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Australian Broker Call *Extra* Edition – Mar 18, 2021

Daily Market Reports | Mar 18 2021

This story features AFT PHARMACEUTICALS LIMITED, and other companies. For more info SHARE ANALYSIS: AFP

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)

AFP   AHX   ARB   BRI   BSA   BTH   BXB   CDP   CUV   CWY   CXL   EGG   EGH   EOL   EVO   GMG   GXY   HSN   IFM   JAN   JLG   LBL   NIC   ORG   PGC   PSQ   RZI   SLR   SND   TWE (2)   VEE   VMY   WGO   WSA   XRF   XRO  

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.25

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

AFT Pharmaceuticals will enter into a license agreement for the distribution of Maxigesic IV, a non-opioid product designed for post-operative pain relief, in 8 countries in Europe and signed the deal with the French company Aguettant.

The company maintains its earnings guidance for FY21 with operating profit in the range of NZ$14m-$18m.  

Bell Potter downgrades its FY21 earnings forecast by -10% to 8.8c expecting delays with product launches due to covid in Europe. No changes to earnings for FY22/FY23.

Buy rating with a target price of $5.

This report was published on March 9, 2021.

Target price is $5.00 Current Price is $4.25 Difference: $0.75
If AFP meets the Bell Potter target it will return approximately 18% (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 8.24 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.60.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.08 cents and EPS of 20.12 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.12.

This company reports in NZD. 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

AHX    APIAM ANIMAL HEALTH LTD

Medical Equipment & Devices – Overnight Price: $0.81

CCZ Equities rates ((AHX)) as Sell (5) –

CCZ Equities increases the target price to $0.45 from $0.39 though retains a Sell rating due to insufficient free cash flow (FCF) return on invested capital (ROIC), earnings quality issues with rising inventory days, continued organic decline and valuation concerns.

The broker highlights FCF conversion has improved to 90% from 55% in FY20 though it's difficult to determine the amount of cash being generated by the organic parts of the business, due to acquisitions.

The analyst awaits await FCF generation that is uncomplicated by acquisitions and may then declare the dog days are over.

This report was published on February 24, 2021.

Target price is $0.45 Current Price is $0.81 Difference: minus $0.36 (current price is over target).
If AHX meets the CCZ Equities target it will return approximately minus 44% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 1.40 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.53.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.58 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 1.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.46.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $35.81

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

ARB Corp acquired Truckman, a manufacturer and distributor of utility accessories in the United Kingdom for a maximum of GBP21.9m.

Wilsons highlights Truckman will provide additional distribution capacity to ARB Corp in Europe and complement the company's existing warehouse in Prague.

Noting the asset, execution strategy and growth potential are similar to ARB Corp’s recent acquisition activity in New Zealand, Wilsons remains attracted to ARB due to its prospects for sustained sales growth through a continued shift to SUVs.

Wilsons maintains its Overweight rating with the target rising to $39.90 from $39.75.

This report was published on March 5, 2021.

Target price is $39.90 Current Price is $35.81 Difference: $4.09
If ARB meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $38.69, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 57.00 cents and EPS of 120.60 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 29.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 116.7, implying annual growth of 62.5%.
Current consensus DPS estimate is 58.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 30.3.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 58.00 cents and EPS of 105.00 cents.
At the last closing share price the estimated dividend yield is 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.5, implying annual growth of -8.7%.
Current consensus DPS estimate is 62.2, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 33.2.

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

BRI    BIG RIVER INDUSTRIES LIMITED

Building Products & Services – Overnight Price: $1.53

CCZ Equities rates ((BRI)) as Buy (1) –

First half results were well ahead of CCZ Equities' expectations, largely backed by outperformance in the detached housing and alterations markets which softened the downside impact from the multi-residential and commercial segments.

Management guidance of second half revenue (over 15% versus pcp) was a positive surprise versus the broker's prior forecast of 6.2%. The target price is set at $2.30.

The analyst continues to see the company as an undervalued and unique small cap building materials stock that is slowly consolidating the significant building products distribution market in Australia and New Zealand. Buy.

This report was published on 23 February, 2021.

Target price is $2.30 Current Price is $1.53 Difference: $0.77
If BRI meets the CCZ Equities target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 5.30 cents and EPS of 9.50 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.11.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 6.80 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.91.

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

BSA    BSA LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.30

Sequoia rates ((BSA)) as Accumulate (2) –

BSA Ltd reported first half normalised profit (NPAT) and EPS which were both -6% below Sequoia's estimates.  The company recently announced major long-term contract awards from the NBN and Telstra ((TLS)) worth $85m and $25m in estimated first year revenues, respectively.

The analyst had expected a decline in profit and earnings due to lower NBN connections after the NBN roll-out achieved “practical completion” at 30/6/20, although the “tail” is expected to continue for another 1-2 years.

The broker lifts the target to $0.345 from $0.33 due to the contract wins and improved prospects in wireless/5G. This valuation includes a 15% “positioning premium” as the company is considered well placed to grow in the large Telecoms and Property Maintenance sectors.

This report was published on February 24, 2021.

Target price is $0.35 Current Price is $0.30 Difference: $0.045
If BSA meets the Sequoia target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Sequoia forecasts a full year FY21 dividend of 1.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 1.20 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.04.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services – Overnight Price: $0.92

Sequoia rates ((BTH)) as Upgrade to Buy from Accumulate (1) –

First half revenue was 3% ahead of Sequoia's forecast, despite a -5% headwind from FX. It's estimated revenue was comprised of organic growth of 23%, as well as 4% from the Agnitio acquisition and 6% from the full-year effect of last years’ acquisitions.

The broker downgrades earnings due to higher forecasts for the level of the Australian dollar and increases in forecast operating expenses. Despite this, the rating is increased to Buy from Accumulate as downgrades are seen to be already reflected in the share price.

The target price is reduced to $1.27 from $1.32.

This report was published on February 26, 2021.

Target price is $1.27 Current Price is $0.92 Difference: $0.35
If BTH meets the Sequoia target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Sequoia forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.56.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.07.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $10.03

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

Jarden puts the spotlight on the key input costs for Brambles that continued to rise through January 2021, including lumber inflation in the US Pallets business that was also notable in the first half result.

Alongside the costs, revenue growth remains strong. The company expects activity to normalise in the second half that will help boost the operating income margins alongside.

Jarden expects fx revenue growth of 4.1% for Brambles for the year and believes a normalisation in the US input cost inflation is critical for achieving this. 

Overweight rating with a target price of $11.90.

This report was published on March 8, 2021.

Target price is $11.90 Current Price is $10.03 Difference: $1.87
If BXB meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $12.10, suggesting upside of 21.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 EPS of 51.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.0, implying annual growth of N/A.
Current consensus DPS estimate is 29.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 55.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.6, implying annual growth of 11.0%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 17.5.

This company reports in USD. 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

CDP    CARINDALE PROPERTY TRUST

REITs – Overnight Price: $4.37

Moelis rates ((CDP)) as Buy (1) –

Carindale Property Trust's earnings bounced back strongly in 1H21, notes Moelis, delivering funds from operations of $11.1m or 15.8c. The first half dividend of 11.5c, as opposed to Moelis's estimated 8c, shows faster than expected recovery speed within the mall, adds Moelis.

The trust has guided to an FY21 dividend of 23c, about 29% higher than Moelis’ expectations and reflective of the strong rebound in retail conditions. 

In the broker's view, Carindale represents a deep value investment opportunity with a manageable gearing and with Kmart set to drive foot traffic as the mall recovers strongly post covid.

Buy rating with the target price rising to $5.23 from $5.1.

This report was published on March 5, 2021.

Target price is $5.23 Current Price is $4.37 Difference: $0.86
If CDP meets the Moelis target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 23.00 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.23.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 25.00 cents and EPS of 31.60 cents.
At the last closing share price the estimated dividend yield is 5.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $27.46

Moelis rates ((CUV)) as Buy (1) –

Moelis is not surprised at Clinuvel Pharmaceuticals' topline result which was broadly in line despite a tough environment. Revenue was $15.7m with an operating income of $6.1m.

Costs were also substantially lower than expected due to covid led delays in the clinical program. No interim dividend was declared and no quantified guidance was provided.

Even so, in 2021 Clinuvel expects to expand EU and US distribution of SCENESSE, progress the clinical programs for DNA repair and achieve FDA sign-off on the Ph IIb trial protocol for vitiligo.

Buy rating with a target price of $27.77.

This report was published on March 5, 2021.

Target price is $27.77 Current Price is $27.46 Difference: $0.31
If CUV meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 3.60 cents and EPS of 37.50 cents.
At the last closing share price the estimated dividend yield is 0.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.23.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.10 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 0.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 94.69.

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

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.32

Jarden rates ((CWY)) as Buy (1) –

According to news reports, Cleanaway Waste Management seems to have commenced discussions to acquire the Australian operations of Suez for "more than $2bn".

Suez Australian operations include a number of operations and facilities across Australia with a skew towards post collections to NSW, Western Australia, Victoria and Queensland.

For a potential combination of these entities, Jarden expects cost and operational synergies but is currently unsure of competitive concerns.

Despite the transition, the broker believes Cleanaway has strategically important assets that are difficult to replicate and expects industry consolidation to drive operating income margin upside to consensus estimates. 

The Buy rating and target of $3 are unchanged.

This report was published on March 4, 2021.

Target price is $3.00 Current Price is $2.32 Difference: $0.68
If CWY meets the Jarden target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $2.45, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 4.90 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.0, implying annual growth of 45.5%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 28.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 5.80 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 8.7%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 26.0.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $2.25

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

Calix's first-half result was strong, observes Bell Potter, with sales revenue up 151% versus last year to $9.2m versus Bell Potter's expected $8.4m. The result was driven by strong growth in the US-based water treatment business which grew 14% to $7.5m. 

Bell Potter is pleased as the company continues to find new applications and commercial partners for its patented technology, including a new purchase agreement, new licence discussions in agriculture and new opportunities in calcined clays and chemical processing.

The broker has upgraded its earnings estimates by 2.6c, 1.6c and 1.1c for FY21-23.

Buy rating with the target price increased to $2.94 from $1.31.

This report was published on March 8, 2021.

Target price is $2.94 Current Price is $2.25 Difference: $0.69
If CXL meets the Bell Potter target it will return approximately 31% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 250.00.

Forecast for FY22:

Bell Potter 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 112.50.

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

EGG    ENERO GROUP LTD

Media – Overnight Price: $2.95

Taylor Collison rates ((EGG)) as Initiation of coverage with Outperform & Accumulate (2) –

After a beat of 32% to Taylor Collison's first half forecast, the analyst upgrades the FY21 operating earnings (EBITDA) forecast by 39% on the back of continued momentum in H2.

The broker highlights what appears to be a permanent shift to greater online participation which favours the 51% owned OB Media. It's also considered the exposure to higher margin clients in healthcare and technology for Hotwire and Orchard is beneficial.

Outperform rating and no target price has been provided.

This report was published on February 23, 2021.

Current Price is $2.95. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 18.00 cents and EPS of 26.20 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.26.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 16.00 cents and EPS of 23.50 cents.
At the last closing share price the estimated dividend yield is 5.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.55.

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

EGH    EUREKA GROUP HOLDINGS LIMITED

Aged Care & Seniors – Overnight Price: $0.53

Taylor Collison rates ((EGH)) as Speculative Buy (2) –

First half operating earnings (EBITDA) were up 27% with EPS rising 39%. Taylor Collison expected this strong financial performance which is continuing to benefit from stricter internal operating guidelines and a focus on marketing in the local areas surrounding villages.

Occupancy improvements and a focus on cost efficiencies helped drive operating earnings margins up 530 basis points to 38%, explains the broker. It's considered revenue growth will drive earnings improvement with the easy margin gains having now occurred.

Outperform rating is retained and the broker considers there is little competition in the company's strategy of growing and operating a portfolio of senior living facilities.

This report was published on March 1, 2021.

Current Price is $0.53. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 1.20 cents and EPS of 3.23 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 1.30 cents and EPS of 3.83 cents.
At the last closing share price the estimated dividend yield is 2.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.84.

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

EOL    ENERGY ONE LIMITED

Energy Sector Contracting – Overnight Price: $6.95

CCZ Equities rates ((EOL)) as Buy (1) –

First half revenue and earnings (EBITDA) were up 46% and 75%, respectively on the pcp, including a first half contribution from eZ-nergy (acquired June 20). Management provided guidance for FY21 revenue of $27.5m versus CCZ Equities' forecast of $26.6m.

The broker highlights the overall result was due to strong performance from Contigo and eZ-nergy in Europe and solid performance from the Australian business. The profit result was considered due to strong revenue growth, scale benefits over D&A  and lower tax rates.

Industry conditions remain favourable in Europe as the grid shifts from fossil fuels to renewables, with competitors also delivering strong contract wins, explains the analyst.

The target is increased to $7.16 from $6.16 as the company looks well positioned to benefit from the company’s enTrader module which is gaining traction in the European market and increasing the sell through of modules to the company’s existing client base. 

This report was published on February 19, 2021.

Target price is $7.16 Current Price is $6.95 Difference: $0.21
If EOL meets the CCZ Equities target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 4.00 cents and EPS of 14.25 cents.
At the last closing share price the estimated dividend yield is 0.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.77.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 4.00 cents and EPS of 17.99 cents.
At the last closing share price the estimated dividend yield is 0.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.63.

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

EVO    EVOLVE EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $1.30

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

Evolve Education Group has acquired 10 premium childcare centres in Australia for up to $32.1m. This will double the number of centres for the company in Australia, notes Canaccord Genuity, and generate an operating income in the 12 months of up to $8.2m.

The broker expects the acquisition will provide a considerable bump in earnings and since the centres are being funded from existing cash/debt, the acquisitions will be earnings accretive.

Buy rating with the target price rising to $1.90 from $1.70.

This report was published on March 8, 2021.

Target price is $1.90 Current Price is $1.30 Difference: $0.6
If EVO meets the Canaccord Genuity target it will return approximately 46% (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 0.94 cents and EPS of 9.58 cents.
At the last closing share price the estimated dividend yield is 0.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.57.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.68 cents and EPS of 12.84 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.13.

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

GMG    GOODMAN GROUP

Infra & Property Developers – Overnight Price: $17.26

Goldman Sachs rates ((GMG)) as Sell (5) –

The first half result confirmed to Goldman Sachs the Development business is now Goodman Group’s largest earnings contributor and the dominant driver of growth.

The broker estimates the return on invested capital (ROIC) for the Development business is now running at around 26% versus a long run average of 17%, driven by embedded margins.

The analyst increases FY21-24 EPS estimates by 4%, 6%, and 4%, respectively, to reflect higher near-term development earnings, a lower assumed near-term payout ratio and lower net interest costs. Sell rating and the price target rises to $12.90 from $12.24.

This report was published on March 11, 2021.

Target price is $12.90 Current Price is $17.26 Difference: minus $4.36 (current price is over target).
If GMG meets the Goldman Sachs target it will return approximately minus 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.10, suggesting upside of 18.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 30.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.0, implying annual growth of -21.1%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 33.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.5, implying annual growth of 11.5%.
Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 23.4.

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

GXY    GALAXY RESOURCES LIMITED

New Battery Elements – Overnight Price: $2.50

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

Galaxy Resources recently released the outcomes of a Preliminary Economic Assessment (PEA) for the development of a standalone
spodumene concentrate operation at the James Bay hard rock lithium project in Quebec, Canada.

Canaccord Genuity believes the project screens well in terms of resource grades, capital intensity, production capacity and cash costs. The PEA revealed estimated capex of -US$244m and annual production of 330ktpa over an 18-year life with cash costs of US$290/t.

The Buy rating is maintained and the target rises to $3.60 from $3.50.

This report was published on March 11, 2021.

Target price is $3.60 Current Price is $2.50 Difference: $1.1
If GXY meets the Canaccord Genuity target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $2.40, suggesting downside of -8.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.9, 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 137.4.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of 126.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 60.7.

This company reports in USD. 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

HSN    HANSEN TECHNOLOGIES LIMITED

IT & Support – Overnight Price: $5.61

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

Hansen Technologies has executed a material contract with Telefonica (Germany) to license its cloud native communications suite, to support Telefonica’s operations within Germany.

The contract is for $25m over an initial five year term, with the prepaid license revenue of $21m to be recognised in the second half.

Due to the significant upfront license fee, management upgraded FY21 guidance, implying to Shaw and Partners earnings (EBITDA ) of $113-123m. The Buy rating is retained and the target lifts to $5.34 from $5.06.

This report was published on March 11, 2021.

Target price is $5.34 Current Price is $5.61 Difference: minus $0.27 (current price is over target).
If HSN meets the Shaw and Partners target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 10.00 cents and EPS of 35.60 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.76.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 10.00 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.66.

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

IFM    INFOMEDIA LTD

Automobiles & Components – Overnight Price: $1.48

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

Infomedia's recent share price fall was driven by a slightly weaker-than-expected result as well as a tepid outlook for the second half, assesses Bell Potter.

Even then, the broker believes the reaction is overdone and that the company is performing well despite a challenging environment and is well-positioned with its next-generation SaaS platform.

Bell Potter continues to forecast a similar though slightly better second half result relative to the first half and assumes no acquisitions take place in the second half.

Bell Potter upgrades its rating to Buy from Hold with a target falling of $1.75.

This report was published on March 9, 2021.

Target price is $1.75 Current Price is $1.48 Difference: $0.27
If IFM meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.30 cents and EPS of 5.10 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.02.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.80 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.49.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.68

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

Janison Education Group has been appointed exclusive provider of The Program for International Student Assessment (PISA) for schools in Australia on a two-year agreement.

Bell Potter is encouraged by the company’s ability to leverage existing relationships to unlock new markets and subsequent revenue opportunities. There's no impact on broker forecasts. The Hold rating is maintained and the target adjusted to $0.70 from $0.65.

This report was published on March 11, 2021.

Target price is $0.70 Current Price is $0.68 Difference: $0.02
If JAN meets the Bell Potter target it will return approximately 3% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 680.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.82.

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: $3.58

CCZ Equities rates ((JLG)) as Downgrade to Hold from Buy (3) –

CCZ Equities moves to a Hold rating from Buy purely on valuation compared to the share price and increases the target to $3.18 from $2.91. Management upgraded revenue and operating earnings guidance by 8% and 15.7%, respectively.

The broker highlights the strong first half result was supported by a strong business as usual (BaU performance) from the core Insurance Building and Restoration Services (IB&RS) business which grew organically at 16.8% excluding acquisitions.

The analyst believes long-term prospects remain sound, especially in the core IB&RS business, strata management and in the United States that promises strong organic growth supported by selective acquisition opportunities.

This report was published on February 26, 2021.

Target price is $3.18 Current Price is $3.58 Difference: minus $0.4 (current price is over target).
If JLG meets the CCZ Equities 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:

CCZ Equities forecasts a full year FY21 dividend of 4.40 cents and EPS of 9.20 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 38.91.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 5.30 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.10.

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: $0.66

CCZ Equities rates ((LBL)) as Buy (1) –

The 1H result was lower than CCZ Equities' expectations, largely due to covid-19 restrictions causing delays in interstate transportation of parts to company facilities in NSW, SA and Victoria.

Laserbond’s softer services revenue was due to delayed sales from new customers and reduced maintenance servicing for large mining and manufacturing businesses, explains the broker.

Management is expecting a stronger 2H contribution from the services division with the company declaring a ‘record volume of open quotes for active opportunities that currently exceeds $10m, with much of this work expected to proceed’.

CCZ Equities lowers the target to $0.83 from $1.08 taking into account a weaker services contribution, which accounted for 46% of group revenues in the 1H. The Buy rating is maintained.

This report was published on February 24, 2021.

Target price is $0.83 Current Price is $0.66 Difference: $0.17
If LBL meets the CCZ Equities target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 1.20 cents and EPS of 3.50 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.86.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.30 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 1.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

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

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $1.42

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

Nickel Mines was able to successfully produce high-grade nickel matte at its partner Tsingshan’s RKEF production lines in Indonesia. While costs were not disclosed, the process is described as “commercially viable”.

At this stage, the broker does not expect any imminent change to normal operations Nickel Mines' NPI production continuing to be sold into Tsingshan’s stainless steel operations.

This development reinforces Nickel Mines as Bell Potter's top pick and preferred nickel exposure. Despite the current pullback in the nickel price, the broker considers the stock well placed to deliver strong production and earnings growth.

The Buy rating is unchanged with a target price of $1.67.

This report was published on March 10, 2021.

Target price is $1.67 Current Price is $1.42 Difference: $0.25
If NIC meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $1.60, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.62 cents and EPS of 17.55 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 8.09.

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 2.7%.
Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.62 cents and EPS of 20.78 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 6.83.

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 2.7%.
Current consensus EPS estimate suggests the PER is 15.5.

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

ORG    ORIGIN ENERGY LIMITED

NatGas – Overnight Price: $4.64

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

As EnergyAustralia has flagged it will close coal-fired power station Yallourn four years earlier than expected in 2028, Goldman Sachs estimates the risk of accelerating coal generation closures is increasing, as the market makes room for the rapid addition of renewable generation.

The broker expects this to drive upside to the current wholesale electricity price outlook and prefers Origin Energy in the sector for leverage to both a rebound in Energy Market returns as well as leverage to the already recovered oil price. 

The Buy rating is retained with a target of $6.85.

This report was published on March 11, 2021.

Target price is $6.85 Current Price is $4.64 Difference: $2.21
If ORG meets the Goldman Sachs target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $5.21, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.4, implying annual growth of 270.2%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 26.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 49.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.7, implying annual growth of 36.2%.
Current consensus DPS estimate is 20.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 19.7.

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

PGC    PARAGON CARE LIMITED

Medical Equipment & Devices – Overnight Price: $0.23

Taylor Collison rates ((PGC)) as Outperform & Accumulate (2) –

After allowing for $3m of JobKeeper benefit, Paragon Care delivered an increase in first half earnings (EBITDA) of  29% on pcp at a margin of 10.2%, which is a 30 basis point increase on FY20 levels.

Taylor Collison points out a benefit of around -$7m of annualised cost savings will flow through in H2 with further (cost and revenue) synergies likely to be generated as a result of a more cohesive management structure and a stable ERP operating platform.

The Outperform rating is retained despite little opportunity for ‘catch-up’ from lost revenue and consequently the analyst lowers FY21 revenue forecast by -3% to account for first quarter softness.

The broker believes operating risk has declined and continues to be attracted to short-term tailwinds including the unwind of the elective surgery backlog and the increased access to aged care facilities.

This report was published on March 9, 2021.

Current Price is $0.23. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.97.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.75.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $2.60

Wilsons rates ((PSQ)) as Upgrade to Overweight from Market Weight (1) –

Wilsons upgrades Pacific Smiles Group to Overweight from Market Weight with the price target rising to $2.95 from $2.75.

With the group doubling its annual practice opening rate to 20 from the expected 10-12, Wilsons highlights the challenges include site selection, dentist recruitment and preserving the self-funding nature of the expansion.

Luckily, the environment remains supportive, notes the broker, with low competitive intensity and a stable funding situation.

Going ahead, the broker sees two scale-driven opportunities for Pacific Smiles namely improving the perception of corporates in the dental profession and entering into corporate-level relationships between dental organisations and private health insurance providers.

This report was published on March 8, 2021.

Target price is $2.95 Current Price is $2.60 Difference: $0.35
If PSQ meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 6.40 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.08.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 6.50 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.33.

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

RZI    RAIZ INVEST LTD

Wealth Management & Investments – Overnight Price: $1.62

Taylor Collison rates ((RZI)) as Speculative Buy (1) –

Raiz Invest provides financial services through its micro-testing platform, providing customers an accessible way to regularly invest money using its mobile app, at low cost and in small denominations, into equity and investment markets.

Taylor Collison explains success hinges on continuing growth in active customer numbers, increasing funds under management, further leveraging its installed Australian customer base and delivering on early-stage SE Asia growth opportunities.

The broker believes recent monthly updates following on from the company's FY20 result display continued positive momentum, while cautioning investors need be aware of both the opportunities and growing pains of an early-stage funds platform business.

The analyst maintains a Speculative Buy rating and provides no forecasts or price target.

This report was published on February 23, 2021.

Current Price is $1.62. Target price not assessed.

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: $1.57

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

Management expects the Deflector asset to generate impressive production growth in excess of Canaccord Genuity's estimates.

The company anticipates the growth in production will be delivered by a combination of increased plant recoveries following the carbon-in-pulp (CIP) upgrade.

This will be compounded by increased milled grades from the South West lodes (FY23), says management. The broker believes there will be tailwinds from higher units of production versus the fixed cost proportion of the business.

Buy rating and the price target increases to $2.55 from $2.40.

This report was published on March 11, 2021.

Target price is $2.55 Current Price is $1.57 Difference: $0.98
If SLR meets the Canaccord Genuity target it will return approximately 62% (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 1207.69.

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 872.22.

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

SND    SAUNDERS INTERNATIONAL LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.67

CCZ Equities rates ((SND)) as Upgrade to Buy from Hold (1) –

After reporting above expectation results and resuming dividends, CCZ Equities upgrades the rating to Buy from Hold and lifts the target to $0.85 from $0.55. FY21 revenue guidance has been upgraded to $100-$110m with an earnings (EBIT) margin of 7.0%-8.0%.

The guidance upgrade implies to the analyst earnings quality has structurally improved, at least in the short to medium term and inspires a material lift in the broker's forecasts.

The analyst highlights underlying earnings margin expansion to 6.5% versus 2.7% in the pcp and revenue outperformance on prior $100m FY21 guidance. Margins expanded due to cost management along with operating leverage, explains the broker.

CCZ Equities considers the company is positioned to benefit from the Australian government’s capex plans to meet its strategic fuel reserve requirements,

This report was published on February 26, 2021.

Target price is $0.85 Current Price is $0.67 Difference: $0.18
If SND meets the CCZ Equities target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.98

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

In a transaction expected to generate cash proceeds of $100m, the company announced a long-term licensing agreement with the Wine Group regarding the ongoing rationalisation of commercial brands.

Though this is positive progress towards the restructuring, Goldman Sachs awaits details of the duration and terms of the agreement and clarity around the timeline of completion of the remaining steps for the restructuring plan.

Neutral rating and $9.30 target price both left unchanged.

This report was published on March 11, 2021.

Target price is $9.30 Current Price is $10.98 Difference: minus $1.68 (current price is over target).
If TWE meets the Goldman Sachs target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.61, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 34.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.6, implying annual growth of 14.9%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 26.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 44.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.0, implying annual growth of 1.0%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 26.5.

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


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

In what Jarden considers a positive step for the US division, the company has reached a long-term licensing/distribution agreement with The Wine Group (TWG) for several of its US commercial brands.

The deal is expected to generate ongoing licensing fees and cash-proceeds of around $100m which the broker incorporates into forecasts. Operating earnings forecasts are largely unchanged as the analyst had already assumed medium-term US company targets were met.

The Underweight rating and $9.70 target are unchanged.

This report was published on March 11, 2021.

Target price is $9.70 Current Price is $10.98 Difference: minus $1.28 (current price is over target).
If TWE meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.61, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 28.00 cents and EPS of 42.90 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.6, implying annual growth of 14.9%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 26.8.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 33.00 cents and EPS of 49.20 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.0, implying annual growth of 1.0%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 26.5.

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

VEE    VEEM LTD

Industrial Sector Contractors & Engineers – Overnight Price: $1.09

CCZ Equities rates ((VEE)) as Buy (1) –

CCZ Equities explains the first half performance was due to increased work on defence contracts associated with the Australian Submarine Corporation (ASC) and the refit of the Collins Class submarine program. 

Additionally, the broker notes the performance was boosted by strong propeller revenue and significantly increased gyrostabiliser sales. It's considered gyrostabilisation revenue will increase materially each year for the next five years. 

Defence and Industrial remains strong as manufacturing under contract remains in demand with buoyant minerals prices stoking a
renewal in capex replacement investment, in what market commentators are calling the new mining ‘super cycle’, notes the broker.

Buy rating and target price is increased to $1.25 from $1.07.

This report was published on March 1, 2021.

Target price is $1.25 Current Price is $1.09 Difference: $0.16
If VEE meets the CCZ Equities target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.90 cents and EPS of 2.42 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 45.04.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.30 cents and EPS of 3.25 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.54.

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

VMY    VIMY RESOURCES LIMITED

Uranium – Overnight Price: $0.14

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

Vimy Resources has executed a binding term sheet with Rio Tinto ((RIO)) Exploration to acquire their 20.9% interest in the Alligator River project in the Northern Territory. This will result in the company holding 100% of the project on settlement.

The cost of -$2m is to be fully satisfied by the issue of fully paid shares in the company. 

Shaw and Partners feels a large JV partner and/or strategic investor at the project level may fast track a development or facilitate funding for ongoing exploration. Buy rating and $0.27 target retained.

This report was published on March 11, 2021.

Target price is $0.27 Current Price is $0.14 Difference: $0.13
If VMY meets the Shaw and Partners target it will return approximately 93% (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 46.67.

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 20.00.

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

WGO    WARREGO ENERGY LTD

NatGas – Overnight Price: $0.22

Taylor Collison rates ((WGO)) as Initiation of coverage with Speculative Buy (1) –

Taylor Collison feels 2021 could result in a major re-rating of Warrego Energy with potential major development progress on the West Erregula Gas Project, subject to completing the current appraisal drilling campaign.

Drilling success would underpin the financial investment decision (FID) on the gas project on or before 30 June and allow the JV to meet its target for first gas in the second half, explains the broker. However, it's considered project sanction will likely be the game changer.

The analyst ascribes a net, risked (ungeared) value to West Erregulla of up to $410m depending on life of project realised gas prices and tolling costs, versus the current capitalisation of around $202m (at a 22c share price). Buy rated and no forecasts or target price.

This report was published on March 3, 2021.

Current Price is $0.22. Target price not assessed.

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

WSA    WESTERN AREAS NL

Nickel – Overnight Price: $2.03

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

Shaw and Partners upgrades Western Areas to Buy from Hold after a $100m equity raise to fund the nickel development project (Odysseus) and to accelerate exploration and other growth options. The target price of $2.90 is retained.

The broker continues to like the growth pathway the company recently outlined and considers the transaction has de-risked the major capex spend to the end of 2022 and shored up the balance sheet. 

This report was published on March 11, 2021.

Target price is $2.90 Current Price is $2.03 Difference: $0.87
If WSA meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $2.69, suggesting upside of 30.5%(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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 676.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.2, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.00 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.9, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 33.2.

Market Sentiment: 0.6
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

CCZ Equities rates ((XRF)) as Buy (1) –

First half growth was slower than CCZ Equities had anticipated due to covid-19 shutdowns in Europe and Canada and reordering patterns for flux materials is expected to be weighted to the 2H. Expectations are for a full year dividend of 1.8 cents fully franked.

CCZ Equities reduces the target to $0.37 from $0.39 with moderate growth expected for all divisions, though the analyst maintains the company is positioned to benefit from the capex refresh cycle taking place in the mining industry.

XRF Scientific expects to release new machines shortly, consistent with the long standing diversification strategy away from resources, explains the broker.

This report was published on March 5, 2021.

Target price is $0.37 Current Price is $0.28 Difference: $0.09
If XRF meets the CCZ Equities target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 1.84 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.98 cents and EPS of 3.20 cents.
At the last closing share price the estimated dividend yield is 7.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.75.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $119.63

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

Xero acquired Danish workforce management SaaS solution, Planday.

Wilsons is encouraged by Xero’s long-term strategy of thinking beyond accounting software and offering higher value-add to the customers. The broker expects the company to reinvest any incremental margin and keeps its operating income forecast intact.

Market Weight rating with the target price falling to $113.82 from $115.91.

This report was published on March 5, 2021.

Target price is $113.82 Current Price is $119.63 Difference: minus $5.81 (current price is over target).
If XRO meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $105.25, suggesting downside of -10.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 62.71 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 190.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, 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 282.9.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 70.85 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 168.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.9, 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 236.4.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

AFP AHX ARB BRI BSA BTH BXB CDP CUV CWY CXL EGG EGH EOL EVO GMG GXY HSN IFM JAN JLG LBL NIC ORG PGC PSQ RIO RZI SLR SND TLS TWE VEE VMY WGO WSA XRF XRO

For more info SHARE ANALYSIS: AFP - AFT PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: AHX - APIAM ANIMAL HEALTH LIMITED

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: BRI - BIG RIVER INDUSTRIES LIMITED

For more info SHARE ANALYSIS: BSA - BSA LIMITED

For more info SHARE ANALYSIS: BTH - BIGTINCAN HOLDINGS LIMITED

For more info SHARE ANALYSIS: BXB - BRAMBLES LIMITED

For more info SHARE ANALYSIS: CDP - CARINDALE PROPERTY TRUST

For more info SHARE ANALYSIS: CUV - CLINUVEL PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: CWY - CLEANAWAY WASTE MANAGEMENT LIMITED

For more info SHARE ANALYSIS: CXL - CALIX LIMITED

For more info SHARE ANALYSIS: EGG - ENERO GROUP LIMITED

For more info SHARE ANALYSIS: EGH - EUREKA GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: EOL - ENERGY ONE LIMITED

For more info SHARE ANALYSIS: EVO - EVOLVE EDUCATION GROUP LIMITED

For more info SHARE ANALYSIS: GMG - GOODMAN GROUP

For more info SHARE ANALYSIS: GXY - GALAXY RESOURCES LIMITED

For more info SHARE ANALYSIS: HSN - HANSEN TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: JAN - JANISON EDUCATION GROUP LIMITED

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: LBL - LASERBOND LIMITED

For more info SHARE ANALYSIS: NIC - NICKEL MINES LIMITED

For more info SHARE ANALYSIS: ORG - ORIGIN ENERGY LIMITED

For more info SHARE ANALYSIS: PGC - PARAGON CARE LIMITED

For more info SHARE ANALYSIS: PSQ - PACIFIC SMILES GROUP LIMITED

For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED

For more info SHARE ANALYSIS: RZI - RAIZ INVEST LIMITED

For more info SHARE ANALYSIS: SLR - SILVER LAKE RESOURCES LIMITED

For more info SHARE ANALYSIS: SND - SAUNDERS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: TLS - TELSTRA CORPORATION LIMITED

For more info SHARE ANALYSIS: TWE - TREASURY WINE ESTATES LIMITED

For more info SHARE ANALYSIS: VEE - VEEM LIMITED

For more info SHARE ANALYSIS: VMY - VIMY RESOURCES LIMITED

For more info SHARE ANALYSIS: WGO - WARREGO ENERGY LIMITED

For more info SHARE ANALYSIS: WSA - WESTERN AREAS LIMITED

For more info SHARE ANALYSIS: XRF - XRF SCIENTIFIC LIMITED

For more info SHARE ANALYSIS: XRO - XERO LIMITED