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Australian Broker Call *Extra* Edition – Mar 11, 2021

Daily Market Reports | Mar 11 2021

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M   ACF   AHX   AMA   APT (2)   BGA   BKL   BVS (2)   CAJ   CCX   CSX   DCG   DSK   ERF   FCL   HLO   HLS   HSN   IGL   ILU   IVC   JLG   LNK   MWY (2)   MYX   NAN   NIC   NSR   NTO   NXT   PBP   PRU   QAN   QUB   RHC   SFR   SGP   SHJ   SLA   SLK   SLR   TNK   TPG   XRF   ZIP  

A2M    THE A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $8.99

Wilsons rates ((A2M)) as Market Weight (3) –

Wilsons describes the first half result as 'disappointing' with earnings (EBITDA) down -33% on the pcp, driven by a decline in English and other label infant formula sales. The target is lowered to $9.35 from $15.50 and the Market Weight rating retained.

There was another -14% downgrade to FY21 earnings guidance and the broker believes downside risks remain, given management assumes significant quarter-on-quarter improvement in the fourth quarter.

The analyst feels there are two key issues, including the erosion of the company’s market premium and an acceleration in the structural shift away from the traditional daigou channel. 

This report was published on February 26, 2021. 

Target price is $9.35 Current Price is $8.99 Difference: $0.36
If A2M meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $9.20, suggesting upside of 2.3%(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 29.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.9, 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 30.1.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 33.54 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.8, implying annual growth of 19.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 25.1.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ACF    ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services – Overnight Price: $0.35

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

Acrow Formwork & Construction Services reported first half operating income of $11.1m, broadly in-line with Bell Potter's forecasts. An interim dividend of 0.75c was below the broker's 1.10c estimate.

Revenue was up 32%, observes the broker, reflecting a strong operating performance from the Uni-span acquisition and strong returns from the Natform business.

With revenue down -13%, Bell Potter highlights commercial scaffolding weighed down the results, but there are early signs of a recovery. Bell Potter remains positive based on the company's leverage to civil infrastructure, buoyed by fiscal stimulus and better execution.

The Buy rating is unchanged and the target price is increased to $0.42 from $0.40.

This report was published on February 25, 2021.

Target price is $0.42 Current Price is $0.35 Difference: $0.07
If ACF meets the Bell Potter target it will return approximately 20% (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 1.80 cents and EPS of 3.70 cents.
At the last closing share price the estimated dividend yield is 5.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.46.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.00 cents and EPS of 4.60 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.61.

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

AHX    APIAM ANIMAL HEALTH LTD

Medical Equipment & Devices – Overnight Price: $0.70

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

Apiam Animal Health has put together a "solid" first half result, observes Shaw and Partners, with key metrics progressing well.

Operating income grew 20% and beat the broker's 6% forecast. Earnings rose on the back of positive acquisition performance and gross margin mix.

Free cash flows rose and Shaw and Partners expects this dynamic to continue into the second half. In the broker's view, 2021 will likely offer a positive environment.

Buy recommendation with the target rising to $0.87 from $0.79.

This report was published on February 25, 2021.

Target price is $0.87 Current Price is $0.70 Difference: $0.17
If AHX meets the Shaw and Partners target it will return approximately 24% (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 2.10 cents and EPS of 4.50 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.00 cents and EPS of 5.70 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 12.28.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.63

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

AMA Group's first-half operating income at $45.9m was 18% ahead of Bell Potter's forecast of $38.9m. The result was boosted by government grants, although the broker notes the amount was lower than the forecast of $34.3m. There was no interim dividend.

While not providing any guidance, the company did highlight a number of both headwinds and tailwinds. The key take-out was the covid hangover and dealing with the possibility of more infection outbreaks and border closures that would negatively impact volumes.

The Buy rating is unchanged and the target price falls to $0.95 from $1.

This report was published on February 25, 2021.

Target price is $0.95 Current Price is $0.63 Difference: $0.32
If AMA meets the Bell Potter target it will return approximately 51% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 126.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.64.

Market Sentiment: 1.0
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: $115.26

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

Goldman Sachs assesses the first half result was solid as frequency of use drove strong unit economics and helped offset the opex investment required in preparation for an EU launch in the fourth quarter FY21. 

The company also announced a $1.5bn convertible note to fund the increased interest in Afterpay US Inc to around 93% from 80%. Neutral rating and the target price is increased to $127.60 from $99.9.

The broker believes customer growth and frequency of use remain the two most important metrics, given they indicate product/market fit with consumers, credit quality of the book and are likely indicative of the future pipeline with merchants.

This report was published on February 26, 2021. 

Target price is $127.60 Current Price is $115.26 Difference: $12.34
If APT meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $125.73, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2305.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 548.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.2, 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 294.0.

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


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

First half results were broadly in-line with Wilsons forecasts though the purchase of the Afterpay US stake and subsequent capital raise came as a surprise. The broker lifts the price target to $160.20 from $113.94 to reflect “hypergrowth” peers comparable to the company.

The company intends to issue $1.25bn in zero-coupon bonds to fund the purchase, which will see greater control over the primary growth arm. The analyst sees this as the next step to dual-listing and a precursor to a truly global launch.

Two of the four continents the company has a presence in are well on the path to furthering scale, according to Wilsons, with continental EU and broader APAC remaining the next massive growth markets.

This report was published on February 26, 2021. 

Target price is $160.20 Current Price is $115.26 Difference: $44.94
If APT meets the Wilsons target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $125.73, suggesting upside of 9.1%(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 17.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 670.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.6, 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:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 34.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 335.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.2, 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 294.0.

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: $6.15

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

Bega Cheese reported first-half net profit ahead of Bell Potter's expectations at $29.7m. The revenue at $708m was down -5% versus last year while the operating income was up 51%. Net profit of $29.7m beat the broker's expected $24.2m.

The company provided no firm FY21 guidance except for hinting towards an expected bias in earnings to the first half, reflective of the natural bias in the existing ingredients business and weaker infant markets.

Bell Potter has upgraded its net profit forecasts for FY21-23 by 2-4% with room for further step-up payment in the second half. 

Buy rating with the target price increased to $7 from $6.20.

This report was published on February 25, 2021.

Target price is $7.00 Current Price is $6.15 Difference: $0.85
If BGA meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $6.78, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of 65.7%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 37.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 18.00 cents and EPS of 30.40 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of 81.7%.
Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 20.6.

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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $83.11

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

Blackmores' first-half group revenue was $302.6m, falling -4.9% short of Goldman Sachs' forecast although up 2.6% versus last year. The operating income was up 11% at $30.8m.

Goldman Sachs is of the view the result offers mixed messages with longer-term indicators like international growth continuing to progress while the short term covid impacts in the ANZ market remained a roadblock to the recovery process.

While constructive on the group’s turnaround strategy and cost savings initiatives, Goldman Sachs continues to be conservative on the company's ability to achieve above-market growth in China and on expansion into new markets like India due to lack of clarity. 

Neutral rating with the target rising to $78.40 from $71.

This report was published on February 24, 2021.

Target price is $78.40 Current Price is $83.11 Difference: minus $4.71 (current price is over target).
If BKL meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $73.95, suggesting downside of -11.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 72.00 cents and EPS of 179.00 cents.
At the last closing share price the estimated dividend yield is 0.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 170.4, implying annual growth of 64.6%.
Current consensus DPS estimate is 85.1, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 48.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 121.00 cents and EPS of 243.00 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 249.7, implying annual growth of 46.5%.
Current consensus DPS estimate is 136.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 33.3.

Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $2.68

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

Goldman Sachs cuts FY21-23 EPS forecasts by -18%,-16% and -17%, respectively, following lower guidance and continued disruption in key markets. Despite this, earnings are expected to commence a recovery in FY22, driven by a strong pipeline of potential clients.

The company has responded with a cost out program, extracting -$11.5m in overheads on an annualised basis. Guidance for the
2H is for around 10% revenue growth on the 1H, with profit (NPAT) expected to be $32-$35m.

The analyst sees limited downside risk given the sticky, recurring revenue base and largely unchanged fundamentals. The target price is lowered to $3.70 from $4.20 and the Buy rating is retained.

This report was published on February 26, 2021. 

Target price is $3.70 Current Price is $2.68 Difference: $1.02
If BVS meets the Goldman Sachs target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 9.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.62.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.87.

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


Wilsons rates ((BVS)) as Upgrade to Market Weight from Underweight (3) –

The first half result was as Wilsons expected. Despite guidance below expectations, the broker believes the lion’s share of the headwinds are now mostly factored in and upgrades to Market Weight from Underweight.

The company signed seven new or renewed contracts and the analyst considers the sales pipeline is ‘strong’. Wilsons FY21-FY23 profit forecasts fall by -4% to -13% though the target is increased to $3.08 from $2.92, due to modest upgrades in the medium and long term. 

This report was published on February 26, 2021. 

Target price is $3.08 Current Price is $2.68 Difference: $0.4
If BVS meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.70 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.94.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 12.30 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.75.

Market Sentiment: 0.5
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: $0.33

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

Shaw and Partners finds Capitol Health's result to be one of the highlights of the reporting season. Operating income of $26.6m was up 50% over last year and a significant beat over the broker's expectation. Both revenues and growth were better than the broker expected.

Operating income margins are expected to be 24.1% in the second half while operating income is forecast to be $22m. These numbers are seen as conservative by Shaw and Partners, especially looking at the transitionary first half benefits.

Buy rating is retained with the target rising to $0.39 from $0.32.

This report was published on February 25, 2021.

Target price is $0.39 Current Price is $0.33 Difference: $0.06
If CAJ meets the Shaw and Partners target it will return approximately 18% (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 1.00 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.33.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.90 cents and EPS of 1.80 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 18.33.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $3.71

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

City Chic Collective's first-half operating income was in-line with Bell Potter's forecast of $22.8m while the net profit was $13.7m against the broker's estimated $14.3m. The broker highlights sales stood resilient against a difficult backdrop.

Comparable sales excluding store closures strengthened to 20.8%. In the USA, Avenue traded resiliently, observes the broker while the City Chic brand saw early benefits from cross-selling on the Avenue platform.

Trends for the first 8 weeks of the second half reveal continuing momentum with strong positive comparable sales growth. The broker is of the view Evans provides a strong platform to grow in the UK/Europe and adds to City Chic's growth opportunity in the USA. 

Bell Potter holds onto the Buy rating with the target price rising to $4.60 from $4.10.

This report was published on February 25, 2021.

Target price is $4.60 Current Price is $3.71 Difference: $0.89
If CCX meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $4.54, suggesting upside of 22.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.60 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of 104.2%.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 37.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.20 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.1, implying annual growth of 43.9%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 26.3.

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

CSX    CLEANSPACE HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $4.62

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

First half profit (NPAT) was 2% ahead of Wilsons' forecast, with the contribution from Consumables ahead of estimates. The broker sees a sales mix heavily skewed toward Healthcare (HC) over Industrials (IND) will likely influence favourable margin expansion.

The analyst highlights the Industrial business is benefiting from increased capacity and has returned to growth. It's felt the requirement for respiratory protection in both healthcare and broadening industrial settings will drive sustained growth.

The Overweight rating and $7.50 target are retained.

This report was published on February 26, 2021. 

Target price is $7.50 Current Price is $4.62 Difference: $2.88
If CSX meets the Wilsons target it will return approximately 62% (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 25.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.84.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.18.

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

DCG    DECMIL GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.54

Euroz Hartleys rates ((DCG)) as Speculative Buy (1) –

Decmil Group's first-half net profit was $0.6m as opposed to a loss of circa -$2m expected by Euroz Hartleys. No dividend was declared, as expected. The operating income was $5.6m, higher than the $2.5m forecast by the broker. 

Till December 2020, the company's committed revenue for FY21 was circa $360m while unapproved revenue was less than $1m.

Management advised that while the company navigated covid well during the first half, the situation remains dynamic with the possibility for disruptions to operations in the second half. 

Buy rating with a $1.01 target price.

This report was published on February 24, 2021.

Target price is $1.01 Current Price is $0.54 Difference: $0.47
If DCG meets the Euroz Hartleys target it will return approximately 87% (excluding dividends, fees and charges).

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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $2.94

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

While bumper like-for-like sales growth of 49% in the half was already pre-announced, Dusk Limited’s 1H21 result was above both previous guidance and Shaw and Partners forecasts, with earnings (EBIT) of $28.3m, excluding the net benefit of the $2.7m Job Keeper, and IPO-related transaction costs.

Gross margins were up 300bp from an already very high 64.7% to a record 67.7% (Shaw’s 67.4% estimate). The broker notes strong all round sales growth across every category, not just core Candles. Equally noteworthy, adds the broker, were loyalty membership sign ups/renewals, up 53% from 162k to 249k – taking total numbers now to around 630k – and Dusk Rewards sales, up 63% to $54m of total $90.9m sales.

While 2H is typically much less profitable than 1H, Shaw is expecting a stronger weighting to 2H given covid-driven demand pull, and expects this to feed into the already strong gross margins (rising from 65.1% in FY20 to 67.7 in 1H21).

Shaw believes Dusk is ideally positioned for long-term growth, and retains its Buy rating, with the target price rising to $3.50 from $2.80.

This report was published on February 26, 2021.

Target price is $3.50 Current Price is $2.94 Difference: $0.56
If DSK meets the Shaw and Partners target it will return approximately 19% (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 28.00 cents and EPS of 39.60 cents.
At the last closing share price the estimated dividend yield is 9.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.42.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 31.00 cents and EPS of 43.70 cents.
At the last closing share price the estimated dividend yield is 10.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.73.

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

ERF    ELANOR RETAIL PROPERTY FUND

REITs – Overnight Price: $1.07

Moelis rates ((ERF)) as Buy (1) –

Elanor Retail Property Fund delivered earnings of $6.53m, although this result included a $1.4m profit realised on the sale of the Auburn ambulance station. A first half dividend of 4.84c was announced. 

From a valuation perspective, Moelis finds the fund attractive particularly given how well the assets have held up throughout covid. The buy-back is expected to help underpin the share price in the near-term with upside to come through as capital is realised.

Buy rating and target price of $1.25.

This report was published on February 25, 2021.

Target price is $1.25 Current Price is $1.07 Difference: $0.18
If ERF meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 8.80 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 8.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.63.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.00 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 7.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

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: $3.79

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

Fineos Corp delivered a first-half result that was a little softer than Shaw and Partners expected. Revenue of EUR52.6m was circa -5% below the broker's forecast.

FY21 revenue guidance disappointed and was -8% below the broker's prior forecasts. Shaw and Partners has reduced its target price reflecting reduced revenue growth assumptions through FY21-23.

Buy rating with the target reducing to $5.30 from $5.82.

This report was published on February 25, 2021.

Target price is $5.30 Current Price is $3.79 Difference: $1.51
If FCL meets the Shaw and Partners target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $4.51, suggesting upside of 18.9%(ex-dividends)
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 2.95 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 128.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.3, 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:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.46 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 154.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.30

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

Helloworld Travel delivered a first half significantly impacted by covid related travel restrictions, observes Bell Potter. The total transaction volume (TTV) of $433m was at 12% of pre-covid levels with revenue of $29.6m at 16% of pre-covid levels.

The operating loss of -$6.5m, although down materially was still better than the broker expected (-$9.1m loss).

Management did not provide any formal guidance, as expected. The company hopes to make a modest profit from the first half of FY22 onwards.

While acknowledging the company offers diversified exposure to a rebound in travel bookings via its leisure and corporate travel businesses, at this stage of the recovery Bell Potter prefers companies with a direct sales model or with leverage to a rebound in domestic travel.

The Hold rating is unchanged and the target falls to $2.60 from $2.70.

This report was published on February 25, 2021.

Target price is $2.60 Current Price is $2.30 Difference: $0.3
If HLO meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 23.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.83.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.67.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $3.84

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

Healius' base pathology revenues recovered to 5% in January and February and are back in line with historical levels, observes Goldman Sachs. 

While on the surface this suggests the recovery story has been achieved, the broker highlights pathology volumes are still tracking modestly down. Covid testing continues to provide a meaningful tailwind and forms the majority of pathology growth in the period.

The company did not lose any material contracts in the period, notes the broker, and expects sequential improvement from here.

Buy rating is maintained with the target price rising to $4.40 from $3.16.

This report was published on February 25, 2021.

Target price is $4.40 Current Price is $3.84 Difference: $0.56
If HLS meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $4.26, suggesting upside of 10.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.00 cents and EPS of 23.00 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 16.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.3, implying annual growth of N/A.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of -22.9%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.3.

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

HSN    HANSEN TECHNOLOGIES LIMITED

IT & Support – Overnight Price: $5.21

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

Hansen Technologies delivered a strong 1H21 result with revenue ($147m) and margins both ahead of guidance. Underlying earnings (EBITDA) of $54.3m (constant currency) implied a margin of 36.9%, also above the 34-36% 1H guidance range.

Hansen provided FY21 guidance, including revenue of $285-295m and earnings (EBITDA) between $92-103m (implying a 32-35% margin). For the first time, long term financial targets were also provided, with Hansen providing FY25 targets, including revenue of $500m and earnings margin between 32-35% (implying EBITDA of $165-170m), and FY21 revenue guidance upgraded 2%.

Shaw and Partners expects future M&A to likely play a significant role, and suspects this could potentially be very accretive, given the company’s strong net free cashflow generation ($55m pa) and the board’s comfort level with gearing of 3.0-3.5x net debt/EBITDA (currently 1.03x).

Hansen currently trades on an FY22 EV/Adj earnings (EBITDA) multiple of 12.4x, which Shaw notes makes it one of the cheapest Enterprise Software stocks on the ASX.

Buy rating unchanged, with the target price rising to $5.06 from $4.56.

This report was published on February 26, 2021.

Target price is $5.06 Current Price is $5.21 Difference: minus $0.15 (current price is over target).
If HSN meets the Shaw and Partners target it will return approximately minus 3% (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 10.00 cents and EPS of 28.10 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 10.00 cents and EPS of 24.90 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.92.

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

IGL    IVE GROUP LIMITED

Media – Overnight Price: $1.49

Shaw and Partners rates ((IGL)) as Upgrade to Buy from Hold (1) –

With operating earnings (EBITDA) of $45.7m, IVE Group’s 1H21 result beat Shaw and partners estimates across all operating metrics. Equally important, the balance sheet de-levered materially, which the broker notes decreases the risk profile of the group, hence raising investor confidence.

Commenting on the result, Shaw believes management has delivered a quality performance, involving streamlining the cost base, managing unit inputs and gross margins; unwinding working capital; winning work versus competitors; and launching new product divisions underwritten by supply chain competitive advantages.

The broker observes underlying cash flow strength, with statutory operating cash flows at $59.9m, up 134% on the previous corresponding period, with free cash flow at a record $66.2m.

Shaw has upgraded underlying EPS by 40%, 4% and 3% in FY21, FY22 and FY23 respectively.

The rating is upgraded from Buy from hold and the target price rises to $1.91 from $1.44.

This report was published on February 26, 2021.

Target price is $1.91 Current Price is $1.49 Difference: $0.42
If IGL meets the Shaw and Partners target it will return approximately 28% (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 12.40 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 8.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.10.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 14.40 cents and EPS of 22.10 cents.
At the last closing share price the estimated dividend yield is 9.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.74.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $6.74

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

FY20 underlying earnings and profit were below Goldman Sachs' estimates with mineral sands earnings lower due to differences in inventory movements (non-cash) and higher resource development costs. Guidance and the outlook for 2021 were considered positive.

The broker's EPS forecasts for FY21 and FY22 increase by 21% and 11% on lower costs and an increase in zircon, rutile and synthetic rutile sales volumes and price forecasts. Buy rating and the target is raised by 8% to $8.

This report was published on February 26, 2021. 

Target price is $8.00 Current Price is $6.74 Difference: $1.26
If ILU meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $6.44, suggesting downside of -4.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.50 cents and EPS of 37.60 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.6, implying annual growth of 41.2%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.30 cents and EPS of 37.50 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.0, implying annual growth of 41.6%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 13.8.

Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IVC    INVOCARE LIMITED

Consumer Products & Services – Overnight Price: $11.20

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

InvoCare's second-half group sales were down -2.9%, an improvement over the -6.3% drop seen last year.

The improvement was supported by a recovery in average revenue per funeral as restrictions eased. On a heartening note, the broker comments, while market volumes remained soft in 2020, the company managed to recapture some market share in the second half.

Bell Potter expects a rebound in FY21 earnings forecast driven by cycling weak volumes, continued recovery of ARPF (average return per funeral) and the completion of protect & grow.

The Buy rating is maintained and the target price rises to $12.85 from $12.50.

This report was published on February 25, 2021.

Target price is $12.58 Current Price is $11.20 Difference: $1.38
If IVC meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $10.98, suggesting downside of -1.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 20.60 cents and EPS of 37.40 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of N/A.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 35.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 33.10 cents and EPS of 47.30 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.3, implying annual growth of 26.3%.
Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 27.8.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $3.56

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

Johns Lyng Group's first-half operating income was $27.7m, up 38.8% year on year and ahead of Bell Potter's $21.2m. Revenue grew 18.9% to $277.8m. An interim dividend of 2.2c was declared, representing a 52% payout ratio.

Bell Potter notes the result was driven by a great performance from the group's Insurance building segment with earnings contribution from jobs relating to past catastrophic events also greater than anticipated.

Johns Lyng has revised its FY21 revenue guidance to $524.1m and operating income to $47.4m although the broker sees upside to these forecasts.

Bell Potter rates the stock as Buy with the target price rising to $3.80 from $3.60.

This report was published on February 25, 2021.

Target price is $3.80 Current Price is $3.56 Difference: $0.24
If JLG meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.00 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.06.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 9.40 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.87.

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

LNK    LINK ADMINISTRATION HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $4.85

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

The first half operating profit for Link Administration was in-line with the estimate of Goldman Sachs, though the dividend of 4.5 cents was slightly below. Net debt and leverage were much better than anticipated.

Management noted FY21 should be the trough year for earnings, from which growth is expected to resume into FY22. Neutral rating retained with the target price rising to $4.90 from $4.89.

This report was published on February 26, 2021. 

Target price is $4.90 Current Price is $4.85 Difference: $0.05
If LNK meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $5.30, suggesting upside of 9.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of N/A.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 22.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 15.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of 19.1%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 18.5.

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

MWY    MIDWAY LIMITED

Agriculture – Overnight Price: $0.83

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

After enduring months of challenging woodfibre markets, there were signs of a recovery in global export markets during the Dec 2020 quarter, observes Bell Potter.

Midway's first half operating income rose 69% to $7.1m versus Bell Potter's expected $5.6m. Net profit improved to a profit of $0.5m from a loss of -$1.2m last year. No interim dividend was declared.

The company did not provide any specific earnings guidance although management seemed comfortable with an FY21 operating income FY21 consensus of circa $18m.

Buy rating with a target of $1.25.

This report was published on February 25, 2021.

Target price is $1.25 Current Price is $0.83 Difference: $0.42
If MWY meets the Bell Potter target it will return approximately 51% (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 6.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.21.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.00 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 7.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.14.

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


Shaw and Partners rates ((MWY)) as Hold (3) –

Midway had a tough FY20, notes Shaw and Partners, with an improved first half result that was in line with the broker's expectations with the outlook pointing to a recovery in price and volume in the first half of FY22.

The company's FY21 earnings are expected to pick up into FY22, suggests the broker, with strengthening expectations for a reversion back to longer-term historical trends of double-digit earnings growth, rising cash flow and low maintenance capex requirements. 

Hold rating retained with a target price of $1.25.

The report was published on February 25, 2021.

Target price is $1.25 Current Price is $0.83 Difference: $0.42
If MWY meets the Shaw and Partners target it will return approximately 51% (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 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.92.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 3.00 cents and EPS of 4.80 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.29.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.31

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

Mayne Pharma Group's revenues declined by -8% due to a mix of weaker volumes and price deflation in the two largest operating divisions. Operating expenses declined by circa -$12m versus last year to almost $60m.

In the specialty brands business revenues declined by -6% since dermatology offices around the country were closed or had restricted services due to covid. We are left in no doubt 1H21 was a very tough period for the company.

FY21 net profit forecast has been revised down by -9.7% while FY22 forecast has been revised upwards by 11%. 

Bell Potter maintains its Hold rating with the target price falling to $0.33 from $0.34.

This report was published on February 25, 2021.

Target price is $0.33 Current Price is $0.31 Difference: $0.02
If MYX meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $0.32, suggesting upside of 3.2%(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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.6, 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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 44.3.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.90

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

Nanosonics reported revenues and operating income of $43.1m and nil for the 6 month period till December 31, 2020. Revenue was -6% below Bell Potter's estimate. Some highlights include softer demand growth for both unit sales of the Trophon and consumables.

The broker is not surprised at the result given the previous update had warned that GE Healthcare had suspended ordering because of covid related issues to hospital clients in the US. Going forward, Bell Potter expects the gross margin to continue to improve.

While no explicit guidance was provided, the company intends to launch that long anticipated new product in FY22.

Bell Potter retains its Sell rating with a target of $4.95.

This report was published on February 25, 2021.

Target price is $4.95 Current Price is $5.90 Difference: minus $0.95 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.82
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 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 491.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.5, implying annual growth of -25.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $1.35

Shaw and Partners rates ((NIC)) as Downgrade to Sell from Buy (5) –

Nickel Mines reported underlying 2020 net profit of US$110.6m, in-line with Shaw’s US$110m forecast, but given the company’s change to a December balance date, the comparative result of US$57m in 2019 is for six months only.

While Shaw has not made any significant changes to the company’s earnings forecasts, the broker believes that after a period of outperformance this is now priced in.

Shaw is also concerned that the change in the way Nickel Mines nickel pig iron (NPI) sales are priced, will reduce the upside linked to strong electric vehicle demand for nickel.

The Buy rating has been downgraded to a Sell, and target price reduced to $1.26 from $1.33.

This report was published on February 26, 2021

Target price is $1.26 Current Price is $1.35 Difference: minus $0.09 (current price is over target).
If NIC meets the Shaw and Partners target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.60, suggesting upside of 18.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 7.33 cents and EPS of 12.69 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 10.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, implying annual growth of N/A.
Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 12.5.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 14.24 cents and EPS of 15.93 cents.
At the last closing share price the estimated dividend yield is 10.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of -13.9%.
Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 14.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $1.91

Moelis rates ((NSR)) as Hold (3) –

National Storage REIT delivered first-half earnings of $39.2m or 3.85c per share which was moderately below Moelis's estimates of $40.9m (or 4.03c per share).

The earnings guidance for FY21 has been upgraded to $82-$86m, which the broker thinks implies a moderate uptick in the second half driven by $258m of acquisitions made in the first half.

Going ahead, the broker notes the development pipeline remains active with 7 high-quality projects completed during 2020. The REIT has circa 63k sqm of centres under construction at present with a strong pipeline of a further 62k sqm at different stages of pre-development design.

Hold rating and a target price of $1.91.

This report was published on February 25, 2021.

Target price is $1.91 Current Price is $1.91 Difference: $0
If NSR meets the Moelis target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.94, suggesting upside of 1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 8.10 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of -46.1%.
Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 24.2.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.20 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 10.1%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 22.0.

Market Sentiment: -0.1
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: $2.45

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

Nitro Software’s first half result was solid and in-line with Shaw and Partners' expectations. FY21 revenue guidance is 3% ahead of the previous forecast.

The broker notes Nitro Software is investing for growth, responding to the opportunity covid has presented and doing so in a "disciplined way". The recent investment in senior leadership talent gives Shaw and Partners more confidence.

FY21 forecasts have been increased and are now in-line with the company's guidance. Nitro is expected to reach cash-flow breakeven in FY24.

Shaw and Partners retains its Buy rating with the target price rising to $3.58 from $3.45.

This report was published on February 25, 2021.

Target price is $3.58 Current Price is $2.45 Difference: $1.13
If NTO meets the Shaw and Partners target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 11.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.20.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.85 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.57.

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

NXT    NEXTDC LIMITED

Cloud services – Overnight Price: $10.43

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

Goldman Sachs assesses NextDC's first half result was solid with accelerating revenue and earnings growth as well as pleasing updates for the S3 and M3 developments.

The broker makes minor adjustments to revenue and earnings forecasts to reflect the 1H result and earlier billing for M3, offset by higher group costs. The target is raised to $13.50 from $13.20 while the Buy rating is retained.

This report was published on February 26, 2021. 

Target price is $13.50 Current Price is $10.43 Difference: $3.07
If NXT meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $14.07, suggesting upside of 34.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1043.00.

How do these forecasts compare to market consensus projections?

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

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1043.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.2, 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 325.9.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.20

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

Based on what it sees as a solid 1H21 result, with operating earnings (EBITDA) of $7.4m, up 20% year-on-year, Shaw believes Probiotec is in a strong position to deliver above expectations results, post a volatile covid period.

In its review, the broker suspects the 1H21 result could provide an upgrade to FY21 and improved sentiment into full year end, and on the strength of management’s commentary notes a likely upside risk into June.

Based on Shaw’s estimates, earnings capability of a recovery and acquisition contribution supports a $33m earnings (EBITDA) business, with synergistic upside.

While Shaw remains conservative on the bounce back of volumes in cold and flu in FY22 onwards, the broker has upgraded underlying EPS by 7%, 6% and 4% in FY21, FY22, and FY23 respectively.

Buy rating is reaffirmed with the target rising to $2.95 from $2.86.

The report was published on February 26, 2021.

Target price is $2.95 Current Price is $2.20 Difference: $0.75
If PBP 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 6.50 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.84.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 10.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.80.

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

PRU    PERSEUS MINING LIMITED

Gold & Silver – Overnight Price: $1.17

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

While Perseus Mining reported better than expected 1H21 earnings of $118m (consensus $94m), the broker explains it was mainly attributable to lower operating expenses, offset by foreign exchange impacts, while the stronger net profit was due to lower depreciation and amortisation and lower tax expenses. 

Commenting on the result, Cannacord Genuity expects near-term news flow to revolve around commercial production at Yaoure, updated LOMP for Yaoure (JunQ'21), and a detailed feasibility study for Bagoe as part of broader update for the Sissingue LOMP (JunQ'21).

2H21 guidance remains unchanged at 175-190koz at US$950-1,150/oz (Cannacord Genuity 165koz at US$1,027/oz estimate).

The broker expects Perseus Mining to move to a net cash position by mid-2021, and retains expectations for strong free cash flow over FY22-24 (FY22 free cash flow yield 35% at spot gold) based on group production increasing to around 500kozpa on a ramp-up at Yaoure.

In Cannacord Genuity’s view, this should allow the company to consider accelerated debt reduction, and/or commence paying dividends.

Buy rating and target price of $1.95 remain unchanged.

This report was issued February, 24 2021.

Target price is $1.95 Current Price is $1.17 Difference: $0.78
If PRU meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).
Current consensus price target is $1.48
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1462.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -18.3%.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of N/A.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $5.17

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

Qantas delivered a better first half result than Goldman Sachs had expected and the broker raises the target price to $6.38 from $5.28 and retains the Buy rating. The beat was driven by strong international earnings, largely assisted by a record freight contribution.

The company plans for international travel to restart at the end of October 2021, in-line with when the vaccine roll out will effectively be completed in Australia. Goldman Sachs considers the company represents a strong recovery investment.

This report was published on February 26, 2021. 

Target price is $6.38 Current Price is $5.17 Difference: $1.21
If QAN meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $5.46, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 50.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -70.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of N/A.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 17.3.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $3.04

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

First half underlying earnings (EBIT) of $101m were ahead of the $73m forecast by Goldman Sachs due to a recovery in the Operating division, where margins expanded by 310 basis points.

The broker highlights a non-binding commercial agreement reached with LOGOS for the Moorebank property assets (Warehouse, Land) for around $1.65bn.

The analyst raises FY21-23 earnings (EBITDA) estimates by 6.8%, 5.5% and 4.5%, respectively and increases the target price to $3.72 from $3.32. The Buy rating is retained.

This report was published on February 26, 2021. 

Target price is $3.72 Current Price is $3.04 Difference: $0.68
If QUB meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.08, suggesting upside of 1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of 30.8%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 44.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 23.5%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 36.2.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $63.48

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

First half results showed Goldman Sachs improving momentum in surgical volumes while non-surgical volumes are following a similar, albeit lagged, recovery trend.

Management expects to see a tapering of ‘covid costs’ through 2021, and the broker believes cost absorption will be further bolstered by vaccine roll-outs.

The analyst assesses much of the downside risk in Europe is limited by existing government support and sees clear scope for improving near-term trends.The target price rises to $75 from $70 and the Buy rating is retained.

This report was published on February 26, 2021. 

Target price is $75.00 Current Price is $63.48 Difference: $11.52
If RHC meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $69.35, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 135.00 cents and EPS of 202.00 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 199.8, implying annual growth of 52.5%.
Current consensus DPS estimate is 116.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 167.00 cents and EPS of 298.00 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 21.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 261.1, implying annual growth of 30.7%.
Current consensus DPS estimate is 146.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 24.3.

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

SFR    SANDFIRE RESOURCES NL

Copper – Overnight Price: $5.86

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

First half underlying earnings and profit were up 12% and  down -7% on Goldman Sachs' estimates. The difference to earnings was a $29m positive copper provisional pricing (PP) adjustment, while the difference to profit was a FX movement on debt.

There was an interim dividend of 8 cents and no change to FY21 guidance.

The broker increases FY21 and FY22 EPS forecasts by 7% on expected further copper PP gains in 2H FY22 and lower modeled D&A at Degrussa. The target price is increased to $5.80 from $5.60 and the Neutral rating is retained.

This report was published on February 26, 2021. 

Target price is $5.80 Current Price is $5.86 Difference: minus $0.06 (current price is over target).
If SFR meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.56, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 20.90 cents and EPS of 86.00 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 6.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.2, implying annual growth of 103.4%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 6.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 20.80 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.0, implying annual growth of -22.0%.
Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 8.6.

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

SGP    STOCKLAND

Infra & Property Developers – Overnight Price: $4.42

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

The first half result was in-line with Goldman Sachs' estimates though the broker adjusts the mix of  2H earnings estimates (lower
Retirement, higher Corporate overheads and stronger Residential).

Stockland reinstated guidance for FY21, which fell just shy of consensus expectations, notes the broker. Buy rated and target falls to $4.45 from $4.48.

This report was published on February 26, 2021. 

Target price is $4.45 Current Price is $4.42 Difference: $0.03
If SGP meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.52, suggesting upside of 2.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 33.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.3, implying annual growth of N/A.
Current consensus DPS estimate is 24.6, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 37.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.8, implying annual growth of 4.8%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.5.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SHJ    SHINE JUSTICE LTD

Legal – Overnight Price: $0.92

Moelis rates ((SHJ)) as Buy (1) –

Shine Corporate's group revenue was broadly in line with Moelis's estimates with operating income ($24.3m) 6.5% ahead of the broker's estimate. An interim dividend of 2c beat the broker's forecast by 7.9%.

The company's guidance expects a continuation of operating income growth in FY21. Management also intends to explore both organic and acquisition growth opportunities, including building out a national footprint in family law.

Buy rating with the target rising to $1.26 from $1.19.

This report was published on February 25, 2021.

Target price is $1.26 Current Price is $0.92 Difference: $0.34
If SHJ meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.00 cents and EPS of 14.40 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 6.39.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.20 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.97.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $5.01

Wilsons rates ((SLA)) as Downgrade to Market Weight from Overweight (3) –

Wilsons downgrades to Market Weight from Overweight and increases the target price to $4.45 from $4.15 after an in-line first half profit and a guidance upgrade.

The broker explains results are primarily driven by organic demand for non-surgical aesthetics, practice expansion, network optimisation
and centre maturation.

The non-surgical aesthetics (NSA) industry is growing faster than conventional healthcare services sub-sectors, notes Wilsons. This is considered to support the company’s strategy to add 6-10 clinics per year and the pursuit of an aspirational target of over 150.

This report was published on February 26, 2021. 

Target price is $4.45 Current Price is $5.01 Difference: minus $0.56 (current price is over target).
If SLA meets the Wilsons target it will return approximately minus 11% (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 0.00 cents and EPS of 14.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.28.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 29.30.

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

SLK    SEALINK TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $8.95

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

SeaLink Travel’s 1H21 result pleased Canaccord Genuity, with two of the three divisions outperforming, with substantial incremental earnings (EBITDA) margin drop-through.

The broker notes that Australian Bus margins were the highlight, and on the assumption that these higher margins carry through into 2H21 and beyond, $15m-plus annualised incremental earnings (EBITDA) flow through relative to its original forecasts.

While Canaccord Genuity had been looking for earnings (EBITDA) in the region of $120.0m, it notes that upwards of $140.0m now looks possible. However, the broker has set its FY21 earnings (EBITDA) at $129.1m, while it tries to better understand the cost dynamics within each division and the areas of outperformance.

The stock rating remain Buy with target price increasing to $8.55 from $7.63.

This report was published on February 25, 2021.

Target price is $8.55 Current Price is $8.95 Difference: minus $0.4 (current price is over target).
If SLK meets the Canaccord Genuity target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.14 cents and EPS of 0.31 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2887.10.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.16 cents and EPS of 0.37 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2418.92.

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

SLR    SILVER LAKE RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.61

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

Due to lower operating costs ($10m delta) caused by inventory movements, and a profit associated with the sale of the Fingals and Rowe's Find asset ($7.5m), Silver Lake Resources reported 1H21 earnings (EBITDA) of $160m, well ahead of Cannacord Genuity’s $144m estimate.

Net profit of $66m (Cannacord Genuity $90m) was largely driven by higher depreciation and amortisation ($17m delta) and a non-cash tax expense ($24m).

The broker expects the company’s tax losses of -$383m to be consumed over the next 18 months, and has updated earnings to include the non-cash tax expense over this period.

While Cannacord Genuity sees no reason to change forecasts at this juncture, the broker notes when investors look to price Silver Lake on FY22 cash flow metrics, there is potential for a share price re-rate.

Buy rating and price target of $2.40 remain unchanged.

This report was issued February, 24 2021

Target price is $2.40 Current Price is $1.61 Difference: $0.79
If SLR meets the Canaccord Genuity target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1238.46.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.18 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 894.44.

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

TNK    THINK CHILDCARE GROUP

Childcare – Overnight Price: $2.33

Canaccord Genuity rates ((TNK)) as Hold (3) –

Canaccord Genuity believes Think Childcare Group’s impressive 2020 result, with earnings (EBITDA) of $26.8m (9% above forecast) to reinforce the company’s appeal as a takeover target.

While most of the revenue outperformance was from covid support measures, the broker noted earnings strength appears to have been mainly driven by rostering and cost management, with margins expanding nicely.

With Canaccord Genuity’s revised base case valuation of $2.29 per share now exceeding the current indicative takeover price ($2.10) from childcare operator Busy Bees, the broker sees potential for a sweetened offer.

But without confidence that an increased offer will be made, the broker maintains a Hold rating and target price of $2.10.

This report was published on February 24, 2021.

Target price is $2.10 Current Price is $2.33 Difference: minus $0.23 (current price is over target).
If TNK meets the Canaccord Genuity target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 9.20 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.07.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 10.80 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.10.

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

TPG    TPG TELECOM LIMITED

Telecommunication – Overnight Price: $6.84

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

Higher opex drove the slight earnings (EBITDA) miss while Goldman Sachs observes fixed/corporate revenue was in-line and mobiles
marginally ahead. FY23 opex synergy targets of -$125-150m per year are consistent with the broker's expectations.

After making minor changes to forecasts, the analyst lowers the target price by -1% to $7.10 and maintains the Neutral rating. The broker forecasts FY21 earnings will rise by 2% to $1.83bn, with -$91m in NBN/covid/tax headwinds.

This report was published on February 26, 2021. 

Target price is $7.10 Current Price is $6.84 Difference: $0.26
If TPG meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $8.04, suggesting upside of 17.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 15.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of -73.4%.
Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 40.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 23.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 42.9%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 28.1.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting – Overnight Price: $0.28

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

XRF Scientific delivered 1H21 revenue 6% above Canaccord Genuity’s forecast, and the company has flagged that positive conditions will likely continue into the second half.

The company's outlook statement suggests a continued focus on Precious Metals division expansion, with further geographical expansion also likely.

Given the recent strengthening of the lithium price, Canaccord Genuity have dialed down their margin assumptions for F22-FY23, and note that margins were a little lower than anticipated in 1H21.

While Canaccord Genuity’s earnings (EBITDA) forecast is -2% lower in both FY21 and FY22, the broker remain positive on the stock.

The Speculative Buy rating and target price of $0.34 are unchanged.

This report was published on February 24, 2021.

Target price is $0.34 Current Price is $0.28 Difference: $0.06
If XRF meets the Canaccord Genuity target it will return approximately 21% (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 1.40 cents and EPS of 2.20 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.73.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.40 cents and EPS of 2.40 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.67.

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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A2M ACF AHX AMA APT BGA BKL BVS CAJ CCX CSX DCG DSK ERF FCL HLO HLS HSN IGL ILU IVC JLG LNK MWY MYX NAN NIC NSR NTO NXT PBP PRU QAN QUB RHC SFR SGP SHJ SLA SLK SLR TNK TPG XRF

For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED

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