article 3 months old

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

Daily Market Reports | May 11 2021

This story features ALPHA HPA LIMITED, and other companies. For more info SHARE ANALYSIS: A4N

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  

A4N    ALPHA HPA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.59

Bell Potter rates ((A4N)) as Buy (1) –

Alpha HPA’s First project involves supplying high purity alumina to the lithium-ion battery and light-emitting diode (LED) manufacturing sectors. The project continues to de-risk in the lead up to the final investment decision (FID) from mid-2021, explains Bell Potter.

After March quarter results, the broker highlights progress on the permitting, partnering, financing and market outreach work streams for the HPA First project. Also, Queensland Government authorities have further advanced approvals for the project’s Gladstone site.

The analyst considers it increasingly likely that the commercialisation of the proprietary process could involve investments beyond its initial Gladstone plant. The Speculative Buy rating is maintained and the target price is increased to $0.81 from $0.56.

This report was published on April 26, 2020.

Target price is $0.81 Current Price is $0.59 Difference: $0.22
If A4N meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 196.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 73.75.

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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $7.70

Shaw and Partners rates ((AD8)) as Buy (1) –

Audinate Group has announced a 31% revenue increase on the previous corresponding period during the third quarter to US$7m. According to Shaw one driver of revenue growth was an increase in forward orders from customers managing global supply chain concerns. 

Chips, cards, modules and adaptors represented 68% of revenue, with the Broadway and Ultimo chips up 50% and 28% on the previous corresponding periods respectively.

The company does note risks around global raw materials supply chains may impact ability to access critical components such as silicone and affect near-term revenue. The broker explains Audinate has set up an alternate supply and manufacturing hub in Malaysia to mitigate this risk.

The Buy rating and $10.00 target price are retained.

This report was published on April 23, 2021.

Target price is $10.00 Current Price is $7.70 Difference: $2.3
If AD8 meets the Shaw and Partners target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $10.03, suggesting upside of 35.6%(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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 220.00.

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 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 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1283.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APC    AUSTRALIAN POTASH LIMITED

Agriculture – Overnight Price: $0.16

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

Australian Potash is gearing up for start-up of it's 100%-owned Lake Wells flagship project, which has an assumed 30-year mine life producing 170 thousand tonnes per annum of premium sulfate of potash. 

Shaw and Partners considers the company's recently released Front End Engineering and Design update to show sound economics and low technical risk. A Final Investment Decision (FID) is pending and the company believes first production can be achieved within 24 months of an FID. 

Australian Potash has already secured 90% of offtake and $140m financing approval from NAIF. 

The broker notes demand for sulfate of potash is forecasted for mid-single digit growth over the coming decades as arable land reduces and potassium is required for crop growth. 

Shaw and Partners initiate coverage with a Buy rating and a target price of $0.32. 

This report was published on April 23, 2021. 

Target price is $0.32 Current Price is $0.16 Difference: $0.16
If APC meets the Shaw and Partners target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.86.

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

API    AUSTRALIAN PHARMACEUTICAL INDUSTRIES

Health & Nutrition – Overnight Price: $1.13

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

Due to stronger than expected revenues in the Pharmacy Wholesale division, Australian Pharmaceutical Industries’ 1H21 revenues of $1.98bn declined by 2.6% compared to the previous period, but beat Bell Potter’s forecast by 5%.

While revenue and earnings (EBIT) were modestly ahead of the forecast, the only disappointment notes the broker was the negative cash flow from operations, which was driven by another period of wild fluctuation in working capital.

Bell Potter notes earnings are expected to improve in 2H21, consistent with the return of more normal operating conditions in the retail sector and continued strong growth in the Clearskincare Clinics.

Bell Potter’s Buy rating is unchanged with the target price rising to $1.50 from $1.47.

This report was published on April 22, 2021.

Target price is $1.50 Current Price is $1.13 Difference: $0.37
If API meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $1.35, suggesting upside of 20.5%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.50 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of N/A.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.40 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 5.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.7, implying annual growth of 14.1%.
Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 11.5.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.71

Bell Potter rates ((AX1)) as Buy (1) –

Bell Potter considers the acquisition of Glue Store and the wholesale and distribution brands business of Next Athleisure is attractive and adds a new major dimension (in youth apparel) to the business. The price target is increased to $3.30 from $2.65 with a Buy rating.

The broker sees material scope to rollout stores across A&NZ. Online sales are $16.6m and there is considered to be a strong vertical product offer that is greater than 25% of sales. The analyst highlights a number of both cost and revenue synergies.

This report was published on April 26, 2021.

Target price is $3.30 Current Price is $2.71 Difference: $0.59
If AX1 meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.82, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 11.70 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of 34.8%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.30 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.5, implying annual growth of 4.3%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 18.5.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.36

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

Third quarter results released by Medicare have indicated record year-on-year growth in the diagnostic imaging sector, with growth particularly strong in Victoria, Western Australia and Tasmania, up 11%, 31% and 17.5% year-on-year respectively. 

Despite the covid-19 lows of 2020, growth is still in the double digits across the sector compared to pre-covid levels. 

Shaw and Partners remain confident in the continued growth of the sector and of imaging fees. The broker also forecasts that second half results could increase by as much as 16% on the first half with less covid-19 impact. 

Capitol Health remains one of Shaw and Partners top picks. Buy rating and target price of $0.39 is retained. 

This report was published on April 23, 2021.

Target price is $0.39 Current Price is $0.36 Difference: $0.03
If CAJ meets the Shaw and Partners target it will return approximately 8% (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 1.00 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.90 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $17.45

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

Reflecting a strong cost control against what has remained a difficult trading backdrop, Corporate Travel Management’s March quarter update saw improved booking activity across all regions with revenue reaching $20m-plus across the month of March.

Earnings (EBITDA) improved month-on-month, finishing the quarter with a $4.9m loss and a breakeven result in March.

In-line with a return to travel, management expect revenue to continue accelerating across the June quarter and group earnings to remain positive for the period.

Bell Potter’s forecasts for FY22 and FY23 remain broadly unchanged, but following this update the broker has trimmed expectations for revenue in FY21 by around 13%, downgrading FY21 underlying EPS loss from -23.3c to -31.8c.

Bell Potter remains bullish on Corporate Travel Management and believes the Company’s ability to generate profit from sub-scale is coming to the fore and should continue to drive positive performance into the FY21 result.

Bell Potter maintains its Buy rating with the target price increasing to $22.60 from $22.00. 

The report was published on April 22, 2021.

Target price is $22.60 Current Price is $17.45 Difference: $5.15
If CTD meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $21.53, suggesting upside of 27.0%(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 31.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 54.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -25.2, implying annual growth of N/A.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 15.00 cents and EPS of 37.90 cents.
At the last closing share price the estimated dividend yield is 0.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.9, implying annual growth of N/A.
Current consensus DPS estimate is 22.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 29.3.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $28.79

Wilsons rates ((CUV)) as Initiation of coverage with Market Weight (3) –

Specialty pharmaceutical company Clinuvel Pharmaceuticals has announced plans to expand product offerings into the over-the-counter premium dermocosmetics mass consumer market this year. 

The product range builds on their existing technology to create a topical photoprotectant, opening opportunities in the DNA repair and skin cancer prevention markets. Wilsons expects the March announcement of a new manufacturing division will drive expansion of the over-the-counter product line. 

The broker feels Clinuvel's clinical experience could provide a disruptive presence in the DNA repair consumer market, a historically high-value, low-evidence category. 

Prior to this the company's focus has been in specialist drug development, specifically the modulation of the melanocortin system. Based on this technology, Clinuvel's SCENESSE is the first and only approved pharmaceutical for treatment of Erythropoietic Protoporphyria, and the company holds major market approvals in Australia, Europe and the US. 

Clinuvel also has an active research and development pipeline exploring the use of SCENESSE in other pigmentation-related and DNA repair disorders including vitiligo, xeroderma pigmentosum and arterial ischaemic stroke, which represent new clinical growth options. 

Wilsons initiates coverage on Clinuvel Pharmaceuticals with a Market Weight rating and a target price of $29.82. 

This report was published on April 26, 2021. 

Target price is $29.82 Current Price is $28.79 Difference: $1.03
If CUV meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 2.50 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 0.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.68.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 2.70 cents and EPS of 52.20 cents.
At the last closing share price the estimated dividend yield is 0.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.15.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $0.98

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

Within its trading update Emeco Holdings' is forecasting FY21 operating earnings in the range of $235-238m, with the midpoint of guidance coming in slightly below consensus ($240m).

Goldman Sachs has lowered FY21/22/23 earnings -4%, -4%, -2% on the back of the trading update, but continues to view the company as well positioned to benefit from a stabilising coal backdrop and a healthy growth runway in gold/iron ore.

Buy rating unchanged with the target price falling to $1.24 from $1.31.

This report was published on April 23, 2021.

Target price is $1.24 Current Price is $0.98 Difference: $0.26
If EHL meets the Goldman Sachs target it will return approximately 27% (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 0.02 cents and EPS of 10.00 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 9.80.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.09 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 0.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.26.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $5.09

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

Evolution Mining has reported a softer-than-expected March quarter, with a one-in-one hundred year weather event impacting the Mt Rawdon operation and gold production around -10% below the first two quarters of 2021. 

Despite this Shaw and Partners feels Evolution is on track for strong year, expecting higher production and lower costs in the June quarter, with Mt Rawdon expected to deliver a strong final quarter with high grade production and Red Lake increasing throughput by running a second mill. 

According to the broker, lowered all-in sustaining costs guidance to $1,190-$1,220 also equate to a $42m pre-tax benefit. 

Shaw and Partners give a Buy rating and target price of $7.00. 

This report was published on April 23, 2021. 

Target price is $7.00 Current Price is $5.09 Difference: $1.91
If EVN meets the Shaw and Partners target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $4.53, suggesting downside of -10.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 12.00 cents and EPS of 21.40 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 30.4%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 21.9.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 25.00 cents and EPS of 38.40 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of -1.3%.
Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.2.

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

FMG    FORTESCUE METALS GROUP LTD

Iron Ore – Overnight Price: $24.79

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

Bell Potter upgrades to Buy from Hold after increasing forecast iron ore prices for FY21-FY23 by 23%, 43% and 11%, respectively. This drives forecast earnings increases of 31%, 80% and 22%, respectively. 

Iron ore production out of Brazil has continued to disappoint and Australian March quarter production has been at the lower end of guidance ranges in a seasonally slow quarter, explains the analyst.

The broker considers dividend upside outweighs iron ore price downside. It's anticipated the 12 month dividend payout will be $4.01, including a final FY21 payment of $2.41. The price target is increased to $23.85 from $20.05.

This report was published on April 26, 2021.

Target price is $23.85 Current Price is $24.79 Difference: minus $0.94 (current price is over target).
If FMG meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $21.43, suggesting downside of -11.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 528.83 cents and EPS of 456.59 cents.
At the last closing share price the estimated dividend yield is 21.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 384.9, implying annual growth of N/A.
Current consensus DPS estimate is 348.3, implying a prospective dividend yield of 14.4%.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 387.08 cents and EPS of 363.91 cents.
At the last closing share price the estimated dividend yield is 15.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 276.5, implying annual growth of -28.2%.
Current consensus DPS estimate is 247.5, implying a prospective dividend yield of 10.2%.
Current consensus EPS estimate suggests the PER is 8.8.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $8.88

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

Due to higher zircon and synthetic rutile sales on the back of increased global demand for mineral sands, Iluka Resources reported a 29% quarter-on-quarter increase in sales volumes (216kt) for the March quarter, up 58% versus Goldman Sachs' estimates.

Revenue climbed 23% QoQ to $345m, up 38% versus Goldman Sachs and was the strongest March quarter revenue in well over 5 years.

The broker’s 2021 2022 earnings per share (EPS) forecasts change by 8%, and -2% on higher synthetic rutile sales, but lowers 2023 EPS by 4% on lower Sierra Rutile volumes.

The broker’s net asset value increases 1% to $8.07/sh.

The Buy rating is retained and target price increases to $8.40 from $8.30. 

This report was published on April 26, 2021. 

Target price is $8.40 Current Price is $8.88 Difference: minus $0.48 (current price is over target).
If ILU 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 $7.08, suggesting downside of -18.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 17.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.9, implying annual growth of -92.7%.
Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.8, implying annual growth of 35.6%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 15.2.

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

OSH    OIL SEARCH LIMITED

NatGas – Overnight Price: $3.96

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

Oil Search’s first quarter 2021 production was ahead of Goldman Sachs, with production guidance maintained into PNG LNG maintenance in the second quarter, but LNG pricing lags drove a miss on realised pricing.

While Oil Search is also pursuing potential funding options for the Pikka project based on its current 51% ownership interest, intent is still to hold 36% long term, where Goldman Sachs views a sell-down as still being required.

Oil Search remains a key pick for Goldman Sachs due to leverage to the expected improvement in the oil & LNG markets post pandemic.

Goldman Sachs' Buy rating is retained, but the target price reduces to $5.55 from $5.95 as the broker's valuation moves forward from our peak oil price forecast of US$80/bbl in third quarter 2021 toward US$60/bbl.

This report was published on April 23, 2021. 

Target price is $5.55 Current Price is $3.96 Difference: $1.59
If OSH meets the Goldman Sachs target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $4.39, suggesting upside of 13.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 25.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of N/A.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 21.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 38.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.7, implying annual growth of 28.1%.
Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 16.4.

This company reports in USD. 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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $26.87

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

OZ Minerals is on track to meet gold and copper production guidance for the year according to its third quarter results. Net cash declined to $19m after a large $68m capital spend over the quarter, as well as second half 2020 dividend final payments. 

New decline at Prominent Hill is ahead of schedule and the site is expected to commence higher production mining following completion of development's to the mine base.  

The company expects to feel impacts from covid-19 conditions in Brazil with 20% of staff having contracted the virus. Central Gold injunction removal is continuing, although slowed by covid-19 impacts. 

The Buy rating is retained with a target price of $25.00. 

This report was published on April 23, 2020.

Target price is $25.00 Current Price is $26.87 Difference: minus $1.87 (current price is over target).
If OZL meets the Shaw and Partners target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.79, suggesting downside of -22.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 25.00 cents and EPS of 102.70 cents.
At the last closing share price the estimated dividend yield is 0.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.5, implying annual growth of 67.9%.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 24.5.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 26.00 cents and EPS of 161.00 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 123.0, implying annual growth of 12.3%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 21.8.

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

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 8×8 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.

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms

CHARTS

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

For more info SHARE ANALYSIS: A4N - ALPHA HPA LIMITED

For more info SHARE ANALYSIS: AD8 - AUDINATE GROUP LIMITED

For more info SHARE ANALYSIS: APC - AUSTRALIAN POTASH LIMITED

For more info SHARE ANALYSIS: AX1 - ACCENT GROUP LIMITED

For more info SHARE ANALYSIS: CAJ - CAPITOL HEALTH LIMITED

For more info SHARE ANALYSIS: CTD - CORPORATE TRAVEL MANAGEMENT LIMITED

For more info SHARE ANALYSIS: CUV - CLINUVEL PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: EHL - EMECO HOLDINGS LIMITED

For more info SHARE ANALYSIS: EVN - EVOLUTION MINING LIMITED

For more info SHARE ANALYSIS: FMG - FORTESCUE METALS GROUP LIMITED

For more info SHARE ANALYSIS: ILU - ILUKA RESOURCES LIMITED

For more info SHARE ANALYSIS: OSH - OIL SEARCH LIMITED

For more info SHARE ANALYSIS: OZL - OZ MINERALS LIMITED

For more info SHARE ANALYSIS: PPT - PERPETUAL LIMITED

For more info SHARE ANALYSIS: WSP - WHISPIR LIMITED

For more info SHARE ANALYSIS: WTC - WISETECH GLOBAL LIMITED