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Australian Broker Call *Extra* Edition – Jun 24, 2021

Daily Market Reports | Jun 24 2021

This story features AUSTRALIAN AGRICULTURAL COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: AAC

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)

AAC   ABB   AFP   AIS   ALL   ALQ   ARX (2)   CTP   GMA   KGN (2)   MND   PLT (2)   QUB   RIC   RMD   SM1 (2)   SSM   STG   SYD   TNE (2)   VVA   WSP (2)   YOJ  

AAC    AUSTRALIAN AGRICULTURAL COMPANY LIMITED

Agriculture – Overnight Price: $1.35

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

Australian Agricultural Company has reported a first half year-on-year uplift in operating earnings to $24.4m, ahead of Bell Potter's forecast of $19.7m. This included $6.7m in government subsidies. 

Revenue totaling $262.4m was up 21% year-on-year, with a lease adjusted operating cash flow of $13.2m down from $14.6m in the previous year. 

Looking ahead to FY22, Bell Potter notes a lower liveweight production will see decreases volumes of sales in meat. The broker downgrades operating earnings forecasts for FY22 and FY23 by -40% and -27% respectively.

The Buy rating is retained and the target price increases to $1.55 from $1.45. 

This report was published on May 24, 2021.

Target price is $1.55 Current Price is $1.35 Difference: $0.2
If AAC meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 112.50.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 90.00.

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

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $2.84

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

Aussie Broadband has continued to take market share in the third quarter, reporting a record of 16.5% of total market net additions for NBN. Shaw and Partners notes this is roughly equal to Optus' market share. 

After a tumultuous quarter, the NBN reported its slowest quarter in connections since data subset began. 172,000 additional connections in the quarter represented a 2% quarter-on-quarter increase, bringing total connections to 8.28m. 

Bell Potter forecasts Aussie Broadband's FY21 earnings at $14.5m, a up $12.8m year-on-year.

The Buy rating and target price of $3.33 are retained.

This report was published on May 24, 2021.

Target price is $3.33 Current Price is $2.84 Difference: $0.49
If ABB meets the Shaw and Partners target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.19.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.40.

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

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.20

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

While AFT Pharmaceuticals' FY21 revenues were up 7.0% to $113m, underlying earnings decreased by -6% to $10.7m.

While NZ revenues were flat, and Asia revenues declined by -10%, 11% growth in revenues from Australia were driven by Maxigesic IV and sales of other over the counter medicines.

Guidance for FY22 is for operating profit in the range of $18m-$23m inclusive of the $4m-$6m of once off license fee income.

Looking forward, Bell Potter expects Australia revenues to continue to be an important source of growth. 15 new product launches are expected in FY22 which the broker expects to drive low teens percentage revenue growth.

Relating to revenues in Australia in FY22 and FY23, the broker has upgraded earnings per share estimates by 84% in FY22 to 15.4c, and by 13% in FY23 to 16.3c.

Hold rating is unchanged, and target price is increased to $4.70 from $4.31.

This report was published on May 24, 2021.

Target price is $4.70 Current Price is $4.20 Difference: $0.5
If AFP meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.93 cents and EPS of 14.34 cents.
At the last closing share price the estimated dividend yield is 0.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.30.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 15.17 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.68.

This company reports in NZD. 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

AIS    AERIS RESOURCES LIMITED

Copper – Overnight Price: $0.19

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

Recent upgrades by Bell Potter in copper and gold forecasts are favourable to Aeris Resources' financial performance outlook, but the broker highlights copper as the main value driver for the company. 

Bell Potter's recent commodity price forecasts updates have increased expectations for FY22 copper prices by 21% and gold prices by 7%, also increasing prices for FY23 by 13% and 6% respectively. 

Aeris' exploration success of Tritton points to potential to add mine life and presents notable development opportunity. 

Earnings benefits for Aeris from commodity price increases has driven Bell Potter to increase FY22 and FY23 earnings forecasts by 85% and 25% respectively. 

The Buy rating is retained and the target price increases to $0.225 from $0.155.

This report was published on May 24, 2021. 

Target price is $0.23 Current Price is $0.19 Difference: $0.035
If AIS meets the Bell Potter target it will return approximately 18% (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 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.42.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.92.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $42.78

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

While Aristocrat Leisure's reported normalised first half FY21 sales, earnings and net profit in line with Goldman Sachs, digital delivered better-than-expected results, and was 6% and 9% better than the broker across sales and segment profit respectively.

In Goldman Sachs' view, Aristocrat delivered a high quality result, which beyond digital was also characterised by ongoing strength of its land based franchise, a focus on investing for long-term growth, and clear balance sheet strength.

The broker also noted above historic levels of D&D spend at a time when peers are preserving capex.

Reflecting a better digital trajectory, and an improved A&NZ outlook, Goldman Sachs revised FY21-23 earnings by 7% to 3%.

Buy rating is retained with the target price increasing to $42.30 from $39.53.

This report was published on May 24, 2021.

Target price is $42.30 Current Price is $42.78 Difference: minus $0.48 (current price is over target).
If ALL 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 $43.11, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 48.00 cents and EPS of 204.00 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.0, implying annual growth of -41.7%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 34.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 70.00 cents and EPS of 174.00 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 162.5, implying annual growth of 29.0%.
Current consensus DPS estimate is 65.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 26.3.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $12.74

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

ALS Ltd's FY21 result points to a mining backdrop stronger than Goldman Sachs expectations, with 2H Minerals margins of 29.9% coming in 453 basis points above estimates and reaching the highest level since 1H14.

The broker forecasts upside to these levels going forward, with strong year-to-date equity raisings and drilling activity translating to FY22/23 sample flow growth and pricing gains.

The Buy rating is maintained. The analyst raises FY21 and FY22 earnings (EBITA) forecasts by 12% and 14%, driven by higher Minerals margin forecasts. The target price is increased 13% to $13.50.

This report was published on May 26, 2020.

Target price is $13.50 Current Price is $12.74 Difference: $0.76
If ALQ meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $12.51, suggesting downside of -1.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 31.00 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.3, implying annual growth of 35.0%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 26.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 34.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.1, implying annual growth of 7.9%.
Current consensus DPS estimate is 31.1, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 24.5.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.02

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

Aroa Biosurgery's FY21 earnings (EBITDA) result was considered positive by Bell Potter, despite missing the broker's forecast by -$3.5m. Opex increased faster than expected and it's thought it will continue to grow at a faster cadence in FY22 onwards.

This comes as the company realises the full annualised impact of its salesforce and makes more hires, explains the analyst. Positive guidance was in-line with Bell Potter's forecast.

The cash balance at March 31 is sufficient to fund the ongoing launch of the Myriad surgical product, R&D, and repayment of current debt facilities from the Hollister loan, explains the broker. The Speculative Buy rating and target price of $2.00 are retained. 

This report was published on May 26, 2021.

Target price is $2.00 Current Price is $1.02 Difference: $0.98
If ARX meets the Bell Potter target it will return approximately 96% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.35.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

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


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

The positive momentum Wilsons witnessed in Aroa Biosurgery’s third quarter FY21 was maintained into the fourth quarter with a second half FY21 revenue recovery driven by TELA Bio’s re-stocking and renormalisation of end-market demand, namely hernia repair and soft tissue reconstruction.

Aroa Biosurgery's reported normalised FY21 loss of -NZ$7.5m, compared well with Wilsons forecast -NZ$8.4m loss. Product sales revenue was largely flat on FY20 (-2%) with a strong second half recovery in the US market.

Looking forward, the broker believes model changes are positive from the revenue perspective as more consistency in TELA’s business translates to tighter fulfilment and improved visibility.

The broker notes, upgrades in FY23-24 of 2%-9% stem from OviTex/PRS, and include market share development in open ventral surgeries in complex patients, and sustained growth in minimally invasive hernia repair and breast reconstruction.

Overweight and $2 price target retained.

This report was published on May 26, 2021.

Target price is $2.00 Current Price is $1.02 Difference: $0.98
If ARX meets the Wilsons target it will return approximately 96% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.23.

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

CTP    CENTRAL PETROLEUM LIMITED

NatGas – Overnight Price: $0.12

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

Central Petroleum has announced a binding sale agreement for 50% of its producing assets (implied value $85m) in the Amadeus Basin in the Northern Territory, which is deemed materially positive by Bell Potter. 

It's positive in terms of the look-through asset value, debt reduction and free-carry funding for the company's near-term exploration and appraisal program. The company retains operatorship and offtake marketing rights for the assets.

The upfront cash component of $29m will reduce the debt facility to $37m, resulting in a near net cash position (pro forma March 2021), explains the analyst.

Buy rating unchanged, with the broker's target price increasing to $0.23 from $0.22. Bell Potter will update earnings estimates to reflect the asset sell-down closer to transaction completion in the September 2021 quarter.

This report was published on May 26, 2021.

Target price is $0.23 Current Price is $0.12 Difference: $0.11
If CTP meets the Bell Potter target it will return approximately 92% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.14.

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

GMA    GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED

Banks – Overnight Price: $2.62

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

Given the recovery in first home buyer volumes will support revenues, while the recovery in house prices will also limit losses, Goldman Sachs thinks Genworth Mortgage Insurance Australia provides investors with among the best leverage of the Australian financials to the recovering housing market.

Having been on a downwards trend since FY14 to -8.7% in FY20, the broker now forecasts Genworth Australia's return on equity (ROE) to recover over the next three years.

Goldman Sachs analysis supports the view that Genworth Australia is progressively improving the profitability of each book year, which will add nearly 4% to FY23 ROE versus FY20 levels. Goldman Sachs FY23 ROE forecast is currently circa 9% or 11% adjusted for the $300m of surplus capital the broker forecasts.

Goldman Sachs reinstates a rating on Genworth Australia at Buy, and a target price of $3.25.

This report was published on May 25, 2021.

Target price is $3.25 Current Price is $2.62 Difference: $0.63
If GMA meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 20.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 7.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.10.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 31.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 11.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.39.

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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $10.86

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

Kogan.com's trading update has reiterated trading issues, highlighting its lower sales relative to the first half on lower gross profit margins as the company works to clear excess inventory. 

As a result, the company has reduced earnings guidance for FY21 to a $58-63m range. Canaccord Genuity had penciled in approximately $67m. 

Canaccord estimates Kogan is operating at -$2-3m per month in excess costs during the second half of FY21 to support higher warehousing costs and promotional activity. The broker expects these costs to normalise during FY22. 

Reported results make this Kogan's poorest half year result since listing on the ASX, exclaims the broker.

The Buy rating is retained and the target price decreases to $14.00 from $18.00. 

This report was published on May 21, 2021. 

Target price is $14.00 Current Price is $10.86 Difference: $3.14
If KGN meets the Canaccord Genuity target it will return approximately 29% (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 23.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.85.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 33.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.11.

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


Jarden rates ((KGN)) as Neutral (3) –

Kogan.com has provided an update to FY21 earnings and is guiding to $58-63m, a downgrade of -13% at the midpoint. Jarden points to ongoing excess stock issues and associated warehousing expenses, as well as increased promotional activities, as drivers of higher costs leading to lowered forecasts. 

Kogan has provided limited detail regarding elevated stock levels, but the broker estimates inventory at March was slightly higher than December levels of $225m, implying an approximate 102 day inventory turnover.

Jarden notes the lack of detail around excess stock holdings is concerning and potentially increases the risk of additional earnings downgrades in FY21 and FY22. 

The Neutral rating is retained and the target price decreases to $10.63 from $12.27. 

This report was published on May 21, 2021.

Target price is $10.63 Current Price is $10.86 Difference: minus $0.23 (current price is over target).
If KGN meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 16.00 cents and EPS of 31.10 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.92.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 25.00 cents and EPS of 35.80 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.34.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $9.95

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

Due to WA mining industry commentary around resourcing constraints and increased job advertising by the group, Bell Potter reduces estimated 2H21-2H22 margin forecasts. A more normalised margin environment is not expected until 2H22.

Additionally, the broker is underwhelmed by the lack of major construction contracts awarded and trims the FY22 revenue estimate by -2.9%. An opportunity is considered to exist for medium/long-term investors to capitalise on the current negative sentiment.

The Buy rating is unchanged. Bell Potter lowers EPS estimates for FY21 and FY22 by -12% and -12.2%, and the target price decreases to $13.95 from $14.50.

This report was published on May 26, 2021.

Target price is $13.95 Current Price is $9.95 Difference: $4
If MND meets the Bell Potter target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $12.40, suggesting upside of 24.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 42.00 cents and EPS of 49.90 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.5, implying annual growth of 53.9%.
Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 48.00 cents and EPS of 57.20 cents.
At the last closing share price the estimated dividend yield is 4.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.0, implying annual growth of 9.2%.
Current consensus DPS estimate is 52.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 15.3.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.26

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

Plenti Group reported an improved FY21 result, assesses Bell Potter, with the underlying net loss of -$11.9m highlighting the 61% loan book growth. There has been a further 11.4% growth to $685m since balance date.

The impairment charge to average loans reduced to 0.96% from 2.34% in FY20. The improvement in credit quality stemmed from a portfolio shift away from unsecured personal loans to secured auto loans and household renewables, explains the broker.

Management is targeting positive monthly cash profit prior to June 2022, making it the first of the FinTech lenders to reach this milestone, notes the analyst. The Buy rating is maintained and the target price increases to $1.85 from $1.80.

This report was published on May 26, 2021.

Target price is $1.85 Current Price is $1.26 Difference: $0.59
If PLT meets the Bell Potter target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 63.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.67.

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


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

Plenti Group reported underlying net profit of -$11.9m in FY21, in line with Wilsons and 31.0% up year-on-year. 

Commenting on the result, Wilsons believes Plenti remains well placed to continue to take market share from incumbents in its Auto and Personal lending verticals and grow the market in the Renewable vertical.

While no quantitative guidance was provided, Plenti expects to achieve three significant milestones in FY22, which the broker expects to result in renewed investor confidence. These include a $1bn loan book by March 2022, positive monthly cash net profit prior to June 2022, and a cost to income ratio below 35%.

Overweight rating and price target of $1.60 both retained.

This report was published on May 25, 2021.

Target price is $1.60 Current Price is $1.26 Difference: $0.34
If PLT meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 78.75.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.46.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $3.16

Jarden rates ((QUB)) as Buy (1) –

To include stronger volume growth for Qube Holding's operating division and Patrick's through second half FY21 into first half FY22, Jarden has updated earnings per share forecasts by 2% for FY21, 3% for FY22, and -6% for FY23 respectively.

The broker has lowered earnings (EBITDA) margin expansion expectations from FY23 to reflect a slower revenue growth environment and less operating leverage.

Jarden expects the best operating conditions since FY18 to lead to both potential for earnings surprise and multiple expansion near-term.

Key risks to the broker's investment view are slower industry growth, industry cost inflation or competition depressing earnings margins, and no Moorebank sale.

Buy recommendation and target price of $3.60 both unchanged.

This report was first issued 24 May, 2021.

Target price is $3.60 Current Price is $3.16 Difference: $0.44
If QUB meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.10, suggesting downside of -1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 5.60 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 1.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of 32.2%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 45.8.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 5.70 cents and EPS of 6.20 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 50.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 21.7%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 37.6.

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

RIC    RIDLEY CORPORATION LIMITED

Agriculture – Overnight Price: $1.13

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

In a move to accelerate improvement to return on capital and deleverage of the balance sheet, Ridley Corp has announced the sale of its underutilised Tasmanian feedmill for $55m.

Ridley’s earnings are not expected to be materially impacted by the divestment and there is anticipated to be a pre-tax profit in excess of $7m upon completion.

Wilsons expects the sale to enable Ridley to reset its manufacturing cost base to better service the aquafeed market from its expanded Narangba extrusion facility. After bottoming at 8.9% in FY19, the broker expects adjusted return on capital employed to reach 14.7% in FY23.

Based on evidence of sustained volume growth in key categories, along with favourable commodity pricing trends, Wilsons has upgraded FY21 earnings by 2%. While outer year earnings forecasts are unchanged, the broker sees potential upside as extruded feed volumes are consolidated to the Narangba facility.

The broker retains the Overweight rating and increases the target price to $1.29 from $1.24.

This report was published on May 25, 2021.

Target price is $1.29 Current Price is $1.13 Difference: $0.16
If RIC meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.14.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 5.00 cents and EPS of 8.10 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 13.95.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $32.57

Jarden rates ((RMD)) as Initiation of coverage with Overweight (2) –

With ResMed fitting firmly into the camp of a covid recovery trade within Australian healthcare, Jarden initiates coverage on the stock with an Overweight rating and target price of $30.39.

Relative to consensus data, Jarden's profit forecasts for ResMed are broadly flat for FY21, 5.1% above for FY22, 9.5% for FY23 and 7.9% for FY24. Jarden believes differences to estimates are largely reflective of the broker's inclusion of AirSense11 sales accelerating at the end of this calendar year, thereby driving higher estimates for FY22-24.

ResMed is currently trading on a FY23 PE 31.1x which is consistent with historical averages. Jarden remains confident with these multiples, especially considering the broker sees the company likely entering a multi-year earnings upgrade cycle.

This report was issued May 25, 2021.

Target price is $30.39 Current Price is $32.57 Difference: minus $2.18 (current price is over target).
If RMD meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $30.15, suggesting downside of -7.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 203.54 cents and EPS of 705.95 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.4, implying annual growth of N/A.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 46.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 224.06 cents and EPS of 788.82 cents.
At the last closing share price the estimated dividend yield is 6.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.3, implying annual growth of 14.1%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 40.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $3.55

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

In response to shipment delays, additional stock provisions, and ingredient premiums Synlait Milk has updated FY21 net profit guidance from a broadly flat outcome to a loss of -NZ$20-30m.

Even assuming no material growth in packaged infant milk formulae volumes, management anticipates a material recovery in net profit in FY22.

Bell Potter's forecast FY21 loss widens to -NZ$24m.

The broker believes Synlait's FY21 performance is reflective of a business that has completed the commissioning of major capital works, while experiencing an unfavourable shift in sales mix and the added complexity of unwinding IMF inventory positions accumulated over 2H20-1H21.

As Synlait unwinds these inventory positions and moves from the commissioning phase of the asset life cycle, to the product mix optimisation phase, the broker would expect a material recovery in earnings and return on invested capital.

The Buy rating and target price of $3.85 both retained.

This report was published on May 25, 2021.

Target price is $3.85 Current Price is $3.55 Difference: $0.3
If SM1 meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $2.55, suggesting downside of -28.2%(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 10.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.5, 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 18.15 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, 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 19.7.

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 ((SM1)) as Underweight (2) –

Due to ongoing shipping delays for ingredients, underperformance in ingredients from sales phasing and volume pressure, and a more conservative approach to year end inventory volumes and valuation, Synlait Milk has issued a further profit warning for FY21, resetting at a loss of -NZ$20-30m.

As a result, Jarden has reset FY21 forecast to -NZ$28m and FY22-23% to NZ$30m.

Jarden's medium-term downgrade also reflects the broker's lower a2 Milk volume track, following its May downgrade and longer-term Synlait earnings power is consistent with the lower end of the broker's sustainable pre-tax return on capital employed cross-check at around 11%.

Jarden notes, key upside risks include faster a2 Milk demand recovery, more favourable commodity price volatility, and improved management execution, including the avoidance of further equity support.

Underweight rating remains unchanged, and target reduces to NZ$2.90 from NZ$3.60.

This report was issued May 24, 2021

Current Price is $3.55. Target price not assessed.
Current consensus price target is $2.55, suggesting downside of -28.2%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 12.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, 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 19.7.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.86

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

Bell Potter has decreased revenue forecasts for Service Stream across FY21-FY23 given the uncertainty over the service provider's contract wins under NBN Co's upgrade program alongside ongoing underwhelming demand for wireless services. 

Revenue forecasts decrease -2.8%, -6.7% and -8.2% for FY21, FY22 and FY23. 

Despite this, the Comdain-led Utilities division is still forecast to deliver material revenue growth of 8.7% in FY21 and 14.0% in FY22, supported by an increase in national housing estate developments, WA expansion and a recent pipeline contract with SEQ Water. 

The rating is upgraded to Buy and the target price decreases to $1.05 from $1.40.

This report was published on May 24, 2021. 

Target price is $1.05 Current Price is $0.86 Difference: $0.19
If SSM meets the Bell Potter target it will return approximately 22% (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 5.00 cents and EPS of 9.40 cents.
At the last closing share price the estimated dividend yield is 5.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.15.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 6.50 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 13.23.

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

STG    STRAKER TRANSLATIONS LIMITED

IT & Support – Overnight Price: $2.01

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

After FY21 results that overall met pre-released expectations, Bell Potter increases cost assumptions due to growth investments, and downgrades earnings (EBITDA) forecasts.

The gross margin expanded to circa 56% in the second half from 51% in the first, a trend which the broker sees continuing in FY22. This is believed due to the integration of LingoTek’s higher margin SaaS revenues and the shift of revenue onto the company’s RAY platform.

The Buy rating is maintained and the target price increases to $2.40 from $2.15. The analyst believes FY22 presents a transformational year from both a revenue and gross profit growth perspective.

This report was published on May 26, 2021.

Target price is $2.40 Current Price is $2.01 Difference: $0.39
If STG meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 105.79.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.70.

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

SYD    SYDNEY AIRPORT

Infrastructure & Utilities – Overnight Price: $5.79

Jarden rates ((SYD)) as Initiation of coverage with Sell (5) –

Having concluded that the delay in reopening Australia's international border and a likely gradual recovery scenario will hold back recovery in earnings and distributions, Jarden has initiated coverage on Sydney Airport with a Sell, and target price of $4.90.

Jarden's forecast dividend yield of 1.7% in FY22 and 3.9% in FY23 would be tracking below the historical bond spread.

The broker thinks four potential catalysts could mark a turning point in the airport's outlook, including a clear border reopening schedule from the Australian Government, improvement in Australia/China relations, more details on unlocking the value from development land, and a strategy to minimise the potential diversion impact from Western Sydney Airport.

But given all the macro headwinds Jarden's sees facing Sydney Airport, the broker has below-consensus earnings forecasts between FY21 and FY23.

This report was issued 24 May, 2021.

Target price is $4.90 Current Price is $5.79 Difference: minus $0.89 (current price is over target).
If SYD meets the Jarden target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.19, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 148.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.2, implying annual growth of N/A.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 9.70 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 251.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.2, implying annual growth of N/A.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 62.9.

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

TNE    TECHNOLOGY ONE LIMITED

IT & Support – Overnight Price: $9.08

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

TechnologyOne's first half profit (PBT) was 8% above Bell Potter's forecast, driven by a higher-than-estimated profit margin, which more than offset a miss on revenue.

The broker highlights strong growth in SaaS annual recurring revenue (ARR) of 41%, with a negative being weak operating cash flow (though this is not unusual in the first half).

The interim dividend was up 10% to 3.82c, in-line with the analyst's forecast though the franking of 60% was higher than the expected 50%. Hold rating unchanged and the target increases to $9.75 from $9.50, after negligible changes to Bell Potter's EPS forecasts.

This report was published on May 26, 2021.

Target price is $9.75 Current Price is $9.08 Difference: $0.67
If TNE meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $9.46, suggesting upside of 4.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 14.20 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 1.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 11.9%.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 41.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 16.30 cents and EPS of 25.80 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 35.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of 9.5%.
Current consensus DPS estimate is 15.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 37.5.

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


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

Wilsons believes TechnologyOne's first half FY21 result continues to highlight strong progression in transitioning the company's on-premise customers to SaaS, with annual recurring revenue increasing 41% on the previous period to $156m and SaaS revenue of $69m up 35% on the previous period, now accounting for 48% of the total mix.

While profit before tax mid-point guidance of $96.5m was -6% lower than Wilsons had expected, the broker suspects this was driven by a more rapid “flip” of on-premise clients to SaaS and increased amortisation from R&D investments. On account of these considerations, the broker's revenue forecasts decline -3%, and profit forecasts by -4%.

Wilsons reiterates a Marketweight recommendation and the target price increases by 5% to $9.89.

This report was issued May 26, 2021.

Target price is $9.89 Current Price is $9.08 Difference: $0.81
If TNE meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $9.46, suggesting upside of 4.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 14.10 cents and EPS of 23.30 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 11.9%.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 41.1.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 17.10 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.2, implying annual growth of 9.5%.
Current consensus DPS estimate is 15.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 37.5.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.59

Moelis rates ((VVA)) as Buy (1) –

Within its first bi-monthly trading update Viva Leisure provided revenue guidance for FY21 of $81.0m – $83.0m, and earnings guidance of $13.0m, – $13.5m.

The monthly revenue run-rate was $8m-plus for 2 consecutive months, with April 2021 representing a 58% increase versus March 2020 – being the last pre-covid month.

The implied FY21 earnings margin is 16.5%-17.5% as the business recovers from industry impacts due to covid forced shutdowns.

Moelis has moderately adjusted FY21 full year revenue to $82.1m (-1.4%) and earnings to $13.3m (-4.3%).

Regardless of the covid related impacts to the health and fitness industry via forced temporary site closures across the FY21 year, the broker expects these to normalise across the medium-term, improving return on invested capital for the business.

Moelis notes Viva Leisure's significant expansion opportunity, as arguably the only market consolidator, which is targeting 400 corporate owned sites by FY25.

Buy rating is retained, and target price is lowered to $3.05 from $3.28.

This report was published on May 26, 2021.

Target price is $3.05 Current Price is $1.59 Difference: $1.46
If VVA meets the Moelis target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.78.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $2.64

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

Three important takeaways Shaw and Partners gleaned from Whispir's recent investor day update were the depth of management expertise, the relatively nascent stage of North American development, and the differentiated, engagement driven, product roadmap that directly challenges the industry’s acceptance of low engagement rates.

Without giving away specifics, it was noted that the volume of opportunities in the North American pipeline has seen “phenomenal” growth, suggesting the personas that Whispir is targeting – like local government, utilities etc – are both responsive and underserved. 

Shaw believes the conversion rates from demo to sale, which are “upwards of 50%” are encouraging and highlights the opportunity as the business is scaled.

With the right team, strategy and now capital to fast track growth in North America, the broker's confidence is building that Whispir can deliver on its target of 25-30% of annualised recurring revenue coming from this region by FY23. 

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

This report was published on May 25, 2021.

Target price is $5.20 Current Price is $2.64 Difference: $2.56
If WSP meets the Shaw and Partners target it will return approximately 97% (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 43.28.

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 48.00.

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


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

During its recently held Annual Technology Day, Whispir disclosed that with 80% of revenue generated in Australia/NZ, the region remains the driver of revenue and profit in the short term, followed by Asia which accounts for 20% of revenue.

While the Americas are only generating less than 5% of group revenue, management noted the region has the potential to outgrow all other regions over time. The company's new Colorado office opens in June and is focusing first on the local government, insurance, safety & compliance and marketing sectors.

The Overweight rating and the target of $5.16 both remain unchanged.

This report was published on May 25, 2021.

Target price is $5.16 Current Price is $2.64 Difference: $2.52
If WSP meets the Wilsons target it will return approximately 95% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.52.

Forecast for FY22:

Wilsons forecasts a full year FY22 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 43.28.

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

YOJ    YOJEE LIMITED

Software & Services – Overnight Price: $0.14

Euroz Hartleys rates ((YOJ)) as Speculative Buy (2) –

Yojee Ltd has announced it's received an expansion order from an existing enterprise client that will add a further 3 countries in APAC, including Vietnam, Cambodia and Laos.

Euroz Hartleys believes these new regions offer growing opportunities for Yojee with the Vietnam market alone accounting for 13.7m twenty-foot equivalent unit movements per year, around 50% greater than Australia.

Euroz Hartleys notes the recent expansion order outlines the solid progress being made towards the previously outlined growth roll-out opportunity into 126 hubs towards circa $49m in annual revenues within 3 years’ time.

The broker maintains a Speculative Buy recommendation and $0.50 price target.

This report was published on May 25, 2021.

Target price is $0.50 Current Price is $0.14 Difference: $0.36
If YOJ meets the Euroz Hartleys target it will return approximately 257% (excluding dividends, fees and charges).

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


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

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

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

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CHARTS

AAC ABB AFP AIS ALL ALQ ARX CTP GMA KGN MND PLT QUB RIC RMD SM1 SSM STG SYD TNE VVA WSP YOJ

For more info SHARE ANALYSIS: AAC - AUSTRALIAN AGRICULTURAL COMPANY LIMITED

For more info SHARE ANALYSIS: ABB - AUSSIE BROADBAND LIMITED

For more info SHARE ANALYSIS: AFP - AFT PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: AIS - AERIS RESOURCES LIMITED

For more info SHARE ANALYSIS: ALL - ARISTOCRAT LEISURE LIMITED

For more info SHARE ANALYSIS: ALQ - ALS LIMITED

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: CTP - CENTRAL PETROLEUM LIMITED

For more info SHARE ANALYSIS: KGN - KOGAN.COM LIMITED

For more info SHARE ANALYSIS: MND - MONADELPHOUS GROUP LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: QUB - QUBE HOLDINGS LIMITED

For more info SHARE ANALYSIS: RIC - RIDLEY CORPORATION LIMITED

For more info SHARE ANALYSIS: RMD - RESMED INC

For more info SHARE ANALYSIS: SM1 - SYNLAIT MILK LIMITED

For more info SHARE ANALYSIS: SSM - SERVICE STREAM LIMITED

For more info SHARE ANALYSIS: STG - STRAKER TRANSLATIONS LIMITED

For more info SHARE ANALYSIS: SYD - SYDNEY AIRPORT

For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED

For more info SHARE ANALYSIS: VVA - VIVA LEISURE LIMITED

For more info SHARE ANALYSIS: WSP - WHISPIR LIMITED

For more info SHARE ANALYSIS: YOJ - YOJEE LIMITED