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Australian Broker Call *Extra* Edition – May 17, 2021

Daily Market Reports | May 17 2021

This story features AUSSIE BROADBAND LIMITED, and other companies. For more info SHARE ANALYSIS: ABB

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)

ABB   ALG   ALU   AND   GNX   ILU   JRV   KGN (2)   LME   MND   NHF (2)   NXS   PPT   PRN   YFZ  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $2.80

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

Aussie Broadband continues strong third quarter growth, notes Shaw and Partners, with results showing total group connections of 373.100, an 80% year-on-year increase and up 30.400 quarter-on-quarter as the on-net network build continues. 

Residential subscribers for the quarter were below the broker's forecast, likely due to high speed connection competition from NBN. 

The company also announced the successful signing of a large energy retail customer involving the bulk transfer of 25000 existing broadband and VOIP services to Aussie Broadband. The company noted that the agreement could increase net adds by as much as 2000 per month, or around 20% per quarter.

According to the broker, Aussie Broadband have emerged as the fastest organically growing telco in Australia and is continuing to take market share from the majors. The company is expecting further progress on other white-label agreements and expects end of year results in the upper end of previous guidance. 

The Buy rating is retained and target price increases to $3.33 from $2.98. 

This report was published on April 27, 2021.

Target price is $3.33 Current Price is $2.80 Difference: $0.53
If ABB meets the Shaw and Partners target it will return approximately 19% (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 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 103.70.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.00.

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

ALG    ARDENT LEISURE GROUP

Travel, Leisure & Tourism – Overnight Price: $0.83

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

Ardent Leisure could be looking forwards to a strong two-year recovery period, according to Canaccord. According to the broker, economic recovery in the US is key to the company's value creation through it's Main Event asset. 

Ardent Leisure received a US$80m investment from RedBird in Main Event in June 2020 for a 24.2% stake. The broker considers this a strong partnership that is likely to lead to further investment in two to three years, which could see Ardent cede Main Event control for equity investment. 

Following expansion setbacks through 2020 there is an expectation that four new Main Event locations will open in 2022 according to Canaccord. 

While heavily dependent on covid-19 risks, the broker also feels there is scope for the company's Theme Park asset to begin generating financial returns following early signs of recovery in the first half of 2020. 

$50m in capital expenditure has been invested into a refurbishment and a new ride program, with a new centerpiece ride expected to open before the end of the 2021 financial year, 

Based on 2014-2016 earnings, prior to the Dreamworld accident, the company's Australian-based Theme Park asset may break even for the 2023 financial year and have a worth of around $200m by 2025, predicts Canaccord. 

Canaccord Genuity initiates with a Buy rating and a target price of $1.22. 

This report was published on April 26, 2021. 

Target price is $1.22 Current Price is $0.83 Difference: $0.39
If ALG meets the Canaccord Genuity target it will return approximately 47% (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 33.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.52.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.53.

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

ALU    ALTIUM LIMITED

Hardware & Equipment – Overnight Price: $24.16

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

Shaw and Partners forecasts a cyclical recovery for Altium in 2022 and 2023, based on the company's historical two-year post-global financial crisis recovery.

According to the broker, demand for Altium's electronic design software is leveraged to economic growth. Shaw is optimistic about the company's recovery based on its revenue growth following the 2008 financial crisis. The broker predicts two years of revenue decline before recovery.

Although the broker predicts Altium to slightly miss its 2021 target, Shaw predicts strong acceleration through the second half, with revenue expected to grow by 17-18% in 2023. 

Rating is upgraded to Buy from Hold and target price increases to $34.00 from $33.26. 

This report was published on April 26, 2021. 

Target price is $34.00 Current Price is $24.16 Difference: $9.84
If ALU meets the Shaw and Partners target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $33.90, suggesting upside of 40.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 75.17 cents and EPS of 47.17 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.7, implying annual growth of N/A.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 55.3.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 79.11 cents and EPS of 53.42 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 45.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.6, implying annual growth of 20.4%.
Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 45.9.

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

AND    ANSARADA GROUP LIMITED

Software & Services – Overnight Price: $1.11

Moelis rates ((AND)) as Buy (1) –

Ansarada Group's third quarter update revealed record customer growth for the company. A 6% increase in new net customer adds on the previous quarter was reported, equating to 190 customer adds for the period and totaling 3,190 customers. 

Revenue was also up 7% on the second quarter to the tune of $9m and a positive free cash flow was reached. 

Moelis has increased 2021 revenue forecast by 3% to $34m, and increased revenue forecast for 2022 and 2023 by 2% and 1% respectively. The broker notes that continued growth of new net customers was expected in the historically stronger fourth quarter. 

The Buy rating is maintained and the target price increases to $1.94 from $1.90. 

This report was published on April 28, 2021.

Target price is $1.94 Current Price is $1.11 Difference: $0.83
If AND meets the Moelis target it will return approximately 75% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.43.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.29.

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

GNX    GENEX POWER LIMITED

EV, Solar & Batteries – Overnight Price: $0.24

Canaccord Genuity rates ((GNX)) as Upgrade to Buy from Speculative Buy (1) –

Genex Power has come to financial and contractual close on its Kidston Pumped Hydro project. The company estimates capital expenditure of -$777m for the four-year construction of the flagship development. The acquisition is largely funded by a $610m 15-year loan with NAIF, as well as a $115m equity raising. 

The company secured an Energy Storage Services Agreement with EnergyAustralia. The agreement will see Genex receive a fixed annual rental revenue for a 10-year period, with EnergyAustralia having full operational dispatch rights. 

EnergyAustralia further has two 10-year extensions options, and if it utilises both will have the right to purchase the asset from Genex for an estimated $250m. 

Kidston also represents a net public benefit estimated by the broker at $343m. 

The rating is upgraded to Buy from Speculative Buy with the target price of $0.36 remaining. 

This report was published on April 27, 2021.

Target price is $0.36 Current Price is $0.24 Difference: $0.12
If GNX meets the Canaccord Genuity target it will return approximately 50% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.00.

Forecast for FY22:

Canaccord Genuity 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 80.00.

Market Sentiment: 1.0
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: $8.38

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

Iluka Resources reported a strong start to the year in the March quarter with sales of zircon, rutile and synthetic rutile up 29% on the previous quarter. Shaw and Partners consider this a strong result in a seasonally slow period. 

The company recorded zircon sales of 87000 tonnes and synthetic rutile sales of 76000 tonnes and maintained prices achieved in the last quarter, as well an announcing a US$70 per tonne price increase that will take effect on April 1. 

Following declining zircon inventory levels throughout 2020, the company now holds normal stock levels. Additionally a planned production suspension took place in February and March to manage synthetic rutile stock levels. 

The broker also describes Iluka's project pipeline as diverse and potentially financially viable. 

The Buy rating remains and the target price increases 30% to $8.00 from $6.20. 

This report was published on April 26, 2021. 

Target price is $8.00 Current Price is $8.38 Difference: minus $0.38 (current price is over target).
If ILU meets the Shaw and Partners target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.10, suggesting downside of -15.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 27.00 cents and EPS of 45.60 cents.
At the last closing share price the estimated dividend yield is 3.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.5, implying annual growth of -92.6%.
Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 26.00 cents and EPS of 48.90 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.2, implying annual growth of 27.5%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 15.5.

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

JRV    JERVOIS MINING LIMITED

New Battery Elements – Overnight Price: $0.46

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

Following media speculation, Jervois Mining has confirmed it is in talks with US government agencies regarding funding for the company's Idaho Cobalt Operation, including the Department of Defense, the US International Development Finance Corporation, and the Department of Energy.

Jervois is set to be the only operating cobalt mine in the US, and Shaw and Partners feels it is highly likely the company will receive strong support from the US government. The broker speculates Jervois is seeking US$78m in funding. 

The Idaho Cobalt Operation will supply cobalt from Brazil. According to the broker, the site will implement dual processing to produce both a cobalt and copper concentrate and free up copper processing capacity at the Sao Miguel Paulista nickel and cobalt refinery. 

The company's reportings for the March quarter further showed that the Idaho Cobalt Operation remains on track, with site establishment activities needing to be completed by September or October to ensure continued construction throughout the winter, and that restart plans are progressing for Sao Miguel Palista.

The Buy rating and target price of $0.52 are retained.

This report was published on April 27, 2021. 

Target price is $0.52 Current Price is $0.46 Difference: $0.06
If JRV meets the Shaw and Partners target it will return approximately 13% (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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.67.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.56.

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

KGN    KOGAN.COM LTD

Retailing – Overnight Price: $10.12

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

Kogan's recent market update has demonstrated the business' variable costs have risen much faster than its revenue and gross profit during the third quarter, with adjusted earnings down -24%, comments Canaccord Genuity.

The company has invested in its private label inventory, which accounts for around 50% of the company's gross profit, which has resulted in an increase in warehousing and logistics costs, with excess inventory likely being cleared at lower margins according to Canaccord. 

The broker expects the cost pressure to amount to -$3m per month and total a -$15-20m drag on earnings in the second half of 2021. Accordingly the broker adjusts earnings forecasts for 2021, 2022 and 2023 by -27%, -18% and -22% respectively, but predicts Kogan's cost base will normalise in 2022. 

The  Buy rating is retained with the target price decreasing to $18.00 from $25.00. 

This report was published on April 26, 2021. 

Target price is $18.00 Current Price is $10.12 Difference: $7.88
If KGN meets the Canaccord Genuity target it will return approximately 78% (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 26.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 41.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 4.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.45.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((KGN)) as Downgrade to Neutral from Overweight (3) –

Kogan's third quarter results have been labeled disappointing by Jarden, indicating a rise in costs and earnings tracking below forecast. 

According to Kogan, a higher-than-expected inventory position due to lower demand levels and associated holding fees, as well as higher spending on promotional activity to clear stock levels, contributed to increased costs. 

Gross sales for the quarter increased 47% on the prior period, with revenue also increasing by 65%, while Kogan Exclusive Brands sales were up 63% and ahead of broker forecasts. 

Based on increased discounting, higher warehousing, storage and marketing costs, Jarden has decreased its earnings forecasts by -28% and -34% for the 2021 and 2022 financial years. 

Rating is downgraded to Neutral from Overweight with the target price decreasing to $12.27 from $19.30. 

This report was published on April 23, 2021.

Target price is $12.27 Current Price is $10.12 Difference: $2.15
If KGN meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 18.00 cents and EPS of 40.50 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.99.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 30.00 cents and EPS of 41.90 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.15.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LME    LIMEADE INC

Cloud services – Overnight Price: $0.65

Moelis rates ((LME)) as Buy (1) –

Limeade is well placed to capture renewed demand in the employee experience software category according to Moelis, who forecasts the sector to experience trend growth by 2022. 

The company has faced decreased sales activity related to the covid-19 pandemic but the broker predicts organisations wll be looking to improve well-being and engagement solutions for remote workers. 

Registrations for the company's recent Limeade engage conference were up 275% year-on-year, suggesting customer interest and demand according to the broker. Moelis positions Limeade as one of two industry leaders in the corporate well-being software market. 

Limeade reported pre-covid contracted annual recurring revenue growth of more than 20% of total compound annual growth. 

Moelis reinstates coverage with a Buy rating and the target price increases to $1.27 from $0.83. 

The report was published on April 28, 2021. 

Target price is $1.27 Current Price is $0.65 Difference: $0.62
If LME meets the Moelis target it will return approximately 95% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.67 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.71.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.16.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $11.17

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

After the removal of overhang risk from the Rio Tinto ((RIO)) legal settlement, Bell Potter focuses on a general improvement in sector margins over time.

The broker believes higher construction demand will eventually provide tailwinds for premier contractors with a strong tendering discipline, as swelled order books lead to less aggressive tendering.

The Buy rating is unchanged and the target increases to $14.50 from $14.40.

This report was published on April 26, 2020.

Target price is $14.50 Current Price is $11.17 Difference: $3.33
If MND meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $12.69, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 48.00 cents and EPS of 56.70 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.70.

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 4.2%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 54.00 cents and EPS of 65.10 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.16.

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 4.7%.
Current consensus EPS estimate suggests the PER is 16.8.

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $6.19

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

nib Holdings reported a third quarter update with a 2021 group underlying operating profit guidance range of $200-225m if business conditions remain in line with third quarter results. 

Of note was Australian Residents Health Insurance's (Arhi) strong trading conditions, but details on the drivers causing Arhi's better-than-expected results were limited, notes Goldman Sachs.

Further, the broker suggests the second half uplift can largely be attributed to covid-19 claims driving provision releases. nib plans to reinvest part of Arhi's current strong performance into marketing and growth projects. 

Activity from other sectors remained subdued throughout the second half, notes the broker, with continued covid-related weakness reported in international and travel.

The Neutral rating is retained with a target price of $5.81. 

This report was published on April 26, 2021.

Target price is $5.81 Current Price is $6.19 Difference: minus $0.38 (current price is over target).
If NHF 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 $6.27, suggesting upside of 1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 22.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.3, implying annual growth of 83.8%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 20.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of -14.9%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.0.

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


Jarden rates ((NHF)) as Neutral (3) –

Low claims activity in nib Holdings' Australian Resident Health Insurance (Arhi) business is driving a strong outlook for the company, observes Jarden. The broker explains that catch-up claims related to covid-19 lockdowns have been slower-than-expected. 

nib's third quarter results provided an underlying operating profit guidance of $200-225m for 2021, suggesting an expected increase in Arhi profits during the final quarter of 2021 according to the broker. 

Jarden reports stable profitability in New Zealand and continued covid impact on the company's International Inbound Health Insurance and Travel Insurance businesses. 

The Neutral rating is retained with the target price increasing to $6.30 from $6.05 

This report was published on April 26, 2021. 

Target price is $6.30 Current Price is $6.19 Difference: $0.11
If NHF meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 25.00 cents and EPS of 33.60 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.3, implying annual growth of 83.8%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 21.00 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of -14.9%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.0.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.70

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

Next Science has achieved US FDA clearance on XPerience, a no-rinse antimicrobial solution, that allows for immediate commercial sales. XPerience provides a single step action for surgeons that helps prevent surgical site and post-operative infection. 

According to Canaccord, the addressable market for the product in the US is around 48m procedures per year, with a market value of US$7.2bn. Subject to regulatory clearances, XPerience could become the standard of care for around 234m surgical procedures globally per year, explains the broker. 

While the product is expected to have broad application, the broker expects sales to be initially focused on the orthopaedic market to prove its commercial credentials. 

The Buy rating and target price of $2.70 are retained. 

This report was published on April 26, 2021.

Target price is $2.70 Current Price is $1.70 Difference: $1
If NXS meets the Canaccord Genuity target it will return approximately 59% (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 0.00 cents and EPS of 0.95 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 178.76.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.24.

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

PPT    PERPETUAL LIMITED

Wealth Management & Investments – Overnight Price: $35.02

Jarden rates ((PPT)) as Buy (2) –

Perpetual has reported better-than-expected asset management flow and assets under management during the March quarter, totaling $95.3bn. Net outflows for the quarter of -$1.2bn were also lower than forecast. 

Perpetual Corporate Trust further reported funds under management of $943bn, marginally ahead of the broker's forecast. 

According to Jarden, strong performance in Australian equities and the Barrow Hanley business helped drive assets under management balances. The broker also feels company forecasts have not fully captured the earnings uplift derived from the Barrow Hanley and Trillium acquisitions.

The Overweight rating is retained and the target price increases to $38.80 from $36.30. 

This report was published on April 23, 2021.

Target price is $38.80 Current Price is $35.02 Difference: $3.78
If PPT meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $37.05, suggesting upside of 5.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 170.50 cents and EPS of 227.80 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 15.37.

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 16.4.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 222.30 cents and EPS of 261.20 cents.
At the last closing share price the estimated dividend yield is 6.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.41.

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 5.8%.
Current consensus EPS estimate suggests the PER is 14.0.

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

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $1.01

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

Perenti Global has secured a contract in Canada for the development of an underground exploration decline at the Red Chris project, which Canaccord believes could turn into a larger, high margin project. 

Perenti subsidiary Barminco will undertake a 3.5km underground exploration decline predicted to generate $38m in revenue over 16 months. 

The broker predicts that, following the initial development, this could turn into a larger contract for the company as the project could support a block cave. The contract win supports Perenti's focus on projects in North America, Australia and key African countries to de-risk its geographical exposure, suggests the broker. 

The Buy rating is retained with a target price of $1.54, 

This report was published on April 26, 2021. 

Target price is $1.54 Current Price is $1.01 Difference: $0.53
If PRN meets the Canaccord Genuity target it will return approximately 52% (excluding dividends, fees and charges).

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

YFZ    YOUFOODZ HOLDINGS LTD

Food, Beverages & Tobacco – Overnight Price: $0.39

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

After a third quarter trading update, Bell Potter assesses strong gross revenue growth in B2C was partially offset by continued softness in B2B, which was down -3.8%. 

The underperformance in B2B was primarily due to the ongoing impact of covid-19 in the retail channel, with Petrol & Convenience customers maintaining minimal stock levels, explains the broker.

Management has revised FY21 earnings (EBITDA) forecasts to $1.0m-$2.0m from $2.9m. The Buy rating is maintained and the target price is decreased to $1.10 from $1.50.

This report was published on April 26, 2020.

Target price is $1.10 Current Price is $0.39 Difference: $0.71
If YFZ meets the Bell Potter target it will return approximately 182% (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 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.19.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 20.53.

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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