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Australian Broker Call *Extra* Edition – May 26, 2021

Daily Market Reports | May 26 2021

This story features 5G NETWORKS LIMITED, and other companies. For more info SHARE ANALYSIS: 5GN

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)

5GN   ADH   AHX   AMS   ANZ   BCI   BET   BKG   BUB   CSL   CUV   DUB   FCL (2)   FMG (2)   GMA   GOZ   IEL   IMR (2)   JHG   MCP (2)   MGH   MMI   MMM   MSB   NCM (2)   NIC (2)   NTO (2)   ORG   PBH (2)   QBE   RHP (2)   RMD (2)   RRL   SBM   STG   WOW (2)   ZBT  

5GN    5G NETWORKS LIMITED

Telecommunication – Overnight Price: $0.96

Wilsons rates ((5GN)) as Overweight (1) –

Due to the increase in profitability flowing through the model within 3Q21 financials, which included insights into the WebCentral business, Wilsons has increased the target price on 5G Networks to $2.11 from $1.96.

The company posted 3Q21 revenue of $26.5m and an earnings (EBITDA) margin of 18%. The Overweight recommendation is retained.

Underpinned by tight cost management and a refocus on “core, profit generating operations”, WebCentral's 3Q21 earnings of $3.2m improved significantly.

While rent reductions of $5.5m annualised was pleasing, Wilsons expects scope for further savings if current excess capacity in Melbourne is reduced.

The company cited ongoing margin growth as cloud, data centres and network services are consolidated within the company’s infrastructure as a driver of future growth. Two other growth drivers cited by 5G Networks include an additional $300,000/month of services/provisioning to be switched on over the next 3 months, and further data centre fibre build expansion.

This report was published on April  29, 2021.

Target price is $2.11 Current Price is $0.96 Difference: $1.15
If 5GN meets the Wilsons target it will return approximately 120% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 1.00 cents and EPS of 1.60 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.00.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 1.00 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.92.

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

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $4.41

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

With a store network of 168, online sales of 32.1% of total (ex. Mocka) and an engaged membership program, Wilsons continues to believe Adairs is likely to take more market share as the online homewares category grows.

Wilsons believes Adairs is already well placed to capture market share as the rate at which Australian customers are embracing homewares online accelerates.

There are no changes to Wilsons' earnings forecasts, but the broker is forecasting online revenue growth forecasts (including Mocka) of 14.1% year-on-year in FY22.

Overweight rating and $5.80 price target remain unchanged.

This report was issued April 29, 2021.

Target price is $5.80 Current Price is $4.41 Difference: $1.39
If ADH meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $4.47, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 20.00 cents and EPS of 43.40 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of 102.4%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 21.00 cents and EPS of 42.60 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.9, implying annual growth of -20.4%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 13.3.

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

AHX    APIAM ANIMAL HEALTH LTD

Medical Equipment & Devices – Overnight Price: $0.88

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

Apiam Animal Health's third quarter update revealed gross profit of $17.5m, a 1.5% increase on the previous corresponding period. The company is expecting a stronger fourth quarter to close the financial year. 

Revenue for the quarter totaled $30.3m, in line with Shaw's expectations and down -3% on the previous corresponding quarter. 

A capital raising in April generated around $6m, increasing liquidity and growth potential. The company has flagged an active mergers and acquisitions pipeline and the broker expects near term accretive acquisitions. 

The Buy recommendation is retained and the target price increases to $1.02 from $0.87. 

This report was published on May 3, 2021.

Target price is $1.02 Current Price is $0.88 Difference: $0.14
If AHX meets the Shaw and Partners target it will return approximately 16% (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 2.20 cents and EPS of 5.00 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 17.60.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.00 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.44.

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

AMS    ATOMOS LIMITED

Consumer Electronics – Overnight Price: $0.96

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

Shaw & Partners initiates coverage on Atomos Ltd with a Buy recommendation and price target of $1.53. Atomos designs, manufactures and distributes market leading monitor-recorders globally.

The broker points out Atomos is entering 2H21 on strong grounds with revenue of $32.8m accelerating month-on-month in 1H21, and a recent company outlook statement pointed to sales momentum continuing into 2H21.

The company's outlook supports Shaw's revenue estimate of $39.4m or 20% half-on-half in 2H21 alongside maiden contributions from software sales, Ninja launches, further ProRes RAW integrations, rising organic website visits (+7.6% MoM in April) and growth in the recently launched Neon range.

Shaw anticipates material operating leverage as Atomos continues to scale its business after turning earnings and cashflow positive in the most recent half, and estimates revenue of $39.4m, $72.2m and $88.5m across 2H21 , FY21 and FY22 respectively.

This report was issued April 30, 2021.

Target price is $1.53 Current Price is $0.96 Difference: $0.57
If AMS meets the Shaw and Partners target it will return approximately 59% (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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.84.

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

ANZ    AUSTRALIA & NEW ZEALAND BANKING GROUP

Banks – Overnight Price: $28.45

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

Goldman Sachs has made minor earnings forecast changes, which have moved the target price to $29.21 from $29.24, prior to the now-announced first half result.

The changes were due to the company announcing -$817m in disclosed first half notable items, of which -$260m had already previously been announced. The Buy rating is maintained.

This report was published on April 30, 2021.

Target price is $29.21 Current Price is $28.45 Difference: $0.76
If ANZ meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $30.17, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 120.00 cents and EPS of 192.40 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 203.4, implying annual growth of 61.0%.
Current consensus DPS estimate is 140.3, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 145.00 cents and EPS of 223.50 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 217.8, implying annual growth of 7.1%.
Current consensus DPS estimate is 145.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 13.1.

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

BCI    BC IRON LIMITED

Iron Ore – Overnight Price: $0.43

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

In the March quarter, BC Iron's Iron Valley agreement generated quarterly operating income of $20m from 1.6mt shipped, driven mostly by iron ore price strength. Bell Potter expects Iron Valley to generate operating income of $52m in FY21 and $37m year to date.

The broker highlights BC Iron combines an iron ore royalty-like business with a large scale salt and fertiliser project. Also, the optimised Mardie Salt and SOP Project will have the potential to add considerable value and has appeal to ESG concerned debt and equity investors, suggests the broker.

Buy rated and target rises to $0.57 from $0.50. 

This report was published on April 30, 2021.

Target price is $0.57 Current Price is $0.43 Difference: $0.14
If BCI meets the Bell Potter target it will return approximately 33% (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 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.29.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.36.

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

BET    BETMAKERS TECHNOLOGY GROUP LTD

Gaming – Overnight Price: $1.56

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

Betmakers Technology Group has received a $25m investment from Matt Tripp who has been contracted by the company to pursue strategic deals.

Canaccord sees scope for the company to become a key technology partner for a number of operators in the Australian race wagering and sports betting industries. 

An additional $50m was attained during February through capital raising, allowing the company to close out the quarter with $125m in cash. 

Highlights of Betmakers' March quarter include an increase in cash receipts of 31% on the previous quarter to total $5.2m for the period. This brings year-to-date cash receipts to $13m. 

The Buy rating is retained and the target price increases to $1.45 from $1.00. 

This report was published on May 4, 2021.

Target price is $1.45 Current Price is $1.56 Difference: minus $0.11 (current price is over target).
If BET meets the Canaccord Genuity target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

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

BKG    BOOKTOPIA GROUP LIMITED

Online media & mobile platforms – Overnight Price: $2.53

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

Booktopia Group has released a third quarter update noting revenues of $65m, a 53% increase and additional $22.6m year-on-year.

The company also announced earnings of $4.2m, a 267% year-on-year increase. Shaw and Partners noted only an additional $0.8m is required in the fourth quarter to beat guidance of $12.9m.

The company maintained strong trading throughout the quarter, moving around 700,000 units per month, in line with Christmas trading in December 2020. Average selling price of $31.10 was also up 7% quarter-on-quarter. 

Booktopia outperformed the sector and continues to take market share, says the broker. Shaw has upgraded EBITDA forecast for FY21 by 14% to $14.7m. 

The Buy rating is retained and the target price increases to $4.05 from $4.04. 

This report was published on May 3, 2021.

Target price is $4.05 Current Price is $2.53 Difference: $1.52
If BKG meets the Shaw and Partners target it will return approximately 60% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.25.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.33.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.34

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

Bubs Australia’s third-quarter gross revenue was down -40% year on year although Bell Potter highlights last year was aided by covid-led panic buying. Sequentially infant milk formula revenues were up 4% quarter on quarter with Daigou channel sales up 19%.

Management expects modest revenue growth and to the broker, the expected sales pattern for FY21 looks broadly comparable to that of FY19. 

Bell Potter highlights Bubs Australia is in the early stage of its product life cycle with revenue predominantly driven by an expansion in the distribution footprint, product uptake and category expansion.

Hold rating retained with the target price declining to $0.54 from $0.57.

This report was published on May 3, 2021.

Target price is $0.54 Current Price is $0.34 Difference: $0.2
If BUB meets the Bell Potter target it will return approximately 59% (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 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.72.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.78.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $291.96

Jarden rates ((CSL)) as Overweight (2) –

Jarden is optimistic improved mobility trends in the US may indicate an increased take up in recovery trade healthcare. However, the broker notes that despite positive signs a sustainable recovery for CSL will depend on further emerging evidence. 

The broker attributes increased mobility trends to vaccination efforts in the US. As of end of April, 29% of the US population were fully vaccinated and 43% had received at least one dose of the vaccine. 

The Overweight rating and target price of $334.80 are retained. 

This report was published on April 29, 2021. 

Target price is $334.80 Current Price is $291.96 Difference: $42.84
If CSL meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $300.19, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 303.56 cents and EPS of 973.18 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 648.2, implying annual growth of N/A.
Current consensus DPS estimate is 257.9, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 44.7.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 457.35 cents and EPS of 991.33 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 633.5, implying annual growth of -2.3%.
Current consensus DPS estimate is 279.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 45.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
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: $30.45

Moelis rates ((CUV)) as Downgrade to Hold from Buy (3) –

Clinuvel Pharmaceutical delivered a strong third quarter with cash receipts of $6.5m, a 22% increase, bringing total cash receipts to $23.8m for FY21. 

Clinuvel has trained and accredited 40 specialty treatment centres to administer the Scenesse treatment to patients, and administered doses continue to increase. The company expects a seasonal uplift over the next two quarters. 

The company also expects to launch its new over-the-counter DNA repair product offering by the end of FY21, as discussions with the FDA around trial protocol continue. 

The rating is downgraded to Hold and the target price increases to $32.80 from $27.77. 

This report was published on May 3, 2021.

Target price is $32.80 Current Price is $30.45 Difference: $2.35
If CUV meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 3.60 cents and EPS of 37.50 cents.
At the last closing share price the estimated dividend yield is 0.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 81.20.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 2.20 cents and EPS of 29.90 cents.
At the last closing share price the estimated dividend yield is 0.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 101.84.

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

DUB    DUBBER CORPORATION LIMITED

Cloud services – Overnight Price: $2.80

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

Shaw and Partners finds Dubber Corp reported strong third quarter results with annual recurring revenue up 158% on the previous corresponding period to a total $34m.

The broker notes quarterly revenue of $6.6m was around 85% of annual recurring revenue, continuing a strong trend of revenue conversion. 

This growth was driven by an acceleration of organic users delivered through telco penetration. Shaw and Partners estimates that for core products the company added an average of 450 users per telco and Dubber noted a pronounced acceleration of telco services moving to a cloud environment. 

Shaw notes this level of organic annual recurring revenue places the company in the top five on the ASX for the quarter. 

Dubber Corp remains Shaw's key stock pick. The Buy rating is retained and the target price increases to $3.03 from $2.25. 

This report was published on May 03, 2021.

Target price is $3.03 Current Price is $2.80 Difference: $0.23
If DUB 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 0.00 cents and EPS of minus 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.22.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.79.

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

FCL    FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $3.68

Moelis rates ((FCL)) as Buy (1) –

While Moelis's short-term estimates remain largely unchanged, the broker reduces FY23 software sales forecasts for Fineos Corp by -3% to reflect lower sales velocity in FY21 to date.

Following the 3Q FY21 result, which suggests Fineos Corp is on track for upper end of guidance range of EUR102-105m, Moelis assumes sales conditions remain subdued across fourth quarter FY21 before picking up in first half of FY22 as general economic conditions improve.

Despite the pandemic-affected sales velocity in FY21, the broker still expects Fineos to execute on its significant long-term opportunity in Life, Accident & Health insurance.

Moelis suggests the -35% discount to peers in property and casualty on an adjusted EV/FY22 software sales basis provides valuation support.

Moelis maintains its Buy rating and the target price reduces to $4.74 from $4.77.

This report was published on April 30, 2021.

Target price is $4.74 Current Price is $3.68 Difference: $1.06
If FCL meets the Moelis target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $4.51, suggesting upside of 24.5%(ex-dividends)
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 5.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 63.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.99.

How do these forecasts compare to market consensus projections?

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

This company reports in EUR. 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


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

While Fineos Corp's 3Q21 report highlighted that activity remains strong, Shaw & Partners notes little was provided in the way of guidance on the pipeline and outlook for FY22.

Commenting on the result, Shaw notes FY21 total revenue is forecast to hit the upper end of guidance, with cloud revenue now 70% of total, a slight improvement in consultant utilisation, and two new client wins.

Shaw believes Fineos needs to win deals in the 2H21 and early in 1H22 in order to deliver the 29% Software growth the broker is
currently forecasting in FY22.

While Shaw sees the lack of pipeline visibility as frustrating, the broker does not believe this discredits a positive investment thesis over the longer term.

Shaw's investment thesis is based on Life Insurance being a big vertical – that has been slow to upgrade core systems – and that Fineos is proving itself as a market leader.

Buy rating and the target price of $5.30 remain unchanged.

This report was published on April 30, 2021.

Target price is $5.30 Current Price is $3.68 Difference: $1.62
If FCL meets the Shaw and Partners target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $4.51, suggesting upside of 24.5%(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 2.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 127.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 153.01.

How do these forecasts compare to market consensus projections?

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

This company reports in EUR. 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

FMG    FORTESCUE METALS GROUP LTD

Iron Ore – Overnight Price: $21.72

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

Fortescue Metals had a weaker than expected March quarter, but Goldman Sachs expects a strong June quarter production to be forthcoming. 

Weak results were attributed to lower realised prices on iron ore, down 5% quarter-on-quarter, and increased capital expenditure guidance, up 10% to US$3.5-3.7bn due to escalation on the Iron Bridge project.  

Fortescue has predicted a ramp-up at the Eliwana project over the next six months, while technical and commercial evaluation continues at Iron Bridge, but Goldman Sachs predicts costs could further increase. 

The Sell rating is retained and the target price decreases to $18.30 from $18.90. 

This report was published on April 29, 2021. 

Target price is $18.30 Current Price is $21.72 Difference: minus $3.42 (current price is over target).
If FMG meets the Goldman Sachs target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $21.43, suggesting downside of -0.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 320.66 cents and EPS of 400.49 cents.
At the last closing share price the estimated dividend yield is 14.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 407.4, implying annual growth of N/A.
Current consensus DPS estimate is 412.8, implying a prospective dividend yield of 19.2%.
Current consensus EPS estimate suggests the PER is 5.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 170.48 cents and EPS of 212.42 cents.
At the last closing share price the estimated dividend yield is 7.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 290.7, implying annual growth of -28.6%.
Current consensus DPS estimate is 297.7, implying a prospective dividend yield of 13.8%.
Current consensus EPS estimate suggests the PER is 7.4.

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


Shaw and Partners rates ((FMG)) as Hold (3) –

Based on Fortescue Metal Group's long track record of credible and successful operational delivery, Shaw & Partners regards the March quarter scorecard, which fell short of expectations across shipments and costs by -2% and -5% respectively, as a glitch.

FY21 guidance targets have been reset at the 1H21 financials to take account of AUDUSD pressures on costs and capex, but offsetting that a 1.4% increase in FY21 shipments to 178-180mt.

Given that Fortescue delivered 90mt in 1H21, and considering typical seasonality, Shaw expects this revised target to be met.

Shaw notes the Iron Bridge project review update due around late-May 2021 could infirm additional capex over runs and scope changes and likely revised (delayed) timeline.

Hold rating unchanged and price target $20.00.

This report was issued April 30, 2021.

Target price is $20.00 Current Price is $21.72 Difference: minus $1.72 (current price is over target).
If FMG meets the Shaw and Partners target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $21.43, suggesting downside of -0.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 420.65 cents and EPS of 390.34 cents.
At the last closing share price the estimated dividend yield is 19.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 407.4, implying annual growth of N/A.
Current consensus DPS estimate is 412.8, implying a prospective dividend yield of 19.2%.
Current consensus EPS estimate suggests the PER is 5.3.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 199.97 cents and EPS of 194.16 cents.
At the last closing share price the estimated dividend yield is 9.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 290.7, implying annual growth of -28.6%.
Current consensus DPS estimate is 297.7, implying a prospective dividend yield of 13.8%.
Current consensus EPS estimate suggests the PER is 7.4.

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

GMA    GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED

Banks – Overnight Price: $2.73

Goldman Sachs rates ((GMA)) as No Rating (-1) –

Genworth Australia's first quarter underlying profit was at a run-rate well ahead of Goldman Sach's prior estimates, largely driven by lower-than-expected net claims incurred. 

The broker highlights net insurance written (NIW) was up 17% year on year. The loss ratio improved, considered to reflect the benefit of strong house price appreciation over the quarter and improving economic conditions, offset by additional reserving.

The analyst adjusts FY22-23 earnings estimates by -4.8% and -8.3%, driven by weaker investment income and offset by lower net claims incurred. Goldman Sachs remains Not Rated on the company.

This report was published on April 30, 2021.

Current Price is $2.73. Target price not assessed.
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 20.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 7.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.65.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 31.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 11.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.66.

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

GOZ    GROWTHPOINT PROPERTIES AUSTRALIA

Infra & Property Developers – Overnight Price: $3.76

Moelis rates ((GOZ)) as Buy (1) –

Moelis comments Growthpoint Properties Australia delivered a solid 3Q21 quarterly with a modest earnings upgrade resulting from leasing across 1.3% of portfolio income.

With occupancy at 96%, and a relatively manageable expiry profile, Moelis believes Growthpoint's income and distribution profile look relatively defensive. 

With 100% of the industrial portfolio to be revalued at June 21, Moelis sees the current valuation as undemanding given the stock trades on an -8% discount to the broker's estimate of net tangible asset value of around $4.00.

The broker's sum-of-the-parts valuation increases to $4.00 and assumes around -50bps of compression to come through the industrial portfolio at the June valuation update.

The Buy rating remains with target price increasing to $4.02 from $3.80.

This report was published on April 30, 2021. 

Target price is $4.02 Current Price is $3.76 Difference: $0.26
If GOZ meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.57, suggesting downside of -5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 20.00 cents and EPS of 25.50 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.6, implying annual growth of -30.3%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 20.60 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of 2.8%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 14.9.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $22.15

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

Goldman Sachs assesses there is an attractive long-term opportunity in IDP Education as the business is well positioned for the re-opening of international students markets. It's believed the key to the recovery is a bounce-back in student placement volumes.

The broker sees growth potential after noting less than 5% market share in the two key student placement multi-destination markets, the UK and Canada. The Buy rating and $29.90 target price are unchanged.

IELTS volumes have rebounded to pre-covid levels and the analyst sees a key catalyst in the potential restructure of the IELTS agreement. It's estimated this will provide the company with greater operational exposure from British Council.

This report was published on April 30, 2021.

Target price is $29.90 Current Price is $22.15 Difference: $7.75
If IEL meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $30.08, suggesting upside of 37.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 13.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 0.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 116.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of -21.2%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 106.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 32.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 100.0%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 53.0.

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

IMR    IMRICOR MEDICAL SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $1.70

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

Imricor Medical Systems experienced covid-related headwinds in the first quarter, observes Bell Potter. There were no additions to the nine existing hospital customer sites and the key European target sites were subject to pandemic control measures.

The result slightly missed Bell Potter's expectations and the broker has downgraded its first-half revenue forecasts to account for an even softer product launch. 

Management remains engaged with the distribution partner Philips which could help ramp sales once elective surgery volumes recover.

Buy rating with the target dropping to $2.60 from $2.85.

This report was published on April 30, 2021.

Target price is $2.60 Current Price is $1.70 Difference: $0.9
If IMR meets the Bell Potter target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 18.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.38.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 14.48 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.74.

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


Moelis rates ((IMR)) as Buy (1) –

While timing around the resumption of procedures remains uncertain, Imricor Medical Systems' pipeline remains strong and the company expects new contracts to be signed in the second quarter 2021, with lab adoption accelerating in the second half.

First quarter 2021 cashflow was impacted by tighter covid restrictions, amd operating costs were US$4.3m, up from US$3.2m in fourth quarter 2020, largely due to increased staff costs, which was slightly higher than expected.

Moelis expects costs to stabilise at current levels for the next couple of quarters, and the company to exit 2021 with 35 signed hospital customers, with the vast majority being signed up in the second half.

Buy rating and target price of $2.95 remain unchanged.

This report was published on April 29, 2021. 

Target price is $2.95 Current Price is $1.70 Difference: $1.25
If IMR meets the Moelis target it will return approximately 74% (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 15.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.90.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.48.

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

JHG    JANUS HENDERSON GROUP PLC.

Wealth Management & Investments – Overnight Price: $49.53

Jarden rates ((JHG)) as Underweight (2) –

Janus Henderson Group reported decreased fund performance and minimal flows during the first quarter. The 3-year performance of quantitative equities decreased to its lowest levels in over four years. 

Janus Henderson updated earnings per share guidance to US$0.91. This represents a 9.9% increase on Jarden's estimates and a 1.6% increase on consensus estimates. 

The broker expects performance fees for FY21 to increase to $47m, up from a previous estimate of $37m, and net outflows to total -3.9bn, up from previously estimated -$3.7bn. 

The Underweight rating is retained and the target price decreases to $43.90 from $44.10. 

This report was published on April 29, 2021.

Target price is $43.90 Current Price is $49.53 Difference: minus $5.63 (current price is over target).
If JHG meets the Jarden target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $48.85, suggesting upside of 1.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 205.66 cents and EPS of 461.37 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 465.4, implying annual growth of N/A.
Current consensus DPS estimate is 194.5, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 10.4.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 205.66 cents and EPS of 461.37 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 464.3, implying annual growth of -0.2%.
Current consensus DPS estimate is 203.5, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 10.4.

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

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $1.41

Moelis rates ((MCP)) as No Rating (-1) –

Commenting on McPherson's FY21 trading update, Moelis notes Weak Dr LeWinn’s export sales overshadow domestic growth, with the company guiding to FY21 revenue in the range of $200-205m, underlying earnings (EBIT) of $10-13m, and underlying net profit of $6-8m.

Despite 3% growth in domestic owned brands (excluding the acquired Fusion and Oriental Botanicals brands), the sales and earnings decline expected in FY21 is driven by a significant reduction in Dr LeWinn’s sales to the company's China distributor ABM.

McPherson's expect FY21 China sales to fall to $8m in FY21 from $37m in FY20.

The broker also observes at $1.60/share the unsolicited non-binding indicative cash bid received from Arrotex – which remains subject to a number of standard conditions – represents a 19% premium to the Gallin Offer.

Moelis is restricted on McPherson's and as such does not have any earnings estimates, a target price or a rating.

This report was published on April 30, 2021.

Current Price is $1.41. Target price not assessed.

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


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

Shaw & Partners regards McPhersons' earnings (EBIT) guide to $10-$13m in FY21, down -51% on the previous period and -36% versus prior consensus expectations, as a poor result. Its rating is downgraded to Sell from Buy.

With operating margins moving materially, reductions in revenues, lack of granularity on export performance and adverse run-rate earnings, Shaw believes confidence in near-term trajectory remains uncertain.

Following the downgrade and lack of clarity on various divisional earnings and the current channel position of Dr Lewinn’s, Shaw has  downgraded earnings forecasts materially.

Shaw's target is set at $1.54, which is the broker's previous valuation prior to cyclical downgrade and slightly below the indicative offer.

Following the bid from Gallin earlier in 2H21, Arrotex has thrown it’s hat in the ring with an unsolicited, conditional takeover bid for the company. In Shaw's view there is potential for further interest to emerge beyond the two current bidders.

This report was published on April 30 2021.

Target price is $1.54 Current Price is $1.41 Difference: $0.13
If MCP meets the Shaw and Partners target it will return approximately 9% (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 4.50 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.90.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 4.20 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.43.

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

MGH    MAAS GROUP HOLDINGS LTD

Building Products & Services – Overnight Price: $4.86

Moelis rates ((MGH)) as Downgrade to Hold from Buy (3) –

To reflect the acquisition of a quarry, concrete and plant hire business in Central Queensland, and a quarry in the New England region, NSW, Moelis' FY21 earnings estimate for Maas Group  increases by 1% and FY22 earnings by 12%.

Moelis notes both businesses were acquired on a 3.5x enterprise value multiple. The broker believes the continued execution of Maas' strategy has contributed to its strong share price performance, up 103% since its IPO.

In the broker's view, the current valuation could be reflective of the strong growth outlook for Maas's Construction Materials division and thus higher weighting towards the sector average, or factoring in the potential for further acquisitions and/or better than expected organic growth.

The analyst moves to a Hold from a Buy rating with the target price increasing to $4.36 from $3.08.

This report was published on April 30, 2021. 

Target price is $4.36 Current Price is $4.86 Difference: minus $0.5 (current price is over target).
If MGH meets the Moelis target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.62.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.58.

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

MMI    METRO MINING LIMITED

Coal – Overnight Price: $0.03

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

Shaw and partners observes Metro Mining's March quarter update offered no new information about necessary additional offtake agreements, but the company commented negotiations were progressing well.

The company needs to secure additional contracts to increase FY21 volume to 4m tonnes and move towards Shaw and Partners' target price of $0.15 per share.

Operations at Bauxite Hills restarted on April 14th after closing in September 2020 following the failure to secure any contracts beyond the foundation 2.4m tonne Xinfa contract. 

The broker remains optimistic that positive news of an offtake agreement could see this stock double in price. The Buy rating and the target price of $0.15 are retained. 

This report was published on May 3, 2021.

Target price is $0.15 Current Price is $0.03 Difference: $0.12
If MMI meets the Shaw and Partners target it will return approximately 400% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.75.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 1.11.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $2.52

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

Marley Spoon confirmed a strong first quarter, with revenue growing 81% over last year. Further, the company has upgraded 2021 revenue growth guidance to 30-35% from 25-30%.

The broker notes revenue retention for newer customer cohorts remains to track above earlier cohorts and has positive implications for longer-term unit economics.

The contribution margin declining by circa -150bps was a small blip but Wilsons believes the issues are largely transitory.

Overweight rating is retained with the target price rising to $3.85 from $3.48.

This report was published on April 30, 2021.

Target price is $3.85 Current Price is $2.52 Difference: $1.33
If MMM meets the Wilsons target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.29 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 47.64.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 92.48.

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

MSB    MESOBLAST LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.94

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

Mesoblast's trial investigating the use of remestemcel-L in the treatment of 222 covid patients with moderate to severe acute respiratory distress syndrome showed reduced mortality through 60 days for the under 65 years group.

Further, the benefit was increased when remestemcel-L was used in combination with the generic drug dexamethasone.

Bell Potter concludes the two drugs used in combination seem to have a highly synergistic effect in the reduction of inflammation associated with ARDS.

In the broker's view, the data provide a clear path forward for a registration study that will likely be funded by Novartis under the terms of the agreement struck between the two parties in November 2020.

Buy rating with the valuation lowered to $4.70 from $5.10.

This report was published on May 3, 2021.

Target price is $4.70 Current Price is $1.94 Difference: $2.76
If MSB meets the Bell Potter target it will return approximately 142% (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 5.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.76.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 28.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.89.

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

NCM    NEWCREST MINING LIMITED

Gold & Silver – Overnight Price: $28.40

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

Newcrest Mining's reported total gold production during the March quarter of 512koz at an all-in sustaining cost of US$891 per ounce. 

Production was in line with Goldman Sachs' expectations and higher-than-expected all-in sustaining costs were attributed to increased costs at the Telfer project and a soft quarter from Red Chris. 

The broker notes key growth projects Havieron and Red Chris continue to make significant steps and expects updates on both projects later in 2021. 

The Buy rating is retained and the target price increases to $34.00. 

This report was published on April 29, 2021. 

Target price is $34.00 Current Price is $28.40 Difference: $5.6
If NCM meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $31.56, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 51.41 cents and EPS of 197.54 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 180.0, implying annual growth of N/A.
Current consensus DPS estimate is 38.1, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 24.35 cents and EPS of 224.60 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 12.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 167.4, implying annual growth of -7.0%.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 17.4.

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


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

Newcrest Mining confirmed production was on track to meet full year guidance. Shaw & Partners doesn't expect this be a big ask given the miner's year-to-date production run-rate.

With planned shutdowns at Cadia and Lihir completed in the March quarter, Shaw expects Newcrest to be able to deliver FY21 production towards the high end of range.

While group production is softer sequentially as foreshadowed due to planned shutdowns at Cadia and Lihir, Shaw notes improved production performances at Telfer were driven by higher throughput rates and gold recovery improvements.

The broker also points out March quarter production also includes 33koz from Newcrest's 32% stake in Lundin Gold.

Buy rating and target price of $44.00.

The report was issued April 30, 2021.

Target price is $44.00 Current Price is $28.40 Difference: $15.6
If NCM meets the Shaw and Partners target it will return approximately 55% (excluding dividends, fees and charges).
Current consensus price target is $31.56, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 62.24 cents and EPS of 201.87 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 180.0, implying annual growth of N/A.
Current consensus DPS estimate is 38.1, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 132.86 cents and EPS of 299.42 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 167.4, implying annual growth of -7.0%.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 17.4.

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

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $1.01

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

Nickel Mines has released its March quarter report, showing lower production and higher costs than forecast from the Henjaya and Ranger Nickel projects in Indonesia. Total nickel pig iron production was down -13% quarter-on-quarter. 

Cash costs for the quarter were US$8,683/t, compared to the forecast US$7,360/t.

According to Bell Potter, although the quarter's performance was at the lower end of guidance the company remains well positioned to nearly double production within 18-24 months. 

The Buy rating is unchanged and the target price decreases to $1.56 from $1.67. 

This report was published on April 29, 2021.

Target price is $1.56 Current Price is $1.01 Difference: $0.55
If NIC meets the Bell Potter target it will return approximately 54% (excluding dividends, fees and charges).
Current consensus price target is $1.40, suggesting upside of 37.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.06 cents and EPS of 12.72 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of N/A.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.06 cents and EPS of 18.81 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of -2.8%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

Nickel Mines has signed a memorandum of understanding with Shanghai Decent to modify two existing rotary kiln-electric furnace lines to be able to produce nickel matte. The modification of each line is estimated to cost -US$1m. 

Canaccord Genuity highlights a recent trial at the existing rotary kiln-electric furnace line produced a nickel matte with grades over 75% nickel. 

Nickel mines expects the modifications to be made and commissioned early in the 2021 December quarter. 

Buy rating retained with the target rising to $1.70 from $1.60. 

This report was published on May 3, 2021. 

Target price is $1.70 Current Price is $1.01 Difference: $0.69
If NIC meets the Canaccord Genuity target it will return approximately 68% (excluding dividends, fees and charges).
Current consensus price target is $1.40, suggesting upside of 37.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 2.71 cents and EPS of 8.12 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of N/A.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY22:

Current consensus EPS estimate is 6.9, implying annual growth of -2.8%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $2.76

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

Nitro Software has had a strong start to the year, observes Bell Potter, with annual recurring revenue (ARR) at 31 March 2021 up 66% over last year. Subscription revenue made up 61% of the total revenue in the first quarter.

Bell Potter upgrades its 2021-23 revenue forecasts by 3-8% and expects revenue of US$49.5m which is above the top end of the US$45-49m guidance range. The broker's upgraded ARR forecast at US$43.6m is above the top end of the US$39-42m guidance.

Buy rating retained with the target price rising to $3.75 from $3.10.

This report was published on April 30, 2021.

Target price is $3.75 Current Price is $2.76 Difference: $0.99
If NTO meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.40.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.69 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.82.

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


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

Given that it was not overly assisted by maintenance transitions, with a $2-3m benefit expected in FY21 likely to be evenly
distributed over the quarters, Shaw & Partner's regards Nitro Software's 1Q21 result as a strong underlying start to FY21.

Nitro delivered subscription annual recurring revenue (ARR) growth of 66% for 1Q21 versus growth of 41-52% implied in the guidance
range.

Shaw believes 1Q21 result validates Nitro's products as being post-covid relevant, and suggests management is managing the organisation model change and headcount expansion well.

Given the strong start to FY21, the maturing sales capacity, new product tailwinds and reducing risks around the organisational model change and macro uncertainty, Shaw believes the mid-point of guidance is looking increasingly conservative.

Shaw retains its Buy rating with the target price rising to $3.69 from $3.58 to reflect time creep and US$ mark-to-market.

This report was published on April 30, 2021.

Target price is $3.69 Current Price is $2.76 Difference: $0.93
If NTO meets the Shaw and Partners target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.88.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.42 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.49.

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

ORG    ORIGIN ENERGY LIMITED

NatGas – Overnight Price: $4.07

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

Goldman Sachs assesses a weak third quarter result for the energy markets operations on the back of soft demand. However, this was partly offset by APLNG pricing outperformance versus estimates.

While believing Origin Energy is undervalued, the broker expects FY22 is still a trough year for Energy Markets earnings, with a recovery expected from FY23. There's considered balance sheet flexibility for capital management in FY22.

The Buy rating and $6.50 target are retained.

This report was published on May 3, 2021.

Target price is $6.50 Current Price is $4.07 Difference: $2.43
If ORG meets the Goldman Sachs target it will return approximately 60% (excluding dividends, fees and charges).
Current consensus price target is $5.00, suggesting upside of 22.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 26.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 6.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 315.3%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 41.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 10.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.9, implying annual growth of 32.1%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 15.8.

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

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $12.41

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

Goldman Sachs points out the third quarter update was characterised by a very strong gross/net margin result and robust growth in total active clients. Overall, the update inspired in the analyst greater positivity about both the Australian and US operations.

The broker's medium-to-longer-term forecasts remain largely unchanged, and the target price is lowered to $17.20 from $17.50 with an unchanged Buy rating.

This report was published on May 2, 2021.

Target price is $17.20 Current Price is $12.41 Difference: $4.79
If PBH meets the Goldman Sachs target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 83.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.88.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 55.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.56.

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


Jarden rates ((PBH)) as Buy (1) –

PointsBet Holdings' third quarter trading report has indicated continued strong performance, increasing Jarden's confidence in forecasting the company to achieve 10% US market share. 

The company reported group Net Win of $64.9m, a 246% increase on the previous comparable period. Active clients also increased 169% year-on-year to total 285,500, with 127,500 of these in the US. 

Recovery of US Net Win Margin was better than expected, increasing to 5.5% from -0.2% in the first half.

The Buy rating is retained and the target price increases to $17.38 from $17.22. 

This report was published on April 30, 2021. 

Target price is $17.38 Current Price is $12.41 Difference: $4.97
If PBH meets the Jarden target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 96.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.91.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 73.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.86.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $10.86

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

Recent surveys in the US and early peer results suggest to Goldman Sachs first quarter premium rate increases remain at very supportive levels. Another favorable pricing outcome in the 1Q21/1H21 is expected.

In terms of crop insurance, the broker notes that while planting season has only just commenced, the steep rise in corn/soybean prices through recent months provides a clear tailwind to growth. Also, at current prices there's considered good protection to any slippage in yields.

The Buy rating and $10.73 target are retained.

This report was published on May 1, 2021.

Target price is $10.73 Current Price is $10.86 Difference: minus $0.13 (current price is over target).
If QBE meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $11.82, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 44.65 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.4, implying annual growth of N/A.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 58.18 cents and EPS of 92.00 cents.
At the last closing share price the estimated dividend yield is 5.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.6, implying annual growth of 36.0%.
Current consensus DPS estimate is 67.3, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 12.3.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $1.81

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

Rhipe's third-quarter update saw first-half growth trends continue into the third quarter. Bell Potter notes mid-teen revenue growth combined with strong operating cost control has led to strong operating profit growth, up 36% over last year.

Revenue was up 15% while gross profit was up 13%. As a result, the company has upgraded its FY21 operating profit guidance to at least $18.0m from $17.5m.

Bell Potter believes Rhipe is in a position re-accelerate its top-line with business conditions improving across Asia. The broker has trimmed its operating cost assumptions leading to earnings forecast upgrades.

The broker expects another year of strong forecast growth in FY22. Buy rating is maintained with the target price rising to $2.60 from $2.50.

This report was published on May 3, 2021.

Target price is $2.60 Current Price is $1.81 Difference: $0.79
If RHP meets the Bell Potter target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.50 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 1.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.94.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.13.

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


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

Rhipe has delivered Q321 results ahead of expectations and continued a near term trajectory of early earnings updates, which in Shaw & Partners' view are likely to continue.

Third quarter year-to-date operating profit of $13.2m was up 36%.

Rhipe has upgraded guidance from $17.5m to $18m in FY21, ahead of Shaw ($17.6m), and the broker suspects there is further upside risk.

Following the acquisition of EMT, Rhipe continues to enjoy a large net cash balance, which in Shaw's view provides significant dry powder to undertake further acquisitions.

Shaw expects further acquisitions in the next 6 months to add further accretion to a forecast organic growth pick-up. The broker also expects EPS to move higher from acquisitions and organic growth.

With one of the best balance sheets in the sector, further global partner upside and international arms (undervalued) to the business, Shaw believes Rhipe is a strategic player in cloud across APAC.

The Buy rating and target price of $3.04 are unchanged.

This report was published on April 30, 2021.

Target price is $3.04 Current Price is $1.81 Difference: $1.23
If RHP meets the Shaw and Partners target it will return approximately 68% (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 4.00 cents and EPS of 8.40 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.55.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.60 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.02.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $27.00

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

ResMed still sees new starts in obstructive sleep apnea (OSA) diagnoses down -10-30%, which implies to Goldman Sachs limited improvement through each of the last three quarters.

The broker believes the shortfall in mask growth in the third quarter may be symptomatic of the cumulative deficit in diagnoses through the last 12 months. If so, it's estimated to be several quarters before growth returns towards the three year quarterly average of 14%.

Additionally, the broker notes costs growing ahead of revenue is an unusual dynamic for the company. It's felt it may persist through to the fourth quarter FY22, depending on the shape of the recovery.

The Neutral rating is retained and the target lowered to $28.40 from $29.10. 

This report was published on April 30, 2021. 

Target price is $28.40 Current Price is $27.00 Difference: $1.4
If RMD meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $28.34, suggesting upside of 6.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 21.65 cents and EPS of 71.71 cents.
At the last closing share price the estimated dividend yield is 0.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.9, implying annual growth of N/A.
Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 39.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.65 cents and EPS of 77.12 cents.
At the last closing share price the estimated dividend yield is 0.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.9, implying annual growth of 10.3%.
Current consensus DPS estimate is 22.1, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 35.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Wilsons rates ((RMD)) as Downgrade to Market Weight from Overweight (3) –

Wilsons has downgraded its rating on ResMed despite new product cycles in the pipeline, as the company's strategy around the medical device business remains unclear. 

The broker notes the AS11 product is unlikely to deliver market share gains similar to that achieved by the AS10 offering which drove an estimated 65% increase over five years. Further, Wilsons notes ResMed's device strategy is less clear given recent shifts towards the use of high-flow cannula rather than oxygen. 

Despite this, ResMed did achieve group revenue of US$769m during the third quarter, only -3% down on Wilsons' forecast, as the core sleep business remains strong. The broker expects a stronger fourth quarter with the launch of a new flow generator platform. 

The rating is downgraded to Market Weight and the target price decreases to $28.50 from $30.50. 

This report was published on May 3, 2021.

Target price is $28.50 Current Price is $27.00 Difference: $1.5
If RMD meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $28.34, suggesting upside of 6.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 21.38 cents and EPS of 71.03 cents.
At the last closing share price the estimated dividend yield is 0.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.9, implying annual growth of N/A.
Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 39.4.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 22.46 cents and EPS of 70.90 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.9, implying annual growth of 10.3%.
Current consensus DPS estimate is 22.1, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 35.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.55

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

Regis Resources pre-released March quarter production of 86,000 ounces of gold at an all-in sustaining cost of $1,388 per ounce. 

Production was down -6% quarter-on-quarter due to an unplanned 100-hour shutdown for mill maintenance at the Garden Well project. Goldman Sachs expects gold production to improve in the fourth quarter as Rosemont underground mining ramps up. 

Regis Resources' acquisition of a 30% stake in the Tropicana Gold project is expected to proceed to completion by end of May. The broker forecasts gold production of 450,000 ounces per annum for the asset with an average all-in sustaining cost of $1,450 per ounce. 

The Sell rating is retained while the target price decreases -10% to $2.70 from $3.00. 

This report was published on April 30, 2021. 

Target price is $2.70 Current Price is $2.55 Difference: $0.15
If RRL meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.75, suggesting upside of 40.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 6.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.5, implying annual growth of -27.3%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 9.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.8, implying annual growth of 26.5%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 7.7.

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

SBM    ST BARBARA LIMITED

Gold & Silver – Overnight Price: $1.88

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

St Barbara's March quarter gold production of 82,000 ounces was down -19% on Goldman Sachs' forecast, while the all-in sustaining cost of $1,649 per ounce was 25% higher than the broker's forecast. 

The broker expects a 30% quarter-on-quarter production increase at the key Gwalia project through the fourth quarter. 

The Simberi sulfide project has been given board approval to advance plant capacity to 3.0m tonnes per annum from 2.7m tonnes per annum.

Goldman Sachs predicts production/cost guidance will prove challenging, but also notes the company's assets retain potential value despite inconsistent execution.

The broker removed St Barbara from its A&NZ Conviction List but retains the Buy rating. Target price decreases to $3.30 from $3.80. 

This report was published on April 29, 2021. 

Target price is $3.30 Current Price is $1.88 Difference: $1.42
If SBM meets the Goldman Sachs target it will return approximately 76% (excluding dividends, fees and charges).
Current consensus price target is $2.38, suggesting upside of 24.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of -42.2%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of 52.8%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 11.9.

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

STG    STRAKER TRANSLATIONS LIMITED

IT & Support – Overnight Price: $2.06

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

Straker Translations' March quarter update showed revenues at NZ$9m with the gross margin expanding to 57.8% for the quarter. The unaudited revenue in FY21 at NZ$31.3m proved lower than Bell Potter's forecast of NZ$34m.

This result was a mixed bag for Bell Potter with core revenues being negatively impacted by lockdowns across Europe, offset by strong cost control, margin expansion and an indication that revenues from the global IBM deal are starting to ramp up.

The broker remains attracted to Straker Translations' long-term growth strategy driven by the company's ability to apply technology and machine learning to the translation process.

With the global IBM deal and LingoTek acquisition, Bell Potter sees FY22 as a significant inflection point for the company's growth profile.

Buy rating with a $2.15 target price.

This report was published on April 30, 2021.

Target price is $2.15 Current Price is $2.06 Difference: $0.09
If STG meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 114.44.

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

WOW    WOOLWORTHS LIMITED

Food, Beverages & Tobacco – Overnight Price: $41.90

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

Highlights of Woolworths' third quarter included group sales of $16,566m, a 10.7% year-on-year increase, as well as strong sales from BigW, which reported 20% comparable growth, comment analysts at Goldman Sachs,

The Endeavour Drinks and Hotel assets both reported sales ahead of Goldman Sachs' forecast, up 1.8% and 17.3% on forecast respectively. 

Endeavour Group de-merger documents are expected to be released in mid-May, while two new hotels were acquired during the quarter. 

Across the sector total sales of $11.1bn were driven by a 90.5% increase in supermarket online sales growth. 

The Buy rating is retained and the target price decreases to $43.10 from $43.60. 

This report was published on April 30, 2021. 

Target price is $43.10 Current Price is $41.90 Difference: $1.2
If WOW meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $42.54, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 113.00 cents and EPS of 152.00 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.1, implying annual growth of 65.3%.
Current consensus DPS estimate is 106.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 27.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 119.00 cents and EPS of 159.00 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.3, implying annual growth of 5.4%.
Current consensus DPS estimate is 117.4, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 26.0.

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


Jarden rates ((WOW)) as Overweight (2) –

Jarden comments Woolworths reported a 0.4% increase in sales during the third quarter but showed surprisingly flat sales through April compared to Coles. Despite this, the company holds a strong market share in online groceries and the broker expects further gains through 2021. 

The company announced a -$100m investment in a customer fulfillment centre to support online business growth which will be able to facilitate around 50,000 orders each week. Woolworths is also opening its fourth micro-fulfillment centre later this year. 

Consumer trends are gradually normalising, with weekend shopping increasing, greater foot traffic and sales in metro stores, plus higher frequency and lower value basket shops. 

The broker expects a response from Woolworths to Coles' ((COL)) re-established Down Down promotional program during May, but both companies have suggested pricing remains rational and a price war is unlikely. 

Woolworths remains a key pick for Jarden. The Overweight rating is retained and the target price decreases to $43.00 from $44.00. 

This report was published on April 29, 2021. 

Target price is $43.00 Current Price is $41.90 Difference: $1.1
If WOW meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $42.54, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 122.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.1, implying annual growth of 65.3%.
Current consensus DPS estimate is 106.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 27.4.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 132.00 cents and EPS of 161.50 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.3, implying annual growth of 5.4%.
Current consensus DPS estimate is 117.4, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 26.0.

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

ZBT    ZEBIT INC

Business & Consumer Credit – Overnight Price: $1.15

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

Zebit recorded a strong start to the year with a 49% revenue growth to US$26.9m, which Shaw and Partners feel puts the company on track to meet first half guidance of US$55.1m. 

Bed debts also decreased to 11.1% from 16% in the previous corresponding period. Coupled with increased repeat customers, this resulted in an increase of contribution margin to 14.3%. 

The company is looking to expand into new acquisition channels and increase registered users. The Buy rating and target price of $2.00 are retained. 

This report was published on May 3, 2021.

Target price is $2.00 Current Price is $1.15 Difference: $0.85
If ZBT meets the Shaw and Partners target it will return approximately 74% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.58.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.00.

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


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

5GN ADH AHX AMS ANZ BCI BET BKG BUB COL CSL CUV DUB FCL FMG GMA GOZ IEL IMR JHG MCP MGH MMI MMM MSB NCM NIC NTO ORG PBH QBE RHP RMD RRL SBM STG WOW ZBT

For more info SHARE ANALYSIS: 5GN - 5G NETWORKS LIMITED

For more info SHARE ANALYSIS: ADH - ADAIRS LIMITED

For more info SHARE ANALYSIS: AHX - APIAM ANIMAL HEALTH LIMITED

For more info SHARE ANALYSIS: AMS - ATOMOS LIMITED

For more info SHARE ANALYSIS: BCI - BCI MINERALS LIMITED

For more info SHARE ANALYSIS: BET - BETMAKERS TECHNOLOGY GROUP LIMITED

For more info SHARE ANALYSIS: BKG - BOOKTOPIA GROUP LIMITED

For more info SHARE ANALYSIS: BUB - BUBS AUSTRALIA LIMITED

For more info SHARE ANALYSIS: COL - COLES GROUP LIMITED

For more info SHARE ANALYSIS: CSL - CSL LIMITED

For more info SHARE ANALYSIS: CUV - CLINUVEL PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: DUB - DUBBER CORPORATION LIMITED

For more info SHARE ANALYSIS: FCL - FINEOS CORPORATION HOLDINGS PLC

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

For more info SHARE ANALYSIS: GOZ - GROWTHPOINT PROPERTIES AUSTRALIA

For more info SHARE ANALYSIS: IEL - IDP EDUCATION LIMITED

For more info SHARE ANALYSIS: IMR - IMRICOR MEDICAL SYSTEMS, INC

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

For more info SHARE ANALYSIS: MCP - MCPHERSON'S LIMITED

For more info SHARE ANALYSIS: MGH - MAAS GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: MMI - METRO MINING LIMITED

For more info SHARE ANALYSIS: MMM - MARLEY SPOON AG

For more info SHARE ANALYSIS: MSB - MESOBLAST LIMITED

For more info SHARE ANALYSIS: NCM - NEWCREST MINING LIMITED

For more info SHARE ANALYSIS: NIC - NICKEL INDUSTRIES LIMITED

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: ORG - ORIGIN ENERGY LIMITED

For more info SHARE ANALYSIS: PBH - POINTSBET HOLDINGS LIMITED

For more info SHARE ANALYSIS: QBE - QBE INSURANCE GROUP LIMITED

For more info SHARE ANALYSIS: RHP - RHIPE LIMITED

For more info SHARE ANALYSIS: RMD - RESMED INC

For more info SHARE ANALYSIS: RRL - REGIS RESOURCES LIMITED

For more info SHARE ANALYSIS: SBM - ST. BARBARA LIMITED

For more info SHARE ANALYSIS: STG - STRAKER TRANSLATIONS LIMITED

For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED

For more info SHARE ANALYSIS: ZBT - ZEBIT, INC