article 3 months old

Australian Broker Call *Extra* Edition – May 28, 2021

Daily Market Reports | May 28 2021

This story features ARDENT LEISURE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: ALG

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)

ALG   ALU   ANZ   BLU   BVS   CCX (2)   CEL   CIA   COI   CPU   CRN   CTP   DHG   EHL   ELO   ENN   EVN   FDV   FLT   HAS   HLS   IEL   IFM   INA (2)   ING   JHC   MFG   MPL   NAB   NHF   OBL   PBH   PMV   PNI   QBE (2)   RHC   SEK   SLK   STA   SUL   WBC   WSA  

ALG    ARDENT LEISURE GROUP

Travel, Leisure & Tourism – Overnight Price: $1.00

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

Cannacord Genuity believes Ardent Leisure Group's decision to enter into a non-binding agreement with Evolution Group to develop the Dreamworld Resort, demonstrates the company’s ambition to deliver improved value to guests through new amenities and attractions.

Once formalised and upon receipt of planning approval, the partnership will see Evolution Group fund a $75m resort-style hotel and tourist park.

The broker views the announcement positively and notes that Ardent Leisure is now trading below where it was prior to the demonstrably positive Main Event trading update on 21 April 2021. 

Given the potential latent value in Main Event, Cannacord believes the risk reward equation is appealing and reiterates a Buy recommendation alongside a $1.22/share price target.

This report was published on May 6, 2021. 

Target price is $1.22 Current Price is $1.00 Difference: $0.22
If ALG meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 33.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.03.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.67.

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

ALU    ALTIUM LIMITED

Hardware & Equipment – Overnight Price: $28.01

Bell Potter rates ((ALU)) as Upgrade to Hold from Sell (3) –

Based on improving conditions, notably in the US on the back of renewed consumer and business confidence, Bell Potter has upgraded Altium to Hold from Sell, and modestly upgraded FY21 revenue and earnings forecasts by 2%.

While Bell Potter no longer expects Altium to miss – or downgrade – the company's FY21 guidance, the broker does not expect the company to do much if any better than the low end.

Bell Potter's price target remains unchanged at $27.50.

This report was published on May 4, 2021.

Target price is $27.50 Current Price is $28.01 Difference: minus $0.51 (current price is over target).
If ALU meets the Bell Potter target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.90, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 51.36 cents and EPS of 43.52 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.7, implying annual growth of N/A.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 64.7.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 54.06 cents and EPS of 50.28 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 55.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.5, implying annual growth of 20.1%.
Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 53.8.

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

ANZ    AUSTRALIA & NEW ZEALAND BANKING GROUP

Banks – Overnight Price: $28.54

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

First half cash earnings grew 112% on the pcp and beat Goldman Sachs' forecasts, largely driven by a lower than expected bad and doubtful debts charge.

Softer volumes, weaker markets and fee income, and outer year improvements in expenses, also feeds into the higher broker EPS forecasts for FY21-23 of 10.4%, 1.5% and 4.2%, respectively. The target price rises to $30.20 from $29.21.

The Buy rating is maintained, given the analyst's expectation that cost reductions, if achieved, will more than offset income pressures.

This report was published on May 5, 2021.

Target price is $30.20 Current Price is $28.54 Difference: $1.66
If ANZ meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $30.17, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 140.00 cents and EPS of 194.00 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

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 14.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 142.00 cents and EPS of 207.00 cents.
At the last closing share price the estimated dividend yield is 4.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.79.

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 13.2.

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

BLU    BLUE ENERGY LIMITED

NatGas –

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $3.27

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

Given there are less than two months of FY21 to go, Goldman Sachs feels there is an increased likelihood, versus the February update, that newly reiterated guidance will be achieved.

The broker assesses positive momentum, including increased UK client engagement as the economy opens up with the vaccine roll-out. It's expected earnings will recover in FY22, driven by new client wins from the strong pipeline and a resumption in delayed projects.

The analyst lifts FY21-FY23 EPS forecasts by 1-3%. The target price rises to $3.90 from $3.70 and the Buy rating is maintained.

This report was published on May 5, 2021. 

Target price is $3.90 Current Price is $3.27 Difference: $0.63
If BVS meets the Goldman Sachs target it will return approximately 19% (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 9.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.15.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.80.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $4.56

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

Within a trading and operational update Citi Chic reported the gross margin percentage for all channels has fully recovered since the covid impact.

While A&NZ's strong trading continued into 2H21 due to expanded lifestyles and increase in digital marketing initiatives, a strong rebound in dress category from March 2021, saw the City Chic US website return to growth.

Based on this key new piece of information since Citi Chic's first half 2021 results update in February, Bell Potter has strengthened  growth forecasts, with FY21, FY22, and FY23 earnings per share increasing by around 6% each.

The broker believes Evans provides a strong platform to grow in the UK/Europe, and adds to Citi Chic's significant growth opportunity in the US.

Buy rating unchanged with the broker's target price increasing to $4.90 from $4.60.

This report was published on May 5, 2021.

Target price is $4.90 Current Price is $4.56 Difference: $0.34
If CCX meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.69, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.00 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 0.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of 174.5%.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 47.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.80 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of 41.8%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 33.5.

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


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

While City Chic's directional commentary suggests all channels have strongly recovered from covid lows last year and are performing well, Canaccord Genuity is looking to the next guidance update, especially given how critical the June quarter is for Northern Hemisphere trade (summer dresses).

Canaccord Genuity notes the full integration of Evans ahead of schedule, which the broker sees as good news given it minimises the cost drag on the FY21 numbers. The broker is also encouraged by trading conditions starting to normalise in the UK as it enters the summer months,

The Buy and target price of $5 are both retained.

This report was published on May 5, 2021.

Target price is $5.00 Current Price is $4.56 Difference: $0.44
If CCX meets the Canaccord Genuity target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.69, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 0.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of 174.5%.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 47.4.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 6.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of 41.8%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 33.5.

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

CEL    CHALLENGER EXPLORATION LIMITED

Gold & Silver –

CIA    CHAMPION IRON LIMITED

Iron Ore – Overnight Price: $6.74

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

Preliminary fourth quarter results showed the company produced and shipped high grade 66.5% Fe, iron ore, from the Bloom Lake mine, which was  9-10% above Goldman Sachs' expectation. 

The broker highlights construction on the Phase 2 expansion of Bloom Lake continued during the quarter, with first production on track for mid-2022.

The analyst lifts FY21 EPS by 4% on the higher than expected production. The target price increases to $6.50 from $6.30 on the higher production and cash balance. The Neutral rating is unchanged.

This report was published on May 5, 2021.

Target price is $6.50 Current Price is $6.74 Difference: minus $0.24 (current price is over target).
If CIA meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 100.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.72.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 71.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.49.

This company reports in CAD. 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

COI    COMET RIDGE LIMITED

NatGas – Overnight Price: $0.07

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

Within the company’s quarterly report, Comet Ridge noted the structure of the Mahalo Joint Venture is being reconsidered to best meet the timing expectations of its participants.

Comet currently owns 40% of Mahalo Joint Venture, with Santos ((STO)) and APLNG each controlling 30%.

The broker comments Comet reported significant progress around the structure of the Mahalo JV and the plans to progress the Mahalo Hub Area which includes the JV and the company's adjacent 100%-controlled positions.

Further clarity on the progress of these discussions is expected in the coming weeks.

Bell Potter believes Comet is uniquely positioned as a junior energy developer with line of sight to establishing first production.

Bell Potter maintains a Speculative Buy rating, and reduces the price target to $013 from $0.17, but has not yet factored in earnings from potential earlier stage developments over Comet's 100% owned Mahalo positions.

This report was published on May 4, 2021.

Target price is $0.13 Current Price is $0.07 Difference: $0.06
If COI meets the Bell Potter target it will return approximately 86% (excluding dividends, fees and charges).

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

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

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $16.21

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

With most segments tracking well, Computershare management has reaffirmed FY21 guidance. 

Stronger than expected recovery was noted by Goldman Sachs in the core issuer services and plans segments. US registry shareholder paid fees and share plan trading activity are both tracking ahead of management expectations. 

US mortgage services and bankruptcies are behind expectations. Extensions of the eviction moratorium and forbearance programs in the US have delayed Computershare's business recovery, the broker suggests.

There is no rating from Goldman Sachs.

This report was published on May 4, 2020. 

Current Price is $16.21. Target price not assessed.
Current consensus price target is $16.22, suggesting upside of 0.5%(ex-dividends)
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 70.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.7, implying annual growth of N/A.
Current consensus DPS estimate is 54.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 81.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.4, implying annual growth of 7.2%.
Current consensus DPS estimate is 49.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 22.9.

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

CRN    CORONADO GLOBAL RESOURCES

Coal – Overnight Price: $0.65

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

Coronado Global Resources has announced plans to raise an aggregate US$550m through the issue of US$350m in 5-year, 10.75% coupon senior secured notes, entering a US$100m asset-based credit facility and undertaking a minimum US$100m equity entitlement offer at $0.45/sh.

The raising will repay and terminate all Coronado's US$475m Syndicated Facility Agreement, drawn to $328m at 31 March 2021, with the remainder earmarked for working capital and other corporate activities.

While the recently announced debt and equity refinance reduces balance sheet risks through the more flexible debt terms, Bell Potter believes Coronado is highly leveraged to met coal markets, which the broker currently views as unsustainably weak.

Buy rating is unchanged, and target price decreases to $0.95 from $1.27.

This report was published on May 5, 2021.

Target price is $0.95 Current Price is $0.65 Difference: $0.3
If CRN meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $1.06, suggesting upside of 51.8%(ex-dividends)
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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.70 cents and EPS of 7.90 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 8.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 8.8.

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

CTP    CENTRAL PETROLEUM LIMITED

NatGas – Overnight Price: $0.13

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

Supported by stronger gas demand and improved oil prices, Central Petroleum reported March 2021 quarterly revenue of $15.5m, up 5% quarter-on-quarter.

Bell Potter notes, the quarter saw Central Petroleum build further momentum on the projects which will support the company’s next phase of growth.

Appraisal activities at the Range Gas Project have commenced and over the next few months should yield key production parameters for a final investment decision in 2022.

Central Petroleum also expects an outcome of a farm-out tender process by mid-2021 to support broader Amadeus Basin exploration activities from late 2021. 

Bell Potter's earnings per share downgrade in FY21 to 0.3cps from 0.4cps reflects an earnings change off a low base and is largely driven by a $1.5m increase in exploration expense for the current half.

Buy rating unchanged, with the broker's target price reducing to $0.22 from $0.23.

This report was published on May 4, 2021.

Target price is $0.22 Current Price is $0.13 Difference: $0.09
If CTP meets the Bell Potter target it will return approximately 69% (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 30.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.43.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 60.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.22.

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

DHG    DOMAIN HOLDINGS AUSTRALIA LIMITED

Real Estate – Overnight Price: $4.90

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

Domain Holdings Australia has proposed a 4% price increase in the inner Sydney market, which is in line with Goldman Sachs' expectations for controllable yield growth. 

The company is making no other changes or inclusions to agents contracts. The broker feels this reinforces a positive view of industry profitability. 

Similarly, REA Group ((REA)) introduced a more sizeable 8% increase for the inner Sydney market, but also amended agent contracts to allow for extended time on the market and flexible space. 

The Neutral rating and target price of $5.05 are retained. 

This report was published on May 3, 2021. 

Target price is $5.05 Current Price is $4.90 Difference: $0.15
If DHG meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $4.99, suggesting downside of -1.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 1.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 0.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 98.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.6, implying annual growth of N/A.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 90.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 71.4%.
Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 52.5.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $0.88

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

The company plans to allocate 25%-40% of operating profit to capital management initiatives every year. The policy will commence on a pro rata basis in the second half and will fully take effect post FY21.

The company additionally plans to use its $85m in franking credits and will assess the relative benefits of dividends and share buybacks based on the share price and valuation.

Goldman Sachs estimates the company will pay out 30% of profit in the 2H21, with this payout ratio increasing to 38% and 43% in FY22 and FY23. The Buy rating and $1.24 target are maintained.

This report was published on May 6, 2021.

Target price is $1.24 Current Price is $0.88 Difference: $0.36
If EHL meets the Goldman Sachs target it will return approximately 41% (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 2.50 cents and EPS of 9.00 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 9.78.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.60 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 9.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.83.

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

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $4.63

Wilsons rates ((ELO)) as Market Weight (3) –

Wilsons believes a strong economic rebound sets up Elmo Software to return to a normal procurement cycle though the timing continues to remain uncertain.

Due to a strong A&NZ economy, the broker now expects a FY21 earnings (EBITDA) loss of -$3.6m versus -$5.2m previously, as a result of lower bad debts expense. The target falls to $6.17 from $6.87, driven by the -20% discount assigned to the average multiples of peers.

The discount is applied given the difficulty in forecasting the procurement cycles return to “normality” and an expected medium-term outlook for limited operating leverage, the broker explains.

This report was published on May 4, 2021.

Target price is $6.17 Current Price is $4.63 Difference: $1.54
If ELO meets the Wilsons target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 29.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.75.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 38.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.09.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $1.82

Moelis rates ((ENN)) as Buy (1) –

Elanor Investors Group will acquire Clifford Gardens for $145m on a yield of 7.9%, in partnership with Savills Investment Management. Fees are undisclosed though the group typically generates acquisition, equity raise, and ongoing management fees.

The acquisition sees funds under management (FUM) exceed $2bn. The broker makes no change to forecast earnings, given around $200m of syndicate FUM growth in 2H21 is already assumed. The Buy rating and target price of $2.05 are retained.

The analyst believes a re-rate in the share price will be more forthcoming when there's execution on the stated intention to sell-down  co-investments in the luxury and regional hotel funds.

The report was published on May 3, 2021.

Target price is $2.05 Current Price is $1.82 Difference: $0.23
If ENN meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 9.80 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.42.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.80 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.00.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $5.30

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

Evolution Mining had a softer March quarter than forecast, with wet weather impacting access at both the Cowal and Mt Rawdon projects.

Gold production for the quarter was -9% below estimate totaling 161,000 ounces with an all-in sustaining cost of $1,268 per ounce. Copper price strength drove a decrease in all-in sustaining cost guidance for FY21 to $1,190-1,220/oz. 

The Ernest Henry project accounted for around 75% of group net mine cash flow, which totaled $101m. 

A ramp up of the Red Lake mill and production recovery at Cowal and Mt Rawdon should drive a strong June quarter, with Goldman Sachs predicting a 19% increase. The broker expects Evolution Mining to reach the top end of the revised guidance of 696-710,000 ounces.

The Neutral rating is retained and the target price increases to $4.40 from $4.30. 

This report was published on May 3, 2021.

Target price is $4.40 Current Price is $5.30 Difference: minus $0.9 (current price is over target).
If EVN meets the Goldman Sachs target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.53, suggesting downside of -14.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 30.4%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 14.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of -1.3%.
Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 23.1.

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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $1.24

Bell Potter rates ((FDV)) as Downgrade to Hold from Buy (3) –

While Bell Potter continues to hold a favourable view, the rating is lowered to Hold from Buy, as a valuation measure has fallen below the broker's threshold for a Buy (Speculative) rating.

The net result of various changes to the company's investments results in immaterial changes to the analyst's EPS forecasts. The target price remains at $1.70. 

A handful of investments remain in the earlier stages of covid-19 recovery, whilst iMyanmarhouse and CarsDB were impacted by political unrest. 

This report was published on May 4, 2021.

Target price is $1.70 Current Price is $1.24 Difference: $0.46
If FDV meets the Bell Potter target it will return approximately 37% (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 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.91.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 413.33.

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

FLT    FLIGHT CENTRE LIMITED

Travel, Leisure & Tourism – Overnight Price: $15.31

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

The subdued volumes seen across January/February, which reflect uncertainty across several of Flight Centre's key end markets, notably the UK, Canada, India, and SE Asia, resulted in larger than expected operating losses of between -$30m and -$40m per month.

But growth accelerated 33% month-on-month across the month of March and was up over 50% versus January, points out Bell Potter.

While Bell Potter questions the sustainability the circa 30% Flight Centre leisure sales generated in March, especially when long haul international returns, the broker remains positive on the company's ability to recapture its leisure market share through new online channels.

Following this update, Bell Potter has revised assumptions around the return of travel, with the broker's FY21 underlying loss increasing to -$490m. Bell Potter has downgraded  FY22 and FY23 earnings per share forecasts by -31% and -14% respectively.

The Buy rating is unchanged, and the target price reduces to $20.00 from $21.50 

This report was published on May 5, 2021.

Target price is $20.00 Current Price is $15.31 Difference: $4.69
If FLT meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $16.86, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 195.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -171.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 31.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -15.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

HAS    HASTINGS TECHNOLOGY METALS LTD

Rare Earth Minerals – Overnight Price: $0.17

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

Hastings Technology Metals has announced a Yangibana Resource upgrade, with Total project resources having been increased by 29% to 29Mt at 0.93% Total Rare Earths Oxides (TREO), with contained TREO increasing 11% 266kt.

Canaccord Genuity highlights that of the main deposits drilled during the 2020 campaign, Measured and Indicated Resources have been increased by a total of 54% to 16.3Mt with contained TREO up 32% to 137kt.

While average resource grades have fallen slightly from the prior estimate, the broker highlights that Yangibana still hosts one of the highest concentrations of Neodymium and praseodymium (NdPr) among listed rare earth companies.

With the increase to Measured and Indicated Resources, Canaccord anticipates a potential increase in mine life at Yangibana, with the broker's development case for the project consisting of a mining inventory of 15Mt –  which supports a mine life of 15 years.

Buy rating maintained, target price $0.35.

This report was published on May 5, 2021.

Target price is $0.35 Current Price is $0.17 Difference: $0.18
If HAS meets the Canaccord Genuity target it will return approximately 106% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $4.12

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

A third quarter update confirmed to Goldman Sachs solid trading conditions through the period. Base pathology (non-covid) revenue growth of 5% is considered to represent a continuation of the robust recovery dynamic observed in 1H21.

The broker highlights the improvement in average fee has continued, and increasingly believes this may be under appreciated.  Management refers to resilience of mid-term covid-testing demand, particularly if international borders are to re-open.

The Buy rating and $4.40 price target are retained.

This report was published on May 5,  2021.

Target price is $4.40 Current Price is $4.12 Difference: $0.28
If HLS meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.32, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.00 cents and EPS of 23.00 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 17.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.2, implying annual growth of N/A.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of -19.0%.
Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.0.

Market Sentiment: 0.5
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: $22.11

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

An operational update reinforces Goldman Sachs' positive view on the attractive long-term opportunity. 65% of student placement offices are open (as of 30th April) though most Indian offices have returned to virtual operations. Buy rating and $29.9 target. 

The broker sees risk to the Canada intake in May due to disruption in India. However, the company is focused on the major August/September intake in Canada and the UK, which is estimated to comprise around 40% and 70% of student intakes, respectively.

The analyst thinks the vaccine rollout in the UK is a positive step towards a recovery in student placement volumes for the Autumn intake. IELTS demand is also considered strong though the business is impacted by some capacity constraints.

This report was published on May 5, 2021.

Target price is $29.90 Current Price is $22.11 Difference: $7.79
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 33.7%(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 116.37.

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 0.6%.
Current consensus EPS estimate suggests the PER is 109.2.

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 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.13.

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 54.6.

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

IFM    INFOMEDIA LTD

Automobiles & Components – Overnight Price: $1.44

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

Infomedia announced the acquisition of SimplePart – a US based provider of auto e-commerce solutions – for an upfront consideration of US$24.5m, plus a potential further earn-out of up to US$20.5m over three years.

Infomedia expects SimplePart to generate low double-digit revenue growth in calendar years 2021 and 2022 – before synergies – and notes the business is profitable and cash flow generative.

Bell Potter highlights the company also expects the acquisition to be earnings per share accretive from the first full year of acquisition on a pro forma basis.

While the acquisition provides a natural extension to Infomedia's core SaaS platform, the company is continuing to assess further acquisition targets with a focus on businesses that enhance its core platform offerings, the broker explains.

Due to assumed acquisition costs, Bell Potter's updated forecasts involve modest downgrades in each of FY21, FY22 and FY23.

Bell Potter forecasts only assume the acquisition of SimplePart and no further acquisitions, however with cash of $50m-plus remaining on the balance sheet the broker anticipates there will be more acquisitions over the next 1-2 years.

Bell Potter's Buy rating is unchanged, with the price target increasing to $1.90 from $1.75.

This report was published on May 4, 2021.

Target price is $1.90 Current Price is $1.44 Difference: $0.46
If IFM meets the Bell Potter target it will return approximately 32% (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 4.30 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 2.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.80.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.83.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $5.52

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

Ingenia Communities Group has announced the acquisition of five holiday assets and one greenfield development site. 

The acquisition, expected to settle in early FY22, totaled $40m. Ingenia management indicated the holiday assets would provide immediate positive impact on earnings per share. 

Goldman Sachs feels Ingenia is well-placed to capitalise on near-term tourism exposure with a regional sea-change market while international travel remains closed. 

The company also provided guidance of 360-380 home settlements for FY21 and Goldman Sachs increases its forecast to 370 from 355. 

The Buy rating is retained and the target price increases to $6.10 from $5.80. 

This report was published on May 3, 2021.

Target price is $6.10 Current Price is $5.52 Difference: $0.58
If INA meets the Goldman Sachs target it will return approximately 11% (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 10.00 cents and EPS of 21.00 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 26.29.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

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


Moelis rates ((INA)) as Hold (3) –

The acquisition of 6 parks totaling $40m adds around 20% more holiday sites to Ingenia Communities Group. FY22 and FY23 EPS estimates by Moelis increase by 2-3%, reflecting the high ingoing yield on the holiday parks acquired.

The broker considers the outlook is strong with tailwinds across both the domestic tourism and residential sectors. Moelis increases FY21 settlement estimates though remains at the lower end of guidance, to reflect risks of weather or supply chain disruptions.

The Hold rating is maintained with the target price rising to $5.57 from $5.40.

This report was published on May 4, 2021.

Target price is $5.57 Current Price is $5.52 Difference: $0.05
If INA meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 10.10 cents and EPS of 21.20 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.04.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 12.00 cents and EPS of 23.80 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.19.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.14

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

The operational environment for Inghams Group continues to improve, but renewal of the Woolworths supply contract would provide longer-term production certainty for the company, according to Goldman Sachs. 

The contract, which Goldman Sachs estimates accounts for around 50% of the company's Australian poultry volumes, is set to expire in August but the broker notes renewal is likely. Inghams has secured new agreements with Hello Fresh and My Food Bag. 

Spot feed prices, which constitute more than 50% of Inghams' cost of goods sold, have decreased on the previous corresponding period. Feed cost index is currently down -13% on the previous corresponding period and benefits are expected to continue into FY22 based on the company's forward purchasing. 

The Buy rating is retained and the target price increases to $4.30 from $4.25. 

This report was published on May 4, 2021.

Target price is $4.30 Current Price is $3.14 Difference: $1.16
If ING meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $3.92, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 21.00 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 14.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.2, implying annual growth of 105.7%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 18.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 5.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.8, implying annual growth of 16.2%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.2.

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

JHC    JAPARA HEALTHCARE LIMITED

Aged Care & Seniors – Overnight Price: $1.14

Jarden rates ((JHC)) as Buy (1) –

Jarden believes the indicative bid of $1.04 made by Calvary undervalues the company, despite the tough operating conditions and
financial performance of the sector.

The broker's reasons include the opportunistic timing post the Federal Budget, which should result in incremental positive funding for the sector. It's also considered the sector is at a structural and cyclical trough after the pandemic.

Additionally, working off a $1 share price implies to the analyst a value per bed of around $100k, but this assumes operational beds and not the development pipeline. This compares to a recent transaction that was at around $157k a bed, explains the broker.

The Buy rating and $1.33 target price are maintained.

This report was published on May 3, 2021. 

Target price is $1.33 Current Price is $1.14 Difference: $0.19
If JHC meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $0.94, suggesting downside of -17.3%(ex-dividends)
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 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.4, 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:

Jarden forecasts a full year FY22 dividend of 0.70 cents and EPS of 1.10 cents.
At the last closing share price the estimated dividend yield is 0.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 103.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of N/A.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 76.0.

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

MFG    MAGELLAN FINANCIAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $47.81

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

Magellan Financial Group was relatively improved during April, with increases in the Global Fund (1.1%) and High Conviction Fund (4.1%). Goldman Sachs estimates funds under management of $110.4bn during the month, and accrual of $18m in performance fees. 

On the back of stronger-than-expected market returns through March and April, the broker upgrades forecasts for FY21, FY22 and FY23 by 1%, 6% and 6% respectively. 

The broker notes the above increases clarity on the outlook for new product launches would improve outlooks.

The Sell rating is retained and the target price increases to $47.97 from $45.56.

This report was published on May 4, 2021.

Target price is $47.97 Current Price is $47.81 Difference: $0.16
If MFG meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $50.48, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 212.00 cents and EPS of 203.00 cents.
At the last closing share price the estimated dividend yield is 4.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 232.1, implying annual growth of 6.3%.
Current consensus DPS estimate is 211.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 249.00 cents and EPS of 275.00 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 256.5, implying annual growth of 10.5%.
Current consensus DPS estimate is 236.3, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 18.8.

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

MPL    MEDIBANK PRIVATE LIMITED

Insurance – Overnight Price: $3.12

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

Goldman Sachs assesses policyholder growth remains strong, with residential policyholder growth of 3.9% in the FY to April, while covid ‘catch-up’ trends remain sluggish.

As a result, management has mildly upgraded the FY21 outlook and now expects total policyholder growth of 3.5-4.0% in FY21, from greater than 3% previously. Claims growth per unit of circa 2.5% was adjusted from around 2.6% previously.

The analyst upgrades FY21-FY23 EPS forecasts by 2%, 4% and 4%, respectively, largely a function of softer claims growth and incorporating the MyHealth transaction. The Neutral rating is unchanged and the target price lifts to $3.25 from $3.08.

This report was published on May 5, 2021.

Target price is $3.25 Current Price is $3.12 Difference: $0.13
If MPL meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.13, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of 33.7%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of -0.7%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 20.5.

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

NAB    NATIONAL AUSTRALIA BANK LIMITED

Banks – Overnight Price: $26.71

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

First half cash earnings from continued operations were up 95% on the pcp and 10% above Goldman Sachs' forecast. In an initial assessment, this was considered driven by lower-than-expected BDD's and operating expenses, partially offset by softer trading.

The interim DPS of 60 cents was above the 55 cents expected by the broker, reflecting a payout ratio of 59%. There will be no DRP discount, and the DRP will be neutralised via an on-market purchase of shares, explains the analyst.

In regard to net interest margins (NIM's), Goldman Sachs expects competitive pressures and the housing lending product mix to remain as headwinds, along with higher liquids. The Buy rating is unchanged and the target is $29.63.

This report was published on May 6, 2021.

Target price is $29.63 Current Price is $26.71 Difference: $2.92
If NAB meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $27.58, suggesting upside of 1.8%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 167.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 192.2, implying annual growth of 134.0%.
Current consensus DPS estimate is 122.5, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 177.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 189.6, implying annual growth of -1.4%.
Current consensus DPS estimate is 130.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.3.

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $6.09

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

nib Holdings has released a trading update announcing the sale of Whitecoat for a pre-tax profit of around $9m.  Taking into account the Whitecoat sale, Goldman Sachs increases FY21 earnings per share forecast by 4.2%.

The company reiterated that slower-than-expected returns to pre-covid healthcare treatment has had a positive risk equalisation benefit on Arhi.

The Neutral rating is retained and the target price increases to $5.84 from $5.81.

This report was published on May 4, 2021.

Target price is $5.84 Current Price is $6.09 Difference: minus $0.25 (current price is over target).
If NHF meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.27, suggesting downside of -0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 23.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.1, implying annual growth of 82.8%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 20.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.8, implying annual growth of -14.7%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.4.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $3.94

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

Goldman Sachs forecasts Omni Bridgeway could reach a stabilised net profit after tax of as much $340m per annum if the company reaches its funds under management target of $5bn.

Given the company's indication of a resising of Fund 6 or new fund launch by the end of the year, as well as Funds 4 and 5 on track to upsize in 12-18 months, the broker feels the funds under management target is achievable. 

The broker has adjusted EPS forecasts for 2021, 2022 and 2023 by -15%, -23% and 10% to reflect a delay in completions rather than lost revenue. 

Goldman Sachs considers Omni Bridgeway to be undervalued by the market. The Buy rating is retained and the target price decreases to $5.40 from $5.45. 

This report was published on May 3, 2021. 

Target price is $5.40 Current Price is $3.94 Difference: $1.46
If OBL meets the Goldman Sachs target it will return approximately 37% (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 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.40.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 7.00 cents and EPS of 95.00 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.15.

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

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $13.01

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

Bell Potter lowers earnings (EBITDA) forecasts for FY21 and FY22 after incorporating increased marketing costs from the acceleration of launches in new US states. The company expects to increase its number of live US states from 6 to 18 plus Ontario by Dec 2022.

From a third quarter update, the broker highlights the launch of iGaming remains imminent in Michigan. New Jersey is expected before 30 June, followed by West Virginia and Pennsylvania to align with the launch of online sports betting, explains the analyst.

The Buy rating (Speculative) is maintained and the target falls to $20.10 from $20.55.

This report was published on March 17, 2021.

Target price is $20.10 Current Price is $13.01 Difference: $7.09
If PBH meets the Bell Potter target it will return approximately 54% (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 61.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.22.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 41.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.65.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $25.89

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

Premier Investments is set to repay around $15.6m of Jobkeeker funds. 

Under the Jobkeeker scheme the company was eligible for $65.7m in wage subsidies during FY20. $35.5m was paid to employees, leaving a net benefit of $15.6m to be repaid to the Australian Taxation Office. 

Despite this, the company is confident in meeting the FY21 earnings before interest and tax consensus of $318m. Goldman Sachs has revised its forecast for FY21 earnings to reflect the Jobkeeker payment, decreasing estimated profit by -4.6%.

The Sell rating and target price of $20.20 are retained. 

This report was published on May 3, 2021.

Target price is $20.20 Current Price is $25.89 Difference: minus $5.69 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.26, suggesting downside of -0.2%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 89.00 cents and EPS of 152.00 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.9, implying annual growth of 71.4%.
Current consensus DPS estimate is 85.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 76.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 120.8, implying annual growth of -18.9%.
Current consensus DPS estimate is 84.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.8.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $10.34

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

Wilsons lifts the target price to $11 from $9.60 for Pinnacle Investment Management Group. This reflects funds under management (FUM) strength and a 5% premium for uncrystallised performance, fees which are considered likely to eventuate.

Management updated on FUM inflows that have continued to trend exceptionally, assesses the broker, averaging 62.5% above monthly estimates. 

The Overweight rating is maintained, given affiliates are performing strongly and distribution is gaining traction in international markets. Additionally, the analyst sees upside from performance fees at multiple equity managers.

This report was published on May 4, 2021.

Target price is $11.00 Current Price is $10.34 Difference: $0.66
If PNI meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $11.67, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 27.10 cents and EPS of 32.30 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.2, implying annual growth of 81.5%.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 30.4.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 29.70 cents and EPS of 35.20 cents.
At the last closing share price the estimated dividend yield is 2.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.0, implying annual growth of 14.0%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 26.7.

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: $10.97

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

Goldman Sachs assesses the first quarter update was largely positive, particularly with respect to the rating environment and growth. A group average rate increase of 8.9% was up on the 7.3% growth in the first quarter. 

The broker points out headline growth was very strong and was assisted by Crop growth. Even ex-crop, the constant currency growth of 13% was still assessed to be very solid relative to group underlying gross written premium (GWP) growth of 10% in FY20.

The analyst feels underlying margin trends appear to be tracking to plan (or slightly ahead) based on combined operating ratio (COR) commentary. On balance, outside of unseasonal US catastrophe losses, trends in the quarter are considered very supportive.

The Buy rating is maintained and the target price increased to $11.97 from $10.73.

This report was published on May 5, 2021.

Target price is $11.97 Current Price is $10.97 Difference: $1
If QBE meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $11.82, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 47.30 cents and EPS of 72.98 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.5, implying annual growth of N/A.
Current consensus DPS estimate is 50.6, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 60.82 cents and EPS of 95.96 cents.
At the last closing share price the estimated dividend yield is 5.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.8, implying annual growth of 36.1%.
Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 12.5.

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


Jarden rates ((QBE)) as Buy (1) –

Strong first quarter top-line momentum drives Jarden to lift EPS forecasts by 2.9% for FY21 and 4.4% for FY22. Gross written premium (GWP) rose 28%, boosted significantly by Crop and FX though with still strong underlying growth of 13%.

The broker explains growth was supported by 8.9% premium rate rises and 4% volume growth. Also, despite above-budget catastrophe costs, the fact combined operating ratios (CORs) are still in-line with expectations signals stronger underlying margin momentum.

The target price lifts to $12.35 from $11.70 and the Buy rating is unchanged.

This report was published on May 5, 2021.

Target price is $12.35 Current Price is $10.97 Difference: $1.38
If QBE meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $11.82, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 55.41 cents and EPS of 64.60 cents.
At the last closing share price the estimated dividend yield is 5.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.5, implying annual growth of N/A.
Current consensus DPS estimate is 50.6, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 81.09 cents and EPS of 95.01 cents.
At the last closing share price the estimated dividend yield is 7.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.8, implying annual growth of 36.1%.
Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 12.5.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $62.30

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

Ramsey Health Care confirmed third quarter organic Australian revenue growth of 8.2% despite slow recovery in Victoria remaining a concern. This marks recovery for a third consecutive quarter, points out Goldman Sachs.

March saw the fastest non-surgical volume growth since pre-pandemic, and Goldman Sachs notes this suggests positive signs for recovery despite surgical volumes continuing to outperform non-surgical. 

Covid costs are down and currently tracking around -$4.2m monthly compared to the -$8.2m monthly average noted through the first half of FY21. 

The Buy rating and target price of $75.00 are retained. 

This report was published on May 4, 2021. 

Target price is $75.00 Current Price is $62.30 Difference: $12.7
If RHC meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $70.13, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 135.00 cents and EPS of 202.00 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 199.9, implying annual growth of 52.5%.
Current consensus DPS estimate is 111.7, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 167.00 cents and EPS of 298.00 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 20.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 256.9, implying annual growth of 28.5%.
Current consensus DPS estimate is 141.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 24.6.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $30.79

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

Seek provided an upgrade to FY21 guidance, increasing revenue expectations by 2% to $1,740m and net profit after tax by 50% to $150m, driven by the strong Australian and New Zealand markets. 

Goldman Sachs also noted stronger revenues from the Asia market are positive after a soft first half result.

The Zhaopin sell-down also completed. Seek reduced its stake from 61.9% to 23.5% for a net proceed of $560m. 

The Neutral rating is retained and the target price increases to $30.40 from $27.40. 

This report was published on May 4, 2021. 

Target price is $30.40 Current Price is $30.79 Difference: minus $0.39 (current price is over target).
If SEK 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 $29.87, suggesting downside of -3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 30.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 76.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.2, implying annual growth of N/A.
Current consensus DPS estimate is 28.6, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 77.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 23.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 0.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.9, implying annual growth of 31.6%.
Current consensus DPS estimate is 35.6, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 58.7.

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

SLK    SEALINK TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $10.10

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

Coming on the back of Sealink Travel Group submitting tendering for key bus contracts in Melbourne and Sydney, the company has acquired Go West Tours, a specialist bus contractor to the WA resources sector at a purchase price of $84.7m.

Given pricing of 5.3x normalised last 12 months earnings, Cannacord Genuity thinks the deal looks to be around 7% accretive at first glance.

Management expects the acquisition to be high-single digit accretive in the first full year of ownership.

The broker notes, in contrast to Sealink's Government contracting business, assets will be owned and maintained by the company with compensation coming by way of much stronger operating margins.

The Buy rating and target price of $8.55 are maintained.

This report was published on May 5, 2021.

Target price is $8.55 Current Price is $10.10 Difference: minus $1.55 (current price is over target).
If SLK meets the Canaccord Genuity target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 14.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.58.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 16.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 1.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.30.

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

STA    STRANDLINE RESOURCES LTD

Mineral Sands – Overnight Price: $0.21

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

Strandline Resources has raised $122m of equity capital at 20.5cps to complete the financing for the Coburn mineral sands project. Shaw and Partners views this as major event given the project is now fully financed, and the company is significantly de-risked.

The broker expects a final investment decision (FID) in the next few weeks. Meanwhile, mineral sands markets continue to strengthen, and the analyst increases realised pricing assumptions by around 10%. The price target increases to $0.58 from from $0.52. Buy retained.

This report was issued May 4, 2021.

Target price is $0.58 Current Price is $0.21 Difference: $0.37
If STA meets the Shaw and Partners target it will return approximately 176% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.15.

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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $12.86

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

Bell Potter expects Super Retail Group's like-for-like sales which lifted 28% versus FY20 to materially slow as the company begins to cycle demanding comps from May onwards.

Divisional like-for-like sales highlights for the first 44 weeks of FY21 included Macpac (up 17%), BCF (up 59%), Sports (up 20%) and Auto (up 21%) versus full year 2020.

While Bell Potter sees an enduring tailwind from international travel restrictions for the balance of calendar year 2021, the broker believes this will be offset by: the demanding comps that need to be cycled; reduced Government stimulus; and the ongoing uncertainties surrounding covid and the impacts this may have on consumer confidence.

Hold rating is unchanged, with the target price increasing to $12.05 from $11.80.

This report was published on May 4, 2021.

Target price is $12.05 Current Price is $12.86 Difference: minus $0.81 (current price is over target).
If SUL meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.35, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 67.40 cents and EPS of 127.20 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.2, implying annual growth of 129.9%.
Current consensus DPS estimate is 72.3, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 50.70 cents and EPS of 84.60 cents.
At the last closing share price the estimated dividend yield is 3.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.1, implying annual growth of -31.3%.
Current consensus DPS estimate is 56.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.4.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $26.09

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

Westpac reported cash earnings growth of 119% on the previous corresponding period during the first half of FY21, driven by lower than expected bad and doubtful debts. 

Goldman Sachs has revised EPS forecast for FY21, FY22 and FY23 by -3.1%, -2.2% and 1.7% respectively to highlight near-term higher expenses.

The broker expects Westpac to begin realising benefits from its three-year cost reset plan by 2023. 

The Buy rating is retained and the target price increases to $29.03 from $26.67. 

This report was published on May 4, 2021. 

Target price is $29.03 Current Price is $26.09 Difference: $2.94
If WBC meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $28.49, suggesting upside of 7.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 112.00 cents and EPS of 164.00 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 176.1, implying annual growth of 176.3%.
Current consensus DPS estimate is 116.0, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 131.00 cents and EPS of 174.00 cents.
At the last closing share price the estimated dividend yield is 5.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 180.3, implying annual growth of 2.4%.
Current consensus DPS estimate is 124.3, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.7.

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

WSA    WESTERN AREAS NL

Nickel – Overnight Price: $2.34

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

Western Areas reported high cash costs in the March quarter, totaling $4.07 per pound and 17% higher than forecast by Goldman Sachs driven by high mining and milling costs. 

The company also reported strong nickel production for the quarter of 4,270 tonnes driven by higher grades, a 21% quarter-on-quarter increase. Guidance for FY21 of 16-17,000 tonnes of nickel and cash costs between $3.75-4.25 per pound remain the same. 

Higher grades at Spotted Quoll are driving the brokers expectation of a stronger fourth quarter. Despite this, Goldman Sachs sits at the bottom end of production guidance and the top end of cash cost guidance. 

The Neutral rating and target price of $2.40 are retained. 

This report was published on May 3, 2021. 

Target price is $2.40 Current Price is $2.34 Difference: $0.06
If WSA meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.57, suggesting upside of 2.5%(ex-dividends)
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 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.3, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 53.4.

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


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

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

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

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms

CHARTS

ALG ALU ANZ BVS CCX CIA COI CPU CRN CTP DHG EHL ELO ENN EVN FDV FLT HAS HLS IEL IFM INA ING JHC MFG MPL NAB NHF OBL PBH PMV PNI QBE REA RHC SEK STA STO SUL WBC WSA

For more info SHARE ANALYSIS: ALG - ARDENT LEISURE GROUP LIMITED

For more info SHARE ANALYSIS: ALU - ALTIUM

For more info SHARE ANALYSIS: BVS - BRAVURA SOLUTIONS LIMITED

For more info SHARE ANALYSIS: CCX - CITY CHIC COLLECTIVE LIMITED

For more info SHARE ANALYSIS: CIA - CHAMPION IRON LIMITED

For more info SHARE ANALYSIS: COI - COMET RIDGE LIMITED

For more info SHARE ANALYSIS: CPU - COMPUTERSHARE LIMITED

For more info SHARE ANALYSIS: CRN - CORONADO GLOBAL RESOURCES INC

For more info SHARE ANALYSIS: CTP - CENTRAL PETROLEUM LIMITED

For more info SHARE ANALYSIS: DHG - DOMAIN HOLDINGS AUSTRALIA LIMITED

For more info SHARE ANALYSIS: EHL - EMECO HOLDINGS LIMITED

For more info SHARE ANALYSIS: ELO - ELMO SOFTWARE LIMITED

For more info SHARE ANALYSIS: ENN - ELANOR INVESTORS GROUP

For more info SHARE ANALYSIS: EVN - EVOLUTION MINING LIMITED

For more info SHARE ANALYSIS: FDV - FRONTIER DIGITAL VENTURES LIMITED

For more info SHARE ANALYSIS: FLT - FLIGHT CENTRE TRAVEL GROUP LIMITED

For more info SHARE ANALYSIS: HAS - HASTINGS TECHNOLOGY METALS LIMITED

For more info SHARE ANALYSIS: HLS - HEALIUS LIMITED

For more info SHARE ANALYSIS: IEL - IDP EDUCATION LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP

For more info SHARE ANALYSIS: ING - INGHAMS GROUP LIMITED

For more info SHARE ANALYSIS: JHC - JAPARA HEALTHCARE LIMITED

For more info SHARE ANALYSIS: MFG - MAGELLAN FINANCIAL GROUP LIMITED

For more info SHARE ANALYSIS: MPL - MEDIBANK PRIVATE LIMITED

For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED

For more info SHARE ANALYSIS: NHF - NIB HOLDINGS LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: PBH - POINTSBET HOLDINGS LIMITED

For more info SHARE ANALYSIS: PMV - PREMIER INVESTMENTS LIMITED

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

For more info SHARE ANALYSIS: REA - REA GROUP LIMITED

For more info SHARE ANALYSIS: RHC - RAMSAY HEALTH CARE LIMITED

For more info SHARE ANALYSIS: SEK - SEEK LIMITED

For more info SHARE ANALYSIS: STA - STRANDLINE RESOURCES LIMITED

For more info SHARE ANALYSIS: STO - SANTOS LIMITED

For more info SHARE ANALYSIS: SUL - SUPER RETAIL GROUP LIMITED

For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION

For more info SHARE ANALYSIS: WSA - WESTERN AREAS LIMITED