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Australian Broker Call *Extra* Edition – Mar 17, 2021

Daily Market Reports | Mar 17 2021

This story features ALCIDION GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: ALC

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)

ALC   ALX   ASB (2)   ASG   AVH   BCI   BML   BUB   BVS   BWX (3)   CAT   CRN   CYC   DBI   ECF   ELD   EVO   FDV   GCY   GDG   GNC   HUO   KGN   LBL   MMM   MVP (2)   OLL   OTW   PSI   PTM   PVS   RMC   RSG   RXL   SM1   SPT   STA   SXL   VMY   WPR (2)   WSP   ZBT  

ALC    ALCIDION GROUP LIMITED

Healthcare services – Overnight Price: $0.30

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

The company signed a contract with New Zealand’s Te Manawa Taki (TMT) region District Health Board (DHB) for a pilot implementation of Better’s OPENeP Electronic Medication Management solution. The project is valued at $0.6m over the course of 6-7 months.

This software aims to standardise, digitise and increase accessibility of medication data and support to improve clinical care, patient safety and more efficient transitions of care. The Buy rating and $0.30 target are maintained.

While Bell Potter views the announcement positively, the most relevant near-term catalysts are new contract additions in the UK, which will validate the international expansion thesis and create a step-change improvement to the longer term revenue outlook.

This report was published on March 3, 2021.

Target price is $0.30 Current Price is $0.30 Difference: $0
If ALC meets the Bell Potter target it will return approximately 0% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 100.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 300.00.

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

ALX    ATLAS ARTERIA

Infrastructure & Utilities – Overnight Price: $6.12

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

Goldman Sachs retains its Buy rating for Atlas Arteria with the target rising to $7.29 from $7.26.

Atlas Arteria delivered a solid FY20 result, notes Goldman Sachs, with an operating income of $881m, above the broker's expected $826m. A final dividend of 13c was declared, beating the broker's expected 11c.

Traffic since the beginning of 2021 remains impacted by covid restrictions, highlights Goldman Sachs, with operating performance hindered by the ongoing traffic disruption.

The company continues its focus on structural improvement of its portfolio and creating long-term value. 

This report was published on March 1, 2021.

Target price is $7.29 Current Price is $6.12 Difference: $1.17
If ALX meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $6.26, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 28.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.6, implying annual growth of N/A.
Current consensus DPS estimate is 27.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 37.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 6.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.2, implying annual growth of 45.7%.
Current consensus DPS estimate is 37.3, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 15.2.

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

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $2.45

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

Goldman Sachs's Buy thesis on Austal is centred around the company’s ability to win future defense contracts. The broker views the company as a core supplier operating in a constrained industrial base at a time when the US Navy wants to increase its small vessel mix within the broader fleet.

The first half results highlighted the margin benefits Austal can realise over the next several years. notes the broker, as the company works through the backlog and multiple pipeline opportunities.

The Buy rating is unchanged with the target falling to $4.03 from $4.10.

This report was published on March 1, 2021.

Target price is $4.03 Current Price is $2.45 Difference: $1.58
If ASB meets the Goldman Sachs target it will return approximately 64% (excluding dividends, fees and charges).
Current consensus price target is $2.85, suggesting upside of 16.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.6, implying annual growth of -1.6%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 10.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.1, implying annual growth of -14.2%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 11.6.

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


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

Shaw and Partners identifies a key negative for the first half results was the weakness in the sustainment/service division. Management cut FY21 revenue guidance to $1.65bn from $1.8bn (using an AUD/USD rate of 77 cents).

FY21 EBIT guidance of $125m was maintained, as margins were very strong in the first half. A concern for the analyst was the order book in Shipbuilding at the end of December was $2.9bn, compared to $4.3bn at the end of FY2020.

The broker's profit (NPAT) forecast for FY21 is largely unchanged though downgrades were made for FY22 and FY23 of -20% and -8%, respectively. Buy rating retained and target is lowered to $3 from $3.55.

The analyst notes the resignation of the US CEO post the release of the company’s own (external lawyers hired) findings into separate but related investigations being conducted by US regulatory authorities.

This report was published on March 3, 2021.

Target price is $3.00 Current Price is $2.45 Difference: $0.55
If ASB meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.85, suggesting upside of 16.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 8.00 cents and EPS of 24.50 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.6, implying annual growth of -1.6%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 10.0.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 8.00 cents and EPS of 21.50 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.1, implying annual growth of -14.2%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 11.6.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $2.17

Moelis rates ((ASG)) as Buy (1) –

Autosports Group's first half results were strong, observes Moelis and the broker expects the strong streak to continue going into the second half. The group delivered profit before tax of $29m, up 163.5% which is in line with guidance of $28.5-29.5m.

An interim dividend of 2c was declared. The group did not provide any quantified guidance due to an uncertain outlook. Autosports expects the constrained supply environment to persist until the end of FY21 which will support better margins.

Moelis retains its Buy rating with a target price of $2.27.

This report was published on February 24, 2021.

Target price is $2.27 Current Price is $2.17 Difference: $0.1
If ASG meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.40 cents and EPS of 22.50 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.64.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 10.20 cents and EPS of 22.50 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.64.

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

AVH    AVITA THERAPEUTICS, INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.74

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

Avita Therapeutics has completed a fully underwritten institutional placement of 3.2m ordinary shares at US$21.50 (CDI equivalent of around $5.88) to raise approximately $69m before costs.

The capital was raised predominantly from new investors based in the US via the company’s primary listing on the Nasdaq exchange. Following this raise Bell Potter expects the company will have cash reserves of at least US$125m.

The target is lowered to $12.40 from $14 as the EPS forecast is diluted in-line with the new shares on issue. Buy rating is maintained.

This report was published on March 3, 2021.

Target price is $12.40 Current Price is $5.74 Difference: $6.66
If AVH meets the Bell Potter target it will return approximately 116% (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 149.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.83.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 112.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.12.

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

BCI    BC IRON LIMITED

Iron Ore – Overnight Price: $0.30

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

First half results were broadly in-line with Bell Potter's estimates with underlying earnings (EBITDA) 73% higher on the pcp due to robust iron ore pricing in the half.

The company is positioned to advance the Mardie Project through to a Final Investment Decision (FID), which is targeted for the second quarter 2021, highlights the broker. The commencement of major construction activities is expected in the third quarter

Buy rated and target rises to $0.50 from $0.48 due to adjustments for expensed exploration and future capital management assumptions.

The analyst notes the Mardie Salt and SOP Project has the potential to add significant value and has appeal to ESG concerned debt and equity investors. 

This report was published on March 4, 2021.

Target price is $0.50 Current Price is $0.30 Difference: $0.2
If BCI meets the Bell Potter target it will return approximately 67% (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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.50.

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

BML    BOAB METALS LTD

Mining – Overnight Price: $0.43

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

Boab Metals has outlined plans for a Phase V drilling program at its flagship (75% owned) Sorby Hills project, the largest lead-silver-zinc deposit in Australia. The program is scheduled to commence in April.

In Shaw and Partners' view, the company is well-funded (with net cash of $14.9m at the end of December) to continue to execute workstreams towards a definitive feasability study (DFS) and ultimately a final investment decision (FID) in the first half of FY22.

Buy rating with a $1.02 target.

This report was published on March 2, 2021.

Target price is $1.02 Current Price is $0.43 Difference: $0.59
If BML meets the Shaw and Partners target it will return approximately 137% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 143.33.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.33.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.52

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

Bubs Australia’s first-half operating loss at -$14.4m was higher than Bell Potter's forecast of -$4.6m. Revenue at $18.3m was down -32% over last year while the gross loss was -$1.5m.

In the second half, Bell Potter expects gross revenues to reflect modest growth before recovering in FY22. The broker has materially downgraded its revenue expectations for Bubs reflecting softer activity levels.

Bell Potter retains its Hold rating with the target price declining to $0.57 from $0.73.

This report was published on March 1, 2021.

Target price is $0.57 Current Price is $0.52 Difference: $0.05
If BUB meets the Bell Potter target it will return approximately 10% (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 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.93.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.61.

Market Sentiment: -1.0
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: $2.64

Jarden rates ((BVS)) as Underweight (2) –

Bravura Solutions' first-half net profit of $9m beat Jarden's $7.8m estimate. Even so, the company missed the broker's revenue and operating income estimates. Wealth management benefited from acquisitions.

The company has downgraded guidance from an implied circa $40m to a net profit range of $32-$35m, which includes a $5.5m benefit from reduced headcount in the second half.

Also, Bravura expects a -$5.5m cost reduction in the second half but Jarden believes this also highlights weaker demand and that the costs would likely rise once demand returns.

Underweight rating with the target rising to $2.87 from $2.83.

This report was published on February 25, 2021.

Target price is $2.87 Current Price is $2.64 Difference: $0.23
If BVS meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 8.70 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.31.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 9.80 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.72.

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

BWX    BWX LTD

Household & Personal Products – Overnight Price: $4.81

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

BWX delivered a solid first half result that was broadly in line with Bell Potter's estimates. The group revenue increased by 0.5% over last year to $84.5m with growth in Sukin.

The company reported an in-line operating income of $11.7m with operating income margins improving to 13.9%.

BWX has reaffirmed its FY21 guidance for revenue and operating income growth of at least 10%. Bell Potter notes this implies second-half growth of circa 18% year on year.

The broker also anticipates sales contribution from the THG Holdings partnership agreement, a partnership agreement with Woolworths and a five-year strategic partnership agreement with Chemist Warehouse.

Buy rating with the target price rising to $5.40 from $5.20.

This report was published on March 1, 2021.

Target price is $5.40 Current Price is $4.81 Difference: $0.59
If BWX meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.20 cents and EPS of 12.30 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 39.11.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.20 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.18.

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


Moelis rates ((BWX)) as Buy (1) –

BWX's first-half result was in line with Moelis's expectations despite a tough environment. The operating income delivered a modest growth of 1.4% over last year with revenue up 0.6%.

While the topline growth was weaker, compositionally the broker believes the result was better with growth driven by Sukin, BWX’s highest margin brand. An interim dividend of 1c was declared.

The company has guided to FY21 revenue and operating income growth of 10%.

BWX also entered into a strategic partnership with Chemist Warehouse Group under which Sukin, Mineral Fusion, Andalou and Life Basics will be available on Chemist Warehouse’ online store. The deal is expected to be earnings accretive within the first 12 months.

The Buy rating is unchanged with a target price of $5.44.

This report was published on March 1, 2021.

Target price is $5.44 Current Price is $4.81 Difference: $0.63
If BWX meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 3.80 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 0.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.43.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.40 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 0.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.33.

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


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

First half results were flat year-on-year with the skew into the second half likely to be magnified, predicts Shaw and Partners. With a number of distribution gains and improving trends this could potentially be achieved through Sukin outperformance. 

Management reiterated guidance for at least 10% revenue and earnings (EBITDA) growth in FY21. This implies to the analyst 16% growth in 2H earnings versus the pcp, a marked acceleration on the first half.

With gains having been pushed back around six months by the covid environment in Nth America, the broker maintains a Hold rating though increases the target price to $4.34 from $4.32.

This report was published on March 3, 2021.

Target price is $4.34 Current Price is $4.81 Difference: minus $0.47 (current price is over target).
If BWX meets the Shaw and Partners 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 June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 4.00 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.42.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.46.

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

CAT    CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices – Overnight Price: $1.85

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

After first half results, Bell Potter feels Catapult Group International is increasingly becoming a SaaS company and is well positioned to both withstand the current environment and rebound when conditions improve.

A key highlight for the broker was the increase in annual contract value (ACV) by 8%, which was partly driven by a reduction in the ACV churn rate to a record low 4.5%.

The company also increased the average lifetime duration of its customers to 6.1 years (up 2%) and the number of multi-solution customers to 241 (up 19%). Hold rating and target falls to $1.90 from $1.95 due to forecast earnings and cash flow downgrades.

This report was published on March 3, 2021.

Target price is $1.90 Current Price is $1.85 Difference: $0.05
If CAT meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.12.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 63.79.

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

CRN    CORONADO GLOBAL RESOURCES

Coal – Overnight Price: $1.06

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

Coronado Global Resources reported 2020 operating income of US$54m against Bell Potter's forecast of US$45m and net loss of -US$227m versus Bell Potter's expected -US$211m. No dividend was declared, as expected.

Bell Potter highlights the company's result was impacted by weak metallurgical coal markets. For 2021, the miner has guided to 18-19mt coal production with -US$135-155m in capital expenditure. This is weaker than the broker expected.

Buy recommendation with the target price falling to $1.50 from $1.55.

This report was published on March 1, 2021.

Target price is $1.50 Current Price is $1.06 Difference: $0.44
If CRN meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $1.39, suggesting upside of 31.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.79 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 7.87 cents and EPS of 17.29 cents.
At the last closing share price the estimated dividend yield is 7.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of 103.3%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 8.7.

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

CYC    CYCLOPHARM LIMITED

Medical Equipment & Devices – Overnight Price: $2.51

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

Following a relatively weak revenue performance in the first half, Bell Potter notes Cyclopharm's sales volumes largely returned to the long term run rate in all key markets in the second half.

The first half revenues, affected by covid, largely returned back to normal with revenues in the second half at their highest in recent history. This makes Bell Potter confident that the Technegas business will resume more normal levels of activity in 2021.

The focus for 2021 will be the pending FDA approval of Technegas for the US market, suggests the broker. Also, the broker expects Cyclopharm will generate a net loss in FY21 before achieving breakeven in FY22.

Buy rating with the target price rising to $3.79 from $3.40.

This report was published on March 1, 2021.

Target price is $3.79 Current Price is $2.51 Difference: $1.28
If CYC meets the Bell Potter target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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

DBI    DALRYMPLE BAY INFRASTRUCTURE LTD

Infrastructure & Utilities – Overnight Price: $2.09

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

Dalrymple Bay Infrastructure has reported statutory financial results for its listing period (8-31 December 2020) broadly in-line with the December 2020 Prospectus forecasts.

Bell Potter believes the key to the earnings outlook will be the Queensland Competition Authority’s final ruling on its July 2021 regulatory reset due in March. Buy rating and target price falls to $2.26 from $2.30.

The board has approved a transition to quarterly shareholder distributions, which means the $45m first half dividend will now be distributed across two equal payments in the June and September 2021 quarters.

This report was published on March 3, 2021.

Target price is $2.26 Current Price is $2.09 Difference: $0.17
If DBI meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $2.53, suggesting upside of 20.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 17.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 8.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of N/A.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 8.7%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 16.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 7.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.8, implying annual growth of 38.8%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 8.8%.
Current consensus EPS estimate suggests the PER is 17.7.

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

ECF    ELANOR COMMERCIAL PROPERTY FUND

REITs – Overnight Price: $1.04

Moelis rates ((ECF)) as Buy (1) –

Eleanor Commercial Property Fund reported first-half funds from operations of 6.34c with 99.5% of rent collected during the half and no further waivers expected. The fund has upgraded its FFO guidance by 4% to 12.5c with distribution guidance of 10c.

The weighted average lease expiry rose to 4 years in December 2020 from 3.7 years in June 2020 and the broker notes the medium-term expiry risk is relatively low.

Moelis's investment thesis on the stock includes a manageable near term expiry profile, largely fixed rent reviews and an almost fully hedged cost of debt.

Buy rating with a price target of $1.24.

This report was published on March 1, 2021.

Target price is $1.24 Current Price is $1.04 Difference: $0.2
If ECF meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 10.00 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 9.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.32.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 10.20 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 9.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.25.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $12.05

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

After reviewing underlying drivers, Bell Potter continues to see strong year-on-year tailwinds in livestock and wool agency as well as retail drivers.

The broker sees favourable tailwinds from annualised benefits of recent acquisitions, normalisation in summer cropping conditions and the continued migration of generic vetchem and ag-chem sales to the Titan and  Australian Independent Rural Retailers (AIRR) portfolios. 

Buy rating retained. The price target is increased to $13.60 from $13.30. As mentioned above, the key drivers of earnings in the retail and agency business appear to be tracking strongly, notes Bell Potter.

This report was published on March 4, 2021.

Target price is $13.60 Current Price is $12.05 Difference: $1.55
If ELD meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $12.89, suggesting upside of 7.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 25.00 cents and EPS of 80.30 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.5, implying annual growth of 2.1%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 28.00 cents and EPS of 87.10 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.9, implying annual growth of 7.9%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 13.7.

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

EVO    EVOLVE EDUCATION GROUP LIMITED

Software & Services – Overnight Price: $1.33

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

FY20 underlying earnings (EBITDA) pre-AASB16 were -8% below Canaccord Genuity's estimates as it appeared New Zealand was softer than the broker had expected in the fourth quarter though this was offset in part by a better performance by the Australian centres.

The broker feels New Zealand operations are turning the corner with 2020 earnings of around $12m versus $7m (for the year to 31 March 20). The company has announced a change in accounting to a calendar year end.

The Buy rating is unchanged and the target decreases to NZ$1.70 from NZ$1.76, after the analyst trims the EPS estimates by -9.3% in 2021 and -7.6% in 2022.

This report was published on March 2, 2021.

Current Price is $1.33. Target price not assessed.
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.06.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.49 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.57.

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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $1.42

Bell Potter rates ((FDV)) as Upgrade to Buy from Hold (1) –

Bell Potter lifts the rating to Speculative Buy from Hold and believes Frontier Digital Ventures has built a solid platform to deliver growth over the year ahead. The target price of $1.70 is unchanged.

The broker believes the transactional model will supercharge growth of recent Adevinta acquisitions and the company remains strongly funded post acquisitions with pro-forma cash of around $34.5m.

Other positives are the increased ownership of portfolio companies and cost measures implemented in FY20 to deliver increased shareholder value as portfolio revenues rebound, explains the analyst.

This report was published on March 4, 2021.

Target price is $1.70 Current Price is $1.42 Difference: $0.28
If FDV meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 59.17.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 473.33.

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

GCY    GASCOYNE RESOURCES LTD

Gold & Silver – Overnight Price: $0.56

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

First half results for Australian gold producer Gascoyne Resources, were in-line with Canaccord Genuity's estimates. Gold sales were 41.4koz at an all-in-sustaining-cost (AISC) of $1,267/oz. Buy rating and $1 target are unchanged.

The broker explains FY21/22 has been well flagged as a period of investment in waste stripping at Dalgaranga, which will improve access to ore benches and enable an increase to stockpiles at the asset. Guidance was unchanged.

This report was published on March 2, 2021.

Target price is $1.00 Current Price is $0.56 Difference: $0.44
If GCY meets the Canaccord Genuity target it will return approximately 79% (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 0.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 266.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.23 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 243.48.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $0.72

Moelis rates ((GDG)) as Buy (1) –

Generation Development Group's first-half funds under management (investment bonds) were up 21% to $1.5bn. Moelis notes the core of the group's business – investment bonds – delivered 45% net profit growth versus last year and continues to strengthen its industry-leading position.

The broker expects the group's share of Lonsec earnings to grow to $1.8m in FY23 from $0.8m in FY21 driven by growth across both the ‘ratings’ and ‘investment solutions' segments. 

Looking at the first half, Moelis estimates earnings to be 2.4c for the entire FY21. Buy Rating with a target price of $1.1.

This report was published on March 1, 2021.

Target price is $1.10 Current Price is $0.72 Difference: $0.38
If GDG meets the Moelis target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 2.00 cents and EPS of 2.40 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.00 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.69.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $4.46

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

Despite a litany of underlying risks confronting GrainCorp (which provides handling, storage, marketing, logistics and agronomic service to the east-coast grain industry), including covid, weather and new competition, Bell Potter retains a Buy rating and price target of $5.20 on the company.

Underscoring Bell Potter’s outlook are normalised east coast crop production of 17.7mt and the returns which the broker is expecting the grain and oilseeds business to generate in that year.

These earnings are implied on a range of 9-10x sustainable profit before tax, depreciation and amortisation (PBTDA), and a value for its 10% holding in United Malt Group at market value.

This report was published on March 5, 2021.

Target price is $5.20 Current Price is $4.46 Difference: $0.74
If GNC meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $5.42, suggesting upside of 21.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 18.00 cents and EPS of 34.60 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.3, implying annual growth of -77.1%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.00 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of -20.4%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.3.

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

HUO    HUON AQUACULTURE GROUP LIMITED

Aquaculture – Overnight Price: $2.44

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

Huon Aquaculture Group has started a strategic review following unsolicited approaches regarding potential corporate level transactions.

The company reported a first-half net loss of -$18.4m, -21% below the broker's estimate while operating income was -38% below the estimate. The company has guided to $15-20m in operating income for FY21.

Goldman Sachs highlights the company is feeling the heat from weak exports and domestic Atlantic salmon prices at a time when production is at record highs. Market conditions are expected to improve during 2021 led by lower global supply and demand recovery.

Goldman Sachs maintains its Neutral rating with the target price rising to $2.55 from $2.45. 

This report was published on March 1, 2021.

Target price is $2.55 Current Price is $2.44 Difference: $0.11
If HUO meets the Goldman Sachs target it will return approximately 5% (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 0.00 cents and EPS of minus 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.27.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.86.

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

KGN    KOGAN.COM LTD

Retailing – Overnight Price: $13.90

Jarden rates ((KGN)) as Overweight (2) –

Kogan.com's first half revenue growth was up 89% over last year to $414m versus Jarden's expected $399.6m, while the operating income at $51.7m was 4% above the broker's forecast of $49.8m.

The broker has raised its revenue forecasts by 5% for FY21-22 led by upgrades to sales growth expected for exclusive brands. Jarden views Kogan as a fast growing online retailer with a huge portfolio of private label and third party brands with a strong competitive position.

Going ahead, the broker sees solid incremental growth potential with the company expanding its share of the $34bn A&NZ online retail market in addition to other verticals.

Overweight rating with the target falling to $19.30 from $20.21.

This report was published on February 26, 2021.

Target price is $19.30 Current Price is $13.90 Difference: $5.4
If KGN meets the Jarden target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 62.60 cents and EPS of 62.60 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.20.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 67.20 cents and EPS of 67.20 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.68.

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

LBL    LASERBOND LIMITED

Mining Sector Contracting – Overnight Price: $0.63

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

Although lowering revenue and earnings forecasts, Canaccord Genuity believes the business is well set going forward. First half results showed restrictions on access to customers' sites slowed the Services segment though Products took up the slack.

The broker highlights that fast growing Products revenue was especially noteworthy in a period where the company's ability to put business development managers in the field was severely limited.

Guidance confirmed the objective of reaching $40m revenue in FY22. Buy rating and the target price is lowered to $0.80 from $0.90.  The analyst explains the earnings forecasts come down proportionately more than revenue, though overall changes are modest.

This report was published on March 2, 2021.

Target price is $0.80 Current Price is $0.63 Difference: $0.17
If LBL meets the Canaccord Genuity target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.75.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $2.74

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

Marley Spoon recently confirmed a very strong 2020 result, with revenue growth of 96% and earnings (EBITDA) close to break-even.

Management confirmed guidance for 2021 sales growth of 25-30% and contribution margin of 30-31% (2020: 29%), and noted all segments have started 1H2021 with strong revenue growth.

Commenting on the result, Wilsons sees significant benefits to unit economics if the improved revenue retention is sustained.

Revenue retention profiles for customer cohorts over the past 3 years reveal the 2020 cohort currently tracking 15 percentage points ahead of the 2018 cohort.

Assuming this is maintained, Wilsons suspects revenue retention over the long-term would sit at around 35% (vs 20% in 2018), which implies Marley Spoon would effectively be generating 75% more revenue from the same initial customer acquisition cost.

Overweight rating is retained with a target price decreasing to $3.48 from $3.50.

This report was published on March 4, 2021.

Target price is $3.48 Current Price is $2.74 Difference: $0.74
If MMM meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.52.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.44 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.74.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.61

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

Lower Penthrox and respiratory sales, due to both by covid and the transition of the EU and Australian business from Mundipharma, resulted in Medical Developments International delivering 1H21 revenue of $12.6m, around -$3.5m below Bell Potter’s forecast, but up 15% year-on-year.

Medical Developments has proforma cash of $45.2m, following the recent placement and share purchase plan, which Bell Potter notes leaves the company well-funded under new management to execute on its EU commercialisation strategy for Penthrox and complete clinical trials required for US and China approvals.

While Penthrox, which is progressing towards US investigational new drug (IND) approval in 2H2021, will be a key catalyst, the broker also notes Medical Developments plans for a targeted launch in Germany and Spain in late 2021.

The net result of revisions to Bell Potter’s model is a large decrease in the broker’s FY21 and FY23 net profit (NPAT) forecasts and a large increase in the FY22 net loss forecast, driven by a -$3-$5.5m decline in revenue forecasts and large reductions in earnings (EBITDA) margin.

The Buy rating is maintained. The target price is decreased to $7.10 from $7.50.

The report was published on November 2, 2020.

Target price is $7.10 Current Price is $5.61 Difference: $1.49
If MVP meets the Bell Potter target it will return approximately 27% (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 6.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 82.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.66.

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


Moelis rates ((MVP)) as Upgrade to Buy from Hold (1) –

Medical Developments International's first half was weaker than expected largely due to one-offs, observes Moelis. The revenue was $12.6m while operating income was just $0.3m and net loss stood at -$1.1m.

Net cash improved to $33.4m due to the capital raise in December. No interim dividend was declared.

The company refrained from providing any quantified guidance but is cautiously optimistic around a stronger second half sales performance.

Moelis upgrades to Buy from Hold rating with the target moving to $7.03 from $7.16.  

This report was published on March 1, 2021.

Target price is $7.03 Current Price is $5.61 Difference: $1.42
If MVP meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 2.00 cents and EPS of minus 3.70 cents.
At the last closing share price the estimated dividend yield is 0.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 151.62.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 95.08.

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

OLL    OPENLEARNING LTD

Education & Tuition – Overnight Price: $0.19

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

In a largely pre-announced FY20 result, Canaccord Genuity highlights a higher-than-expected revenue share percentage and an earlier than expected ramp-up in costs for the UNSW Global partnership agreement.

There was 48% growth in gross sales and 42% growth in cash receipts in FY20. Gross sales growth comprised 57% growth in Platform SaaS fees, 91% in Marketplace sales and flat Services sales.

The broker expects enrollments will start to build over the coming three to six months as new courses are now coming online. The Speculative Buy rating is unchanged and the target price is lowered to $0.43 from $0.46.

This report was published on March 2, 2021.

Target price is $0.43 Current Price is $0.19 Difference: $0.24
If OLL meets the Canaccord Genuity target it will return approximately 126% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.33.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.50.

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $4.07

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

Management estimates the business will exit this financial year with $125m of annualised recurring revenue, which confirms to Canaccord Genuity the recurring revenue trajectory is tracking within expectations.

The broker envisages a situation where the company can offer the full suite of IT and telco services, including cloud migrations.

The Buy rating is unchanged and the target is increased to $4.85 from $4.65. The broker estimates the company is comfortably
within striking distance of the broker's FY22 earnings forecast of $34m.

This report was published on March 2, 2021.

Target price is $4.85 Current Price is $4.07 Difference: $0.78
If OTW meets the Canaccord Genuity target it will return approximately 19% (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 4.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 0.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.38.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 0.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.54.

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

PSI    PSC INSURANCE GROUP LIMITED

Insurance – Overnight Price: $3.50

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

PSC Insurance Group has announced the acquisition of two UK Based commercial insurance broking businesses, Trust Insurance Services and Abaco Insurance Brokers. The cost is -$66m, subject to approval by the UK Financial Conduct Authority.

Bell Potter anticipates these will begin to contribute to earnings from March/April 2021. It's considered they will add additional SME broking capacity and specialist arboriculture and strata management capabilities to the group’s broader UK Business.

Buy rating retained. The target rises to $3.90 from $3.60. The acquisitions will be funded using existing cash reserves.

This report was published on March 4, 2021.

Target price is $3.90 Current Price is $3.50 Difference: $0.4
If PSI meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 9.00 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.82.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.60 cents and EPS of 16.50 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 21.21.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $4.86

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

Platinum Asset Management's funds under management rose $1.1bn to $24.9bn in February led by strong investment returns of 6%. On the other hand, outflows of -$0.4bn were elevated although included a $250m redemption from a client due to strong performance.

Goldman Sachs notes the performance in February was the strongest in recent years with all of the Platinum trust funds delivering meaningful outperformance relative to the benchmark. The Platinum International Fund outperformed its benchmark by 5.4% in February, adds the broker.

Goldman Sachs retains its Neutral rating with the target price rising to $4.43 from $3.45.

This report was published on March 8, 2021.

Target price is $4.43 Current Price is $4.86 Difference: minus $0.43 (current price is over target).
If PTM meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.02, suggesting downside of -17.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 22.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.0, implying annual growth of -2.8%.
Current consensus DPS estimate is 24.6, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 18.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 22.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of -4.2%.
Current consensus DPS estimate is 24.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 19.5.

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

PVS    PIVOTAL SYSTEMS CORPORATION

Hardware & Equipment – Overnight Price: $1.15

Moelis rates ((PVS)) as Buy (1) –

Pivotal Systems Corp's 2020 revenue was up 44% to US$22.1m with a gross profit of $2.4m. Moelis notes the company's gross profit margins were impacted by a number of one-off costs, mainly in the first half including -US$1.6m in US duty charges.

The operating loss -US$8.8m was in line with Moelis's -US$8.5m estimate. No quantitative guidance was provided.

Since the result had been pre-released, the broker's estimates largely remain intact and Moelis maintains its 2021 revenue estimate of US$29m.

Moelis reaffirms its Buy rating with a target price of $1.34.

This report was published on March 1, 2021.

Target price is $1.34 Current Price is $1.15 Difference: $0.19
If PVS meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.55.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.38.

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

RMC    RESIMAC GROUP LTD

Banks – Overnight Price: $2.15

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

Resimac Group's first-half net profit at $50.5m was in line with guidance of $48-53m. The result was led by a 14% rise in principally funded mortgages and a 34bps increase in net interest margin. An interim dividend of 2.4c beat the broker's expected 2c.

The group's FY21 net profit guidance of $100-$105m incorporates -$4.5m of expected project expenses in the second half with the residual -$2m of project costs forecast to be expensed in FY22. 

Buy rating with the target price rising to $3.30 from $2.50.

This report was published on March 1, 2021.

Target price is $3.30 Current Price is $2.15 Difference: $1.15
If RMC meets the Bell Potter target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.00 cents and EPS of 25.50 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.43.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 27.30 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.88.

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

RSG    RESOLUTE MINING LIMITED

Gold & Silver – Overnight Price: $0.63

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

Resolute Mining, which owns four gold mines across Australia (1) and Africa (3), released 2020 revenue in-line with Canaccord Genuity's estimates, while earnings exceeded expectations on lower operating expenses.

For the March quarter, the broker expects lower production and higher costs at Mako due to lower grades and increased waste stripping, while Syama oxides should benefit from higher grades.

The company has flagged the planned sale of Bibiani  has received FIRB approvals, with closure awaiting Chinese and Ghanaian government approvals.The Buy rating and $1.50 target price are unchanged.

This report was published on March 2, 2021.

Target price is $1.50 Current Price is $0.63 Difference: $0.87
If RSG meets the Canaccord Genuity target it will return approximately 138% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 22.50 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 35.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.60.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.00.

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

RXL    ROX RESOURCES LIMITED

Mining – Overnight Price: $0.04

Canaccord Genuity rates ((RXL)) as Initiation of coverage with Buy (1) –

Cannacord Genuity initiates coverage of Rox Resources with a speculative BUY recommendation and a price target of 10c. Rox Resources is exploring the Youanmi Gold Project near Mt Magnet, Western Australia.

While there are a number of potential development pathways for Rox Resources, Cannacord Genuity suspects the explorer is an acquisition target, given it has what the broker views as a large resource base in a favourable location.

This report was issue March 3, 2021.

Target price is $0.10 Current Price is $0.04 Difference: $0.06
If RXL meets the Canaccord Genuity target it will return approximately 150% (excluding dividends, fees and charges).

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

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $3.68

Bell Potter rates ((SM1)) as Hold (3) –

Synlait Milk has withdrawn FY21 guidance of net profit to be around half FY20 levels, following a heavily caveated earnings downgrade from a2 Milk ((A2M)) that has implications for its shipments.

Commenting on the announcement, Bell Potter suspects that until a2 Milk sales volumes find a bottom, there is limited visibility on Synlait Milk’s profitability, as the infant milk formula share of sales is such a large driver of returns in the company’s business.

While Bell Potter expects a component of the FY21 downgrade to be one off in nature (as it reflects an inventory unwind), the broker recognises the near term outlook also requires a2 Milk to restore Daigou margin to stabilise demand.

Hold rating unchanged with the target price decreasing $3.35 from $4.60.

The report was published on March 4, 2021.

Target price is $3.35 Current Price is $3.68 Difference: minus $0.33 (current price is over target).
If SM1 meets the Bell Potter target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.78, suggesting downside of -24.5%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 4.59 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.9, 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 11.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 24.34 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.9, implying annual growth of 30.4%.
Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 8.6.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SPT    SPLITIT PAYMENTS LTD

Business & Consumer Credit – Overnight Price: $1.02

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

Key performance metrics for FY20 results were flagged in the December quarterly, so Canaccord Genuity focuses on opportunities and concludes the key to executing these is the new US$150m receivables funding facility with Goldman Sachs US.

This is expected to support annual merchant sales volumes (MSV) of circa US$800m (more than double the company's current run-rate) and the broker also sees it as a potential catalyst for more large merchant signings.

The Speculative Buy rating and $1.80 target are unchanged.

This report was published on March 2, 2021.

Target price is $1.80 Current Price is $1.02 Difference: $0.78
If SPT meets the Canaccord Genuity target it will return approximately 76% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.75.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.57.

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

STA    STRANDLINE RESOURCES LTD

Mineral Sands – Overnight Price: $0.28

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

Strandline Resources has signed an offtake agreement for its rutile from the Coburn mineral sands project in WA, with Venator Materials, a leading US-based pigment producer.

Around $130m of the $300m Strandline will require to bring Coburn into production (including -$260m of capex, working capital and financing costs) is being provided by NAIF, and Shaw and Partners expect a commercial debt package of around $100m to be announced shortly.

Commenting on the agreement, Shaw believes the benefits of the NAIF facility being long duration (not needing to be repaid until after the commercial debt is paid back) gives Strandline the ability to gear the project with more debt than would be usual, and may allow Strandline to begin distributing cash flow to equity holders early in the project life.

Buy rating and target price of $0.52 retained.

This report was issued March 4, 2021.

Target price is $0.52 Current Price is $0.28 Difference: $0.24
If STA meets the Shaw and Partners target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.74.

Forecast for FY22:

Shaw and Partners 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 10.00.

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

SXL    SOUTHERN CROSS MEDIA GROUP

Print, Radio & TV – Overnight Price: $2.10

Canaccord Genuity rates ((SXL)) as Buy unchanged (1) –

With the balance sheet fully rehabilitated courtesy of last year's equity raising, foregone capital returns to shareholders and strong operating cash flow, Canaccord Genuity believes Southern Cross Media Group is in a position to continue the recovery in revenues to pre-covid levels.

Remodeling estimates based on current company commentary, the broker’s revenue forecasts remain broadly unchanged, cost estimates are higher, resulting in lower earnings (EBITDA) but reduced depreciation and finance costs mean earnings per share forecasts increase.

Using publicly available industry sector forecasts to model Southern Cross Media’s revenues through FY21-23, Canaccord Genuity expect revenues to grow by 13% year-on-year in FY22 and 3% in FY23E, which would leave the business around 4.5% below its FY19 level exiting the forecast period.

The Buy rating is unchanged and price target decreases to $2.70 from $2.80.

This report was published on March 2, 2021.

Target price is $2.70 Current Price is $2.10 Difference: $0.6
If SXL meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting downside of -4.8%(ex-dividends)
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 17.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.4, implying annual growth of 74.0%.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 12.1.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 8.91 cents and EPS of 17.80 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 11.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of 0.6%.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 12.0.

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

VMY    VIMY RESOURCES LIMITED

Uranium – Overnight Price: $0.13

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

Vimy Resources is preparing for the start-up of its flagship 100% owned Mulga Rock deposit in WA, one of Australia’s largest uranium development projects and has received key state and federal permits.

In its initial coverage, Shaw Partners notes Vimy Resources requires a spot uranium price of around US$53/lb to sanction the project, and the broker assumes a start-up of operations in FY26.

Shaw has a Buy rating on Vimy Resources and $0.27 price target.

The broker notes, catalysts for the stock to reach the price target include continued improvement in the uranium market, resolution of financing options to fund a Mulga Rock development and delivery of a Mulga Rock development through the course of 2021-26.

This report was issued March 4, 2021.

Target price is $0.27 Current Price is $0.13 Difference: $0.14
If VMY meets the Shaw and Partners target it will return approximately 108% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.33.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.57.

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

WPR    WAYPOINT REIT

REITs – Overnight Price: $2.46

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

Waypoint REIT (formerly Viva Energy REIT) delivered an FY20 earnings result in line with Goldman Sachs's expectations at the top end of company guidance.

The result reiterates the broker's positive view on the REIT and the service station sector, with secure income streams that are backed by long-term, predominantly triple net leases on fixed rental escalations and minimal near-term lease expiries.

The REIT has guided to an initial FY21 growth in distributable earnings per share of 3.75%, which Goldman Sachs thinks may prove to be conservative.

Buy rating retained with a target price of $2.89.

This report was published on March 1, 2021.

Target price is $2.89 Current Price is $2.46 Difference: $0.43
If WPR meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.80, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of -55.9%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of 3.2%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 15.1.

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


Moelis rates ((WPR)) as Upgrade to Buy from Hold (1) –

Waypoint REIT reported FY20 distributable earnings of 15.15c, right at the top-end of its guidance range. The REIT has guided to FY21 earnings of 15.72c, up 3.75% versus last year.

The REIT's like for like rental growth for the year was 2.9%, in line with the portfolio’s average rental increases while net tangible assets rose by 4.6% versus the last half to $2.49.

Moelis points out as a long-WALE REIT, Waypoint’s cash flow growth profile is largely fixed over the medium-term and is linked to economic growth rather than being fixed in nature.

Moelis upgrades its rating to Buy from Hold with a target price of $2.78.

This report was published on August 28, 2020.

Target price is $2.78 Current Price is $2.46 Difference: $0.32
If WPR meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.80, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 15.70 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of -55.9%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 16.30 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 6.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of 3.2%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 15.1.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $3.71

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

Wilsons regards the $45m institutional placement and share purchase plan up to $3m, (both at $3.75/share) completed by Whispir as a genuine opportunity to capitalise on the acceleration of the existing secular global trend of digital transformation.

The primary use of funds (60%) is to expand the geographic footprint, with half of that capital earmarked for North America ($13.5m) with another 30% (around $13.5m) to both new customers and accelerate penetration into existing customers in the Australia/New Zealand markets, and in Asia.

A further 30% will be used to accelerate Whispir’s current product roadmap, enhancing functionality and creating higher margin products. The remaining 10% will add balance sheet capacity and provide working capital flexibility.

Wilsons expects plans by Whispir to more than double R&D spend by FY23 to circa -$21m, to improve automation, add momentum to digitisation, accelerate the monetisation of machine learning prediction models and improve computer vision capabilities to detect message effectiveness.

The Overweight rating remains intact and the target of $5.18 is currently under review.

This report was published on March 2, 2021.

Target price is $5.18 Current Price is $3.71 Difference: $1.47
If WSP meets the Wilsons target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.37.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 231.88.

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

ZBT    ZEBIT INC

Business & Consumer Credit – Overnight Price: $1.39

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

Despite the FY20 result exceeding Shaw and Partners estimates across nearly all key metrics, forecast earnings remain largely unchanged given the late January sales upgrade by the company. The target of $2 and Buy rating are unchanged.

The broker highlights the contribution margin (gross profit minus bad debts) was abnormally high at 15.8% due to factors including a rise in gross income, improved underwriting across the platform and a reduction of the bad debt reserve.

This report was published on March 1, 2021.

Target price is $2.00 Current Price is $1.39 Difference: $0.61
If ZBT meets the Shaw and Partners target it will return approximately 44% (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 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.37.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.60.

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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