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Australian Broker Call *Extra* Edition – Jun 03, 2021

Daily Market Reports | Jun 03 2021

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M (3)   ADI   ASX   BRG   BTH   CXL   EHL   EYE   FCL (2)   FMG   GMG   GPR   IMU   IPL   KZA   LGL   LGP   LPI   MMM   MQG   MTO   OBL   ORR   PDL (2)   RRL   SCG   SGR   SLK (2)   SM1   SUL   SUN   SVW   TAH   TPG   VCX   WOW   WSP  

A2M    THE A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.72

Bell Potter rates ((A2M)) as Buy (1) –

Following a fourth downgrade to FY21 earnings, which saw revenue guidance downgraded from NZ$1.4bn to NZ$1.20-1.25bn and earnings margin guidance downgraded to 11-12% from 24-26%, Bell Potter has downgraded a2 Milk's forecast profit by -60% in FY21, -16% in FY22 and -13% in FY23.

The broker does not view FY21 revenue or earnings as reflective of where the business will operate once supply chains have stabilised and retains a Buy rating.

At its core Bell Potter sees a2 Milk as a business that once Mataura Valley Milk is consolidated, has baseline revenue of NZ$1.4-1.5bn and earnings of NZ$300m, with a pathway to being a NZ$1.7bn revenue business generating NZ$445m in earnings on its existing China offline distribution footprint.

The broker's target price lowers to $8.50 from $9.50.

This report was published on May 11, 2021.

Target price is $8.50 Current Price is $5.72 Difference: $2.78
If A2M meets the Bell Potter target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $6.32, suggesting upside of 10.4%(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 11.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, 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 33.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 26.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 63.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.6.

This company reports in NZD. 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


Jarden rates ((A2M)) as Underweight (2) –

After a fourth downgrade to the FY21 outlook, The a2 Milk Co announced the resignation of CEO Asia Pacific Peter Nathan. The downgrade is due to a poor April and an inventory review, suggesting to Jarden higher excess inventory and aging.

The broker gleans a positive in that the company is accepting the inventory issues and is now taking more aggressive corrective actions to protect its future brand health. However, the magnitude of the downgrade is worse than expected.

Jarden lowers FY21-23 EPS forecasts by -57%, -41% and -35% to incorporate a higher stock provision and a tougher growth reset at lower margins. The target price decreases to NZ$6.10 from NZ$7.90. The Underweight rating is retained on valuation grounds.

This report was published on May 10, 2021. 

Current Price is $5.72. Target price not assessed.
Current consensus price target is $6.32, suggesting upside of 10.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 EPS of 12.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, 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 33.8.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 17.51 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 63.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.6.

This company reports in NZD. 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


Wilsons rates ((A2M)) as Market Weight (3) –

With an expected improvement in fourth quarter 2021 trading not eventuating, a2 Milk has lowered its FY21 guidance.

Management is now taking further action to re-establish sales momentum in its infant nutrition business, including further stock write-offs and increased marketing spend.

Commenting on recent developments, Wilsons believes the structural changes in the China market that prompted management to strategically review the company's growth strategy, presents significant uncertainty for the sales and margin outlook.

a2 Milk has lowered its FY21 guidance, and is now expecting sales of NZ$1,200- 1,250m (previously NZ$1,400m) and earnings margins of 11-12% on a reported basis or 21% normalised (previously 24-26%).

As a result, Wilsons has lowered earnings per share forecasts -60% in FY21 and -28% in FY22-23. Market Weight rating and target price of $6.67 remain unchanged.

This report was published on May 10, 2021. 

Target price is $6.67 Current Price is $5.72 Difference: $0.95
If A2M meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $6.32, suggesting upside of 10.4%(ex-dividends)
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 11.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, 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 33.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 23.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 63.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.6.

This company reports in NZD. 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

ADI    APN INDUSTRIA REIT

REITs – Overnight Price: $3.20

Moelis rates ((ADI)) as Hold (3) –

Following strong transactional evidence in industrial markets, APN Industria REIT's valuations for 30 June 2021 result in an 11.9% uplift on valuations for 17 of 23 industrial properties.

In isolation, Moelis notes the valuation uplift (which drives NTA to $3.18) is marginally dilutive. However, with incremental gearing capacity, the broker believes APN Industria is well positioned to continue adding industrial assets to the portfolio.

Moelis has also updated estimates to include the recent acquisitions of an industrial asset at Corio for $36m.

With gearing at 30% the broker believes there's room on the balance sheet to bolster the medium-term earnings profile through acquisitions.

However, with the income growth profile possibly at risk near term, given the 1% of income expiring at Rhodes Business Park, the broker remains cautious noting resolution of the expiry at Rhodes would provide a meaningful catalyst.

Hold rating maintained with the target rising to $3.12 from $3.04.

This report was published on May 10, 2021.

Target price is $3.12 Current Price is $3.20 Difference: minus $0.08 (current price is over target).
If ADI meets the Moelis target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.30 cents and EPS of 19.90 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.08.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.39.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $75.60

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

Into the final quarter for FY21, Goldman Sachs continues to see earnings risks skewed to the downside, particularly in futures.

The broker notes contraction in contracts on the previous period at -21% – roughly twice the decline versus Goldman Sachs' current second half 2021 forecasts – while velocity is also softening through the broker's normalised assumption.

The broker retains a Sell rating and a $67.46 target price.

This report was published on May 6, 2021.

Target price is $67.46 Current Price is $75.60 Difference: minus $8.14 (current price is over target).
If ASX meets the Goldman Sachs target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $70.47
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 249.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 247.2, implying annual growth of -4.0%.
Current consensus DPS estimate is 222.1, implying a prospective dividend yield of N/A.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $27.58

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

Breville Group has provided a trading update. Highlights include expected earnings before interest and tax of $136m for FY21 indicating a 19.6% year-on-year increase. 

Newell Brands, Electrolux and Whirlpool all reported year-on-year sales revenue growth of more than 20%.

The company also advised $9.7bn in revenue opportunities, although Wilsons suggests this is closer to $6.1bn. The broker expects the majority of this upside to come from Europe, the Middle East and Africa.

The Market Weight rating is retained and the target price decreases -21.3% to $25.18. 

This report was published on May 7, 2021. 

Target price is $25.18 Current Price is $27.58 Difference: minus $2.4 (current price is over target).
If BRG meets the Wilsons target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $32.93, suggesting upside of 19.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 28.00 cents and EPS of 68.20 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.1, implying annual growth of 32.9%.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 41.1.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 31.50 cents and EPS of 77.80 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.5, implying annual growth of 15.5%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 35.6.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services – Overnight Price: $1.01

Sequoia rates ((BTH)) as Buy (1) –

Due largely to a -17% adverse AUDUSD FX movement, Bigtincan Holdings' third quarter receipts from customers ($12.2m) were up 16% on the second quarter but down -18% on the previous period.

Following a FY21 revenue guidance increase to $43-44m, Sequoia upgraded revenue forecasts by 7%, 8%, and 8% for FY21, FY22, and FY23 respectively.

Sequoia thinks the outlook is strong and that covid and FX headwinds will eventually abate. Buy rating is retained, and the target price increases to $1.39 from $1.27.

This report was published on May 4, 2021.

Target price is $1.39 Current Price is $1.01 Difference: $0.38
If BTH meets the Sequoia target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Sequoia forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.61.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.91.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $2.81

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

Calix Limited has entered into a memorandum of understanding with Pilbara Minerals ((PLS)) to co-develop a new refining process using Calix's technology. The process will allow for the production of a concentrated lithium salt for lithium batteries. 

The agreement follows initial testing of spodumene processing that resulted in over 95% conversion of spodumene ore extractable lithium. The memorandum of understanding commits both parties to a scoping study at Pilgangoora. 

Canaccord expects scoping and development to run for 2-3 years, with potential for a commercial agreement from early FY23.  

According to the broker, Calix's agreement assists the company in de-risking its business profile by continuing to broaden the potential end-industry applications of its software. 

The Buy rating is retained and the target price increases to $2.95 from $2.60. 

This report was published on May 12, 2021.

Target price is $2.95 Current Price is $2.81 Difference: $0.14
If CXL meets the Canaccord Genuity target it will return approximately 5% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 936.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 133.81.

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: $0.90

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

Emeco Holdings has announced an intended allocation of 25-40% of operating net profit after tax to dividends and buybacks each year, taking effect on the upcoming FY21 results.

Only the second half results will be taken into account for FY21, which Bell Potter predicts to amount to between $7.5-12m allocated to dividends and buybacks. This would suggest a second half dividend of 1.4-2.2 cents per share, or a buyback of 8.1-12.9m shares. 

Bell Potter estimates Emeco will generate $98.7m of free cash flow in FY22, benefiting from an additional $18.3m in operating earnings from the redeployment of off-hired equipment. This equates to $69.1-80.2m excess cash flow following the 25-40% payout. 

The Buy rating and target price of $1.50 are retained. 

This report was published on May 6, 2021.

Target price is $1.50 Current Price is $0.90 Difference: $0.6
If EHL meets the Bell Potter target it will return approximately 67% (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 1.80 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.40 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.62.

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

EYE    NOVA EYE MEDICAL LIMITED

Medical Equipment & Devices – Overnight Price: $0.31

Taylor Collison rates ((EYE)) as Outperform (2) –

Nova Eye Medical has enrolled the first patient in the MAGIC randomised trial that directly compares iTrack to the OMNI device from Sight Sciences, its main competitor in standalone minimally invasive glaucoma surgery (MIGS) procedures.

If successful, Taylor Collison expects the MAGIC trial, together with the next generation iTrack device with improved ease of use, to position the company to drive iTrack sales and market share growth post-covid.

Another key milestone Taylor Collison expects in the current quarter is the final design of a new pivotal trial of 2RT in intermediate AMD and submission of an Investigational Device Exemption (IDE) with the US FDA. 

The broker expects this to provide clarity as Nova Eye Medical seeks a partner to fund further development of 2RT which is the company's proprietary nano-pulse ophthalmic laser therapy for the treatment of intermediate age-related macular degeneration (AMD).

With a strategy in place to support iTrack sales growth, Taylor Collison retains Outperform rating and target of $0.42.

This report was issued May 4, 2021.

Target price is $0.42 Current Price is $0.31 Difference: $0.11
If EYE meets the Taylor Collison target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 13.50 cents and EPS of minus 1.60 cents.
At the last closing share price the estimated dividend yield is 43.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.38.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.18.

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

FCL    FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $3.75

Moelis rates ((FCL)) as Buy (1) –

Moelis has increased Fineos Corp FY22 revenue by $7m to reflect the contribution from recently acquired DigIn Technologies LLC (“Spraoi”), a US based machine learning platform for the Employee Benefits and Life industry.

Moelis expects Spraoi’s existing platform to accelerate digital/data capabilities and enhance the company's offering.

Spraoi’s platform leverages claims and disability data to deliver a range of enhanced capability in claims segmentation; auto adjudication; fraud identification; settlement probability; and claims prediction.

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

Moelis notes the -35% discount to peers in Property and Casualty on an adjusted EV/FY22 software sales basis provides valuation support.

Moelis maintains its Buy rating and the target price is lowered to $4.72 from $4.74.

This report was published on May 6, 2021.

Target price is $4.72 Current Price is $3.75 Difference: $0.97
If FCL meets the Moelis target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $4.51, suggesting upside of 20.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 64.95.

How do these forecasts compare to market consensus projections?

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

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.52 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 106.41.

How do these forecasts compare to market consensus projections?

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

This company reports in EUR. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

Fineos Corp has announced the acquisition of  leading insurance technology solutions provider Spraoi, expected to enhance the digital and data capabilities of the company's platform. 

Fineos management expects immediate opportunity for additional digital smart portal options for Fineos Engage and industry specific operational and analytic models for Fineos Insight.

The acquisition included a US$4m upfront payment as well as up to an additional US$6.6m to be paid over three years dependent on revenue hurdles. The acquisition is expected to be earnings accretive following its first year 

The Buy rating and target price of $5.30 are retained. 

This report was published on May 6, 2021.

Target price is $5.30 Current Price is $3.75 Difference: $1.55
If FCL meets the Shaw and Partners target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $4.51, suggesting upside of 20.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 137.77.

How do these forecasts compare to market consensus projections?

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

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 156.12.

How do these forecasts compare to market consensus projections?

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

This company reports in EUR. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FMG    FORTESCUE METALS GROUP LTD

Iron Ore – Overnight Price: $23.28

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

To reflect the extraordinary iron ore price action witnessed through the June quarter, Bell Potter lifts second half 2021 forecasts to US$179/dmt, up 9% from US$164/dmt previously.

While partially offset by a higher AUDUSD forecast and the slightly higher costs reported in the March 2021 quarterly, the broker's higher forecast iron ore price flows through to modest earnings and dividend increases for Fortescue Metals.

The broker's FY21 and FY22 earnings forecasts increase 4% and 7% respectively.

Bell Potter's FY21 dividend forecast increases 4% to 404cps, inclusive of a fully franked final dividend payment of 257cps (from 241cps), a 10.4% yield on its own.

Bell Potter's rating moves to Hold from Buy, and the price target is increased to $23.96 from $23.85.

This report was published on May 11, 2021.

Target price is $23.96 Current Price is $23.28 Difference: $0.68
If FMG meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $21.65, suggesting downside of -7.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 544.84 cents and EPS of 469.32 cents.
At the last closing share price the estimated dividend yield is 23.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 402.8, implying annual growth of N/A.
Current consensus DPS estimate is 363.0, implying a prospective dividend yield of 15.6%.
Current consensus EPS estimate suggests the PER is 5.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 405.93 cents and EPS of 387.05 cents.
At the last closing share price the estimated dividend yield is 17.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 277.1, implying annual growth of -31.2%.
Current consensus DPS estimate is 248.2, implying a prospective dividend yield of 10.7%.
Current consensus EPS estimate suggests the PER is 8.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GMG    GOODMAN GROUP

Infra & Property Developers – Overnight Price: $19.79

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

Goodman Group maintains FY21 operating profit guidance of $1.2bn, a 12% increase on FY20. This implies earnings per share of 64.4 cents, but Goldman Sachs expects a slightly higher result of 65.6 cents per share. 

The company commenced around $1.8bn in projects over the third quarter while completing around $500m. Work-in-progress sat at $9.6bn in late March, with management expecting this to exceed $10bn in June. 

Average duration of projects stands at 19 months, implying annualised production rate for the current workbook of around $6bn, while the current rate of production is currently closer to $4.5bn per annum. Management noted that around 10% of annual development production is being sold to third parties. 

The Sell rating is retained and the target price increases to $13.16 from $12.90. 

This report was published on May 7, 2021.

Target price is $13.16 Current Price is $19.79 Difference: minus $6.63 (current price is over target).
If GMG meets the Goldman Sachs target it will return approximately minus 34% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.95, suggesting upside of 5.9%(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 66.00 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.2, implying annual growth of -20.8%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 30.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 33.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.0, implying annual growth of 12.0%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 27.1.

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

GPR    GEOPACIFIC RESOURCES LTD

Gold & Silver – Overnight Price: $0.35

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

In a review of the company's annual report, Shaw and Partners determines Geopacific Resources is making good progress at its Woodlark Gold Project.

Early works are continuing, long-lead-time items have been ordered, the project remains unaffected by covid-19 and the first gold pour is expected in the December 2022 quarter, explains the analyst.

The broker retains the Buy rating and the price target reduces to $0.95 from $1.25, after the recent capital raise. The company is considered one of the cheapest gold developers on the ASX, and concerns over the risk of operating in PNG look overdone.

This report was published on May 10, 2021.

Target price is $0.95 Current Price is $0.35 Difference: $0.6
If GPR meets the Shaw and Partners target it will return approximately 171% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.82.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.50 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.61.

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

IMU    IMUGENE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.40

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

Interim data of Imugene's IMU-131 treatment on HER2+ gastric cancers has indicated 14.2 months of median overall survival, with final data on overall survival due towards the end of FY21.

Imugene investors have benefited from strong share price performance over the last year based on interim data on the IMI-131 treatment, Bell Potter observes.

The PD1-Vaxx dose escalation study is also progressing, with a final cohort of patients receiving the maximum specified dose. 

The company reported $29.4m in cash at the end of the March quarter, and cash burn of of -$3.9m for the period.

The rating is downgraded to Hold and the target price increases to $0.25 from $0.17. 

This report was published on May 6, 2021. 

Target price is $0.25 Current Price is $0.40 Difference: minus $0.15 (current price is over target).
If IMU meets the Bell Potter target it will return approximately minus 38% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.33.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

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

IPL    INCITEC PIVOT LIMITED

Agriculture – Overnight Price: $2.32

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

Goldman Sachs points out the Waggaman update on operational issues represents the third asset level downgrade year-to-date, with a cumulative estimated earnings (EBIT) impact of -$94m.

These disruptions have occurred during the strongest ammonia backdrop in six years, highlighting concerns around the company’s ability to take advantage, notes the broker.

The analyst lowers forecast FY21 earnings by -8% and and lowers the target price to $2.93 from $3.05. Forecast FY22/23 earnings remain largely unchanged. The Neutral rating is retained.

This report was published on May 10, 2020.

Target price is $2.93 Current Price is $2.32 Difference: $0.61
If IPL meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $2.90, suggesting upside of 25.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 7.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of 89.6%.
Current consensus DPS estimate is 6.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 32.6%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 13.0.

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

KZA    KAZIA THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.24

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

Kazia Therapeutics recently announced an in-license deal under which it has acquired the rights to a new VEGFR3 inhibitor from the Hamburg based drug developer Evotec.

Under the agreement Kazia will develop, manufacture and commercialise EVT801 in all territories and indications. The company will pay an immediate upfront of €1m ($1.6m) and contingent milestones of up to $480 million related to achievement of clinical, regulatory and commercial outcomes and a tiered single-digit royalty on net sales.

Bell Potter's Buy rating remains unchanged and the target is lowered to $2.50 from $3.60 to reflect the increased risk of dilution to shareholders associated with future development cost.

This report was published on May 11, 2021.

Target price is $2.50 Current Price is $1.24 Difference: $1.26
If KZA meets the Bell Potter target it will return approximately 102% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.14.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 13.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.05.

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

LGL    LYNCH GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.60

Jarden rates ((LGL)) as Initiation of coverage with Buy (1) –

Jarden initiates coverage on Lynch Group Holdings with a Buy rating and a $4.55 target price. There's considered scope for the group to re-rate with a favourable industry structure, and scope for earnings upside when the China expansion is better understood. 

The group is a leading global floral company, with the number one position in the fragmented Australian floral market and a growing position in China. The business targets incremental return on invested capital (ROIC) of greater than 25% on new farms.

The broker points out the opportunity to step up investment in China to support retail partnerships with Alibaba's chain Hema (greater than 150 stores), Ole (circa 50 stores) and Walmart's subsidiary, Sam's Club (23 stores).

Geopolitical risk is seen as low by the analyst, given the group is a local producer and employer in China. It's considered a defensive business that should deliver at least mid-single growth in Australia and double-digit medium-term earnings growth via China. 

This report was published on May 10, 2021.

Target price is $4.55 Current Price is $3.60 Difference: $0.95
If LGL meets the Jarden target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of 31.69 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.36.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 17.53 cents and EPS of 33.99 cents.
At the last closing share price the estimated dividend yield is 4.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.59.

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

LGP    LITTLE GREEN PHARMA LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.69

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

Canaccord initiates coverage on Australian medicinal cannabis company Little Green Pharma following its recent equity raise. Canaccord considers the company to be the most de-risked business in the cannabis industry. 

Little Green Pharma operations span cultivation, manufacturing, and branded products. The broker considers Little Green Pharma's ability to expand each area of its supply chain according to market demand as crucial to success in an immature industry experiencing massive growth. 

The company has also secured all necessary Australian licenses and approvals and has undertaken steps to ensure compliance with the EU, German and Australian regulations for import and export. 

The cannabis industry is experiencing rapid growth globally and Canaccord estimates a total addressable market of $23bn, likely to increase as cannabis regulations are further relaxed. 

After generating $2m in revenue in FY20 the broker estimates Little Green Pharma to be on track for FY21 revenue of $9m and $21m in revenue in FY22. 

Canaccord initiates coverage on Little Green Pharma with a Speculative Buy rating and a target price of $1.10. 

This report was published on May 12, 2021. 

Target price is $1.10 Current Price is $0.69 Difference: $0.41
If LGP meets the Canaccord Genuity target it will return approximately 59% (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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.86.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 690.00.

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

LPI    LITHIUM POWER INTERNATIONAL LIMITED

New Battery Elements – Overnight Price: $0.20

Canaccord Genuity rates ((LPI)) as Speculative Buy (1) –

Lithium Power International has signed a non-binding memorandum of agreement with Mitsui & Co through Minera Salar Blanco to establish a strategic alliance in advancing the development of the Chilean Maricunga lithium brine project. 

Under the agreement Mitsui has the right to purchase up to 15,000 tonnes lithium carbonate per annum from Stage 1 of the Maricunga project for 10 years, as well as the right to participate in the funding of Stage 1, including equity, mezzanine and debt. 

Mitsui will have the right to participate in subsequent further expansion subject to Stage 1 funding, while the alliance also allows for further potential lithium projects in Chile. 

Lithium Power's previous definitive feasibility study forecast the Maricunga project to be a US$563m conventional lithium brine project with a capacity of 20,000 tonnes per annum at less than US$4,000 per tonne. 

The Speculative Buy rating is retained with a target price of $0.55. 

This report was published on May 11, 2021. 

Target price is $0.55 Current Price is $0.20 Difference: $0.35
If LPI meets the Canaccord Genuity target it will return approximately 175% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $2.49

Sequoia rates ((MMM)) as Buy (1) –

Marley Spoon delivered first quarter 2021 revenue growth of 81% with strong growth recorded across Europe (108%), US (82%), and Australia (65%).

Benefiting from increased customer adoption and awareness post-covid, active customers in the quarter jumped 85,000 (26%) to 412,000.

Sequoia expects 14% revenue growth in the second quarter as Marley Spoon cycles stronger comparables from the second quarter (peak covid) onwards.

Sequoia has upgraded revenue forecasts by 5% and 6% for 2021-22. However, the broker has also factored in higher costs as the company looks to maximise its customer growth opportunity.

Buy rating maintained, and target price is lowered to $3.86 from $3.96.

This report was published on May 3, 2021.

Target price is $3.86 Current Price is $2.49 Difference: $1.37
If MMM meets the Sequoia target it will return approximately 55% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Sequoia forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 77.74.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.16.

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

MQG    MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $151.99

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

Macquarie Group has reported its FY21 results, with net profit after tax up 10% on the previous corresponding period to total $3,015m. This result beats Goldman Sachs' forecast by 1.5%. 

Despite Macquarie not providing group guidance for FY22, the broker expects results to be largely in line with FY21. Goldman Sachs has revised FY22 and FY23 earnings per share by 3% and -7.8% respectively. 

Management noted APRA's $500m operational capital overlay will reduce investment capacity, which the broker expects to impact investment income in FY23. 

The Neutral rating is retained and the target price increases to $150.47 from $138.81. 

This report was published on May 7, 2021. 

Target price is $150.47 Current Price is $151.99 Difference: minus $1.52 (current price is over target).
If MQG 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 $161.20, suggesting upside of 6.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 330.00 cents and EPS of 814.00 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 18.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 830.0, implying annual growth of -1.5%.
Current consensus DPS estimate is 545.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 340.00 cents and EPS of 820.00 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 885.9, implying annual growth of 6.7%.
Current consensus DPS estimate is 589.8, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.2.

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

MTO    MOTORCYCLE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $3.00

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

Broadly consistent with consensus, Motorcycle Holdings expects FY21 underlying earnings at $42-45m.

With the improved profit result, ongoing positive sales momentum and a strong balance sheet, the company intends to return to regular dividends this year in line with its policy of paying 50-70% of net profit, excluding JobKeeper.

The industry new motorcycle unit sales were up 51% for the first three months of calendar 2021, compared to the comparative period. Demand for new and used motorcycles remains consistent and strong and is showing no signs of slowing down, Wilsons observes.

Wilsons also highlights, with very low debt, and low interest rates, the company is actively pursuing acquisition opportunities.

The Market Weight rating is maintained and the target price of $2.54 is currently under review.

This report was published on May 11, 2021.

Target price is $2.54 Current Price is $3.00 Difference: minus $0.46 (current price is over target).
If MTO meets the Wilsons 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:

Wilsons forecasts a full year FY21 dividend of 17.00 cents and EPS of 46.50 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.45.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 16.00 cents and EPS of 25.30 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.86.

Market Sentiment: 1.0
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: $3.88

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

Omni Bridgeway has recognised $94m of gross income from the partial settlement of Wivenhoe, which is significantly higher than the $30m it had previously indicated, points out Goldman Sachs.

A further $18m of income from the settlement is expected to be recognised in future periods, bringing the total return on invested capital (ROIC) for the settled portion of the case to 4.9 times, highlights the broker.

Management has stated a further $85m-220m in future income is expected from the remainder of the investment. This implies to the analyst a total income between $197m-$332m, significantly above the prior guidance of $170m.

To reflect the revised Wivenhoe partial settlement and potential future income, Goldman Sachs increases the forecast EPS for FY21-FY23 by 173%, 10% and 1%. The Buy rating is retained and the target price increases to $5.75 from $5.40.

This report was published on May 10, 2021. 

Target price is $5.75 Current Price is $3.88 Difference: $1.87
If OBL meets the Goldman Sachs target it will return approximately 48% (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 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.86.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 7.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.73.

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

ORR    ORECORP LIMITED

Gold & Silver – Overnight Price: $0.82

Canaccord Genuity rates ((ORR)) as Speculative Buy (1) –

OreCorp Limited continues to wait for its northern Tanzanian Nyanzaga gold project to receive a special mining license which would allow the company to complete a definitive feasibility study, financing and development.

Canaccord is optimistic developments in Tanzania could mean the license is forthcoming. 

Tanzania has a new president who reportedly wants to focus on restoring investor confidence, including actively seeking joint ventures with international mining companies.

The Nyanzaga open pit and underground gold project has total resources of 3.1m ounces, with pre-feasibility studies suggesting production of 213,000 ounces per annum at an all-in sustaining cost of US$838 per ounce.

OreCorp expects a final definitive feasibility study to consider development optimisation including potential incorporation of the Kilimani oxide deposit. 

The Speculative Buy rating is retained and the target price is increased to $1.05 from $0.70. 

This report was published on May 7, 2021. 

Target price is $1.05 Current Price is $0.82 Difference: $0.23
If ORR meets the Canaccord Genuity target it will return approximately 28% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 82.00.

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

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $7.90

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

As a result of first half underlying profit after tax (UPAT) being -6% below Goldman Sachs' estimate, the interim DPS of 17c (67% payout) was also below the 21c forecast. A lower-than-assumed payout ratio was also a contributing factor.

Compositionally, revenues were in-line with the analyst, and base fee margins improved half-on-half to 49bp, helped by an equities mix shift plus recent US momentum. Performance fees of $41.1m were in-line with the broker's estimates.

Management has maintained its 80-95% FY payout ratio guidance, suggesting to the broker a much higher second half payout ratio. The company also noted the JO Hambro business has likely seen the tail end of outflows, and is now better positioned to grow.

Goldman Sachs feels the acquisition of value manager Thompson, Siegel & Walmsley LLC for $413m is very complementary from a product and distribution perspective. The broker retains a Buy rating and the target price decreases to $7.79 from $7.81.

This report was published on May 10, 2021.

Target price is $7.79 Current Price is $7.90 Difference: minus $0.11 (current price is over target).
If PDL 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 $8.35, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 42.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.0, implying annual growth of 15.7%.
Current consensus DPS estimate is 39.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 46.00 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.6, implying annual growth of 12.2%.
Current consensus DPS estimate is 45.3, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 15.3.

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


Jarden rates ((PDL)) as Upgrade to Overweight from Neutral (2) –

Jarden upgrades Pendal Group to Overweight from Neutral following double-digit EPS upgrades, driven by both the Thompson, Siegel & Walmsley acquisition and stronger momentum in the core business. 

First half operating profit of $102.4m was -9% behind the broker's expectation. The majority of this differential was estimated to be in the higher-than-expected fixed costs though management reiterated its FY21 fixed costs guidance growth.

The analyst points out higher-than-expected base management fees and JOHCM performance fees tracking ahead of estimates. Finally, investment performance showed improvement, with outperformance of funds under management (FUM) versus the benchmark.

The target price lifts to $8.40 from $6.30, driven by EPS revisions and an uplift in multiples, given stronger momentum. 

This report was published on May 10, 2021.

Target price is $8.40 Current Price is $7.90 Difference: $0.5
If PDL meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $8.35, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 36.70 cents and EPS of 40.70 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.0, implying annual growth of 15.7%.
Current consensus DPS estimate is 39.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 46.80 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 5.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.6, implying annual growth of 12.2%.
Current consensus DPS estimate is 45.3, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 15.3.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.58

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

Regis Resources has acquired a 30% interest in the Tropicana gold mine for a cash consideration of $903m. The mine has FY21 guidance of 380-430,000 ounces with all-in sustaining costs of $1,730-$1,860 per ounce. 

Bell Potter considers the acquisition as supportive of elevating Regis Resources into the top ranks of ASX-listed gold producers. The broker comments the Tropicana stake provides exposure to a long-life, low-cost asset with immediate cash generation and diversifies the company's production base. 

The acquisition is funded by an equity raising of $650m and a $300m loan facility. Based on the dilution of the equity to fund the acquisition, Bell Potter decreases FY21 earnings by -27%, but increases FY22 and FY23 earnings by 45% and 46% respectively. 

The Buy rating is retained and the target price decreases to $4.08 from $4.71. 

The report was published on May 7, 2021. 

Target price is $4.08 Current Price is $2.58 Difference: $1.5
If RRL meets the Bell Potter target it will return approximately 58% (excluding dividends, fees and charges).
Current consensus price target is $3.75, suggesting upside of 45.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 8.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.5, implying annual growth of -27.3%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 9.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 8.00 cents and EPS of 41.50 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.8, implying annual growth of 26.5%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 7.4.

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

SCG    SCENTRE GROUP

REITs – Overnight Price: $2.80

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

Goldman Sachs believes the return of specialty sales to pre-covid levels across all states, despite depressed CBD visitations was a particularly strong first quarter 2021 outcome for Scentre Group. 

The broker notes, with first quarter comparable specialty sales growth of 6.3%, Scentre outperformed all of its discretionary Retail A-REIT peers except Stockland ((SGP)).

Driven by a weak Supermarkets contribution (-8.3%), majors sales over the quarter were down -0.4%, with negative growth in NZ, NSW and WA offsetting positive growth in SA,  Queensland, ACT and Victoria.

The Group collected $802m of gross rent for the four months to April, up 27% on the previous period, and occupancy was maintained at 98.5%, in line with December 2020 levels.

The Buy rating is reaffirmed with a target of $3.46.

This report was published on May 6, 2021.

Target price is $3.46 Current Price is $2.80 Difference: $0.66
If SCG meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $2.84, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 6.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.1, implying annual growth of N/A.
Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of 9.9%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.3.

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

SGR    THE STAR ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $4.05

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

Within a trading update on its performance through second half 2021, Star Entertainment Group noted in the period from 1 Jan to 3 May, group domestic gaming revenue was up 37% year on year, while group domestic revenue overall was up 35% on the same basis.

Star Entertainment also notes, against second half 2019 performance, domestic gaming revenues were down -10% and domestic revenues were down -12%.

Across the various assets, Gold Coast and Brisbane appear to be run-rating better than the broker had expected.

Sydney has lagged the other two assets, with domestic gaming revenues down -22% and total domestic revenues down -24% versus second half 2019.

Buy rating maintained and price of $4.15.

The report was issued May 6, 2021.

Target price is $4.15 Current Price is $4.05 Difference: $0.1
If SGR meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $4.27, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 31.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 48.8%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 21.4.

Market Sentiment: 0.6
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: $9.80

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

SeaLink Travel has announced the acquisition of Go West Tours, which services the WA resource sector (90-95% of revenue), and provides school bus services in regional WA. 

The acquisition is set to be funded by existing cash reserves and undrawn senior debt, with management expecting the transaction to be earnings per share accretive within the first year. Bell Potter forecasts the addition to increase earnings by 6% for FY22 and FY23. 

In other areas, the company reported the domestic and international bus business continues to perform in line with expectations, while the marine and tourism businesses benefit from domestic demand. 

The Hold rating is retained and the target price increases to $9.50 from $8.00. 

This report was published on May 7, 2021.

Target price is $9.50 Current Price is $9.80 Difference: minus $0.3 (current price is over target).
If SLK meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.00 cents and EPS of 36.80 cents.
At the last closing share price the estimated dividend yield is 1.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.63.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 19.00 cents and EPS of 49.70 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.72.

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


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

According to Canaccord Genuity, Sealink Travel Group is likely to win at least one of the large contracts it has bid on in Sydney and Melbourne, which could see the share price increase to as much as $10.80 per share in the near-term. 

In the event of Sealink winning both bids, the broker predicts the share price could increase to as much as $11.70. 

The broker also notes the recent acquisition of Go West Tours in WA has strengthened the company's growth outlook into FY22 and FY23. Based on this, Canaccord has increased earnings forecasts for FY22 and FY23 by 9% and 8% respectively.

The Buy rating is retained and the target price is increased to $9.89 from $8.55. 

This report was published on May 6, 2021.

Target price is $9.89 Current Price is $9.80 Difference: $0.09
If SLK meets the Canaccord Genuity target it will return approximately 1% (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 14.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.61.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 18.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.50.

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

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $3.00

Bell Potter rates ((SM1)) as Buy (1) –

Following a FY21 update in which a2 Milk's FY21 revenue guidance was downgraded to NZ$1.20-1.25bn from NZ$1.4bn and earnings margin guidance downgraded to 11-12% from 24-26%, Bell Potter has downgraded earnings forecasts.

This results in net profit downgrades of -14% in FY22 and -13% in FY23.

As Synlait moves from the commissioning to product mix optimisation of the asset lifecycle, Bell Potter would expect a material recovery in earnings and ROIC.

The broker is aware of the potential risk in FY24 around a2 Milk's English label infant formula supply, however sees moves to de-risk key customer exposure at Pokeno and through investments in Dairyworks and liquids as reducing the downside to future earnings and cashflow.

The Buy rating retained and target price is lowered to $3.85 from $4.10.

This report was published on May 11, 2021.

Target price is $3.85 Current Price is $3.00 Difference: $0.85
If SM1 meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $2.55, suggesting downside of -15.0%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.65 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 460.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 18.62 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, 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 16.6.

This company reports in NZD. 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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $13.17

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

Super Retail Group has released a trading update indicating like-for-like group sales are up 28% for the year to date. 

The update implies a 37% increase in the last 11 weeks, a 30.5% acceleration compared to the first seven weeks of the FY21 second half. 

Goldman Sachs forecasts a two-year compound annual growth rate of approximately 11.7% for the remainder of the second half. The broker increases the earnings forecast by 4.1% for FY21.

The Buy rating and target price of $15.00 are retained. 

This report was published on May 4, 2021. 

Target price is $15.00 Current Price is $13.17 Difference: $1.83
If SUL meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $13.35, suggesting upside of 1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 84.00 cents and EPS of 140.00 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.41.

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 5.5%.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 59.00 cents and EPS of 98.00 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.44.

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 4.3%.
Current consensus EPS estimate suggests the PER is 14.9.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $11.15

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

In a third quarter update on the day of Suncorp Group's investor day, Goldman Sachs identifies that improved rate/volume trends in Australian personal lines have carried from the first half into the third quarter.

Reinvigorated broker originations have supported a return to growth in the bank from February and digital interactions have continued to increase, highlights the broker. The group is considered to have strong reinsurance cover for the remainder of the year.

Buy rating is retained with a target price of $12.05.

This report was published on May 11, 2021.

Target price is $12.05 Current Price is $11.15 Difference: $0.9
If SUN meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $11.83, suggesting upside of 6.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 59.00 cents and EPS of 70.00 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.0, implying annual growth of 45.5%.
Current consensus DPS estimate is 54.6, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 60.00 cents and EPS of 71.00 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 15.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.3, implying annual growth of -7.9%.
Current consensus DPS estimate is 52.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 16.8.

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

SVW    SEVEN GROUP HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $20.30

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

In explaining the off-market takeover for Boral ((BLD)), Goldman Sachs notes Seven Group has utilised its ‘creep’ capacity via its recent acquisition of an additional 3% interest. Seven Group is restricted from acquiring additional Boral shares on-market.

In making the offer, Seven Group is seeking to increase its interest in Boral, and would be satisfied for the offer to result in it holding a total interest of around 30%.

The company plans to finance the takeover offer using a combination of $251m from its own cash reserves, $538m from committed and undrawn facilities, as well as a $5.5bn new unsecured syndicated term loan bridge facility. Neutral rated and $23.80 target price.

This report was published on May 10, 2021.

Target price is $23.80 Current Price is $20.30 Difference: $3.5
If SVW meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $27.14, 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 EPS of 152.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.4, implying annual growth of 313.9%.
Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 179.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.6, implying annual growth of 10.7%.
Current consensus DPS estimate is 47.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 13.0.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $5.16

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

Tabcorp Holdings has received a revised proposal from Apollo Global Management on behalf of affiliated investment funds.

Apollo’s revised proposal consists of an offer of $4.0bn for Tabcorp's Wagering & Media and Gaming Services businesses, or alternatively, Tabcorp's Wagering & Media business for a value of $3.5bn.

Apollo’s revised bid for only Tabcorp's W&M business is on par with the recent revised bid by Entain at $3.5bn.

But Goldman Sachs notes, the company's $4.0bn proposal, which implies a multiple of 7.3x EV/EBITDA on the broker's FY22 numbers, for the combined W&M and Gaming Services businesses does differentiate between the competing bids.

Tabcorp has not yet formed a view on this revised proposal, and will assess it in the context of its previously flagged strategic review of various businesses.

Buy rating maintained and target of $5.54.

This report was issued May 6, 2021.

Betmakers Technology Group ((BET)) has subsequently announced itself as a potential suitor with an offer that, at face value, appears superior to the two offers submitted at the time when this report was released.

Target price is $5.54 Current Price is $5.16 Difference: $0.38
If TAH meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $5.08, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of N/A.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 29.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 10.7%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 26.2.

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

TPG    TPG TELECOM LIMITED

Telecommunication – Overnight Price: $5.20

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

At its recent AGM, TPG Telecom noted the company is tracking well versus its own forecasts, which includes -$91m of NBN/covid/RBS headwinds and $70m of expected synergies.

TPG also noted the company has been awarded contracts with two major companies (national and international operations) over the last quarter, suggesting ongoing enterprise momentum.

Goldman Sachs' unchanged FY21 earnings forecast implies 2% growth to $1.83bn.

Despite the solid trading and positive recent changes in the Australian mobile market, the broker believes the uncertainty created by ongoing executive churn and share escrow completions are now increasingly in focus, and will continue to negatively impact.

Neutral rating maintained, and price target is lowered -13% to $6.20.

This report was published on May 6, 2021. 

Target price is $6.20 Current Price is $5.20 Difference: $1
If TPG meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $7.70, suggesting upside of 48.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 15.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.4, implying annual growth of -71.3%.
Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 28.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 23.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.5, implying annual growth of 33.2%.
Current consensus DPS estimate is 14.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 21.2.

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

VCX    VICINITY CENTRES

REITs – Overnight Price: $1.60

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

Vicinity Centres' third quarter update indicated improved visitation and sales, despite snap lockdowns in Brisbane, Perth and Victoria impacting on the quarter. 

Customer visitation was up around 82% as of beginning of May, compared to pre-covid levels. Quarterly sales growth improved in all states on December 2020, excluding Queensland and Western Australia. 

Goldman Sachs feels Vicinity Centres is well positioned to weather any further covid impact due to relatively low gearing. The broker forecasts funds from operations per share of 12 cents for FY21.

The Buy rating and target price of $1.94 are retained. 

This report was published on May 4, 2021. 

Target price is $1.94 Current Price is $1.60 Difference: $0.34
If VCX meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.64, suggesting upside of 2.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of N/A.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.4, implying annual growth of 9.7%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 12.9.

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

WOW    WOOLWORTHS LIMITED

Food, Beverages & Tobacco – Overnight Price: $42.30

Jarden rates ((WOW)) as Buy (2) –

Jarden sees the Endeavour demerger as positive for several reasons including, on the assumption of an off-market buy-back, 3-4% accretion for Woolworths standalone. Also, it's felt Endeavour assets would be worked harder and growth capex will increase.

Additionally, post demerger Woolworths would have a favorable capital structure and be net-cash on a pro-forma basis, explains the broker. This is estimated to provide scope for further capital management and/or a lift in payout.

Finally, the analyst expects an increased market focus on new verticals, for example WooliesX and its earnings potential. The Overweight rating and $43 target are maintained.

This report was published on May 10, 2021. 

Target price is $43.00 Current Price is $42.30 Difference: $0.7
If WOW meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $42.54, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 122.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.1, implying annual growth of 65.3%.
Current consensus DPS estimate is 106.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.6.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 132.00 cents and EPS of 161.50 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.3, implying annual growth of 5.4%.
Current consensus DPS estimate is 117.4, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 26.2.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $2.79

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

Following a recent capital raising, Shaw and Partners highlights it may be possible for Whispir to achieve North American annual recurring revenue of $6.5-7m by the end of FY22 to track towards $25m in FY23. 

Whispir would need to add around 550 customers in North America during FY22 and just over an additional 1,000 in FY23 to achieve these results. 

The broker considers Whispir's implied annual recurring revenue growth rate for Asia-Pacific to be conservative and forecasts FY22 group annual recurring revenue of $69.8m and $93.4m for FY23. 

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

This report was published on May 11, 2021.

Target price is $5.20 Current Price is $2.79 Difference: $2.41
If WSP meets the Shaw and Partners target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.74.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.73.

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


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

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

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

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For more info SHARE ANALYSIS: KZA - KAZIA THERAPEUTICS LIMITED

For more info SHARE ANALYSIS: LGL - LYNCH GROUP HOLDING LIMITED

For more info SHARE ANALYSIS: LGP - LITTLE GREEN PHARMA LIMITED

For more info SHARE ANALYSIS: LPI - LITHIUM POWER INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: MMM - MARLEY SPOON AG

For more info SHARE ANALYSIS: MQG - MACQUARIE GROUP LIMITED

For more info SHARE ANALYSIS: MTO - MOTORCYCLE HOLDINGS LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: ORR - ORECORP LIMITED

For more info SHARE ANALYSIS: PDL - PENDAL GROUP LIMITED

For more info SHARE ANALYSIS: PLS - PILBARA MINERALS LIMITED

For more info SHARE ANALYSIS: RRL - REGIS RESOURCES LIMITED

For more info SHARE ANALYSIS: SCG - SCENTRE GROUP

For more info SHARE ANALYSIS: SGP - STOCKLAND

For more info SHARE ANALYSIS: SGR - STAR ENTERTAINMENT GROUP LIMITED

For more info SHARE ANALYSIS: SM1 - SYNLAIT MILK LIMITED

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

For more info SHARE ANALYSIS: SUN - SUNCORP GROUP LIMITED

For more info SHARE ANALYSIS: SVW - SEVEN GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: TAH - TABCORP HOLDINGS LIMITED

For more info SHARE ANALYSIS: TPG - TPG TELECOM LIMITED

For more info SHARE ANALYSIS: VCX - VICINITY CENTRES

For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED

For more info SHARE ANALYSIS: WSP - WHISPIR LIMITED