article 3 months old

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

Daily Market Reports | Jun 28 2021

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

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ABB   AHX   ALQ   APA   APX   AWC   BET   CAT   CGC (4)   CIA   CL1   CMM   CNU   EBO   ERD   FBU   FMG   FPH (3)   GDC   IGL   ING (2)   IVC   JIN   LNK   MFG   MNY   MOZ   MSB   OBL   QIP   RED   RHC   SCP   SHV (2)   TLX   TNE   VHT   WHC   WZR   ZBT  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $2.83

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

Aussie Broadband upgraded FY21 normalised earnings (EBITDA) guidance, materially ahead of Shaw and Partners' estimate. This is the second upgrade in the first year of listing. The target rises to $3.41 from $3.33 and the Buy rating is maintained.

For growth context, the broker highlights that FY20 earnings were only $1.7m. Thus, nominal growth is around $17m, which is considered to cement the company as the fastest-organically-growing telco on the ASX.

The analyst remains bullish on growth alternatives including Fibre point of interconnect (POI), on-net connections,  private network connections, enterprise growth and acquisitions.

This report was published on May 31, 2021.

Target price is $3.41 Current Price is $2.83 Difference: $0.58
If ABB meets the Shaw and Partners target it will return approximately 20% (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 104.81.

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 28.30.

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

AHX    APIAM ANIMAL HEALTH LIMITED

Healthcare services – Overnight Price: $0.95

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

Apiam Animal Health has announced the strategic acquisition of three veterinary businesses and four clinics across Queensland that allow the expansion of a hub and spoke model being rolled out across companion and production animals.

Bell Potter believes the acquisitions are well timed and priced with $10m of annualised revenue at a total consideration of $6.7m, with likely $1.5m in annualised earnings across the group.

The broker expects this to equate to an increase in earnings of around 10% on second half FY21 annualised estimates. Bell Potter has increased earnings per share FY22-23 estimates by 6%.

The Buy recommendation is retained and the target price increases to $1.07 from $1.02.

This report was published on May 28, 2021.

Target price is $1.07 Current Price is $0.95 Difference: $0.12
If AHX meets the Shaw and Partners target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 2.10 cents and EPS of 4.60 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.10 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.83.

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: $12.93

Jarden rates ((ALQ)) as Downgrade to Overweight from Buy (2) –

In the wake of a fourth quarter update, Jarden still remains positive on the earnings outlook for ALS Ltd for the next two years though lowers its rating to Overweight from Buy after a share price rally. The target price increases to $13.15 from $11.90.

The company reported a strong uplift in Geochemistry volumes, which is expected to be sustained over the next 12-18 months. Research by the broker suggests we are still in the early stages of uplift in the commodities cycle.

This should provide ongoing support for the Commodities division, predicts the analyst. While Life Sciences has been slower to ramp up, it's thought cost discipline has ensured margins can be supported, despite the weaker revenue environment.

This report was published on 26 May, 2021.

Target price is $13.15 Current Price is $12.93 Difference: $0.22
If ALQ meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $12.51, suggesting downside of -3.2%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 27.60 cents and EPS of 46.50 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.81.

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 26.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 32.30 cents and EPS of 55.10 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.47.

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 24.8.

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

APA    APA GROUP

Infrastructure & Utilities – Overnight Price: $9.27

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

After an investor briefing, Goldman Sachs notes the dividend payout range will now be 60-70% of free cashflow rather than operating cashflow. This is expected to drive greater funding flexibility as the business looks at increasing gearing to support new investment.

FY21 earnings (EBITDA) guidance remains $1,625-1,665m, with a dividend of 51cps. Neutral rating and $10.10 target retained. The broker prefers AusNet Services ((AST)) and Spark Infrastructure ((SKI)) for total projected shareholder returns of 28% and 14%, compared to 13% for APA Group.

This report was published on May 26, 2020.

Target price is $10.10 Current Price is $9.27 Difference: $0.83
If APA meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $10.55, suggesting upside of 13.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 66.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.6, implying annual growth of 9.9%.
Current consensus DPS estimate is 51.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 37.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.8, implying annual growth of 29.3%.
Current consensus DPS estimate is 53.3, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 29.2.

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

APX    APPEN LIMITED

IT & Support – Overnight Price: $14.51

Canaccord Genuity rates ((APX)) as Hold (3) –

Appen has remodeled its business around new segments to be more customer and product centric. Canaccord Genuity believes the new reporting format will lead to easier communication with the market. 

Under the new segments, Global Services is focused largely on leading US tech businesses, while New Markets includes enterprise, government and Chinese customers using Appen data annotation tools. 

The broker notes the Global Services segment is running at mid- to high-single-digit percentage growth while New Markets is in line with growth of around 25%. Combined, Canaccord believes this a heathy growth rate that allows for some operating leverage in the business. 

The Hold rating is retained and the target price decreases to $13.70 from $18.00. 

The report was published on May 24, 2021.

Target price is $13.70 Current Price is $14.51 Difference: minus $0.81 (current price is over target).
If APX meets the Canaccord Genuity target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.97, suggesting upside of 44.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 12.07 cents and EPS of 63.69 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.2, implying annual growth of 18.4%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 29.5.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 20.11 cents and EPS of 80.45 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.1, implying annual growth of 26.2%.
Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 23.4.

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

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $1.67

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

Recapping the highlights of a recent Alumina Ltd investor update, Shaw and Partners notes record alumina production (12.8mt),  Alcoa World Alumina & Chemicals (AWAC) costs down -$11 to $199 in 2020, and distributions received from AWCA JV of $207m or US7c/share.

During the investor update, Alumina also flagged the Australian Renewable Energy Agency has granted to Alcoa of Australia $11.3m to test the potential use of renewable energy in a process known as Mechanical Vapor Recompression (MVR).

If the feasibility studies are successful, Alcoa of Australia plans to install, by the end of 2023 a three megawatt MVR module with renewable energy at the Wagerup refinery in Western Australia to test the technology at scale.

Shaw expects second half 2021 to deliver improving margins on cost hikes in the first half unwind. 

Buy rating and target price of $2.20 maintained.

This report was issue May 27, 2021.

Target price is $2.20 Current Price is $1.67 Difference: $0.53
If AWC meets the Shaw and Partners target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $1.88, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 8.98 cents and EPS of 8.04 cents.
At the last closing share price the estimated dividend yield is 5.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of N/A.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 8.71 cents and EPS of 9.11 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 172.0, implying annual growth of 2023.5%.
Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 7.8%.
Current consensus EPS estimate suggests the PER is 1.0.

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

BET    BETMAKERS TECHNOLOGY GROUP LIMITED

Gaming – Overnight Price: $1.19

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

Betmakers Technology Group has submitted an indicative proposal to acquire Tabcorp’s ((TAH)) Wagering & Media business.

Canaccord Genuity expects this investment to support the company's strategy to enhance the size and sophistication of the US race wagering market as well as bringing with it a substantial domestic B2C wagering operation. 

The proposal would see Tabcorp shareholders receive $1bn in cash and an in specie distribution of Betmakers' equity that would ultimately mean they collectively own 65% of the combined entity.

The Buy rating and target price of $1.45 are both unchanged.

This report was published on May 30, 2021.

Target price is $1.45 Current Price is $1.19 Difference: $0.26
If BET meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 297.50.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1190.00.

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

CAT    CATAPULT GROUP INTERNATIONAL LIMITED

Medical Equipment & Devices – Overnight Price: $2.04

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

Catapult Group's FY21 earnings fell -38% to US$6.5m but the result was 10% above Bell Potter forecast of US$5.9m.

While there is little change in Bell Potter's revenue forecasts, the broker has reduced earnings forecasts in FY22 and FY23 due to the faster-than-anticipated transition of capital deals to subscription.

Bell Potter expects the net cash balance to fall by around -$4m in FY22 and then around another -$3m in FY23. But the broker expects the net amount to remain well above US$10m, and hence no need for a capital raising unless the company makes one or more sizable acquisitions.

The broker has increased its price target to $2.40 from $2.25. Given that this represents less than a 15% premium to the share price, the broker has downgraded its recommendation on Catapult to Hold from Buy.

This report was published on May 28, 2021.

Target price is $2.40 Current Price is $2.04 Difference: $0.36
If CAT meets the Bell Potter target it will return approximately 18% (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 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.43.

Forecast for FY23:

Bell Potter forecasts a full year FY23 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 40.04.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.40

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

To reflect higher depreciation charges at around -$110m, plus headwinds in mushrooms and avocados, Bell Potter's net profit forecasts for Costa Group Holdings fall -26% in 2021, -18% in 2022 and -17% in 2023.

Bell Potter retains a Buy rating to reflect expansion and maturation of the international berry operations, maturation of the avocado orchards, and non-recurrence of seasonal factors impacting the citrus, tomato and berry operations in 2019-20.

The broker also expects further investment in capacity, notably for avocado, citrus and tomato to grow through the cycle earnings beyond calendar year 2022.

The target price is lowered to $4.60 from $5.10.

This report was published on May 28, 2021.

Target price is $4.60 Current Price is $3.40 Difference: $1.2
If CGC meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $4.09, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 12.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 1.6%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.2.

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


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

Within a recently released trading update, Costa Group revealed that while performance across categories has been mixed year-to-date, international is performing very strongly.

Costa also flagged challenges in domestic produce, particularly in the mushroom operations due to labour sourcing issues and  price deflation issues with avocado and tomato categories.

Goldman Sachs sees positive earnings growth trajectory for the company over the medium term, driven largely by volume growth from new plantings, although the challenges observed through this half illustrate the leverage Costa has not only to agricultural conditions but also to market conditions.

Despite Goldman Sachs' expectations for a stronger second half, the broker has cut its FY21 earnings forecast by -21.5%, noting the first half weighting of earnings.

Buy rating is maintained, and target price is lowered by -9% to $4.85.

This report was published on May 27, 2021.

Target price is $4.85 Current Price is $3.40 Difference: $1.45
If CGC meets the Goldman Sachs target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $4.09, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 1.6%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.2.

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


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

Following an unexpectedly weak AGM update, Jarden has materially cut Costa Group forecasts and is now forecasting a -10% decline in FY21 net profit.

Jarden's lower forecasts reflects earnings downgrades relating to staff shortages, hail damage, fruit-fly, weaker tomato and avocado pricing and potential pricing issues in citrus. The broker also notes increased D&A guidance.

For FY22 the broker's cuts are lower at -18% net profit, reflecting the view that mushroom issues will normalise, fruit-fly problems will be cycled and new plantings will drive growth. 

The Overweight rating is maintained and the target price is lowered to $4.00 from $4.80.

The broker suspects near-term share price risk until volatile until trends improve/stabilise.

This report was published on May 27, 2021. 

Target price is $4.00 Current Price is $3.40 Difference: $0.6
If CGC meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $4.09, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 11.00 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 1.6%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.1.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 13.00 cents and EPS of 20.50 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.2.

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


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

Costa Group Holdings did not provide earnings guidance at its annual general meeting, but pointed to first half performance marginally ahead of the previous corresponding period. Wilsons notes this guidance is underwhelming compared to the forecast for 29% growth. 

The company noted international performance has been strong compared to both expectations and results in the previous year.

Challenges in domestic produce conditions have somewhat offset this. Mushroom production has been impacted by labour shortages, both tomatoes and avocados are facing pricing pressure, and citrus operations have been challenged by hail damage and fruit fly restrictions, the broker explains.

Wilsons notes a skew in earnings for citrus in the second half, and pricing on tomatoes improving, as well as strong performance in the berry category. 

The Market Weight Rating is retained and the target price of $4.70 is under review. 

This report was published on May 27, 2021.

Current Price is $3.40. Target price not assessed.
Current consensus price target is $4.09, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 9.00 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 1.6%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.1.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 12.40 cents and EPS of 18.70 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.2.

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

CIA    CHAMPION IRON LIMITED

Iron Ore – Overnight Price: $6.66

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

Champion Iron reported its FY21 results, producing yet another record quarter with fourth quarter earnings of C$276m from the Bloom Lake mine in Canada, up 30% quarter-on-quarter but -4% versus Goldman Sachs' C$288m estimate.

Commenting on the result, Goldman Sachs notes Champion is doubling high grade iron ore production, with the Phase II expansion of Bloom Lake high grade iron ore production expected to jump to 15Mtpa from 8Mtpa.

The Phase II expansion of Bloom Lake is on track for first production in mid-2022 with remaining capex of about C$350m.

Goldman Sachs has revised FY21/22 earnings per share estimates by 3% and 6% on lower tax expense in FY21, and positive provisional pricing adjustments for FY22.

The Neutral rating is unchanged, and the target price increases to $6.70 from $6.50.

The report was issued May 27, 2021.

Target price is $6.70 Current Price is $6.66 Difference: $0.04
If CIA meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 75.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.86.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 54.31 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.26.

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

CL1    CLASS LIMITED

Cloud services – Overnight Price: $1.67

Shaw and Partners rates ((CL1)) as Buy (1) –

Commenting on Class Ltd's recent investor day update, Shaw and Partners notes recent acquisitions are already driving impressive organic growth, up 17% year to date while adoption of the new product Trust is meeting expectations. 

The broker also notes R&D investment is expected to trend down to 26% of revenue in FY22 and a target 22% at scale, versus around 33% in FY21.

Shaw believes Class is at a pivotal point in its ‘Reimagination’ strategy – where organic revenue growth starts to accelerate, scale benefits accrue, and margins can improve and ultimately be restored.

The broker also believes Class represents good value at current multiples. The Buy rating and target price of $2.48 are retained. 

The report was issued on May 27, 2021.

Target price is $2.48 Current Price is $1.67 Difference: $0.81
If CL1 meets the Shaw and Partners target it will return approximately 49% (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 5.00 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 2.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.30.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.00 cents and EPS of 5.50 cents.
At the last closing share price the estimated dividend yield is 2.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.36.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $1.92

Bell Potter rates ((CMM)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage on Capricorn Metals with a Speculative Buy rating and $2.48 target price. The gold exploration and development company's primary asset is the 100%-owned Karlawinda Gold Project in WA.

The broker considers Karlawinda is a long-life, low-cost, high margin asset with attractive exploration upside located in a top mining jurisdiction. The project includes the Bibra gold deposit

Open-pit mining operations and a 4.5Mtpa gold processing plant, designed to produce 110-125kozpa over a 10 year mine life (based on Reserves only), are in the final stages of construction.

This report was published on May 31, 2021.

Target price is $2.48 Current Price is $1.92 Difference: $0.56
If CMM meets the Bell Potter target it will return approximately 29% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 192.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 16.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.36.

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

CNU    CHORUS LIMITED

Telecommunication – Overnight Price: $5.93

Jarden rates ((CNU)) as Downgrade to Underweight from Neutral (4) –

Jarden has downgraded Chorus Ltd to Underweight from Neutral due to further regulatory uncertainty and relative sector valuation, with key upside risks including more benign regulatory outcomes and competition.

Jarden believes recent regulatory momentum has put downwards pressure on its valuation, while uncertainty on the value of unregulated copper assets also needs to be considered.

The price target is lowered to NZ$6.20 from NZ$7.32.

 This report was published on May 27, 2021. 

Current Price is $5.93. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 23.27 cents and EPS of 14.24 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.64.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 27.92 cents and EPS of 13.22 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.87.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EBO    EBOS GROUP LIMITED

Healthcare services – Overnight Price: $30.98

Jarden rates ((EBO)) as Buy (2) –

Pfizer's announcement that it will transition back to a wholesale distribution model should provide revenue uplift for the Ebos Group, Australian Pharmaceutical Industries ((API)) and Sigma Healthcare ((SIG)). 

Australian Pharmaceutical has already signed a contract with Pfizer implying around $4m in annual earnings uplift. Jarden estimates Ebos Group could see a corresponding annualised uplift of around $6m, or a 1.5-2% operating upgrade, given its larger market share.

Jarden also notes Ebos Group continues to show strong growth in the animal care sector, having reported first half revenue up 16% on the previous corresponding period. 

The Overweight rating is retained and the target price increases to NZ$32.83 from NZ$30.

This report was issued May 21, 2021.

Current Price is $30.98. Target price not assessed.
Current consensus price target is $29.58, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 79.11 cents and EPS of 110.57 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.7, implying annual growth of 13.0%.
Current consensus DPS estimate is 72.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 27.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 87.68 cents and EPS of 122.67 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 123.9, implying annual growth of 9.0%.
Current consensus DPS estimate is 79.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 25.0.

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

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $5.63

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

Eroad Ltd reported FY21 revenue of $91.6m and earnings of $30.7m, in line with Canaccord Genuity and consensus forecasts.

Management reiterated its previous FY22 guidance released in Nov-20, which expects the percentage revenue growth in FY22 will strengthen, but not be at the level experienced in FY20, implying growth of between 10% and 30%, explains the broker.

The broker suspects the wide growth range stems from Eroad’s sales conversion rate in North America.

The company also expects its earnings margin will be maintained for FY22 at 34%, in line with Canaccord's current forecasts (33.5%), implying FY22 earnings of $34m.

Cannacord estimates Eroad's long-term/steady-state earnings margins at 35% after incorporating upfront/ongoing hardware costs, software/hosting costs, S&M spend to replace churn, plus R&D spend. 

Buy rating is unchanged, and price target increases to NZ$6.20 from $6.00.

This report was published on May 31, 2021.

Current Price is $5.63. Target price not assessed.
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 12.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.14.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.33 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 241.94.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $6.97

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

At an investor day, Fletcher Building upgraded its FY21 earnings (EBIT) guidance range to NZ$650-665m from NZ$610-660m. Management also announced a NZ$300m on-market share buyback over the next 12 months, commencing this June.

Top-end guidance, ex development gains, was reduced to NZ$615m from NZ$620m, partly attributable to sectors the company is exposed to in Australia having lagged, and price increases in New Zealand lagging input cost increases.

With a clearer path to the FY23 growth target, Jarden raises medium-term forecasts and the target price is increased to NZ$7.34 from NZ$6.89. The rating is reduced to Neutral from Overweight on valuation grounds relative to the current share price. 

This report was published on 26 May, 2021.

Current Price is $6.97. Target price not assessed.
Current consensus price target is $7.60, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 26.06 cents and EPS of 31.83 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.5, implying annual growth of N/A.
Current consensus DPS estimate is 23.7, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 27.92 cents and EPS of 44.30 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of 7.7%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.0.

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

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $22.92

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

Within an update on its Iron Bridge magnetite growth project, Fortescue Metals disclosed the company has opted to stick with its initially proposed 135km slurry pipeline given the lower capex/cost, compared with the alternative of utilising its established rail infrastructure.

Capex has increased to US$3.3-3.5bn from the last update of up to US$3bn in February 2021.

On timing, about a 6-month delay as was previously guided in February 2021, with first ore now expected by December 2022 and a slower 12-18 month ramp up compared with the initial 12-months.

Goldman Sachs has made no changes to the broker's first ore (Q1 2023) and ramp up schedule and has kept upfront capex at US$3.7bn. The broker has made no changes to unit costs of US$38/t, but nudges up sustaining capex to US$6.8/t from US$4.8/t.

The Sell rating is retained and the target price is lowered to $18.20 from $18.30. 

This report was published on May 28, 2021. 

Target price is $18.20 Current Price is $22.92 Difference: minus $4.72 (current price is over target).
If FMG meets the Goldman Sachs target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $22.35, suggesting downside of -2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 317.52 cents and EPS of 396.57 cents.
At the last closing share price the estimated dividend yield is 13.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 420.0, implying annual growth of N/A.
Current consensus DPS estimate is 376.0, implying a prospective dividend yield of 16.4%.
Current consensus EPS estimate suggests the PER is 5.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 168.81 cents and EPS of 210.34 cents.
At the last closing share price the estimated dividend yield is 7.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 297.4, implying annual growth of -29.2%.
Current consensus DPS estimate is 267.5, implying a prospective dividend yield of 11.7%.
Current consensus EPS estimate suggests the PER is 7.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $29.31

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

Beyond some near-term dynamics, including the decline in hospitalisations and elevated air freight costs, Goldman Sachs discerns nothing changes the broker's positive mid/long-term view on Fisher & Paykel Healthcare.

Overall, Goldman Sachs updates sales, earnings, and earnings per share forecasts by an average of -8%, -18%, and -18% through FY22-23 as the broker re-bases consumables forecasts to reflect a lower exit-rate and factor in an elevated level of air freight costs.

The broker's FY22-25 earnings forecasts are 4-12% above their pre-pandemic levels.

Although not cheap in absolute terms, Goldman Sachs sees a clear double-digit growth trajectory plus, on a growth-adjusted basis, more valuation support than for other manufacturers.

Buy rating is maintained. Target price is lowered to $33.00 to reflect earnings revisions.

This report was produced on May 27, 2021.

Target price is $33.00 Current Price is $29.31 Difference: $3.69
If FPH meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $30.00, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 37.23 cents and EPS of 53.05 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.1, implying annual growth of N/A.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 47.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 43.75 cents and EPS of 62.36 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.8, implying annual growth of 1.1%.
Current consensus DPS estimate is 40.7, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 46.7.

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 ((FPH)) as Overweight (2) –

Fisher & Paykel Healthcare has reported a strong FY21 result, with net profit up 82% to NZ$524m, but soft relative to high market expectations, according to Jarden.

The step change in profitability was underpinned by unprecedented covid demand for its hospital division, with the company selling around 6x normal hardware, and circa 2x consumables, while treating 20m patients.

No earnings guidance was provided for FY22, but the company reiterated its NZ$20bn total addressable market estimate. The company also reaffirmed plans to keep advancing manufacturing capacity and hold higher levels of inventory to ensure any surge in demand can be met. 

The broker believes covid has materially strengthened the company's growth opportunity, particularly with respect to high nasal flow therapy both with the Hospital and Home setting.

Jarden has amended FY22-24 net profit estimates by -4%, -4%, and 1% but notes the inherent difficulty calibrating what a normalisation profile looks like for the company.

Overweight recommendation maintained, and target price is lowered to NZ$34.00 from NZ$36.10 to reflect Jarden's near-term downgraded forecasts.

The report was issued May 27, 2021.

Current Price is $29.31. Target price not assessed.
Current consensus price target is $30.00, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 42.54 cents and EPS of 65.43 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.1, implying annual growth of N/A.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 47.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 48.59 cents and EPS of 74.65 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.8, implying annual growth of 1.1%.
Current consensus DPS estimate is 40.7, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 46.7.

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


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

While short term earnings visibility remains tough in the absence of quantitative guidance, Wilsons' positive view on Fisher & Paykel Healthcare is based on the broker's analysis of the outlook for the company's high-flow nasal cannula device.

The company's second half result featured a beat on hardware sales, and this momentum will likely continue in emerging markets where covid admissions remain high, the broker suggests.

Consumables sales missed the broker's forecasts but it is impossible to determine whether this reflects a lag in installed base ‘pull-through’ or suboptimal utilisation of units placed during the pandemic, the broker notes.

Overweight retained, target falls to $35.00 from $37.50.

 Report first published May 28, 2021.

Target price is $35.00 Current Price is $29.31 Difference: $5.69
If FPH meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $30.00, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 37.23 cents and EPS of 64.78 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.1, implying annual growth of N/A.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 47.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 38.16 cents and EPS of 66.27 cents.
At the last closing share price the estimated dividend yield is 1.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.8, implying annual growth of 1.1%.
Current consensus DPS estimate is 40.7, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 46.7.

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

GDC    GLOBAL DATA CENTRE GROUP

Cloud services – Overnight Price: $1.82

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

Global Data Centre Group has announced the organic expansion of capacity at ETIX resulting in a 35% increase in megawatts under management.

ETIX has advised that based upon demand and utilisation of data centres in Nantes and Liege, the group will expand capacity by 0.6MW to 2.25MW. Shaw and Partners  explains this represents a 35%-plus increase in capacity over the last 6 months across a strongly growing Edge data centre business.

While Shaw and Partners expects the company to be the fastest growing data centre business on the ASX, the broker also believes the company is misunderstood due to asset consolidation.

Post the expansion of ETIX the broker sees a continued catalyst-rich environment, including sanction and expansion of a new data centre hall in Guam, and further growth across ETIX assets.

The broker also expects to see revaluation and growth in Airtrunk stake, plus further acquisitions in the data centre space.

Having shifted to now being a purer play owning operating data centre assets, Shaw sees significant upside to growth and valuation group wide across a high quality management team.

Buy rating and a target price of $2.82 are both retained.

This report was published on May 28, 2021. 

Target price is $2.82 Current Price is $1.82 Difference: $1
If GDC meets the Shaw and Partners target it will return approximately 55% (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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 121.33.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 140.00.

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

IGL    IVE GROUP LIMITED

Media – Overnight Price: $1.47

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

IVE Group has reiterated guidance for FY21 underlying earnings, including JobKeeper, of $98-100m. The company is also guiding to net debt of between $90-100m, down from $137.1m at the end of FY20. 

The company has continued to win business and renew key contracts during the second half, including a five-year deal with Australian Community and Media for around $20m per annum. 

Bell Potter highlights the stable net debt position demonstrates the company's ability to generate strong free cash flow, providing opportunity for management to maximise dividends while continuing to buy back shares.

The Buy rating and target price of $1.70 are retained. 

This report was published on May 27, 2021.

Target price is $1.70 Current Price is $1.47 Difference: $0.23
If IGL meets the Bell Potter target it will return approximately 16% (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 12.00 cents and EPS of 24.20 cents.
At the last closing share price the estimated dividend yield is 8.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.07.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 13.10 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 8.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.56.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.99

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

Bell Potter retains a Buy rating and $4.30 price target for Inghams Group after a stronger-than-expected trading update, with operating earnings (EBITDA) looking stronger than consensus averages.

The result is largely driven by delivery against restructuring initiatives implemented pre-pandemic, and a more normal mix in sales as covid lockdown headwinds abate, explains the broker.

The analyst's positive stance on the group is principally driven by leverage to feed-cost deflation in FY22, at a time when covid business disruptions are likely to be easing.

The underlying performance year-to-date has exceeded Bell Potter's expectations, and this has been achieved despite headwinds in the feed business and the need to work aged inventory through the first quarter.

This report was published on May 31, 2021.

Target price is $4.30 Current Price is $3.99 Difference: $0.31
If ING meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $4.07, suggesting upside of 2.0%(ex-dividends)
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 26.70 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.7, implying annual growth of 128.9%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 19.00 cents and EPS of 31.20 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of 13.4%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.3.

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


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

With improved volumes, operating cost efficiencies, and a lower tax rate contributing to an improving A&NZ poultry market, Goldman Sachs has upgraded Inghams Group FY21-FY23 earnings forecasts by 2-5% and earnings per share forecasts by 2-11%.

The broker believes a key near-term catalyst for Inghams is the Woolworth’s supermarket supply contract, due to expire in August 2021, which accounts for circa 50% of the company's Australian poultry volumes.

While Goldman Sachs expect this contract to be retained with similar terms and conditions, the broker notes any gain or loss of volume or margin from a key contract may have an effect on forecasts.

The Buy rating is retained and the target price increases to $4.50 from $4.30. 

This report was published on May 28, 2021.

Target price is $4.50 Current Price is $3.99 Difference: $0.51
If ING meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.07, suggesting upside of 2.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.7, implying annual growth of 128.9%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of 13.4%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.3.

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

IVC    INVOCARE LIMITED

Consumer Products & Services – Overnight Price: $11.42

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

After a first quarter trading update, Bell Potter reduces case volume and margin forecasts. The revisions to margins reflect the deleverage impact from lower volumes. EPS forecasts for FY21-23 are lowered by -20%, -19% and -18%, respectively.

Management noted funeral case volumes continue to be below long-term trend, and assessing how quickly volumes will return to pre-covid levels “is very difficult to forecast”. The Buy rating is maintained and the target price falls to $12.20 from $12.85.

The analyst highlights the improvement in average revenue per funeral (ARPF) in 2H20/January 2021 has continued through the balance of 1Q2021 and is back at pre-covid levels. That said, ARPF is considered exposed to short-notice covid lockdowns/restrictions. 

This report was published on May 31, 2021.

Target price is $12.20 Current Price is $11.42 Difference: $0.78
If IVC meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $10.73, suggesting downside of -6.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 16.50 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.7, implying annual growth of N/A.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 42.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 26.70 cents and EPS of 38.10 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.6, implying annual growth of 37.1%.
Current consensus DPS estimate is 31.2, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 31.2.

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

JIN    JUMBO INTERACTIVE LIMITED

Gaming – Overnight Price: $17.49

Goldman Sachs rates ((JIN)) as Downgrade to Neutral from Buy (3) –

Since Goldman Sachs initiated coverage on Jumbo Interactive with a Buy rating alongside a target price of $14.50 in early November 2020, the shares are up 31% versus the ASX200's 15%, implying 16% outperformance.

As a result, with upside limited following recent outperformance, the broker has downgraded Jumbo to Neutral, but has made no changes to FY21-23 earnings estimates, which remain above consensus.

However, Goldman Sachs remains positive about the medium-term prospects for Jumbo, and highlights its capital light business model, as well as balance sheet strength.

The broker also notes upside and leverage from large jackpots and benefit from potential OzLotto game changes in FY23, plus potential upside from the SaaS business.

The target price of $15.00 remains unchanged.

This report was published on May 31, 2021.

Target price is $15.00 Current Price is $17.49 Difference: minus $2.49 (current price is over target).
If JIN meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.73, suggesting downside of -15.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 32.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.0, implying annual growth of 13.1%.
Current consensus DPS estimate is 36.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 38.00 cents and EPS of 55.00 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 31.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.3, implying annual growth of 17.7%.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 31.6.

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

LNK    LINK ADMINISTRATION HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $4.99

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

PEXA is expecting an earnings margin of around 52% in both FY21 and FY22, which is in line with the first half FY21 disclosed margin, notes Goldman Sachs.

While revenue information disclosed is consistent with Link Administration's current disclosure, Goldman Sachs' reading of cost/margin disclosure is not consistent, with material presented looking more representative of PEXA’s cost base as a standalone entity.

As such the broker does not see the 52% earnings margin forecast as being consistent with the first half FY21 result.

Late May saw KKR lodge a surprise bid to acquire 100% of PEXA. Goldman Sachs calculates a sale at the offer price, assuming the bid was successful, would lead to a post-tax gain on sale of around $550m for Link, and improve its first half FY21 net debt position.

Minor adjustments to Goldman Sachs' estimates to incorporate the PEXA forecasts, result in the broker's Link group operating earnings per share estimates in FY21-FY23 shifting 1.6%, -0.9%, and -1.3% respectively.

Neutral rating is retained, and target price increases to $5.06 from $4.90.

This report was published on May 28, 2021.

Target price is $5.06 Current Price is $4.99 Difference: $0.07
If LNK meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $5.61, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.2, implying annual growth of N/A.
Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 22.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 14.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 2.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of 18.5%.
Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.0.

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

MFG    MAGELLAN FINANCIAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $53.22

Jarden rates ((MFG)) as Buy (1) –

Given FuturePay (launch date June 1) will have tax advantages similar to other retirement income products, Jarden thinks it will resonate well with Magellan Financial Group's client base.

The broker notes FuturePay is one of a few innovative products in the market and so should benefit from being highly differentiated. Management has previously stated the product will be low in capital intensity, thus it's thought unlikely to provide income guarantees.

The analyst doesn't capture any earnings upside from FuturePay and the Buy rating and $57.60 target price are retained.

This report was published on 26 May, 2021.

Target price is $57.60 Current Price is $53.22 Difference: $4.38
If MFG meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $50.34, suggesting downside of -5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 210.20 cents and EPS of 236.30 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 232.0, implying annual growth of 6.3%.
Current consensus DPS estimate is 215.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 237.60 cents and EPS of 268.20 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 253.0, implying annual growth of 9.1%.
Current consensus DPS estimate is 235.9, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 21.0.

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

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $3.24

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

Money3 Corp has upgraded its FY21 net profit after tax guidance to $38m, from $36m. Canaccord Genuity increases its forecast 4% accordingly. 

The broker highlights the company is enjoying strong originations growth that points to corresponding profit growth during FY22. The longer-term target of $1bn in receivables looks achievable for FY24, according to the broker. 

The acquisition of Automotive Financial Services earlier in the year is expected to provide opportunity for loan book growth and contribute to the long-term target. 

After acquiring Go Car Finance in 2019, Money3 more than doubled the company's loan book, and Canaccord draws parallels between these acquisitions.  

The Buy rating is retained and the target price increases to $3.60 from $3.40.

This report was published on May 24, 2021. 

Target price is $3.60 Current Price is $3.24 Difference: $0.36
If MNY meets the Canaccord Genuity target it will return approximately 11% (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 9.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 2.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.20.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 12.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.50.

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

MOZ    MOSAIC BRANDS LIMITED

Apparel & Footwear – Overnight Price: $0.63

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

Mosaic Brands announced finalised plans for the acquisition of the remaining 49% of EziBuy. Payments have been delayed until 31 December 2021, and Wilsons suggests this will allow the deal to be made with cash without need for equity raising. 

The company expects EziBuy to achieve underlying earnings of NZ$2.5m in FY21 and NZ$5.0m in FY22, and contribute annual synergies of NZ$3.0-5.0m. Wilsons suggests synergies could eventually be as high as NZ$10.0m. 

The company also reported the renewal of the $25.0m working facility with ANZ Bank, which will reduce to $15.0m in January 2022. 

The Overweight rating and target price of $3.00 are retained. 

This report was published on May 26, 2021.

Target price is $3.00 Current Price is $0.63 Difference: $2.37
If MOZ meets the Wilsons target it will return approximately 376% (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 14.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.29.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 21.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.97.

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

MSB    MESOBLAST LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.16

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

Mesoblast's randomised clinical trial for the use of remestemcel-L in covid-related acute respiratory distress syndrome did not meet its primary endpoint. Despite this, efficacy data have pointed to a significant benefit to patients aged 65 and under. 

Bell Potter highlights that an attractive market for the treatment will continue in the thousands of US patients who suffer from influenza and pneumonia each year.

The $50m cash injection licensing deal with Novartis, signed in November 2020, is subject to certain closing conditions. Bell Potter notes the treatment still has ample upside potential for Novartis if it chooses to proceed. 

Further, based on the deferral of milestone payments for the MPC-06-ID treatment commercialisation deal from Grunenthal, the broker has decreased FY21 revenue by -$57m. 

The Buy rating is retained and the target price decreases to $3.60 from $4.70. 

This report was published on May 27, 2021.

Target price is $3.60 Current Price is $2.16 Difference: $1.44
If MSB 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 0.00 cents and EPS of minus 15.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.40.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 22.78 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.48.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $3.77

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

Omni Bridgeway has settled a large case in US Fund 1, generating an impressive 78% internal rate of return (IRR), 3.85x return on invested capital (ROIC) and a profit of $34.1m, Goldman Sachs comments.

Goldman Sachs thinks the market is not factoring in the earnings potential of the fund model and maintains the stock is materially undervalued. In the broker's view, the underperformance of Fund 1 has been a key point of contention, negatively impacting the share price. 

There are 23 investments remaining in Fund 1 with an estimated earnings power value of $2.1bn. If historic returns hold, Goldman Sachs expects remaining investments in Fund 1 to be more than sufficient for the company to start to receive its 85% share of profits post distributions.

The Buy rating and target price of $5.75 are both retained.

This report was published on May 27, 2021. 

Target price is $5.75 Current Price is $3.77 Difference: $1.98
If OBL meets the Goldman Sachs target it will return approximately 53% (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 13.46.

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 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.63.

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

QIP    QANTM INTELLECTUAL PROPERTY LIMITED

Legal – Overnight Price: $1.15

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

Bell Potter is forecasting QANTM IP to pay a 6.9% fully franked dividend yield for FY21, including a final dividend of 3.5 cents per share. Further, the broker looks ahead to an expected 7.2% fully franked dividend yield for FY22. 

QANTM has outlined plans to invest -$8-10m in capital expenditure over the next two to three years, expecting to see a resultant $4-6m in efficiency and productivity benefits per annum starting in FY22.

The company is also engaging in further merger and acquisitions talks with several companies in Asia, using the Advanz Fidelis acquisition as a blueprint. 

The Buy rating and target price of $1.55 are retained. 

This report was published on May 27, 2021.

Target price is $1.55 Current Price is $1.15 Difference: $0.4
If QIP meets the Bell Potter target it will return approximately 35% (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 7.50 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.73.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 7.80 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 6.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.27.

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

RED    RED 5 LIMITED

Gold & Silver – Overnight Price: $0.20

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

Red 5 has decreased FY21 guidance due to labour shortages. Canaccord Genuity expects Western Australian producers to continue to be affected by labour shortages in the near-term. 

New guidance puts production from the Darlot asset at 74-78,000 ounces at an all-in sustaining cost of $2,240-2,290 per ounce. At the midpoint, this implies an -8% production decrease and a 2% increase to the all-in sustaining cost.

Following operational issues at Darlot for last 12-18 months, management is reviewing Darlot mining operations. Based on this, the broker has reduced expectations for FY22 to total production of 61,000 ounces at an all-in sustaining cost of $2,366 per ounce. 

Despite this, the broker maintains the KOTH underground mine remains the most attractive aspect of Red 5, and points to the potential sale of Siana as a positive catalyst for the share price. 

The Speculative Buy rating is retained and the target price decreases to $0.30 from $0.35. 

This report was published on May 24, 2021. 

Target price is $0.30 Current Price is $0.20 Difference: $0.1
If RED meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

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

Forecast for FY22:

Canaccord Genuity 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 10.00.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $63.97

Jarden rates ((RHC)) as Buy (1) –

In what Jarden considers an opportunistic time, when the UK health system is struggling to cope with an unprecedented backlog of volumes, the company has announced a proposed $1.8bn debt-funded acquisition of Spire Healthcare.

The broker notes the combined entity would become the largest UK private hospital operator with 73 hospitals, 11 clinics and 217 operating theatres. There's considered capacity to secure NHS volumes and maintain a self-pay and private health insurance offering.

With at least GBP26m in potential synergies by FY24, the stated "high single digit eps accretion" does not look onerous to the analyst, who thinks this is a sound transaction.

The Buy rating and $86 target are maintained.

This report was published on 26 May, 2021.

Target price is $86.00 Current Price is $63.97 Difference: $22.03
If RHC meets the Jarden target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $71.62, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 107.10 cents and EPS of 192.70 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 33.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 199.3, implying annual growth of 52.1%.
Current consensus DPS estimate is 111.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 32.1.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 151.80 cents and EPS of 274.30 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.6, implying annual growth of 29.3%.
Current consensus DPS estimate is 141.2, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 24.8.

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

SCP    SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP RE LIMITED

REITs – Overnight Price: $2.61

Moelis rates ((SCP)) as Buy (1) –

Moelis has provided an update on Shopping Centres Australasia, highlighting a diversified portfolio of neighbourhood and sub-regional centres. 

Moelis notes that 47% of Shopping Centres' income comes from low-risk majors such as Woolworths ((WOW)), Coles ((COL)) and Wesfarmers ((WES)). The broker also reiterates the company is at low levels of structural risk from online trends. 

The company is currently trading at a 7% premium to reported net tangible assets, and the broker expects a FY22 dividend yield of 6.1%. Moelis has lifted its target price based on positive transaction evidence for neighbourhood centres. 

The Buy rating is retained and the target price increases to $2.64 from $2.56.

The report was published on May 21, 2021.

Target price is $2.64 Current Price is $2.61 Difference: $0.03
If SCP meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $2.46, suggesting downside of -5.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Current consensus EPS estimate is 13.9, implying annual growth of 56.2%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY22:

Current consensus EPS estimate is 15.8, implying annual growth of 13.7%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 16.5.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $6.66

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

First half underlying profit for Select Harvests was slightly ahead of Bell Potter's expectation. The second half is expected to be broadly in line with the first, and FY21 is predicated on an almond price of $6.00/Kg, with 80% of US dollar requirements hedged at US73 cents.

The broker notes the key near-term driver is the direction of US almond prices, following a stronger-than-expected subjective estimate and the potential for ongoing global supply chain disruptions. The Hold rating and $6 target are retained.

This report was published on May 31, 2021.

Target price is $6.00 Current Price is $6.66 Difference: minus $0.66 (current price is over target).
If SHV meets the Bell Potter target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 266.40.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 9.00 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.81.

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


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

Select Harvests' first half earnings result of $3.0m was down -88% on the previous first half and well below Wilsons' forecast of $10.4m. Operating cash flow improved significantly but still fell short of forecast. No dividend was declared, when the broker had assumed 2.5c.

The FY21 almond crop forecast meets the broker's expectations, although FY21 price guidance of $6.00/kg is below the broker's $6.24 forecast.

That said, Wilsons expects the market will not pay too much attention to the miss or possibly even FY21 earnings revisions, rather is more likely to focus on timing of a recovery in the almond price and implications for FY22 earnings.

Target price (previously $6.67) and earnings forecasts under review. Overweight retained.

Report first published May 28, 2021.

Current Price is $6.66. Target price not assessed.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $6.37

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

Lantheus, a US-based peer of Telix Pharmaceuticals, has received FDA approval for its imaging agent for prostate cancer, which will be the first in the category, Wilsons notes. Telix' product is also under FDA review, with a decision due before September 23.

The two products nonetheless differ, the broker notes. Aside from the isotope production timing, Lantheus is somewhat further disadvantaged by approval as a finished drug product, as opposed to Telix, which is seeking approval for a manufacturing kit.

Wilsons understands Telix’ decentralised model is well advanced in terms of its preparation, planning to have 95% coverage of relevant US hospitals within days of FDA approval. The broker's models are based on a shared market for both products.

Overweight and $5.40 target retained.

This report was first published on May 28, 2021.

Target price is $5.40 Current Price is $6.37 Difference: minus $0.97 (current price is over target).
If TLX 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 December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.57.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.07.

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

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

TechnologyOne's strong overall first half FY21 result was underscored by SaaS annual contract value (ACV) growth which was up 41% year-on-year. 

Commenting on the result, Shaw and Partners notes TechnologyOne's cloud conversion story appears to be gaining pace, and the largely flat cost base over recent years is shining a light on the potential for operating leverage.

The broker highlights that guidance still implies high single-digit gross free cash flow growth in FY21.

TechnologyOne is targeting FY21 profit before tax of between $94.3-98.6m, with the mid-point of $96.5m a little ahead of the broker's prior forecast of $96.2m (now $96.6m).

Buy rating maintained and target price is increased to $10.00 from $9.76.

This report was first issued May 27, 2021.

Target price is $10.00 Current Price is $9.08 Difference: $0.92
If TNE meets the Shaw and Partners target it will return approximately 10% (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:

Shaw and Partners forecasts a full year FY21 dividend of 13.90 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.31.

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:

Shaw and Partners forecasts a full year FY22 dividend of 14.90 cents and EPS of 25.00 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 36.32.

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

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices – Overnight Price: $1.17

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

Due largely to an increase in SaaS revenues, Volpara Health Technology reported a 21% increase in first half FY21 revenue to $19.7m.

Commenting on the FY21 result, Bell Potter notes a pleasing increase in revenues and a decline in operating cash burn.

The broker believes the company's guidance for FY22 revenues in the range of $25m-$26m indicates ongoing growth for the core business that will probably accelerate as the US market continues its exit from covid related restrictions.

While there are no material changes to earnings forecasts, the broker expects the major catalyst for Volpara is likely to be the announcement of June quarter cash collections which are trending strongly.

The Buy rating and the target price of NZ$1.80 are both retained.

This report was published on May 28, 2021.

Current Price is $1.17. Target price not assessed.
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 4.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.94.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.68 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 69.85.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $1.97

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

Following a favourable court ruling, Whitehaven Coal now looks forward to receiving environmental approval for the Vickery Extension Project at the Gunnedah Basin, in New South Wales.

In the months leading to a full ministerial approval, Shaw and Partners expects the company to use the time wisely to retire debt with any available surplus cashflow.

Citi expects a Narrabri operational update in coming days/week on the operating performance post the March quarter FY21 update and with feedback from investigative drilling of the remaining coal to be sourced in LW109.

The Buy rating and target price of $2.50 both retained.

This report was published on May 28, 2021.

Target price is $2.50 Current Price is $1.97 Difference: $0.53
If WHC meets the Shaw and Partners target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $2.40, suggesting upside of 21.8%(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 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 123.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.6, 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:

Shaw and Partners forecasts a full year FY22 dividend of 4.00 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of N/A.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 13.3.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.27

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

After a comparison to fintech peers, Shaw and Partners believes Wisr is the highest-quality lender in Australia. The company is also considered to have consistently outperformed over the past 12 months on all major measures.

The broker expects the financial wellness proprietary technology platform to continue to increase margins and loan origination growth. It reduces the cost of customer acquisition by a meaningful -70% and improves return on investment (ROI).

It also delivers more Wisr Ecosystem innovation, features and experiences that should pave the way for creating new revenue models beyond traditional financial products, explains the analyst. Buy rating and $0.55 target price.

This report was published on May 31, 2021.

Target price is $0.55 Current Price is $0.27 Difference: $0.28
If WZR meets the Shaw and Partners target it will return approximately 104% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 67.50.

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

ZBT    ZEBIT, INC

Business & Consumer Credit – Overnight Price: $0.92

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

Having concluded that Zebit Inc's FY21 revenue guidance of US$140-$150m is conservative, Shaw and Partners has not made any changes to forecasts until the broker sees through the first half FY21 result and will then revisit.

The broker believes FY21 revenue guidance is conservative due to omitting any material uplift from B2B channel given recent wins, or material benefit from the ramp up in marketing spend to accelerate new customer registrations.

Shaw and Partners believes a growth rate of 60-71% in this environment is still exceptional as the company scales up its marketing costs to aggregate new customers and expand its range and product offering.

Zebit reiterated that first half FY21 is on track to meet or beat prospectus forecast of US$55.1m.

The Buy rating and target price of $2.00 are retained. 

This report was published on May 28, 2021.

Target price is $2.00 Current Price is $0.92 Difference: $1.08
If ZBT meets the Shaw and Partners target it will return approximately 117% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.87.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.80.

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


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

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

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

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms

CHARTS

ABB AHX ALQ APA API APX AST AWC BET CAT CGC CIA CL1 CMM CNU COL EBO ERD FBU FMG FPH GDC IGL ING IVC JIN LNK MFG MNY MOZ MSB OBL QIP RED RHC SCP SHV SIG SKI TAH TLX TNE VHT WES WHC WOW WZR ZBT

For more info SHARE ANALYSIS: ABB - AUSSIE BROADBAND LIMITED

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

For more info SHARE ANALYSIS: ALQ - ALS LIMITED

For more info SHARE ANALYSIS: APA - APA GROUP

For more info SHARE ANALYSIS: APX - APPEN LIMITED

For more info SHARE ANALYSIS: AST - AUSNET SERVICES LIMITED

For more info SHARE ANALYSIS: AWC - ALUMINA LIMITED

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

For more info SHARE ANALYSIS: CAT - CATAPULT GROUP INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: CGC - COSTA GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: CIA - CHAMPION IRON LIMITED

For more info SHARE ANALYSIS: CL1 - CLASS LIMITED

For more info SHARE ANALYSIS: CMM - CAPRICORN METALS LIMITED

For more info SHARE ANALYSIS: CNU - CHORUS LIMITED

For more info SHARE ANALYSIS: COL - COLES GROUP LIMITED

For more info SHARE ANALYSIS: EBO - EBOS GROUP LIMITED

For more info SHARE ANALYSIS: ERD - EROAD LIMITED

For more info SHARE ANALYSIS: FBU - FLETCHER BUILDING LIMITED

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

For more info SHARE ANALYSIS: GDC - GLOBAL DATA CENTRE GROUP

For more info SHARE ANALYSIS: IGL - IVE GROUP LIMITED

For more info SHARE ANALYSIS: ING - INGHAMS GROUP LIMITED

For more info SHARE ANALYSIS: IVC - INVOCARE LIMITED

For more info SHARE ANALYSIS: JIN - JUMBO INTERACTIVE LIMITED

For more info SHARE ANALYSIS: LNK - LINK ADMINISTRATION HOLDINGS LIMITED

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

For more info SHARE ANALYSIS: MNY - MONEY3 CORPORATION LIMITED

For more info SHARE ANALYSIS: MOZ - MOSAIC BRANDS LIMITED

For more info SHARE ANALYSIS: MSB - MESOBLAST LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: QIP - QANTM INTELLECTUAL PROPERTY LIMITED

For more info SHARE ANALYSIS: RED - RED 5 LIMITED

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

For more info SHARE ANALYSIS: SHV - SELECT HARVESTS LIMITED

For more info SHARE ANALYSIS: SIG - SIGMA HEALTHCARE LIMITED

For more info SHARE ANALYSIS: SKI - SPARK INFRASTRUCTURE GROUP

For more info SHARE ANALYSIS: TAH - TABCORP HOLDINGS LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED

For more info SHARE ANALYSIS: VHT - VOLPARA HEALTH TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: WES - WESFARMERS LIMITED

For more info SHARE ANALYSIS: WHC - WHITEHAVEN COAL LIMITED

For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED

For more info SHARE ANALYSIS: WZR - WISR LIMITED

For more info SHARE ANALYSIS: ZBT - ZEBIT, INC