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Australian Broker Call *Extra* Edition – Feb 05, 2021

Daily Market Reports | Feb 05 2021

This story features LIFE360, INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   AND   ARX   ASB   BGA   BKG   CBR   CLU   CRW   CUV   DOC   DTC (3)   FCL   IMR   NTO   PPS (2)   PVS   ST1   STG   UWL   YFZ  

360    LIFE360 INC

Software & Services – Overnight Price: $3.97

Bell Potter rates ((360)) as Buy (1) –

Bell Potter notes Life360 delivered a strong December quarter with operating income ahead of guidance. The platform executed a significant upgrade with an attractive feature-rich membership offering with over 17% of all paying users now on the new memberships. 

The broker considers this a strong outcome, despite it only being offered in the US and being done in the middle of a pandemic. Bell Potter believes this bodes well for when the covid numbers ease in the key market of the US.

Seeing Life360 as a key covid recovery stock, the broker retains its Buy rating and increases the target price to $8.05 from $7.70.

This report was published on January 28, 2021.

Target price is $8.05 Current Price is $3.97 Difference: $4.08
If 360 meets the Bell Potter target it will return approximately 103% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.29 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 74.99.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.43 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 277.43.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AND    ANSARADA GROUP LIMITED

Software & Services – Overnight Price: $1.35

Moelis rates ((AND)) as Buy (1) –

In light of customer growth exceeding its expectations in 2Q, (up 5% quarter on quarter to 3,020), Moelis has increased its FY22 & FY23 revenue estimates by circa 2% for Ansarada Group.

The broker has maintained its estimate for flat revenue growth in FY21 at $34m.

Over 136 net new customers were gained in 2Q21 (vs. -79 customer in pcp.). Some of this growth was attributable to a rebound in activity post the covid downturn in the June and September quarters.

As previously highlighted when it recently initiated coverage, Moelis still expects Ansarada to benefit from a strong rebound in M&A activity in 2021, and revenue quality improvements under its subscription model.

Moelis maintains a Buy rating with revised target price of $1.87, which implies 3.7x FY22 sales.

This report was published on February 1, 2021.

Target price is $1.87 Current Price is $1.35 Difference: $0.518
If AND meets the Moelis target it will return approximately 38% (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 minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.50.

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: $1.24

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

Bell Potter maintains its Buy rating with a price target of $2.

Aroa Biosurgery reported December quarter receipts from customers of NZ$5.9m, a 44% rise versus the previous quarter. Sales constituted 50% of its revenue, notes the broker. Bell Potter expects the Aroa/Tela mix shift to return to 50/50 levels over the next few months.

Revenue guidance is maintained for FY21. The company also reported cash of NZ$36.8m, sufficient in the broker's view to fund ongoing operations in the near-medium term.

This report was published on November January 28, 2021.

Target price is $2.00 Current Price is $1.24 Difference: $0.76
If ARX meets the Bell Potter target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.91.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 77.50.

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

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $2.47

Shaw and Partners rates ((ASB)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on Austal with a Buy recommendation and $3.55 price target.

Austal is a leading defence sector company and commercial and defence shipbuilder. The company is the principal supplier of aluminium hulled vessels to the US Navy, currently expanding to build steel ships in the US.

The broker notes Austal has increased its shipbuilding capacity considerably in recent years and has exposure to 7 shipyards in 5 countries.

With over 30 vessels under sustainment and service revenue exceeding $360m in FY20, the broker expects service revenue to exceed an annualised rate of $500m by the end of FY22.

This report was published on January 28, 2021.

Target price is $3.55 Current Price is $2.47 Difference: $1.08
If ASB meets the Shaw and Partners target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $3.60, suggesting upside of 45.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 8.00 cents and EPS of 24.30 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.0, implying annual growth of -4.0%.
Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 9.00 cents and EPS of 26.70 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.8, implying annual growth of -0.8%.
Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 10.4.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.76

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

Goldman Sachs thinks the acquisition of Lion Diary & Drinks is a good strategic fit for Bega Cheese as it diversifies the company's dairy exposure and increases its scale while accelerating the shift towards branded products.

While Bega is well-positioned to extract acquisition synergies, the broker notes delivery of the $41m in synergies is key to its forecast earnings accretion. 

On the flip side, the company expects milk intake to remain broadly flat. In the broker's view, these risks are fairly reflected in the current share price and the Neutral rating is maintained with the target rising to $5.45 from $4.90.

This report was published on January 28, 2021.

Target price is $5.45 Current Price is $5.76 Difference: minus $0.31 (current price is over target).
If BGA meets the Goldman Sachs 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:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 15.00 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 38.40.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.86.

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

BKG    BOOKTOPIA GROUP LIMITED

Online media & mobile platforms – Overnight Price: $2.65

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

Booktopia released its unaudited first half indicating revenue of $113m with operating income at $8m. The results are materially ahead of Shaw and Partners' forecasts and indicative of a deeper market and better margins than expected.

The broker expects a beat to the FY21 prospectus forecasts and finds the company's guidance conservative.

Going into the second half, the broker anticipates operating leverage on the back of sales momentum, a structural shift towards online sales and industry consolidation opportunities.

Buy rating. Target price is $4.02.

This report was published on January 28, 2021.

Target price is $4.02 Current Price is $2.65 Difference: $1.37
If BKG meets the Shaw and Partners target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 203.85.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.18.

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

CBR    CARBON REVOLUTION LIMITED

Automobiles & Components – Overnight Price: $2.71

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

Carbon Revolution's December quarter was on the softer side, Bell Potter observes, impacted by covid related issues as well as some seasonality-led manufacturing issues. Wheel sales decreased -43.1% year on year and -11.5% below the broker's estimate.

Wheel sales are expected to grow strongly in the second half, the extent of this will depend on the timing of the two new vehicles in the broker's view. The Buy rating is unchanged and the target price is increased to $3.83 from $3.72.

This report was published on January 26, 2021.

Target price is $3.83 Current Price is $2.71 Difference: $1.12
If CBR meets the Bell Potter target it will return approximately 41% (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 16.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.13.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.17.

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

CLU    CLUEY LTD

Education & Tuition – Overnight Price: $1.25

Bell Potter rates ((CLU)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage on Cluey with a Buy rating and a valuation of $1.75 per share.

Cluey was formed in 2017 as an education technology company to support school students through online tutoring and test preparation platforms.

Bell Potter believes there exists a huge market opportunity, its favourable view also supported by Cluey's management which has a strong track record of scaling businesses and a scalable platform leveraged to a shift to all things online.

This report was published on January 22, 2021.

Target price is $1.75 Current Price is $1.25 Difference: $0.5
If CLU meets the Bell Potter target it will return approximately 40% (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 12.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.16.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.58.

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

CRW    CASHREWARDS LIMITED

Hardware & Equipment – Overnight Price: $1.69

Moelis rates ((CRW)) as Buy (1) –

Receipts from customers during the second quarter were $4.5m versus $4.7m in the last year. Cashrewards flagged this was due to operating cashflows being influenced by seasonal and category trends.

Moelis highlights there were 117,711 new members during the December quarter, up 124% versus the September quarter driven by increased marketing spend. Cash balance as at December 31 was $39.5m.

Moelis believes Cashrewards is still in the infancy of its opportunity to scale and continues to be the largest Australian owned and operated cashback ecosystem. 

Buy rating with the target moving to $2.34 from $2.38.

This report was published on January 28, 2021.

Target price is $2.34 Current Price is $1.69 Difference: $0.65
If CRW meets the Moelis target it will return approximately 38% (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 minus 19.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.54.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 27.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.15.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $21.51

Moelis rates ((CUV)) as Buy (1) –

Moelis notes Clinuvel Pharmaceuticals' second quarter result was stronger than expected driven by the continued US roll-out of SCENESSE despite covid.

The company's cash receipts were up 41% at $5.3m while operating costs were lower than expected due to payment deferrals. No quantified guidance or outlook commentary was provided

Moelis reaffirms its Buy rating with a target price of $27.77.

The report was published on January 28, 2021.

Target price is $27.77 Current Price is $21.51 Difference: $6.26
If CUV meets the Moelis target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 2.50 cents and EPS of 22.30 cents.
At the last closing share price the estimated dividend yield is 0.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 96.46.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 3.50 cents and EPS of 32.40 cents.
At the last closing share price the estimated dividend yield is 0.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 66.39.

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

DOC    DOCTOR CARE ANYWHERE GROUP PLC

Healthcare services – Overnight Price: $1.20

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

Bell Potter notes Doctor Care Anywhere's December update revealed a pleasing December quarter result with revenues 8% ahead of guidance and gross profit margin in line with guidance. Consultations grew by 19% to 74,300 over the quarter. 

The revenue beat was led by demand for GP services during covid, highlights Bell Potter, with the pandemic helping with a long overdue digitisation of the healthcare industry in the UK. 

Buy with a target of $1.95.

This report was published on January 28, 2021.

Target price is $1.95 Current Price is $1.20 Difference: $0.75
If DOC meets the Bell Potter target it will return approximately 63% (excluding dividends, fees and charges).

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.00.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.77.

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $1.33

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

Moelis notes Damstra Holdings' second-quarter revenue was $6.9m, implying a decent step up is needed in the second half for the company to achieve its FY21 revenue guidance.

The broker highlights both gross margin and operating income margin were strong, reflecting leverage from higher scale. This makes the broker think it is still possible for the company to achieve its operating income guidance of $5-$7m.

Moelis downgrades its rating to Hold from Buy with the target price falling to $1.65 from $2.09.

This report was published on January 28, 2021.

Target price is $1.65 Current Price is $1.33 Difference: $0.32
If DTC meets the Moelis target it will return approximately 24% (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 minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 88.67.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 443.33.

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


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

Damstra Holdings' second-quarter results showed stronger operating margins although revenue fell circa -6.6% short of Shaw and Partners' forecast. The group is well capitalised and has better than expected synergies and cash flows.

The company noted higher activity levels in December indicating a stronger second half. The broker estimates a second-half annualised revenue run-rate of $37m, up 79% year on year which should see the group deliver strong leverage.

The Buy rating is maintained with the target price falling to $2.20 from $2.43.

This report was published on January 28, 2021.

Target price is $2.20 Current Price is $1.33 Difference: $0.87
If DTC meets the Shaw and Partners target it will return approximately 65% (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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.50.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.23.

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


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

Wilsons notes Damstra Holdings' second-quarter was solid and met most of the broker's expectations, with the exception of the softer than expected revenue.

The broker sees FY21 as the “digestion” year with Damstra integrating the Vault acquisition into its operations and accelerating its synergy realisation. A constructive view on Damstra leads Wilsons to reiterate its Overweight recommendation. Target is $2.31.

This report was published on January 28, 2021.

Target price is $2.31 Current Price is $1.33 Difference: $0.98
If DTC meets the Wilsons target it will return approximately 74% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 133.00.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 133.00.

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

FCL    FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $3.75

Moelis rates ((FCL)) as Buy (1) –

Despite some significant near-term risks, including currency head-winds and a slowdown in service growth, Moelis still expects contracted ramp ups, new wins, cloud upgrades, plus new module cross-sell to support projected software sales growth (compounded annual growth rate) for Fineos Corp of circa 28% between FY21-23.

Moelis also reiterates the company is well placed to leverage its leadership and capture share in a circa US$6bn addressable market for LA&H core systems software.

Moelis maintains its Buy rating and the target price of $4.77 remains unchanged.

This report was published on February 1, 2021.

Target price is $4.77 Current Price is $3.75 Difference: $1.02
If FCL meets the Moelis target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $4.82, suggesting upside of 28.5%(ex-dividends)
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 minus 2.97 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 126.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.0, 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:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 47.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

This company reports in EUR. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IMR    IMRICOR MEDICAL SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $2.41

Moelis rates ((IMR)) as Buy (1) –

With the EU’s second wave of covid proving to be significantly worse than expected, Imricor Medical Systems has had to delay the signing of new contracts in its key regions of the Netherlands and Germany.

Moelis expects it to be tricky for the company to proceed with its EU hospital rollout until late 1Q21. But with covid cases progressively easing the burden on hospitals, as physicians are vaccinated and restrictions ease, the company is confident that lab adoption will accelerate through 2021.

As a result, Moelis expects the company to exit 2021 with 35 signed hospital customers.

With upside coming from expanded indications and new geographies, and a strong balance sheet position allowing the company to withstand the short-term uncertainty, Moelis maintains its Buy rating.

The target price has moved to 3.06 from $3.19 prior on incorporating updated FX forecasts. FY20-21 EPS revisions reflect covid related procedure volume reductions and a weaker USD.

This report was published on February 1, 2021.

Target price is $3.06 Current Price is $2.41 Difference: $0.65
If IMR meets the Moelis target it will return approximately 27% (excluding dividends, fees and charges).
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 minus 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.52.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 14.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.39.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $3.07

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

Nitro Software’s December quarter showed a strong finish to the year with subscription annualised recurring revenue of $27.7m versus the recently upgraded guidance of $26-27m and an FY20 operating loss now expected between -$2.1-2.6m versus -$4m prior.

Shaw and Partners is positive on Nitro Software due to multiple growth drivers including 35% growth (compounded annual growth rate) expected in subscription recurring revenues through FY25 and signs Nitro is maturing as an enterprise software vendor.

Shaw and Partners retains its Buy rating with the target price lowered to $3.45 from $3.55.

This report was published on January 28, 2021.

Target price is $3.45 Current Price is $3.07 Difference: $0.38
If NTO meets the Shaw and Partners target it will return approximately 12% (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 5.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.02.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.07.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.81

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

Bell Potter assesses the tailwinds pushing Praemium are strong while the headwinds seem to be dissipating. In Australia, the company is benefiting from investment in its products and the broker suggests there may already be some traction with the Powerwrap business combination.

The upcoming first-half result is keenly awaited for more clarity on revenue margin. Internationally, Praemium achieved record net-flows of $303m in a quarter, considered strong by the broker given its key market in the UK was battling covid during the period. 

The Buy rating is unchanged and the target price is increased to $0.98 from $0.90.

 This report was published on January 26, 2021.

Target price is $0.98 Current Price is $0.81 Difference: $0.17
If PPS 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 0.00 cents and EPS of 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.60 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.00.

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


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

Praemium's second-quarter performance was strong, observes Shaw and Partners, with total platform growth at 69% led by $733m of net inflows. The Australian platform funds under administration were up 101% versus last year, beating Shaw’s forecast of $15.9bn.

Shaw and Partners considers Praemium an attractive investment prospect seeing how the company continues to disrupt financial services in the wealth management sector. The platform is expected to grow its operating income by 14% over the next five years (CAGR) and enjoy double-digit earnings growth for the next 3 years.

The Buy rating is unchanged with a target price of $0.80. The first half result will be reported on February 10, 2021.

This report was published on January 27, 2021.

Target price is $0.80 Current Price is $0.81 Difference: minus $0.01 (current price is over target).
If PPS meets the Shaw and Partners 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:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.86.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.63.

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

PVS    PIVOTAL SYSTEMS CORPORATION

Hardware & Equipment – Overnight Price: $0.99

Moelis rates ((PVS)) as Buy (1) –

Despite posting lower than expected 4Q growth, Moelis expects the three back-to-back quarters of revenue improvement (with cash receipts from customers exhibiting a similar trend) experienced by Pivotal Systems to continue.

The broker expects growth in the company’s key exposure memory, and for continued market share capture.

Pivotal referenced semiconductor industry sales forecasts for growth in DRAM of 13%, and NAND of 12% and estimates that etch market share doubled to 10% in 2020.

While previous growth guidance had been maintained, the company is expecting sequential growth in 1H21. Moelis has set its revised FY21 revenue at US$29m which implies 10% growth 1H21 vs 2H20.

Subject to certain conditions being met, Moelis notes Pivotal has access to circa US$3.5m from the Bridge Bank facilities and US$3m from RBI preferred stock facility.

Moelis reaffirms its Buy rating with the target price rising to $1.34 from $0.98.

This report was published on February 1, 2021.

Target price is $1.34 Current Price is $0.99 Difference: $0.35
If PVS meets the Moelis target it will return approximately 35% (excluding dividends, fees and charges).
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 minus 9.88 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.02.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.61.

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

ST1    SPIRIT TELECOM LIMITED

Telecommunication – Overnight Price: $0.40

Shaw and Partners rates ((ST1)) as Buy (1) –

Spirit Telecom's preliminary update shows revenue was up 243% versus last year to $42.7m in the first half. This is circa 10% above Shaw and Partners' estimate and indicative of a stronger than expected December contribution. Operating income was up 165%. 

Going ahead, the broker has upgraded its estimated revenues by 6% in FY21 and by 2% in FY22-23, and prefers being conservative on group contributions of recent acquisitions.

The broker expects Sprit Telecom to be the fastest-growing small telco on the ASX in 2021 and retains its Buy rating with the target rising to $0.57 from $0.50.

This report was published on January 28, 2021.

Target price is $0.57 Current Price is $0.40 Difference: $0.17
If ST1 meets the Shaw and Partners target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.77.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.05.

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

STG    STRAKER TRANSLATIONS LIMITED

IT & Support – Overnight Price: $1.86

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

Straker Translations acquired US-based LingoTek for a total consideration of NZ$13.5m. LingoTek provides translation technology, consultancy and document management that includes 20 global enterprise customers such as Oracle, Nike and Acquia.

Bell Potter notes the acquisition consolidates the company's presence in the large US market and broadens the company's opportunity to convert more global enterprise deals.

The broker predicts revenue to rise to NZ$55m in FY22 driven by contributions from LingoTek and annual incremental revenue from the IBM deal.

The Buy rating is unchanged and the target increases to $2.15 from $2.10.

This report was published on January 24, 2021.

Target price is $2.15 Current Price is $1.86 Difference: $0.29
If STG meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 97.89.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $1.86

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

Bell Potter observes Uniti Group's December quarter cash flow was strong with net operating cash flow up 51% versus the prior quarter to $16.1m. Key metrics for the first half were above forecast levels.

Integration of the group's recent acquisitions are either on or ahead of schedule with both OptiComm and HarbourISP performing above management expectations. 

The Buy rating is unchanged and the target increases to $2.20 from $2.

This report was published on January 28, 2021.

Target price is $2.20 Current Price is $1.86 Difference: $0.34
If UWL meets the Bell Potter target it will return approximately 18% (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 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.06.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 9.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.79.

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

YFZ    YOUFOODZ HOLDINGS LTD

Food, Beverages & Tobacco – Overnight Price: $1.10

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

Youfoodz Holdings delivered a positive December quarter update, notes Bell Potter, with revenue in line with the broker's forecast. Revenue growth was led by the B2C segment with gross revenue up 26.8% versus last year.

B2B on the other hand continued to be impacted by reduced foot traffic due to covid. A number of initiatives were launched including the launch of the Youfoodz subscription service on mobiles.

The company is in discussions with an airline around expanding its menu range. Buy rating with a target price of $1.50.

This report was published on January 28, 2021.

Target price is $1.50 Current Price is $1.10 Difference: $0.4
If YFZ meets the Bell Potter target it will return approximately 36% (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 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.38.

Forecast for FY22:

Bell Potter 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 64.71.

Market Sentiment: 1.0
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

360 AND ARX ASB BGA BKG CBR CLU CRW CUV DOC DTC FCL IMR NTO PPS PVS ST1 STG UWL YFZ

For more info SHARE ANALYSIS: 360 - LIFE360, INC

For more info SHARE ANALYSIS: AND - ANSARADA GROUP LIMITED

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: ASB - AUSTAL LIMITED

For more info SHARE ANALYSIS: BGA - BEGA CHEESE LIMITED

For more info SHARE ANALYSIS: BKG - BOOKTOPIA GROUP LIMITED

For more info SHARE ANALYSIS: CBR - CARBON REVOLUTION LIMITED

For more info SHARE ANALYSIS: CLU - CLUEY LIMITED

For more info SHARE ANALYSIS: CRW - CASHREWARDS LIMITED

For more info SHARE ANALYSIS: CUV - CLINUVEL PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: DOC - DOCTOR CARE ANYWHERE GROUP PLC

For more info SHARE ANALYSIS: DTC - DAMSTRA HOLDINGS LIMITED

For more info SHARE ANALYSIS: FCL - FINEOS CORPORATION HOLDINGS PLC

For more info SHARE ANALYSIS: IMR - IMRICOR MEDICAL SYSTEMS, INC

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: PPS - PRAEMIUM LIMITED

For more info SHARE ANALYSIS: PVS - PIVOTAL SYSTEMS CORP.

For more info SHARE ANALYSIS: ST1 - SPIRIT TECHNOLOGY SOLUTIONS LIMITED

For more info SHARE ANALYSIS: STG - STRAKER TRANSLATIONS LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: YFZ - YOUFOODZ HOLDINGS LIMITED