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Australian Broker Call *Extra* Edition – Apr 19, 2021

Daily Market Reports | Apr 19 2021

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

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

A2M   ALL   ARV   ASX   AUT   CAA   CWY   DBI   DMP   DOC   EML   HPG   JHG   MMM   NTO   WGO   WSP   XTE  

A2M    THE A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $8.15

Bell Potter rates ((A2M)) as Upgrade to Buy from Sell (1) –

a2Milk is showing unexpectedly early signs of life due to a combination of destocking and stronger exports in recent months, observes Bell Potter.

The broker notes the company has addressed excess stock issues by scaling back Australian deliveries in order to reduce the inventory build, with exports of infant milk formula to Australia from Synlait Milk ((SM1)) ports down -72% in the past six months. 

A2 also reported two sequential month gains in Chinese exports, an unexpectedly soon uplift following lows in December 2020 according to the broker. 

Recommendation is upgraded to Buy from Sell and the target price increases to $9.50 from $8.65. 

This report was published on April 12, 2021.

Target price is $9.50 Current Price is $8.15 Difference: $1.35
If A2M meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $9.20, suggesting upside of 12.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 29.07 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 27.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 32.43 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.6, implying annual growth of 19.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 22.9.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $37.12

Goldman Sachs rates ((ALL)) as Initiation of coverage with Buy (1) –

Aristocrat Leisure maintains the momentum it gathered earlier in the year, recording one of its highest months of booking revenue on record to the tune of US$86m amid strong digital business, Goldman Sachs observes.

Digital platform EverMerge, now accounting for over 30% of the studio's bookings, has delivered better-than-expected performance accounting for close to US$9m, and continues to win market share from rivals across its Social Casino platform. 

Beyond digital, the company points to improving trends in Oklahoma, where Aristocrat Leisure maintains an overweight position, that could suggest a return to pre-covid levels by June 2021. 

Buy rating is retained with a target price of $37.48. 

This report was published on April 12, 2021.

Target price is $37.48 Current Price is $37.12 Difference: $0.36
If ALL meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $37.20, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 38.00 cents and EPS of 109.00 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.6, implying annual growth of -51.6%.
Current consensus DPS estimate is 41.1, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 35.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 64.00 cents and EPS of 161.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.4, implying annual growth of 45.7%.
Current consensus DPS estimate is 60.9, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 24.4.

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

ARV    ARTEMIS RESOURCES LIMITED

Mining – Overnight Price: $0.10

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

Looking at the activities completed after Taylor Collison's initiation of coverage in November 2020, the broker is confident about the prospects of Artemis Resources' projects located in the Pilbara region of Western Australia.

The broker highlights Artemis has completed 21,816m meters of drilling in 10 diamond and 118 RC holes in 2020-21 under “Project One Million” aimed at increasing the gold resources at Carlow Castle to at least one million ounces. 

Further, drilling and further sampling at Paterson Central also returned encouraging results. Speculative Buy rating. 

This report was published on April 7, 2021.

Current Price is $0.10. Target price not assessed.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $72.10

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

After an operational update from the ASX, Goldman Sachs continues to see earnings risks skewed slightly to the downside. It's considered total shareholder returns are less-attractive relative to other stocks under coverage.

Operational trends showed futures volumes continue sliding while cash market trading has normalised. The broker retains a Sell rating and the $67.46 target price.

This report was published on April 9, 2021.

Target price is $67.46 Current Price is $72.10 Difference: minus $4.64 (current price is over target).
If ASX meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $70.04, suggesting downside of -2.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 249.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 247.3, implying annual growth of -4.0%.
Current consensus DPS estimate is 222.1, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 29.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 246.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 250.9, implying annual growth of 1.5%.
Current consensus DPS estimate is 225.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 28.7.

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

AUT    AUTECO MINERALS LTD

Gold & Silver – Overnight Price: $0.10

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

Canaccord Genuity assesses recent drilling results at the Pickle Crow project in Ontario as extremely positive. It's considered the identification of new veins, coupled with extensions of known areas of mineralisation improves geological understanding of the asset.

The results also point to tangible potential resource growth with relatively little drilling performed so far, explains the broker. There's believed to be potential for an around 1.4-1.6Moz Resource by the end of 2021 (current Inferred Resource is 1Moz at 11.3g/t).

The Speculative Buy and $0.25 target price are unchanged.

This report was published on April 9, 2021.

Target price is $0.25 Current Price is $0.10 Difference: $0.15
If AUT meets the Canaccord Genuity target it will return approximately 150% (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 0.00 cents.

Forecast for FY22:

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

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

CAA    CAPRAL ALUMINIUM LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $7.45

Taylor Collison rates ((CAA)) as Outperform (2) –

Capral Aluminium delivered FY20 operating income of $19.7m, up 79% versus last year. Taylor Collison points out the full year volume growth of 7.6% was also pivotal to earnings with 14% growth in the second half as Capral benefitted from a decline in imported products due to covid related supply chain congestion.

Taylor Collison expects container/ship availability to remain limited for at least the next six months and expects volumes to continue to benefit through FY21.

The broker notes the increase in import replacement volume is "significant" with customers who were focused on price seeing the benefits of Capral's timely supply and superior service.

Taylor Collison sees this as an important differentiator that will help retain a meaningful portion of customers even as imported products revert to their normal discount and availability.

Outperform rating with $6.50 target price.

This report was published on March 16, 2021.

Target price is $6.50 Current Price is $7.45 Difference: minus $0.95 (current price is over target).
If CAA meets the Taylor Collison target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 60.00 cents and EPS of 88.70 cents.
At the last closing share price the estimated dividend yield is 8.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.40.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 60.00 cents and EPS of 107.30 cents.
At the last closing share price the estimated dividend yield is 8.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.94.

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: $2.49

JP Morgan rates ((CWY)) as Overweight (1) –

Cleanaway Waste Management's agreement to purchase Suez’s Australia waste management assets for $2.52bn has been effectively terminated, explains JP Morgan. Now there's considered potential to acquire seven strategic assets from Suez Australia for $501m.

As the broker previously noted, this secondary transaction (5 transfer stations and 2 landfills) is more favourable to shareholders given it will neatly fill a meaningful gap in the company's current infrastructure footprint.

Additionally, the analyst considers the integration risk is materially lower and synergies more immediate and much easier to achieve, given the internalisation of landfill volumes. The Overweight rating and $2.60 target are unchanged.

This report was published on April 13, 2021.

Target price is $2.60 Current Price is $2.49 Difference: $0.11
If CWY meets the JP Morgan target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $2.48, suggesting downside of -0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Current consensus EPS estimate is 8.0, implying annual growth of 45.2%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 31.1.

Forecast for FY22:

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 2.0%.
Current consensus EPS estimate suggests the PER is 28.6.

Market Sentiment: 0.2
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: $2.33

Bell Potter rates ((DBI)) as Downgrade to Hold from Buy (3) –

Dalrymple Bay Infrastructure will operate under lighter handed regulation of the Dalrymple Bay Coal Terminal, as confirmed by the Queensland Competition Authority. 

Running for five years, this new Access Undertaking will allow the company to negotiate commercial price setting with customers rather than being bound to a regulated tariff, which should translate to a higher Terminal Infrastructure Charge and increased shareholder returns, according to the company. 

Bell Potter suggests the change could introduce more variability into the company's earning and shareholder distributions as it adapts to big operational changes and future earnings may be determined by the company's ability to negotiate and close financial agreements. 

Rating is downgraded to Hold from Buy with the target price increasing to $2.32 from $2.26. 

This report was published on April 12, 2021.

Target price is $2.32 Current Price is $2.33 Difference: minus $0.01 (current price is over target).
If DBI meets the Bell Potter target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.61, suggesting upside of 12.0%(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 7.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of N/A.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 7.8%.
Current consensus EPS estimate suggests the PER is 28.8.

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 6.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 32.1%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 7.9%.
Current consensus EPS estimate suggests the PER is 21.8.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $106.29

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

Bell Potter retains Domino's Pizza Enterprises as its key pick based on high long term growth prospects in Japan led by foundational and structural changes in the business. The broker notes a continued breakdown in customer barriers, augmented by the "no minimum delivery" offer.

Also, driven by the successful integration of Joey’s and Hallo Pizza, Germany has risen from having the lowest average weekly sales in Europe to being the highest. 

In France, Bell Potter notes Domino's Pizza Enterprises' rejuvenated franchisee network is driving consistent improvements.

Looking at these positive trends, Bell Potter maintains its Buy rating with a target price of $122.

This report was published on April 9, 2021.

Target price is $122.00 Current Price is $106.29 Difference: $15.71
If DMP meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $93.43, suggesting downside of -12.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 154.70 cents and EPS of 214.10 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 217.2, implying annual growth of 35.0%.
Current consensus DPS estimate is 154.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 48.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 183.10 cents and EPS of 255.20 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 251.2, implying annual growth of 15.7%.
Current consensus DPS estimate is 175.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 42.3.

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

DOC    DOCTOR CARE ANYWHERE GROUP PLC

Healthcare services – Overnight Price: $1.06

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

Doctor Care Anywhere Group's March quarter numbers will be posted shortly with the vast majority of revenues expected from within the UK, observes Bell Potter. 

The group was likely helped by the tightening of restrictions that proved to be a significant tailwind for virtual GP services. While the group noted its highest revenue quarter in December 2020, the broker believes this record will be eclipsed by the March quarter.

The key question for the second half of 2021, in the broker's view, will be the extent to which demand for virtual GP services is sustained as the vaccination program nears completion.

Buy with a target of $1.95.

This report was published on April 9, 2021.

Target price is $1.95 Current Price is $1.06 Difference: $0.89
If DOC meets the Bell Potter target it will return approximately 84% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.50.

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 46.09.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $5.66

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

After the announced acquistion of Sentenial Group (SG), Canaccord Genuity expects a strong revenue/earnings uplift from SG's Open Banking platform called Nuapay. This is considered to have a longer duration growth opportunity than EML Payment's core business.

The acquisition is for an upfront consideration of $108.6m ($60.3m cash, $48.2m scrip) and earn-out potential of $62.1m. The earn-out rationale is based around Nuapay tripling its revenue contribution over 2020-2023.

The broker lifts the target price to $6.25 from $5.50 with potential upside from further acquisitions in 2021. The Buy rating is maintained.

This report was published on April 9, 2021.

Target price is $6.25 Current Price is $5.66 Difference: $0.59
If EML meets the Canaccord Genuity target it will return approximately 10% (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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.89.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.54.

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

HPG    HIPAGES GROUP HOLDINGS LTD

Online media & mobile platforms – Overnight Price: $2.34

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

Goldman Sachs points out leading market place Hipages Group currently captures around 5% of total tradie industry advertising spend. By contrast REA Group ((REA)) and Carsales ((CAR)) capture circa 40-60% of spending in their respective categories. 

The broker can see growth in share towards these levels over the long term as the marketplace matures and tradie spend shifts to online. The group is leveraged to steady underlying repairs and maintenance spend in the Australian housing sector.

The Buy rating and $3.10 target price are unchanged. The analyst notes the recent house price boom and structural shift to work from home, combined with excess savings in the economy is driving additional consumer demand for tradies.

This report was published on April 9, 2021.

Target price is $3.10 Current Price is $2.34 Difference: $0.76
If HPG meets the Goldman Sachs target it will return approximately 32% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 234.00.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 117.00.

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

JHG    JANUS HENDERSON GROUP PLC.

Wealth Management & Investments – Overnight Price: $43.22

Jarden rates ((JHG)) as Underweight (4) –

Global markets were up for the March quarter, which drove asset manager funds under management (FUM) balances and fee income
higher, explains Jarden. The broker notes Value outperformed Growth through the quarter. 

The broker increases FY21 EPS estimates for Janus Henderson Group by 2.5% and increases the target price to $44.10 from $42.90. The Underweight rating is retained.

This report was published on April 6, 2021.

Target price is $44.10 Current Price is $43.22 Difference: $0.88
If JHG meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $46.10, suggesting upside of 6.7%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 423.9, implying annual growth of N/A.
Current consensus DPS estimate is 194.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY22:

Current consensus EPS estimate is 467.7, implying annual growth of 10.3%.
Current consensus DPS estimate is 201.3, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 9.2.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $3.08

Sequoia rates ((MMM)) as Initiation of coverage with Buy (1) –

Sequoia initiates coverage on Marley Spoon AG with a Buy rating and a target price of $3.96. 

Marley Spoon is a subscription-based weekly meal kit provider founded in Germany in 2014. A meal kit is a box delivered directly to the customer and includes the required ingredients to cook the meals along with step-by-step recipe instructions.

Marley Spoon currently services customers in 8 countries across 3 three continents and has delivered over 92m meals since its launch. 

Sequoia estimates Marley Spoon's revenue will grow by 15-27% over 2021-23 and also expects a normalisation in net new customer additions and order frequency in the second half.

This report was published on April 6, 2021.

Target price is $3.96 Current Price is $3.08 Difference: $0.88
If MMM meets the Sequoia target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Sequoia forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.81 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 381.19.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.97.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $2.87

Bell Potter rates ((NTO)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage on Nitro Services with a Buy rating and a target price of $3.10.

Nitro Software is a global document productivity software company offering a suite of products built to enable digital workflows. The company’s core offering, the Nitro Productivity Suite, comprises three key products: Nitro Pro, Nitro Sign and Nitro Analytics.

The company is an established player in the global document productivity software market and has been successfully competing against more entrenched providers like Adobe and DocuSign, points out the broker.

This report was published on April 9, 2021.

Target price is $3.10 Current Price is $2.87 Difference: $0.23
If NTO meets the Bell Potter target it will return approximately 8% (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 14.75 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.46.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.39.

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

WGO    WARREGO ENERGY LTD

NatGas – Overnight Price: $0.23

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

In what Canaccord Genuity believes is a large de-risking event for West Erregulla 4 well (WE4), 'very good' gas intercepts were made in the all-important Kingia (around 75% of the resource). The target price rises to $0.42 from $0.40 and the Buy rating is unchanged.

Separately, spot prices are up 21% year-to-date to US$4.53/GJ and the regulator's base case suggests a shortfall by 2023-24. With LNG mega projects continuing to flounder, the broker sees a market window for WE expansion.

This report was published on April 9, 2021.

Target price is $0.42 Current Price is $0.23 Difference: $0.19
If WGO meets the Canaccord Genuity target it will return approximately 83% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.33.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.00.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $3.21

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

Whispir has announced a predicted annual recurring revenue (ARR) of $6.8m will be added over the next two quarters, but Shaw and Partners warns this growth will not be linear. 

The broker predicts steady underlying growth for the cloud-based communications platform over the next two quarters, but expects a -$2.6m drag on headline ARR growth in the second quarter which will reverse with $3.9m growth in the slightly longer third quarter. 

Allowing around nine months for new customers to embed the platform into business practices, customers signed in the last twelve months are indicative of recurring revenue moving forward, and based on these numbers the broker finds ARR predictions to be conservative. 

With Whispir aiming for 25-30% of its annual recurring revenue to come from North America by the end of the 2023 financial year, the upskilling of the sales team over the past year will be put to the test as sales are expected to greatly increase in the next twelve to eighteen months to meet the target. 

Buy rating is retained and the target price of $5.20 remains the same. 

This report was published on April 12, 2021.

Target price is $5.20 Current Price is $3.21 Difference: $1.99
If WSP meets the Shaw and Partners target it will return approximately 62% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 49.38.

Forecast for FY22:

Shaw and Partners 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 54.41.

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

XTE    XTEK LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.57

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

Taylor Collison points out Xtek has developed proprietary business lines in the defence sector for both body armour and SUAS (XTatlas) which are now being monetised.

The company is in the process of moving from a distributor of military equipment to a manufacturer of its own proprietary products that, in the broker's view, will boost profit margins and result in higher and more consistent revenues.

Taylor Collison notes the underlying demand for Xtek's products continues to be solid led by defence spending that has proven resilient to economic cycles despite the current covid environment. 

Buy rating retained.

This report was published on April 7, 2021.

Current Price is $0.57. 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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.25.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.85.

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

A2M ALL ARV ASX AUT CAA CAR CWY DBI DMP DOC EML HPG JHG MMM NTO REA SM1 WGO WSP XTE

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

For more info SHARE ANALYSIS: ALL - ARISTOCRAT LEISURE LIMITED

For more info SHARE ANALYSIS: ARV - ARTEMIS RESOURCES LIMITED

For more info SHARE ANALYSIS: ASX - ASX LIMITED

For more info SHARE ANALYSIS: AUT - AUTECO MINERALS LIMITED

For more info SHARE ANALYSIS: CAA - CAPRAL LIMITED

For more info SHARE ANALYSIS: CAR - CARSALES.COM LIMITED

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

For more info SHARE ANALYSIS: DBI - DALRYMPLE BAY INFRASTRUCTURE LIMITED

For more info SHARE ANALYSIS: DMP - DOMINO'S PIZZA ENTERPRISES LIMITED

For more info SHARE ANALYSIS: DOC - DOCTOR CARE ANYWHERE GROUP PLC

For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED

For more info SHARE ANALYSIS: HPG - HIPAGES GROUP HOLDINGS LIMITED

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

For more info SHARE ANALYSIS: MMM - MARLEY SPOON AG

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: REA - REA GROUP LIMITED

For more info SHARE ANALYSIS: SM1 - SYNLAIT MILK LIMITED

For more info SHARE ANALYSIS: WGO - WARREGO ENERGY LIMITED

For more info SHARE ANALYSIS: WSP - WHISPIR LIMITED

For more info SHARE ANALYSIS: XTE - XTEK LIMITED