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Australian Broker Call *Extra* Edition – Apr 29, 2021

Daily Market Reports | Apr 29 2021

This story features 4DMEDICAL LIMITED, and other companies. For more info SHARE ANALYSIS: 4DX

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)

4DX   ADH   AIM   APE (2)   AWC (2)   BPT (2)   BXB   CLU   COE   DEG   DSK   DUG   GXY   MIN (2)   MND   MYX   ORG   PDN   PLL   PLT   PPS   RMS   RSG   SDV   SKF   SVW   VVA   WHC (2)   WSP  

4DX    4DMEDICAL LTD

Medical Equipment & Devices – Overnight Price: $1.59

Bell Potter rates ((4DX)) as Speculative Hold (3) –

4DMedical has generated its first commercial revenue in Australia following its initial public offering in August, and expects to continue the roll out of its technology in Victorian hospitals throughout 2021. 

The company also continues to make progress in the commercialisation of the XV Lung Ventilation Analysis software, securing its first US clinical pilot at Los Angeles' St Joseph's Hospital, an important step in commercialisation according to Bell Potter, but both the US pilot and clinical trials are currently on hold due to covid-19 complications.  

4DMedical has also won long term grant funding from the Australian Government to the tune of $28.9m over five years and underwent capital raising totaling $46m. 

The Speculative Hold rating is retained with a valuation of $1.80.

The report was published on April 16, 2021.

Current Price is $1.59. Target price not assessed.
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 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.39.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.73.

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

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $4.58

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

Despite an eventual reallocation of spending away from the home once restrictions ease, Wilsons believe Adairs’s recent market share growth and exposure to today’s “convenience shopper" displays evidence it can continue to grow online revenue long-term.

Material upgrades to Wilsons earnings (EBIT) forecasts – up 17.5% and 13.0% to $106.2m and $102.4m in FY21 and FY22 respectively – are driven by a renewed belief spending on homewares has continued at a similar pace into second half 2021, and recent data publications highlighting trends to online, plus cost of doing business (CODB) revisions.

Wilsons expects Adairs to benefit from a clear sustainable trend to online for small ticket homeware items, plus the significant end market value with fractured participants.

Wilsons also notes renewed interest in online homeware searches in third quarter 2021, and a discount to valuation. The broker believes Adairs trades at an unwarranted material discount to peers (FY22 PE 9.8x versus 23.1x).

Wilsons retains its Overweight rating with a target price of $4.50.

The report was published on April 16, 2021.

Target price is $4.50 Current Price is $4.58 Difference: minus $0.08 (current price is over target).
If ADH meets the Wilsons target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.47, suggesting downside of -2.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 20.00 cents and EPS of 43.40 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of 102.4%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 10.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 21.00 cents and EPS of 42.60 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.9, implying annual growth of -20.4%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.5.

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

AIM    ACCESS INNOVATION HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $0.94

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

Access Innovation has announced the launch of Smart ASR, a new live captioning product targeting customers seeking a lower priced product that retains accuracy.

Smart ASR layers Access Innovation's technology over existing automatic speech recognition technology and is being positioned as the affordable option to the company's premium offerings at around 50% of the cost. Bell Potter believes this product unlocks new customer segments in both Live Enterprise and Live Broadcast channels. 

Buy rating and  target price of $1.35 is retained. 

This report was published on April 16, 2021.

Target price is $1.35 Current Price is $0.94 Difference: $0.41
If AIM meets the Bell Potter target it will return approximately 44% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $15.49

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

Following a strong trading first quarter 2021 update, Eagers Automotive expects to record an underlying operating profit before tax (PBT) from continuing operations (including the Daimler Truck Operations) of around $98m.

As a result, Bell Potter has upgraded 2021, 2022 and 2023 earnings per share (EPS forecasts) by 16%, 5% and 1% respectively.

The upgrades in 2021 and 2022 have mostly been driven by increases in the broker’s margin estimates due to continued strong operating environment and also the cost out program.

Bell Potter’s forecasts assume the utopian environment continues for most if not all of 2Q and 3Q2021 before some reversion in fourth quarter 2021.

Given that the broker’s underlying operating PBT from continuing operations in 2021 is now $320m, well above the previous consensus of around $275m, the broker does not expect this to increase.

The rating is maintained at Hold and the target price is increased to $16.50 from $15.50.

This report was published on April 16, 2021.

Target price is $16.50 Current Price is $15.49 Difference: $1.01
If APE meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $16.34, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 40.00 cents and EPS of 93.70 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.2, implying annual growth of 46.3%.
Current consensus DPS estimate is 48.4, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 42.00 cents and EPS of 74.40 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.9, implying annual growth of -8.7%.
Current consensus DPS estimate is 47.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.1.

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


Moelis rates ((APE)) as Buy (1) –

Having reported underlying profit before tax (PBT) of $98m for first quarter 2021, a seasonally weaker quarter in the year, Moelis expects Eagers Automotive to at least replicate the result in the second quarter, resulting in sequential growth in the first half of 2021.

The strong first quarter result was driven by a combination of unusually strong market dynamics, with demand continuing to outstrip supply, and the benefits of the around $100m in costs extracted at the onset of covid.

The pending $108m Daimler Trucks divestment is expected to generate a one-off PBT of $32-36m.

To reflect current trading conditions continuing until the end of FY21, the broker has made FY21-23 earnings per share (ESP) upgrades of 2-29%.

Moelis maintains its Buy rating with the target price increasing to $17.81 from $16.35.

This report was published on April 19, 2021.

Target price is $17.81 Current Price is $15.49 Difference: $2.32
If APE meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $16.34, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 63.20 cents and EPS of 86.60 cents.
At the last closing share price the estimated dividend yield is 4.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.2, implying annual growth of 46.3%.
Current consensus DPS estimate is 48.4, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 52.70 cents and EPS of 71.40 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.9, implying annual growth of -8.7%.
Current consensus DPS estimate is 47.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.1.

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

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $1.73

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

Offset by a greater-than-expected US$23/t increase in unit costs, Alumina’s AWAC JV (Alcoa 60%/AWC 40%) reported a modest US$3/t increase in alumina margins for first quarter 2021 to US$69/t (below Goldman Sachs US$86/t), on the back of a US$26/t increase in achieved alumina prices.

After increasing its unit cost forecast from US$215/t to US$224/t in 2021 and by US$3/t to US$226/t for 2022, Goldman Sachs has revised 2021/2022 earnings per share (EPS) forecasts by -15%/-4%.

The broker’s net asset value (NAV) is down -3% to $2.30.

While Goldman Sachs believes Alumina offers attractive value at these levels, the broker notes risks for a number of potential headwinds in 2021 for AWAC. These include higher capex, higher one-off & restructuring costs, and a potential tax liability from the Australian Tax Office (ATO).

Goldman Sachs maintains its Buy rating with the target price of $2.10 remaining unchanged.

This report was published on April 16, 2021.

Target price is $2.10 Current Price is $1.73 Difference: $0.37
If AWC meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.88, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.24 cents and EPS of 9.32 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of N/A.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 11.24 cents and EPS of 13.57 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of 50.0%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 14.1.

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


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

Alumina Ltd began FY21 on a positive note, comments Shaw and Partners. Earnings (EBITDA ) are around 15% higher year-on-year (YOY) and more than double quarter-on-quarter, while the bauxite segment was easier (flagged in January) for total segment earnings (EBITDA) up 30% quarter-on-quarter but lower by -10% YoY.

While year-to-date distributions are on track at this stage, Shaw and Partners notes the alumina price will dictate share price direction which will reflect covid recovery, plus the China/US global stimulus and recovery.

Buy rating and target price of $2.20 maintained.

This report was issue April, 19 2021.

Target price is $2.20 Current Price is $1.73 Difference: $0.47
If AWC meets the Shaw and Partners target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $1.88, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 10.96 cents and EPS of 9.87 cents.
At the last closing share price the estimated dividend yield is 6.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of N/A.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 10.14 cents and EPS of 10.42 cents.
At the last closing share price the estimated dividend yield is 5.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of 50.0%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 14.1.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.68

Canaccord Genuity rates ((BPT)) as Following Beach Energys announced partial award by the independent arbitrator in relation to re-pricing of Otway Gas Project gas volumes contracted to Origin Energy, Cannacord Genuity has have liHold (3) –

Following Beach Energy’s announced partial award by the independent arbitrator in relation to re-pricing of Otway Gas Project gas volumes contracted to Origin Energy, Cannacord Genuity has lifted FY21 earnings (EBITDA) forecast to $980m (up 1.6%) and FY22 to $1,254m (up 2.8%).

The broker’s dividend forecasts remain unchanged at 2cps.

While Beach Energy’s current FY21 earnings (EBITDA) guidance stands at $900-950m, Cannacord Genuity notes, this is predicated on US$55/bbl Brent and 0.77 forex in second half FY21.

With prices averaging US$61.6/bbl so far, forex averaging 0.77 and a positive arbitration result, the broker believes there’s clear upside risk to this guidance despite weaker Western Flank production.

Hold rating is maintained, price target increases to $2.01 from $1.91.

This report was published on April 19, 2021.

Target price is $2.01 Current Price is $1.68 Difference: $0.33
If BPT meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.04, suggesting upside of 20.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 2.00 cents and EPS of 16.00 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 10.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of -26.7%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 24.00 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 7.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 37.3%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 7.6.

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


Goldman Sachs rates ((BPT)) as Upgrade to Neutral (3) –

With the arbitrated gas price from 1 July 2020 now been partially determined and expected to be reset ahead of Goldman Sachs forecast, the broker has upgraded Beach Petroleum to Neutral from Sell (following the February result) with the target price increasing to $1.90 from $1.70.

Based on the better than expected outcome, and the upgrading for Otway gas price assumptions, Goldman Sachs has increased FY21/FY22 earnings (EBITDA) forecasts by 3.6/5.6% in FY21/22, as the broker factors in a $8.70-9.70/GJ gas price up from A$6.50/GJ.

The higher pricing applies to volumes from 1 July 2020 which the broker expects to add an additional $30-40m, or 1.3-1.8cps in catch-up revenue in fourth quarter 2021.

Goldman Sachs expects Beach’s shares to likely benefit from ongoing oil price appreciation, with earnings also lifting on gas pricing, and the Cooper Basin acquisition.

This report was published on April 17, 2021.

Target price is $1.90 Current Price is $1.68 Difference: $0.22
If BPT meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.04, suggesting upside of 20.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 2.00 cents and EPS of 18.00 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 9.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of -26.7%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 2.00 cents and EPS of 28.00 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 6.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 37.3%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 7.6.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $10.49

Jarden rates ((BXB)) as Buy (2) –

Despite the strong inflationary pressures rolling through the US Pallets business, Jarden expects no change to within Brambles pending third quarter 2021 trading update for foreign exchange revenue growth 4-6% (Jarden: 4.1%) and FX underlying earnings (EBIT) growth of 5% – 7% (Jarden 5.4%).

While Jarden expect the company maintaining guidance could be a positive catalyst for the stock, the broker looks to updates on the expanded Plastic Pallets trial for Costco in the US to help remove a key overhang for the stock.

Jarden expects Brambles to demonstrate a slowdown in top-line growth in third quarter 2021, consistent with company guidance and expectations from the market.

Overweight rating and target price of $11.90 both remain unchanged.

This report was published on April 19, 2021.

Target price is $11.90 Current Price is $10.49 Difference: $1.41
If BXB meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $12.04, suggesting upside of 14.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 32.21 cents and EPS of 50.16 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.7, implying annual growth of N/A.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 34.26 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.8, implying annual growth of 10.1%.
Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 18.9.

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

CLU    CLUEY LTD

Education & Tuition – Overnight Price: $1.21

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

Cluey's quarterly results highlights continued impressive growth, according to Canaccord Genuity. The broker considers the third quarter to be likely to be a peak cash burn period for Cluey as a seasonally low session period, paving the way for strong results in the next quarter. 

New student enrollments of 5,848 is a quarterly record and up 144%. Student sessions were similarly up by 198% to 61,000 sessions despite the January school holidays where around 50% of students pause sessions. 

Canaccord views Cluey as being well placed to become a significant player in the competitive online tutoring sector, and believes Cluey has a first-mover advantage in Australia. 

The Buy rating and target price of $1.80 is retained.

This report was published on April 20, 2021. 

Target price is $1.80 Current Price is $1.21 Difference: $0.59
If CLU meets the Canaccord Genuity target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.77.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 9.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.01.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.26

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

While March 2021 was a record quarter for Cooper Energy in terms of production, sales and revenues, Bell Potter believes the variability in the ramp-up of Sole again explains the difference between revenues of $35.9m and the broker’s estimates ($46m).

Bell Potter expects a step-change in Cooper Energy earnings from FY22 with Sole GSA now operating (at around two thirds of design capacity), and further production improvements across the company’s Gippsland and Otway Basin projects also expected.

Having updated Cooper Energy’s financial model for the March 2021 quarterly report, the broker has made the following outlook adjustments: Reduced June 2021 quarter Sole production assumption to average 36TJ/day (previously 50TJ/day), and reduced first half  FY22 Sole production assumption to average 45TJ/day (previously 60TJ/day).

Bell Potter has also increased FY22 crude oil price assumption to US$60/bbl (previously US$50/bbl).

Buy rating remains, target price decreases to $0.45 from $0.46.

This report was published on April 19, 2021.

Target price is $0.45 Current Price is $0.26 Difference: $0.19
If COE meets the Bell Potter target it will return approximately 73% (excluding dividends, fees and charges).
Current consensus price target is $0.36, suggesting upside of 38.5%(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 minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.70 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 23.6.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.45

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

Following its consistent run of excellent drilling results from Hemi, Bell Potter believes De Grey Mining is continuing to build the case that it could support a Tier 1 operation – defined as a gold mine that can produce over 300kozpa for 10-plus years.

In updating valuations Bell Potter has lifted expectations for Resource growth potential at Hemi by around 15%.

Following the latest round of successful extension drilling results and high grade infill drilling, the broker is now anticipating a potential Resource range for Hemi of between 4.9Moz and 7.3Moz for a midpoint of 6.1Moz. (from 4.7Moz) and a total potential Resource at the MGP of 8.3Moz.

Bell Potter maintains a Buy rating and target price increases to $1.66 from $1.58.

This report was published on April 19, 2021.

Target price is $1.66 Current Price is $1.45 Difference: $0.21
If DEG meets the Bell Potter target it will return approximately 14% (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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $3.60

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

New store contributions, mix shift and online strength, plus strong loyalty membership sign ups/renewals saw Dusk Group continue its strong start to the year with third quarter 2021 like-for-like sales growth of 44%.

Commenting on the result, Shaw and Partners believes Dusk’s growth trajectory should continue with a clear runway ahead. The broker believes Dusk is ideally positioned for long-term growth, with a very attractive and large addressable market.

FY21 underlying earnings (EBIT) guidance of $38m to $40m is above Shaw and Partners’ $35.5m estimate and is 219% to 236% above the previous period's (FY20) $11.9m.

Buy rating maintained, with the target price rising to $3.60 from $3.50.

This report was published on April 19, 2021.

Target price is $3.60 Current Price is $3.60 Difference: $0
If DSK meets the Shaw and Partners target it will return approximately 0% (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 31.00 cents and EPS of 43.50 cents.
At the last closing share price the estimated dividend yield is 8.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.28.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 34.00 cents and EPS of 45.30 cents.
At the last closing share price the estimated dividend yield is 9.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.95.

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

DUG    DUG TECHNOLOGY LTD

Cloud services – Overnight Price: $1.07

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

DUG Technology announced a partnership agreement with Curtin University to collaborate in high-performance computing (HPC), education and research in areas such as astrophysics, biomedicine, and meteorology.

Based on a backdrop of improving oil and gas market conditions, plus strong dynamics within HPC markets globally, Cannacord Genuity forecasts an improved second half 2021 on the back of building momentum in DUG’s HPCaaS business and annualisation of US$2.4m of operating cost-out executed in December 2020.

Buy rating and target of $1.88 remain unchanged.

This report was published on April 19, 2021.

Target price is $1.88 Current Price is $1.07 Difference: $0.81
If DUG meets the Canaccord Genuity target it will return approximately 76% (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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.40.

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

GXY    GALAXY RESOURCES LIMITED

New Battery Elements – Overnight Price: $3.76

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

Galaxy Resources has confirmed production rates, capital costs, operational expenditure, and key project metrics for its feasibility of Stage 1 of Sal de Vida (SdV) lithium and potash brine (North West Argentina) much better than Canaccord Genuity had expected.

The broker’s updated model assumptions for SdV have been revised to match Galaxy Resources development plan, with Stage 1 commissioning in late 2022, followed by Stages 2 & 3 to deliver total capacity of 30ktpa lithium carbonate equivalent (LCE) by 2028.

Total capex is assumed at US$529m with estimated average cash costs of US$3,623/t.

Updated Project Resources now comprise 6.23Mt of LCE, representing a 27% increase on the prior estimate.

Canaccord Genuity estimates annual earnings (EBITDA) of greater than US$350m once at full production (from 2028).

The Buy rating is maintained and the target price increases to $4.80 from $3.60.

This report was published on April 18, 2021.

Target price is $4.80 Current Price is $3.76 Difference: $1.04
If GXY meets the Canaccord Genuity target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $3.66, suggesting downside of -6.7%(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 and EPS of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.9, 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 135.2.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26857.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of 89.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 71.3.

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

MIN    MINERAL RESOURCES LIMITED

Iron Ore – Overnight Price: $46.18

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

Despite the downgrade in FY21 shipments, upgrades to Bell Potter’s iron ore price assumptions reflecting the ongoing pricing strength, have been the biggest factor behind EPS upgrades of 6% in FY21 and 54% in FY22 for Mineral Resources.

These upgrades also incorporate an uplift in earnings from a recovery in lithium prices, while FY22 is expected to receive an uplift from an expected resumption of spodumene shipments from Wodgina, and hydroxide production commencing at Kemerton.

The broker notes Mineral Resources remains highly sensitive to movement in iron ore prices, where a 10% increase in price assumptions equates to ~20% upgrade in EPS forecasts.

 Rating maintained at Buy, price target increases to $49.30 from $43.10.

This report was published on April 18, 2020.

Target price is $49.30 Current Price is $46.18 Difference: $3.12
If MIN meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $45.32, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 300.00 cents and EPS of 602.90 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 604.6, implying annual growth of 13.4%.
Current consensus DPS estimate is 261.1, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 7.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 250.00 cents and EPS of 502.60 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 504.5, implying annual growth of -16.6%.
Current consensus DPS estimate is 205.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 9.4.

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


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

With constrained haulage leading to a downgrade for FY21 iron ore shipment guidance, Mineral Resources' March Quarter was below Goldman Sachs expectations.

The company’s strategy overview release, accompanying the recent investor tour expanded on the company’s growth ambitions over the medium term, including a doubling of mining services volumes, an increase in iron ore shipments to 90Mtpa (versus around 18Mt in FY21), and the conversion of all spodumene produced into lithium hydroxide.

While Goldman Sachs retain a Neutral rating, the broker notes ongoing iron price strength above forecasts will likely lead to consensus earnings upgrades. Holding spot iron ore prices would result in upgrades to Goldman Sachs FY21/22 earnings (EBITDA) of 8% and 112%.

Target price is revised down (-2%) to $44.

This report was issued April 18, 2021.

Target price is $44.00 Current Price is $46.18 Difference: minus $2.18 (current price is over target).
If MIN meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $45.32, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 301.00 cents and EPS of 594.00 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 604.6, implying annual growth of 13.4%.
Current consensus DPS estimate is 261.1, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 7.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 202.00 cents and EPS of 403.00 cents.
At the last closing share price the estimated dividend yield is 4.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 504.5, implying annual growth of -16.6%.
Current consensus DPS estimate is 205.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 9.4.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $12.56

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

Goldman Sachs believes Monadelphous Group's confidential out-of-court settlement with Rio Tinto ((RIO)) on the outstanding Robe River litigation removes a prominent investor overhang on the stock.

The broker expects shares to react positively to confirmation the company’s public liability insurance (limit of $150m) will cover the incident.

Rio Tinto’s claim relates to maintenance work performed by Monadelphous at Rio’s Robe River JV, specifically maintenance shutdown services performed prior to a site fire on 10 January 2019.

The total claim was for $493m of damages, consisting of $35m of reconstruction costs and $458m of business interruption losses.

Neutral rating maintained. Target price raised to $11.80 from $11.00.

This report was issued April, 16 2021.

Target price is $11.80 Current Price is $12.56 Difference: minus $0.76 (current price is over target).
If MND 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 $12.69, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 48.00 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.4, implying annual growth of 56.3%.
Current consensus DPS estimate is 46.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 56.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.4, implying annual growth of 9.9%.
Current consensus DPS estimate is 53.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 19.0.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.43

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

Following the US FDA’s approval of Mayne Pharma’s novel oral contraceptive product (NEXTSTELLIS) in partnership with Mithra Pharmaceuticals, Wilsons has upgraded the company to Market Weight, and nearly doubled the price target to $0.46 from $0.24.

Following material regulatory setbacks late last year, the broker believes the scheduled US June launch of NEXTSTELLIS (protected by 35 patent families) significantly de-risks the earnings profile for Mayne’s Specialty Brands division.

Wilsons forecasts are unchanged, noting FY22-23 earnings (EBITDA) growth remains dependent on early stage product launches (TOLSURA) and currently unapproved generic contraceptives (gNUVARING, gTAYTULLA).

This report was published on April 19, 2021.

Target price is $0.46 Current Price is $0.43 Difference: $0.03
If MYX meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $0.36, suggesting downside of -17.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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 N/A.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 143.33.

How do these forecasts compare to market consensus projections?

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

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

ORG    ORIGIN ENERGY LIMITED

NatGas – Overnight Price: $4.10

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

Origin Energy’s latest FY21 guidance expects weaker energy market returns to reduce cash flow by $60-120m in FY21.

However Goldman Sachs expects the lower capex and opex costs for APLNG to increase cash flow by $90-130m and likely offset the cash impact of the lower energy markets outlook in FY21.

The broker notes the Otway gas price review has focused on gas prices from 2018 to 2020, driving a higher than expected contracted gas price in FY21 and FY22 for Origin, and implying a gas price of $8.70-8.90/GJ, versus $6.50/GJ forecast.

These contracts face reset again in 2023, and will be linked to contracted gas price from 2021 to 2022. Goldman Sachs believes this should drive a positive margin outcome at the next reset as the broker expects the east coast gas market to tighten post 2022.

Goldman Sachs notes the recent downward move on the back of Origin’s latest FY21 guidance update brings the stock price performance back in line with the sector.

The Buy rating is retained with a target reducing to $6.50 from $6.85.

This report was published on April 16, 2021.

Target price is $6.50 Current Price is $4.10 Difference: $2.4
If ORG meets the Goldman Sachs target it will return approximately 59% (excluding dividends, fees and charges).
Current consensus price target is $5.06, suggesting upside of 22.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.4, implying annual growth of 311.0%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 51.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 40.7%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.1.

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

PDN    PALADIN ENERGY LTD

Uranium – Overnight Price: $0.38

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

Following Paladin’s completion of a "transformational" $219m equity raise to redeem its senior notes and reset its capital structure, Shaw and Partners believes the company’s balance sheet is de-risked and is increasingly well positioned for a Langer Heinrich restart.

Paladin is preparing for a restart of the 75%-owned Langer Heinrich uranium mine in Namibia, and has all of the necessary permits and licences to restart (assumed restart in FY23).

The restart is estimated to cost -US$81m.

Paladin is the broker’s preferred exposure to an improving uranium market on a risk-reward basis. Buy rating maintained, and target price increases to $0.56 from $0.45.

This report was published on April 19, 2021.

Target price is $0.56 Current Price is $0.38 Difference: $0.18
If PDN meets the Shaw and Partners target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.67.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 92.46.

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

PLL    PIEDMONT LITHIUM LTD

New Battery Elements – Overnight Price: $0.96

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

Piedmont Lithium Ltd’s project resources were recently increased to 39Mt at 1.1% Li2O, representing a 40% increase on the prior estimate.

Commenting on the update Cannacord Genuity notes Indicated Resources have increased by 50% to 22Mt at 1.12%, providing increased confidence of Reserve conversion to support a longer mine life.

Piedmont Lithium has noted that the larger resource base could support the potential for an increased production rate versus the 160kt concentrate (22ktpa LiOH) outlined in recent studies.

In advance of an updated Scoping Study, the broker has revised assumptions to include a Mining Inventory of 25Mt, increased concentrate production rate to 245ktpa (from 160ktpa)

This in turn supports an increase in average annual LiOH production to 28ktpa (from 22ktpa) over a 14 year mine life.

Cannacord Genuity assumes first production in early 2023.

Speculative buy remains, target price increases to $1.15 from $0.80.

This report was published on April 14, 2021.

Target price is $1.15 Current Price is $0.96 Difference: $0.19
If PLL meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.12

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

Fintech lender Plenti Group represents an opportunity to fill loan voids being left by major banks, suggests Bell Potter, offering market exposure to the personal and auto loan markets. 

The Australian personal and auto loan markets represent $12bn and $33bn respectively, with major banks reducing their personal loan books by -24% anf auto loan books by -14% in the last year. The broker therefore considers Plenti well positioned to increase profitability. 

Plenti Group has grown its loan book 61% in the twelve months ending March 2021, to the tune of $615m. Coverage is initiated with a Buy rating and a target price of $1.80.

This report was published on April 16, 2021.

Target price is $1.80 Current Price is $1.12 Difference: $0.68
If PLT meets the Bell Potter target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.33.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.78

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

Praemium's third quarter results are marginally ahead of Shaw and Partners' forecast, with funds under administration now totaling $37.9bn. 

Funds under administration showed 11% growth on the last quarter and 96% growth on the previous corresponding period thanks to $448m in net inflows in Australia and a record $353m in international inflows. 

Praemium's Australian platform recorded funds under management growth of 101% on the previous corresponding period, totaling $16.9bn, and closing the gap on competitor Hub24 ((HUB)). The broker considers Praemium an attractive investment prospect as it continues to disrupt financial services. 

The Buy rating and the target price of $1.00 is retained. 

This report was published on April 16, 2021.

Target price is $1.00 Current Price is $0.78 Difference: $0.22
If PPS meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 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 260.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 78.00.

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

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.63

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

Having concluded that Ramelius Resources offers a compelling case for an Australian based mid-cap gold exposure, especially given its low risk operational track record, Cannacord Genuity has initiated coverage on the WA gold producer with a Buy and a price target of $2.

The broker notes Ramelius expects production at its multiple open pit and underground Mt Magnet operations to increase into FY23 and FY24 as the high grade Penny satellite mine is brought into production.

Ramelius' Edna May operation consists of an underground and multiple open pit mines providing ore to a centralised ~2.8Mtpa processing plant.

Cannacord Genuity believes exposure to these two operations could provide upside to the organic growth potential of the company's existing resource base.

The broker also believes the company is well positioned to leverage its existing infrastructure by potentially transacting on stranded assets in WA.

This report was published on April 15, 2021.

Target price is $2.00 Current Price is $1.63 Difference: $0.37
If RMS meets the Canaccord Genuity target it will return approximately 23% (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 0.04 cents and EPS of 0.16 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1018.75.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.04 cents and EPS of 0.18 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 905.56.

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

RSG    RESOLUTE MINING LIMITED

Gold & Silver – Overnight Price: $0.47

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

After previously being terminated (24 March) without explanation, the Ghanian Minerals Commission has restored the Mining Lease for Resolute Mining’s Bibiani gold mine.

The Ghanaian government does not recognise the purported sale of the asset to Chifeng Gold which was planned to deliver US$100m in cash proceeds, previously earmarked for debt reduction.

However, Canaccord Genuity interprets the reported conditions to not preclude a sale to other parties (subject to government approval), or other options for the asset including joint ventures.

The broker believes Resolute Mining’s liquidity to be in a satisfactory state, with cash and bullion of US$106m, and only US$25m in required debt repayments during 2021.

Canaccord also notes Resolute Mining recently maintained CY21 guidance at 350-375koz at US$1,200-1,75/oz, with the broker’s estimates implying sufficient operating cash flow to cover debt repayments.

The Buy rating and price target of $1.35 remain unchanged.

This report was published on April 14, 2021.

Target price is $1.35 Current Price is $0.47 Difference: $0.88
If RSG meets the Canaccord Genuity target it will return approximately 187% (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 0.02 cents and EPS of 0.05 cents.
At the last closing share price the estimated dividend yield is 0.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 940.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.02 cents and EPS of 0.09 cents.
At the last closing share price the estimated dividend yield is 0.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 522.22.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SDV    SCIDEV LTD

Industrial Sector Contractors & Engineers – Overnight Price: $0.95

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

Slightly ahead of Canaccord Genuity’s expectations, SciDev Ltd’s March quarter results continue to show that the business is experiencing very high levels of growth.

Revenue of $11.2m was 26% up on the previous quarter (53% up on the previous period), cash receipts of $11.3m were up 95%, and operating cash of $1.5m was ahead of the broker’s forecast.

Canaccord Genuity believes the company now has a differentiated offering in a huge global industry that is growing, while also having margin expansion potential longer term.

The broker also regards the recent acquisition of Haldon as strategically sensible and estimates it to be 28% earnings per share (EPS) accretive in FY22, and expects the company to remain in a net cash position after the deal.

Buy rating and target price of $1.32 remain unchanged.

This report was published on April 19, 2021.

Target price is $1.32 Current Price is $0.95 Difference: $0.37
If SDV meets the Canaccord Genuity target it will return approximately 39% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.56.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 28.79.

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

SKF    SKYFII LTD

Software & Services – Overnight Price: $0.15

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

The US-based pedestrian analytics and insights company CrowdVision recently acquired by Skyfii for $10.5m is expected to incrementally add $2.2m to the company’s accounting rate of return (ARR).

As part of the release, Skyfii provided FY21 revenue guidance of $15m-$16m (excl. R&D incentive, capital gains exposure previously $16.4m, -5% revision) with upside if the company converts on a number of opportunities in the fourth quarter 2021.

While the transaction represents an upfront acquisition EV/ARR multiple of around 4.1-4.7x (3% accretive), Canaccord Genuity notes, it’s also accompanied by a large near-term pipeline of US$7m, which should see its ARR step up materially over the coming 12-24 months.

Buy and target price of $0.30 remain unchanged.

This report was published on April 14, 2021.

Target price is $0.30 Current Price is $0.15 Difference: $0.15
If SKF meets the Canaccord Genuity target it will return approximately 100% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 75.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.00.

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

SVW    SEVEN GROUP HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $22.45

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

Goldman Sachs left Seven Group Holdings Investor Day on April 14 in Perth with incremental confidence in the company benefiting from strong commodity activity levels (positive WesTrac) and a healthy infrastructure pipeline (positive for Coates).

Goldman Sachs forecasts second half 2021/FY22 Westrac sales growth of 10%/16% as the iron ore capex cycle peaks, before declining -8% year-on-year (yoy) in FY23. The broker expects earnings (EBITDA) margins to remain elevated at 13.0% in FY21/22/23 as the cycle remains near peak.

Goldman Sachs also expect 2H21 Coates Hire sales to grow 5.5% yoy as social distancing requirements and lockdowns are relaxed compared to the prior period, with 2H21 earnings (EBITDA) expanding 46bps to 43.1%.

The Neutral rating is unchanged and the target price is increased to $23.80 from $23.00.

This report was published on April 16, 2021.

Target price is $23.80 Current Price is $22.45 Difference: $1.35
If SVW meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $27.14, suggesting upside of 19.7%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 141.4, implying annual growth of 313.9%.
Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY22:

Current consensus EPS estimate is 156.6, implying annual growth of 10.7%.
Current consensus DPS estimate is 47.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 14.5.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.62

Moelis rates ((VVA)) as Initiation of coverage with Buy (1) –

Moelis initiates coverage on Viva Leisure with a Buy rating and $3.28 target. 

Since listing in June 2019, Viva Leisure has grown from 29 locations to 109 corporate owned locations, representing an approximate 10% share of the health and fitness market. An additional 20 new corporate owned clubs planned for completion before the end of the 2021 financial year and an aim of 400 corporate owned sites by the end of the 2025 financial year.

Additionally Viva Leisure's recent acquisition of Australia Fitness Management in August 2020 provides opportunity for the company to convert franchised sites into corporate owned sites, while also generating revenue from franchise agreements. 

Viva Leisure manages operations from a central location with proprietary software tracking member and demographic trends in real time that is scalable in line with company growth. 

This report was published on April 16, 2021. 

Target price is $3.28 Current Price is $2.62 Difference: $0.66
If VVA meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.78.

Forecast for FY22:

Moelis forecasts a full year FY22 EPS of 8.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.57.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $1.23

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

Whitehaven Coal recorded lower-than-expected production of 4.2m tonnes of saleable coal during the March quarter due to continuing geologically complex zones at the Narrabri mine, observes Bell Potter. 

The longwall change-out expected in the fourth quarter of 2021 will now be completed in early 2022. 

Whitehaven's largest asset, Maules Creek, recorded a relatively solid quarter, according to the broker, despite being impacted by NSW floods. 

The broker points out realised prices were also weaker than expected due to sales under lagged contracts not yet seeing the full benefit of recent thermal coal price strength, as well as quality issues from Narrabri.

Buy rating is retained with the target price decreasing to $2.25 from $2.35.

This report was published on April 16, 2021.

Target price is $2.25 Current Price is $1.23 Difference: $1.02
If WHC meets the Bell Potter target it will return approximately 83% (excluding dividends, fees and charges).
Current consensus price target is $1.94, suggesting upside of 55.4%(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 minus 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.9, 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 N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of N/A.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 32.1.

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


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

Whitehaven Coal faced continued difficulties with its Narrabri operation again in the March quarter, with coal quality and price suffering following geological intrusions in the previous quarter, notes Shaw and Partners. 

While coal prices were up 32% on the December quarter to US$89 per tonne, Whitehaven's received price was US$76 per tonne due to lagged pricing and poor quality coal from Narrabri, says the broker. 

Despite this, Maules Creek recorded a strong March quarter, and the broker forecasts results to remain strong through the June quarter, with Narrabri expected to reach more optimal geological conditions in the next year. 

The Buy rating is retained with the target price rising to $2.50 from $2.00. 

This report was published on April 16, 2020.

Target price is $2.50 Current Price is $1.23 Difference: $1.27
If WHC meets the Shaw and Partners target it will return approximately 103% (excluding dividends, fees and charges).
Current consensus price target is $1.94, suggesting upside of 55.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.9, 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 N/A.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 4.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of N/A.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 32.1.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $3.40

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

Whispir announced that its third quarter 2021 Annualised Recurring Revenue (“ARR”) was $50.3m which represents growth of 5.2% quarter-on-quarter, and 20% year-on-year. Whispir also reiterated its FY21 ARR Guidance of $53.0m to $55.3m.

Commenting on the result, Wilsons views this change as an incremental improvement in the rigidity of Whispir’s ARR calculation.

The broker believes Whispir’s move to using the average number of days per month based on the whole year now, as opposed to the average number of days in the ending month of a specific quarter, will create a more stable data series both historically and going forward.

Wilsons notes, Whispir’s recalibration of ARR positively impacts third quarter 2021 (new method: up $2.5m, previous method: up $0.2m).

The broker also notes it negatively impacts fourth quarter 2020 (new method: -$0.1m, previous method: up $1.7m), where ARR using the new method would result in fourth quarter 2020 ARR of $41.7m (old method: $42.2m).

This would have resulted in the company missing its prospectus ARR forecast of $42.0m.

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

This report was published on April 19, 2021.

Target price is $5.18 Current Price is $3.40 Difference: $1.78
If WSP meets the Wilsons target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.75.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 212.50.

Market Sentiment: 1.0
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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