Australian Broker Call *Extra* Edition – Mar 04, 2021

Daily Market Reports | Mar 04 2021

Dear Reader: As part of FNArena's coverage of the February reporting season in Australia, Editions of the Australian Broker Call *Extra* Report will be focusing on responses to released financial results during the month.

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An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ADA   CDA   CGC (2)   CLU   EXP   GDF   GNG (2)   IDX   ING   JAN   LOV (2)   MLD   NHF   NUC   NWH   NXS (2)   PME   PSI   PWH (2)   RFF   UMG   WSP (2)  

ADA    ADACEL TECHNOLOGIES LTD

Software & Services - Overnight Price: $0.92

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

Adacel Technologies' first-half profit before tax was 61% above Bell Potter's forecast of $2.6m and was driven by a better gross margin and higher "other income" than expected. An interim dividend of 2.75c was declared, well ahead of the broker's 1.5c forecast.

The company has upgraded its FY21 profit before tax guidance to $7-$7.3m from $6.5-$7m. The broker comments the company has over 100% of forecast revenue either booked or in backlog which the company expects will help drive growth in FY22 and beyond.

Buy rating maintained with the target rising to $1.25 from $1.15.

This report was published on February 22, 2021.

Target price is $1.25 Current Price is $0.92 Difference: $0.33
If ADA 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 5.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 5.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.27.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 5.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.95.

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

CDA    CODAN LIMITED

Hardware & Equipment - Overnight Price: $14.90

Moelis rates ((CDA)) as Hold (3) -

Moelis notes Codan's first-half result shows metal detection sales grew by 55% versus last year driven largely by a strong rise in recreational sales. In fact, metal recorded an "all-time record" month of sales in January 2021.

Moelis has upgraded its net profit forecasts by 12% in FY21 and 21% in FY22. The broker's forward growth rates are tempered somewhat by expected currency headwinds during FY21.

Hold rating with a target of $14.86.

This report was published on February 19, 2021.

Target price is $14.86 Current Price is $14.90 Difference: minus $0.04 (current price is over target).
If CDA meets the Moelis target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 27.90 cents and EPS of 51.80 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.76.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 32.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.83.

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: $3.72

Shaw and Partners rates ((WSP)) as Buy (1) -

In Shaw and Partners’ view, Whispir delivered a better than expected first half result. The company has also revised its FY21 revenue and operating income guidance by 1.5% and 30%.

The broker believes Whispir’s operating leverage is “starting to shine through” with North America appearing to be off to a good start.

FY21 forecasts of the broker have been increased and are now in-line with the upgraded guidance. Shaw and Partners expects Whispir to reach operating income breakeven in FY22 rather than FY23, and break-even on a gross free cash flow basis in FY23.

The target price rises to $5 from $4.57 and the Buy rating is retained.

This report was published on February 19, 2021.

Target price is $5.00 Current Price is $3.72 Difference: $1.28
If WSP meets the Shaw and Partners target it will return approximately 34% (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 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 59.05.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.00.

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


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

Wilsons sees Whispir's first-half result as constructive and largely in-line with expectations. The company is seeing customer growth since its value proposition resonates more strongly than ever today due to the pandemic-led digital transformation, observes the broker.

On that note, the broker highlights customer growth was up 39% versus the previous half and expects this to drive recurring revenue growth over time.

The company has guided to FY21 revenue of $49-$51m, slightly less than Wilsons projects with operating income guided to $4.5m. 

The Overweight rating remains intact and the target rises to $5.18 from $5.10.

This report was published on February 19, 2021.

Target price is $5.18 Current Price is $3.72 Difference: $1.46
If WSP meets the Wilsons target it will return approximately 39% (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 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.52.

Forecast for FY22:

Wilsons 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 232.50.

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


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