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Australian Broker Call *Extra* Edition – Feb 15, 2021

Daily Market Reports | Feb 15 2021

This story features 5G NETWORKS LIMITED, and other companies. For more info SHARE ANALYSIS: 5GN

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)

5GN   APT   AQZ   BSA   CAJ   CGF   CKF   CYC   IMM   JHG   MZZ (2)   NCK   NTO   OPY   ORE   PNI   PSI   ST1   TNK   WZR  

5GN    5G NETWORKS LIMITED

Telecommunication – Overnight Price: $1.36

Wilsons rates ((5GN)) as Overweight (1) –

5GN’s half-yearly revenue and operating income figures were below Wilsons' expectations although the reasons for the lacklustre performance weren't immediately visible.

In order to achieve its FY21 revenue guidance of $60m-$65m, Wilsons calculates 5GN needs to achieve a second half revenue of circa $32m, a rise of 33% versus last year.

Wilsons retains its Overweight rating with a target price of $2.23.

This report was published on February 5, 2021.

Target price is $2.23 Current Price is $1.36 Difference: $0.87
If 5GN meets the Wilsons target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 2.00 cents and EPS of 1.10 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 123.64.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 2.00 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.57.

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

APT    AFTERPAY LIMITED

Business & Consumer Credit – Overnight Price: $151.74

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

Bell Potter sees a step change in Afterpay’s product offering after the collaboration with Westpac Bank ((WBC)) to introduce Afterpay’s branded savings and transaction accounts, along with budgeting tools. 

The broker believes if the company is successful in launching white-labelled Westpac banking products in Australia, it’s likely the market will have confidence in Afterpay rolling out a similar offering in all its jurisdictions, providing meaningful valuation upside.

Buy and the price target is increased to $168.50 from $140.

This report was published on February 5, 2021.

Target price is $168.50 Current Price is $151.74 Difference: $16.76
If APT meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $110.09, suggesting downside of -27.4%(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 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 887.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.8, 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 1099.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 33.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 447.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.1, implying annual growth of 219.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 344.1.

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

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics – Overnight Price: $4.34

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

Alliance Aviation Services confirmed a strong result, observes Wilsons, with first half profit before tax up 72% versus last year and slightly above company guidance.

The surge was driven by higher operating income, in turn led by higher utilisation and a more favourable activity mix.

Wilsons expects significant upgrades to the company's outer years on the back of additional fleet purchases announced in December. The recent wet lease agreement with Qantas ((QAN)) improves the broker's confidence levels in the deployment of the expanded fleet.

The broker retains its Market Weight rating with a target price of $4.58.

This report was published on February 10, 2021.

Target price is $4.58 Current Price is $4.34 Difference: $0.24
If AQZ meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $5.22, suggesting upside of 20.2%(ex-dividends)
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 23.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.8, implying annual growth of 3.4%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 17.70 cents and EPS of 27.20 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 15.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.7, implying annual growth of 22.5%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.3.

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

BSA    BSA LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.32

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

Within its detailed strategy update, BSA has included guidance for 1H21 underlying operating earnings (EBITDA) of $11.4m (1H20: $14.3m), and indicated FY21 operating earnings of around $21.8m (FY20: $25.9m), which will be impacted by lower NBN-related volumes against the peak roll-out period in FY20, with a level of deferment across the business also adversely impacting on earnings.

While Canaccord Genuity is mindful of aspiration targets set by BSA, it concludes that on the back of a number of new contract wins to commence in late 2H21, in addition to the acquisition of Catalyst ONE, there’s little change to its medium-term earnings forecasts.

As a result, the broker retains its DCF valuation and target Price of $0.45/share, and Buy recommendation.

The report was published on February 10, 2021.

Target price is $0.45 Current Price is $0.32 Difference: $0.13
If BSA meets the Canaccord Genuity target it will return approximately 41% (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 1.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.67.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.28

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

Prior to its 1H21 result in February, Shaw and Partners has flagged Capitol Health as a likely beneficiary of strong 2H21 diagnostic imaging market tailwinds, which bodes well for a stronger than expected year of profit growth.

The company continues to make up lost volumes ground since the first lockdowns countrywide.

The broker notes that while the States where there were lesser lockdowns had extremely strong bounce backs, even Victoria (largest state/operation for the company) the worst state of operation across the data set, has also bounced back materially, and the exit rate is strong into January/2H21.

The broker notes that circa 9% 1H21 volume growth on 2H20 results implies a $30m-plus operating earnings (EBITDA) number in FY21, versus its projected $28.2m.

Buy rating is unchanged as is the target price at $0.32.

This report was published on February 8, 2021.

Target price is $0.32 Current Price is $0.28 Difference: $0.04
If CAJ meets the Shaw and Partners target it will return approximately 14% (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 0.80 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $6.35

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

In the wake of the first half result, Bell Potter sees multiple positive ‘green lights’ across Challenger's business that should accelerate growth over the next 18 months.

Firstly, the broker highlights that guidance for the second half margin to be 20-30 basis points higher adds around $12.5m to second half earnings. Additionally, the Life net-book growth outlook is considered strong and there's the unwind of the rental abatement in FY21.

Bell Potter adds that funds management is powering ahead and the company achieved the best cost control in years.

The target price rises to $7.20 from $6.60.

This report was published on February 11, 2021.

Target price is $7.20 Current Price is $6.35 Difference: $0.85
If CGF meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $6.72, suggesting upside of 5.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 20.80 cents and EPS of 45.20 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.1, implying annual growth of N/A.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 23.80 cents and EPS of 52.80 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.1, implying annual growth of 10.0%.
Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.4.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $9.91

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

Yum Brands reported December quarter 2020 sales growth of 5% for the Australian KFC network. Leveraging drive-through and other off-premise channels, the company saw sales grow in the UK, Australia and Canada.

Wilsons is of the view Yum’s December quarter period broadly aligns best with Collins Foods' third quarter. Further, the broker notes the consistency in Yum’s sales growth for KFC Australia suggests Collns' same-store sales growth likely remained elevated through December. 

Wilsons retains its Overweight rating with its target rising to $11.62.

This report was published on February 5, 2020.

Target price is $11.62 Current Price is $9.91 Difference: $1.71
If CKF meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in May.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 23.00 cents and EPS of 47.40 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.91.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 24.00 cents and EPS of 47.70 cents.
At the last closing share price the estimated dividend yield is 2.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.78.

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

CYC    CYCLOPHARM LIMITED

Medical Equipment & Devices – Overnight Price: $2.80

Bell Potter rates ((CYC)) as Speculative Buy (1) –

Following completion of a $30m capital raise to support the launch of Technegas in the US, Bell Potter considers Cyclopharm is now exceptionally well funded to begin an aggressive roll-out in the second half of calendar 2021.

The broker believes there is strong industry support from within the US for the approval of the Technegas lung imaging system.

The broker revises the forecast for a declining US dollar and increases to operating expenses, due to the increased scale of the business. Consequently the analyst now expects a net loss of -$8.0m in FY20, decreasing to a loss of -$7.8m in FY21.

The (Speculative) Buy rating is unchanged and the target price increases to $3.40 from $2.11.

This report was published on February 6, 2021.

Target price is $3.40 Current Price is $2.80 Difference: $0.6
If CYC meets the Bell Potter target it will return approximately 21% (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 1.00 cents and EPS of minus 10.10 cents.
At the last closing share price the estimated dividend yield is 0.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.72.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.00 cents and EPS of minus 8.40 cents.
At the last closing share price the estimated dividend yield is 0.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.33.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.42

Bell Potter rates ((IMM)) as Speculative Buy (1) –

Immutep remains one of Bell Potter’s key stock picks for the year. Key positives for the broker include the company is now funded through key inflection points, with cash reserves bolstered by a $28m capital raise and $10.7m from warrants exercise. 

Additionally, the analyst considers there were strong data from a Phase 2 TACTI-002 trial expanded clinical program and collaboration with Merck. There were also overall survival (OS) data from Phase 2b AIPAC breast cancer trial that was considered impressive.

AIPAC stands for active immunotherapy PAClitaxel. Paclitaxel, sold under the brand name Taxol among others, is a chemotherapy medication used to treat a number of types of cancer.

Bell Potter sees the release of clinical data, progression of pipelines and the possibility of new collaborations as key re-rating catalysts for the stock. Additionally, the broker forecasts a US$1bn licensing deal for efti within the next 24 months.

The rating is Buy (Speculative) and the target is increased to $0.65 from $0.60.

This report was published on February 6, 2021.

Target price is $0.65 Current Price is $0.42 Difference: $0.23
If IMM meets the Bell Potter target it will return approximately 55% (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 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.78.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 8.75.

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

JHG    JANUS HENDERSON GROUP PLC.

Wealth Management & Investments – Overnight Price: $39.63

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

Bell Potter assesses the company has delivered a stellar December quarter result, which was hijacked by news Dai-ichi is selling its 17% stake to reallocate capital to its insurance business.

The analyst upgrades EPS forecasts by 9.4%, 13.0% and 13.3% for FY21-FY23. This is driven by strong mark-to-markets, better than expected net-flows, better than expected performance fees and improved cost control, explains the analyst.

The rating of Buy is unchanged and the target increased to $52.70 from $46.30

This report was published on February 6, 2021.

Target price is $52.70 Current Price is $39.63 Difference: $13.07
If JHG meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $45.03, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 278.13 cents and EPS of 439.31 cents.
At the last closing share price the estimated dividend yield is 7.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 403.1, implying annual growth of N/A.
Current consensus DPS estimate is 208.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 271.00 cents and EPS of 462.13 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 431.5, implying annual growth of 7.0%.
Current consensus DPS estimate is 207.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 9.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MZZ    MATADOR MINING LIMITED

Gold & Silver – Overnight Price: $0.36

Canaccord Genuity rates ((MZZ)) as Speculative Buy (1) –

Canada-based gold miner, Matador Mining has released a drill result for the Window Glass Hill deposit, uncovering a new high-grade zone 15m below the current 232koz at 1.6g/t gold resource.

Window Glass Hill is the second-largest deposit at the 837koz Cape Ray Gold Project in Newfoundland, Canada, and Canaccord Genuity previously viewed it as supplying the consistent base feed in the latter half of the seven-year mine life (as outlined in the 2020 Scoping Study).

The broker is encouraged by the prospect of further growth opportunities at Window Glass Hill, with this latest hole demonstrating further lodes at depth are possible.

In 2021, Canaccord Genuity expects Matador Mining to grow the existing 837koz resource, but in the broker’s view, the real prize of a brand new, 1Moz-plus discovery remains likely along the miner’s 120km strike of tenure.

Canaccord Genuity’s speculative Buy rating, and $0.80 price target remain unchanged.

The report was published on February 9, 2021.

Target price is $0.80 Current Price is $0.36 Difference: $0.44
If MZZ meets the Canaccord Genuity target it will return approximately 122% (excluding dividends, fees and charges).

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


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

Matador Mining has released encouraging drill intercepts at its Cape Ray Shear Project in Newfoundland, Canada.

Shaw and Partners notes that while Marathon and New Found Gold which are exploring in the same region and performing strongly on the TSE, having doubled and jumped 90% respectively in the past year, Matador appears to have been over-looked by the market.

Matador is trading at an EV/resource of just $54/oz, compared to an average $122/oz for a basket of ASX listed gold explorers.

The latest results from Isle Aux Morts are regarded as exceptional, and in the broker’s view are game changing for the prospectivity of the Cape Ray Shear Project.

Catalysts for the stock to reach Shaw and Partners' $0.80 price target include, ongoing exploration activities, resource upgrades following further exploration success, and further increases in the gold price in a negative real interest rate environment.

Shaw and Partners' Buy rating also remains unchanged.

This report was published on February 8, 2021.

Target price is $0.80 Current Price is $0.36 Difference: $0.44
If MZZ 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 FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.83.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.47.

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: $11.20

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

Nick Scali reported a first-half net profit of $40.5m, in line with guidance as well as Wilsons' forecast of $40.5m. Also, the company indicated a strong order book for the second half.

Wilsons expects the second half to include orders to March 2021 looking at shipping delays.

While finding the current rate of like for like sales growth unsustainable and certain that some catalysts may eventually slow down, Wilsons retains its Market Weight rating with a target price of $9.60.

This report was published on February 5, 2021.

Target price is $9.60 Current Price is $11.20 Difference: minus $1.6 (current price is over target).
If NCK meets the Wilsons target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 69.00 cents and EPS of 98.20 cents.
At the last closing share price the estimated dividend yield is 6.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.41.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 53.50 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.78.

Market Sentiment: 1.0
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: $2.99

Wilsons rates ((NTO)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage of Nitro Software with an Overweight rating and a target price of $3.70. Nitro is a global document productivity software company that aims to drive digital transformation.

Wilsons considers Nitro well placed to capitalise on the strong trend towards the automation of business workflows. This trend has accelerated materially given the ongoing working from home thematic.

With a "tectonic shift" towards all-things-digital, the broker expects ongoing, robust demand.

Target price is $3.70 Current Price is $2.99 Difference: $0.71
If NTO meets the Wilsons target it will return approximately 24% (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 6.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.57.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.57.

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

OPY    OPENPAY GROUP LTD

Business & Consumer Credit – Overnight Price: $2.61

Canaccord Genuity rates ((OPY)) as Speculative Buy (1) –

Openpay processed nearly $300m in TTV over the last 12 months (twice that of the year prior) and has nearly half a million customers, with more than three quarters of those making repeat transactions on the platform.

In its initial coverage of the Buy now pay later (BNPL) service provider, Canaccord Genuity notes that the flexibility in the plans and transaction sizes that it will fund, is the main differentiator of the company's product.

The broker believes its strength in facilitating in-store transactions for high order value categories (automotive, healthcare, home improvement), will be the focus of its international expansion efforts.

Canaccord Genuity is forecasting the company to incur operating losses for the next four years in order to build out the opportunities in the UK and US.

The key driver of Canaccord Genuity's valuation and forecasts is an assumption the company can achieve operating earnings (EBITDA) breakeven at around the $1.5bn annual TTV mark, which the broker has the company achieving in FY24.

Canaccord Genuity has a speculative BUY recommendation, and a target price of $3.40.

Target price is $3.40 Current Price is $2.61 Difference: $0.79
If OPY meets the Canaccord Genuity target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 37.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.89.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 27.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.60.

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

ORE    OROCOBRE LIMITED

New Battery Elements – Overnight Price: $4.87

Bell Potter rates ((ORE)) as Sell (5) –

Bell Potter assesses Orocobre had a much improved performance in the second quarter at its 66.5% owned Olaroz lithium brine operation in Argentina, despite ongoing covid-19 restrictions. 

The broker highlights lithium carbonate production at Olaroz was up 58% quarter-on-quarter, and average unit cash costs were impressively down -9% to the lowest level in three years.

The analyst looks towards further expansions at Olaroz as lithium prices recover.

Bell Potter forecasts significant (but reducing) normalised losses out to FY23 and lifts the target price to $4.20 from $2.60. Sell rating.

This report was published on February 5, 2021.

Target price is $4.20 Current Price is $4.87 Difference: minus $0.67 (current price is over target).
If ORE meets the Bell Potter target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.96, suggesting upside of 1.9%(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 13.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.4, 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.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 44.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.0, 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 97.4.

Market Sentiment: -0.1
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: $10.00

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

Pinnacle Investment Management Group reported first-half net profit of $30.3m, up 123.5% versus last year and 37.8% ahead of Wilsons' forecast.

The broker highlights the strong beat was driven by higher service changes, dividends and lower operating expenses.

Pinnacle appears confident about its immediate future, observes the broker, especially with the increase in the volume of funds under management with performance fee potential.

Given the affiliates are performing strongly and are well positioned plus distribution appears to be gaining traction in international markets, Wilsons retains its Overweight rating with the target price rising to $9.60 from $8.

This report was published on February 5, 2021.

Target price is $9.60 Current Price is $10.00 Difference: minus $0.4 (current price is over target).
If PNI meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.52, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 26.30 cents and EPS of 31.40 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of 68.8%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.3.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 28.30 cents and EPS of 33.60 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 29.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.5, implying annual growth of 5.0%.
Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 29.9.

Market Sentiment: 1.0
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: $3.18

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

PSC Insurance Group has pre-reported first half underlying earnings (EBITDA) expectations ahead of Bell Potter’s forecast.

The broker considers this beat is largely due to differences in timing relating to the acquisition of Paragon in the company’s overall first/second half earnings mix.

Management highlights strong organic growth in Australia and the UK during the period, which the analyst suspects will be supported by cost savings relating to measures that were implemented in the fourth quarter.

Management has reiterated guidance for FY21 underlying EBITDA to be at the top end of $65m- $70m. The first half result is due on Monday, 22nd February 2021.

Buy rating and the target is increased to $3.55 from $3.40.

This report was published on February 5, 2021.

Target price is $3.55 Current Price is $3.18 Difference: $0.37
If PSI meets the Bell Potter target it will return approximately 12% (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 9.70 cents and EPS of 14.40 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 22.08.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.70 cents and EPS of 15.10 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 21.06.

Market Sentiment: 1.0
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) –

Shaw and Partners contemplates the potential for Spirit Telecom to be caught-up in the telecommunications consolidation wave. The broker expects the group to potentially be a target and to also drive industry consolidation, thereby de-levering the multiple.

In this environment those providers taking share and growing are rightly valued at premiums, explains the broker. It's considered Spirit Telecom is one of the fastest growing listed telcos in Australia and is taking SME share across a now varied range of product classes.

The analyst estimates the company has likely $10m-$15m in hard assets that could be worth over $20m.

The broker notes with 5G and IOT and small cell interconnectivity becoming more relevant and valuable, the value of the company's assets could be reevaluated as they involve a significant amount of connectivity and fixed wireless infrastructure. 

The Buy rating and $0.57 target are unchanged.

This report was published on February 11, 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

TNK    THINK CHILDCARE GROUP

Childcare – Overnight Price: $2.05

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

Following four takeover offers and two upgrades to guidance in the last three months, Canaccord Genuity has increased its price target on Think Childcare Group to $2.10 (from $1.87) in line with the current highest offer.

The Board of Directors is recommending shareholders take no action, but at $2.10 the Busy Bees offer values the company's equity at $128m, and equates to a PE of 10.9x.

At $24m-$25m, CY20 operating earnings (EBITDA) guidance is up 53% in around two months and reflects positive trading conditions towards the end of the year, with November demand above expectations and cost management remaining a focus.

Canaccord Genuity is now forecasting 2020 operating earnings of $24.6m and underlying net profits (NPAT, pre-AASB16) of $13.0m.

In light of the takeover offer, the Buy rating has been downgraded to a Hold.

This report was published on February 10, 2021.

Target price is $2.10 Current Price is $2.05 Difference: $0.05
If TNK meets the Canaccord Genuity target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 16.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 5.60 cents and EPS of 11.70 cents.
At the last closing share price the estimated dividend yield is 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.52.

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: $0.21

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

Following a massive 2Q21 trading update, Shaw and Partners has upgraded its FY21 and FY22 sales forecasts by 24% and 53% respectively for Wisr Ltd.

The broker notes that medium term targets for a scaled-up loan book at around $1bn look significantly compelling and attractive.

In addition to growth opportunities including new geographies, revenue models and credit-oriented products, Shaw and Partners notes a significant opportunity for a potential valuation re-rate in the near future.

One of its key small caps picks in 2021, the broker believes Wisr is ideally positioned for long-term growth, with limited downside in the existing organic book.

The company will release its first-half result on 28 February. The Buy rating is unchanged and the target price has increased to $0.47 from $0.40. 

This report was published on February 8, 2021.

Target price is $0.47 Current Price is $0.21 Difference: $0.26
If WZR meets the Shaw and Partners target it will return approximately 124% (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 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.50.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.50.

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

5GN APT AQZ BSA CAJ CGF CKF CYC IMM JHG MZZ NCK NTO OPY ORE PNI PSI QAN ST1 TNK WBC WZR

For more info SHARE ANALYSIS: 5GN - 5G NETWORKS LIMITED

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

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

For more info SHARE ANALYSIS: BSA - BSA LIMITED

For more info SHARE ANALYSIS: CAJ - CAPITOL HEALTH LIMITED

For more info SHARE ANALYSIS: CGF - CHALLENGER LIMITED

For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED

For more info SHARE ANALYSIS: CYC - CYCLOPHARM LIMITED

For more info SHARE ANALYSIS: IMM - IMMUTEP LIMITED

For more info SHARE ANALYSIS: JHG - JANUS HENDERSON GROUP PLC

For more info SHARE ANALYSIS: MZZ - MATADOR MINING LIMITED

For more info SHARE ANALYSIS: NCK - NICK SCALI LIMITED

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

For more info SHARE ANALYSIS: ORE - OROCOBRE LIMITED

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

For more info SHARE ANALYSIS: QAN - QANTAS AIRWAYS LIMITED

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

For more info SHARE ANALYSIS: TNK - THINK CHILDCARE GROUP LIMITED

For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION

For more info SHARE ANALYSIS: WZR - WISR LIMITED