

The broker's assessment pays more attention to market access progress and evidence development than to sales at this point. 

This report was published on January 28, 2021.

Target price is $2.00 Current Price is $1.08 Difference: $0.92
If ARX meets the Wilsons target it will return approximately 85% (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 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.18.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 63.53.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $1.79

Moelis rates ((ASG)) as Buy (1) –

Solid December quarter trading led to a strong first half, observes Moelis. With restrictions easing in Victoria, new vehicle sales rebounded in November and December with new car sales climbing 12.4-13.5%.

As a result, Autosports Group expects first-half revenue profit of $28.5-29.5m, higher than the guidance of circa $20m. Moelis believes a recovery in Victoria and larger than expected payout of OEM bonuses were the key drivers of the strong result.

Moelis retains its Buy rating with a target price of $1.98.

This report was published on January 22, 2021.

Target price is $1.98 Current Price is $1.79 Difference: $0.19
If ASG meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 19.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.18.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.00 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.11.

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


Wilsons rates ((ASG)) as Upgrade to Overweight from Market Weight (1) –

Autosports Group is upgraded to Overweight from Market Weight. Target rises to $2.03 from $1.29.

The group's upgraded first half guidance gives Wilsons a better idea about profitability in the current environment. While still expecting margins to normalise from FY22, the broker upgrades its earnings forecasts by 16-21% for FY22-23.

In favour of Autosports are the rise in forward orders indicating good momentum going into the second half, and attractive valuation.

The report was published on January 22, 2021.

Target price is $2.03 Current Price is $1.79 Difference: $0.24
If ASG meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 8.90 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.06.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 6.60 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.56.

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

AVN    AVENTUS GROUP

REITs – Overnight Price: $2.70

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

Goldman Sachs finds Aventus Group well positioned in the current environment with large format retail (LFR) deriving 37% of income from everyday needs tenants with the rest from homewares, electrical, furniture all of which are expected to continue to perform well.

The group has provided strong FY21 guidance ahead of expectations and solidifies the broker's view of a strong growth outlook driven by development upside in its portfolio and a manageable gearing level.

Buy Rating with the target price rising to $2.79 from $2.46.

This report was published on January 20, 2021.

Target price is $2.79 Current Price is $2.70 Difference: $0.09
If AVN meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.81, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 17.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 6.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.6, implying annual growth of 80.6%.
Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 7.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 5.9%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 13.7.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.29

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

Accent Group's latest trading update covering 1H FY21 showed strong like for like sales growth, lifting by 12.3% (excluding store closures). Based on ample leavers to drive continued growth in FY21, Accent provided 1H21 earnings guidance of $95m – $98m.

1H21 earnings guidance includes the net benefit of wage subsidies in the September quarter of $9.4m.

Bell Potter notes that the company has moved its strategic focus from acquisition and integration, to innovation in its core business and expansion through new concepts and small targeted acquisition, including 66 new store openings in FY21.

Bell Potter is forecasting FY22 vs FY21 earnins growth of 3.0%, and estimates guidance to be ‘in the region’ of $140m.

 Bell Potter retains its Buy rating with the target price rising to $2.65 from $2.15.

This report was published on January 21, 2020.

Target price is $2.65 Current Price is $2.29 Difference: $0.36
If AX1 meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.51, suggesting upside of 9.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 12.50 cents and EPS of 14.30 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 16.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 29.0%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.80 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.1, implying annual growth of -1.5%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 4.8%.
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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $2.33

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

Dusk Group's update was very strong and well ahead of Shaw and Partners' forecasts with guidance for the first half up 168-178% versus last year and sales up 53-54%.

The growth was driven by a mix of online sales acceleration, stronger gift pack purchases and a particularly stronger second quarter. Shaw and Partners' FY21 sales and operating income forecasts have increased by 15% and 74% respectively.

Target price rises to $2.80 from $2.25. Buy rating. The first half result will be reported on 25 February 2021.

This report was published on January 22, 2021.

Target price is $2.80 Current Price is $2.33 Difference: $0.47
If DSK meets the Shaw and Partners target it will return approximately 20% (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 24.00 cents and EPS of 43.70 cents.
At the last closing share price the estimated dividend yield is 10.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.33.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 26.00 cents and EPS of 43.50 cents.
At the last closing share price the estimated dividend yield is 11.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.36.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $31.78

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

Fisher and Paykel Healthcare's trading update showed an operating revenue rising by 73% versus last year for first three quarters. The hospital segment revenue grew by 113% during the period, comprised of 446% hardware growth and 54% consumables growth.

Slowing sleep diagnoses rates in the homecare segment were offset by a rise in nasal high flow use in the home. Wilsons notes FY21 revenue guidance from late November is now outdated and expects more than NZ$1.7bn in revenues for FY21.

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

The report was published on January 22, 2021.

Target price is $36.95 Current Price is $31.78 Difference: $5.17
If FPH meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is N/A
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 31.94 cents and EPS of 69.61 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.9, implying annual growth of N/A.
Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 33.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 33.82 cents and EPS of 64.91 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.6, implying annual growth of -26.9%.
Current consensus DPS estimate is 45.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 46.3.

This company reports in NZD. 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

HUO    HUON AQUACULTURE GROUP LIMITED

Aquaculture – Overnight Price: $3.06

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

Huon Aquaculture's latest update guides towards a material contraction in global salmon prices and fishpool forward prices. In light of lower prices, the company expects the placing of an additional circa 10,500t of salmon, in what looks like an ex-growth domestic market, to be challenging.

Based on a larger share of production destined for export markets in FY21 and an implied widening in domestic premiums, Bell Potter believes there is downside risk to pricing assumptions in 2H21. To reflect lower export prices, average pricing assumptions in FY21-23 have also been downgraded.

The Hold rating is unchanged and the target price also remains unchanged $2.90.

This report was published on January 21, 2021.

Target price is $2.90 Current Price is $3.06 Difference: minus $0.16 (current price is over target).
If HUO meets the Bell Potter target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.86.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 10.70 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.60.

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

MOZ    MOSAIC BRANDS LIMITED

Apparel & Footwear – Overnight Price: $1.02

Wilsons rates ((MOZ)) as Upgrade to Overweight from Market Weight (1) –

Mosaic Brands's latest update expects first-half operating earnings to be $40-45m, 17.7% ahead of Wilsons' forecast.

Supportive developments and positive near-term catalysts like states re-opening, vaccinations and easing of social restrictions are seen as encouraging and indicative of a likely stabilisation in earnings. 

Rating is upgraded to Overweight from Market Weight with a target of $1.50.

This report was published on January 22, 2021.

Target price is $1.50 Current Price is $1.02 Difference: $0.48
If MOZ meets the Wilsons target it will return approximately 47% (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 20.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.05.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.09.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $12.98

Goldman Sachs rates ((MP1)) as Upgrade to Buy from Neutral (1) –

Megaport's second-quarter/ first half metrics were broadly in line with Goldman Sachs' forecasts (fx adjusted basis). New customer growth was weak, that can be attributed to a combination of covid together with the US presidential election period.

The broker highlights two robust trends – the rising number of services per customer which in turn is driving up average revenues per user. Megaport expects to be operating cash flow positive consistently from the fourth quarter.

Strong demand for public cloud infrastructure and higher confidence for generating positive free cash flow sees the broker upgrade its recommendation to Buy from Neutral. Target price rises of $15 from $12.45.

This report was published on January 21, 2021.

Target price is $15.00 Current Price is $12.98 Difference: $2.02
If MP1 meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $13.84, suggesting upside of 6.6%(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 minus 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 81.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -23.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 324.50.

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.

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

NCK    NICK SCALI LIMITED

Furniture & Renovation – Overnight Price: $10.08

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

Nick Scali upgraded its first-half net profit guidance by 14.4% to $40.5m driven by better than expected delivery/shipping timing, effectively pulling forward second-half sales into the first half.

Sales order growth stepped up late in the first half, notes Wilsons, that should lead to stronger earnings in the second half and the broker upgrades its FY21 net profit forecasts 7.2%. 

The broker retains its Market Weight rating with a target price of $10.80.

This report was published on January 21, 2021.

Target price is $10.80 Current Price is $10.08 Difference: $0.72
If NCK meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 56.50 cents and EPS of 93.70 cents.
At the last closing share price the estimated dividend yield is 5.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.76.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 53.00 cents and EPS of 62.20 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 16.21.

Market Sentiment: 1.0
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: $1.02

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

Wilsons retains its Overweight rating with the target rising to $1.60 from $1.50.

Plenti Group's third-quarter trading update reported loan origination growth of 58% versus last year with total loan book growth of 46%. Wilsons highlights growth was led by the Automotive vertical which continues to benefit from higher auto demand.

The strong growth rate reaffirms market share growth leading the broker to upgrade its forecasts. Wilsons believes the combination of higher warehouse facilities and loan origination growth is proof the group could be a material participant in the medium-term.

This report was published on January 21, 2021.

Target price is $1.60 Current Price is $1.02 Difference: $0.58
If PLT meets the Wilsons target it will return approximately 57% (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 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.22.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.00.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $7.12

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

Pinnacle Investment Management Group's update highlighted $44.3m in gross performance fees for the first half.

For Wilsons, the update is positive since it shows that the group's affiliates contributed towards the performance fees, an important point that indicates higher funds under management diversity. 

The group is expected to gain share in retail flows with a strong performance from Hyperion leading to greater retail traction. 

Wilsons retains its Overweight rating with the target price rising to $8 from $5.80.

This report was published on January 25, 2021.

Target price is $8.00 Current Price is $7.12 Difference: $0.88
If PNI meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $7.25, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 21.50 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.8, implying annual growth of 25.9%.
Current consensus DPS estimate is 20.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 29.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 22.10 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.7, implying annual growth of 8.0%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 27.7.

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

RDY    READYTECH HOLDINGS LTD

Software & Services – Overnight Price: $2.07

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

ReadyTech Holdings announced that Open Office has been shortlisted for a major government contract with an existing client and if successful, could drive an acceleration in both revenue and earnings.

Wilsons has factored in its calculations a March-end deal closure but has not priced in the contract given that the outcome is uncertain.

The Overweight rating is unchanged. Target is $2.78.

This report was published on January 27, 2021.

Target price is $2.78 Current Price is $2.07 Difference: $0.71
If RDY meets the Wilsons target it will return approximately 34% (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 9.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.79.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.45.

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

SKF    SKYFII LTD

Software & Services – Overnight Price: $0.22

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

Skyfii reported a strong second-quarter result with operating revenue ahead of pre-covid levels and up 15% versus last quarter. Recurring revenue rose 25% over the quarter, an indication of the high-quality of subscriptions.

Canaccord Genuity highlights the company's return to its growth trajectory was aided by covid tailwinds that should help its revenue growth in 2021.

Canaccord expects the company to exit FY21 on a run-rate of more than $20m in revenue, highlighting potential upside risk to its FY22 revenue forecast.

Buy with a target price of $0.30.

This report was published on January 19, 2021.

Target price is $0.30 Current Price is $0.22 Difference: $0.08
If SKF meets the Canaccord Genuity target it will return approximately 36% (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 0.00 cents.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 110.00.

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: $1.11

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

Shaw and Partners observes Shaver Shop Group has been consistent over the last two years with five consecutive strong results in a row from the first half of FY19 and now with a strong first half of FY21 added to the mix. 

Strong momentum continued into the first and second quarters of FY21 led by better than expected net profit, prompting guidance upgrades.

On the back of the upgraded net profit guidance of $13.5-$14m for the first half, the broker has upgraded its FY21 net profit forecast by 7%. The group will release its first-half result on 19 February 2021.

Target price rises to $1.40 from $1.30 with a Buy recommendation.

This report was published on January 22, 2021.

Target price is $1.40 Current Price is $1.11 Difference: $0.29
If SSG meets the Shaw and Partners target it will return approximately 26% (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 6.00 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.33.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 8.00 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 7.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.76.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.82

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

NBN Co’s reset of its supplier relationships saw Service Stream’s OMMA agreement, which was worth some $330m in FY20, replaced with a Unify Services contract that is expected to deliver about $70m of revenue in its first year.

But with Service Stream’s share price resetting in-line with NBN’s reset, Bell Potter now believe the shares represent fair value at an FY21 and FY22 P/E of 14.6x and 16.4x times respectively.

While the decline in anticipated revenue under the new Unify Services agreement is disappointing, the broker notes that Service Stream will likely have the opportunity to materially grow its revenue under NBN’s $4.5bn investment program.

Based on opportunities for the company to offset the impacts of NBN’s reset, the broker has increased its revenue estimates in FY22 and FY23 by 4.5% and 2.8% respectively.

The rating is upgraded to Hold from Sell with the target price remaining unchanged at 1.85.

This report was published on January 21, 2020.

Target price is $1.85 Current Price is $1.82 Difference: $0.03
If SSM meets the Bell Potter target it will return approximately 2% (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 9.00 cents and EPS of 12.40 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.68.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.55.

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

TGR    TASSAL GROUP LIMITED

Aquaculture – Overnight Price: $3.42

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

Goldman Sachs has adjusted its forecasts for Tassal Group based on the current outlook for salmon and prawn export prices and currency. 

Demand has not been sufficient to absorb significant supply volumes mainly out of Chile. The broker continues to expect strong supply in the June half, suppressing prices in the export market, accentuated by a strengthening AUD/USD.

Weak prices are being somewhat offset by strong retail channel demand and lower production costs. The broker expects the company to reduce its expansionary capex until market conditions improve.

The Buy rating is unchanged and the target price is decreased to $3.70 from $4.75.

This report was published on January 20, 2020.

Target price is $3.70 Current Price is $3.42 Difference: $0.28
If TGR meets the Goldman Sachs target it will return approximately 8% (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 19.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 6.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.03.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $3.97

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

Goldman Sachs remains constructive on Whispir over the short-medium term driven by execution of its US go-to-market strategy, capitalisation on net customer additions, operating leverage and ongoing traction offshore.

The broker expects FY21 revenue of $51.5m ahead of guidance of $47.5-$51m and operating income of -$3.9m versus guidance of -$4.8m-$6.2m.

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

This report was published on January 21, 2021.

Target price is $5.10 Current Price is $3.97 Difference: $1.13
If WSP meets the Wilsons target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.24.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 180.45.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.18

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

Wisr's second-quarter loan originations leapt to a record $83.8m, up 165% versus last year and taking the total loan originations to $391m, beating Shaw and Partners' $380m estimate.

The broker notes all relevant second-quarter metrics to be trending higher with customer credit quality up to record high of 737.

First half result is expected on 28 February 2021.

The Buy rating and the target price of $0.40 are unchanged. 

This report was published on January 22, 2021.

Target price is $0.40 Current Price is $0.18 Difference: $0.22
If WZR meets the Shaw and Partners target it will return approximately 122% (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 minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

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: $1.15

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

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

Zebit's December quarter trading update showed a bumper final quarter with net sales for FY20 7% ahead of Shaw's forecasts while second-half sales were 12% ahead of prospectus. A stronger-than-expected performance from eCerts also helped, adds the broker.

The broker has upgraded its FY20 revenue forecast by 6% to US$87m.

Zebit will release its FY20 result in February.

This report was published on January 22, 2021.

Target price is $2.00 Current Price is $1.15 Difference: $0.85
If ZBT meets the Shaw and Partners target it will return approximately 74% (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 7.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.56.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.52.

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.

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms

CHARTS

ARB ARX ASG AVN AX1 DSK FPH HUO MOZ MP1 NCK PLT PNI RDY SKF SSG SSM TGR WSP WZR ZBT

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: ASG - AUTOSPORTS GROUP LIMITED

For more info SHARE ANALYSIS: AVN - AVENTUS GROUP

For more info SHARE ANALYSIS: AX1 - ACCENT GROUP LIMITED

For more info SHARE ANALYSIS: DSK - DUSK GROUP LIMITED

For more info SHARE ANALYSIS: HUO - HUON AQUACULTURE GROUP LIMITED

For more info SHARE ANALYSIS: MOZ - MOSAIC BRANDS LIMITED

For more info SHARE ANALYSIS: MP1 - MEGAPORT LIMITED

For more info SHARE ANALYSIS: NCK - NICK SCALI LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: RDY - READYTECH HOLDINGS LIMITED

For more info SHARE ANALYSIS: SKF - SKYFII LIMITED

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

For more info SHARE ANALYSIS: SSM - SERVICE STREAM LIMITED

For more info SHARE ANALYSIS: TGR - TASSAL GROUP LIMITED

For more info SHARE ANALYSIS: WSP - WHISPIR LIMITED

For more info SHARE ANALYSIS: WZR - WISR LIMITED

For more info SHARE ANALYSIS: ZBT - ZEBIT, INC