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

Daily Market Reports | May 11 2021

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)

A4N   AD8   APC   API   AX1   CAJ   CTD   CUV   EHL   EVN   FMG   ILU   OSH   OZL   PPT   WSP   WTC  

PPT    PERPETUAL LIMITED

Wealth Management & Investments - Overnight Price: $35.55

Goldman Sachs rates ((PPT)) as Neutral (3) -

Strong market related returns (and asset management investment outperformance) saw Perpetual’s third quarter 2021 funds under management trends tracking ahead of Goldman Sachs' estimates across the platform.

While Goldman Sachs is encouraged by the solid recovery in investment performance over the past two quarters, the broker notes outflows in the PAMA and PAMI funds were disappointing - relative to some of the improved organic growth results from value orientated peers.

But if Perpetual can maintain/improve on current performance, Goldman Sachs still sees good scope for a turnaround in flows into FY22.

On balance, the broker upgrades FY21, FY22, and FY23 earning per share (EPS) forecasts by 1%, 4%, and 4% respectively.

Neutral rating remains with the target increasing to $36.16 from $34.78.

This report was published on April 23, 2021.

Target price is $36.16 Current Price is $35.55 Difference: $0.61
If PPT meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $37.05, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 170.00 cents and EPS of 206.00 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 213.8, implying annual growth of 21.3%.
Current consensus DPS estimate is 176.1, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 16.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 202.00 cents and EPS of 242.00 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 250.6, implying annual growth of 17.2%.
Current consensus DPS estimate is 202.3, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 14.1.

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

WSP    WHISPIR LIMITED

Cloud services - Overnight Price: $2.65

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

Whispir's third quarter results have revealed the company is on track to meet or exceed targets for 2021, which Shaw and Partners feels highlights growing confidence. 

Results showed a third quarter annual recurring revenue of $50.3m, a 20% year-on-year increase,and good receipts of $10.9m, a 23% year-on-year increase. 

Th company also announced 43 new customer adds in the quarter, including 11 in North America. The company noted North America represented a growing pipeline with go-to-market initiatives underway with 8x8 and Amazon Web Services. 

The Buy rating and target price of $5.20 are retained. 

This report was published on April 23, 2021.

Target price is $5.20 Current Price is $2.65 Difference: $2.55
If WSP meets the Shaw and Partners target it will return approximately 96% (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 40.77.

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 44.92.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services - Overnight Price: $27.93

Bell Potter rates ((WTC)) as Hold (3) -

With global trade volumes continuing to rebound strongly post the impacts of the US-China trade war, and the AUD/USD exchange rate averaging 0.77 so far this half, Bell Potter modestly upgraded WiseTech Global FY21, FY22 and FY23 EPS forecasts by 3%, 1% and 1% respectively.

The broker believes there is some chance of an upgrade to the FY21 guidance before financial year end, and this time to be an increase in both the revenue and earnings (EBITDA) ranges.

The Hold rating is maintained and the target price is increased to $31.50 from $30.00.

This report was published on April 22, 2021.

Target price is $31.50 Current Price is $27.93 Difference: $3.57
If WTC meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $32.98, suggesting upside of 21.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.60 cents and EPS of 28.50 cents.
At the last closing share price the estimated dividend yield is 0.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 98.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of -39.6%.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 89.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 7.20 cents and EPS of 36.10 cents.
At the last closing share price the estimated dividend yield is 0.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.7, implying annual growth of 43.8%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 62.2.

Market Sentiment: 0.5
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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