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Australian Broker Call *Extra* Edition – Jun 30, 2021

Daily Market Reports | Jun 30 2021

This story features AI-MEDIA TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: AIM

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)

AIM   ARB   BGA   CDA   CIP   CQR   DEG   ELO   EMN   ERD   FMG   GDI   GNG   GNP   GOR   HUB   IFM   IGO   JAN   LNK   LOT   MFD   MFG   MP1   MRM   MWY   NEC   NWC   NXT   ORR   OTW   PEN   PFP   PME   PWR   PYG   RCL   RRL   SMP   TLX   UWL (3)   WES (2)   WHC   WOR  

AIM    ACCESS INNOVATION HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $0.87

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

Access Innovation has announced a 3-year extension of its live captioning contract with Sky News Australia.

Bell Potter believes this development demonstrates the company’s ability to sell its new higher margin product (Smart ASR) into its existing customer base without cannibalising the existing revenue base through increased volume.

Management has also reaffirmed prospectus forecasts for FY21, with deals completed post IPO providing further upside. This includes an additional $1.5m revenue from the acquisitions of Caption IT and Caption access in January, plus $1.7m revenue from the EEG acquisition completed on 8 May.

Following this update, the broker has upgraded FY21 revenue forecasts by around 4% and narrowed underlying earnings to a forecast loss of -$4.3m.

Buy rating and target price of $1.40 both unchanged.

This report was published on June 4, 2021.

Target price is $1.40 Current Price is $0.87 Difference: $0.53
If AIM meets the Bell Potter target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.46.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.79.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $43.50

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

Given the combination of strong demand and supply constraints, Wilsons now sees strong trading results for ARB Corp extending into calendar year 2022.

The broker remains attracted to ARB and its prospects for sustained sales growth through a continued shift to SUVs, significant investment in R&D, and penetration of export markets.

May saw another month of strong sales in the 4X4, up 61% on the previous period and Large SUV, up 85% on the previous period.

Wilsons believes sustained strong demand is being driven by the structural shift towards these vehicle types, extension of the Federal Government’s instant asset write-off scheme (to 30 June 2023), and domestic tourism activity.

Of particular note is evidence of improved activity levels in the Dealership and Fleet channels which lagged the strength in the Retail channel in first half FY21.

While gross margins are broadly unchanged, Wilsons' sales forecasts are upgraded 4.5% in FY21, 6.5% in FY22 and 2.4% in FY23.

Wilsons maintains its Overweight rating with the target rising to $47.80 from $39.90.

This report was published on June 4, 2021.

Target price is $47.80 Current Price is $43.50 Difference: $4.3
If ARB meets the Wilsons target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $38.89, suggesting downside of -10.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 60.00 cents and EPS of 126.40 cents.
At the last closing share price the estimated dividend yield is 1.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 116.9, implying annual growth of 62.8%.
Current consensus DPS estimate is 57.9, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 37.2.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 63.00 cents and EPS of 113.90 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 38.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.4, implying annual growth of -6.4%.
Current consensus DPS estimate is 63.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 39.8.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.90

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

Due to an update of peer group multiples for the sum-of-the-parts valuation and a longer term increase in synergies from recently acquired Lion Dairy and Drinks, Goldman Sachs has increased the longer term synergy target for Bega Cheese to $45m from $41m.

The broker has greater confidence that Bega can extract benefits from milk solids optimisation, toll processing opportunities, and chilled distribution network synergies.

Driven by removal of previously announced Reckitt service fee income, Goldman Sachs has revised FY21, FY22, and FY23 underlying earnings per share by 0.0%, -2.5%, and -4.7% respectively.

While it is not obvious from the current earnings margins Lion Dairy and Drinks generates, the broker thinks increased branded exposure should deliver greater returns over the long-term, particularly post-synergies.

Neutral rating with the target rising to $6.40 from $6.05.

This report was published on June 3, 2021.

Target price is $6.40 Current Price is $5.90 Difference: $0.5
If BGA meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.78, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.00 cents and EPS of 15.00 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 39.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.4, implying annual growth of 67.9%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 36.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 13.00 cents and EPS of 29.00 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 20.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of 81.7%.
Current consensus DPS estimate is 11.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 19.8.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $17.79

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

Given it hasn't scaled to a level that supports the investment required in the technology, Codan Ltd has entered into an agreement to sell its Tracking Solutions division, Minetec to Caterpillar for US$14m plus an earnout over five years.

Based on the underperformance and relevance relative to the enlarged Codan business, Canaccord Genuity doesn't regard the sale as surprising and estimates the company has invested $30-40m in Minetec over time.

In Canaccord Genuity's view, the earnings impact will be negligible, relative to the broker's estimates and had been forecasting a small profit in FY21, increasing to earnings of $2.5m in FY22.

While there will be an impact on revenue with Cannacord's estimates for FY22 being $15m, there will be no impact on the broker's valuation.

The Buy rating and target price of $17.10 both retained.

This report was published on June 2, 2021.

Target price is $17.10 Current Price is $17.79 Difference: minus $0.69 (current price is over target).
If CDA meets the Canaccord Genuity target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 26.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.57.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 33.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.95.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.75

Moelis rates ((CIP)) as Hold (3) –

Centuria Industrial REIT recently announced the revaluation of its entire portfolio of 61 properties with net tangible asset/unit increasing by 16% from $3.33 to $3.85.

The REITs two largest assets, its Telstra Data Centre and Arnott’s biscuit factory, reported valuation gains of 13% and 9% respectively, and are now valued at cap rates of 3.38% and 3.88% respectively, highlights Moelis.

Driven by a highly competitive transactional market, and with the portfolio cap rate now at 4.5%, Moelis believes Centuria Industrial REIT has one of the firmer portfolio cap rates in the listed market.

Though the sector remains highly favourable, and continues to benefit from supportive macro tailwinds, the broker believes the REIT's 4.8% distribution per unit is relatively fairly valued, with upside likely to be driven by accretive acquisitions and successfully leasing outcomes.

Hold rating is retained and the target price increases to $3.69 from $3.62 to reflect a strong uplift to the broker's sum of the parts valuation.

This report was published on June 4, 2021.

Target price is $3.69 Current Price is $3.75 Difference: minus $0.06 (current price is over target).
If CIP meets the Moelis target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.76, suggesting upside of 0.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.00 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of -21.2%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 21.4.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 3.4%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 20.7.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $3.78

Moelis rates ((CQR)) as Buy (1) –

Moelis has taken a closer look at the attractiveness of smaller format shopping centres as an investment opportunity. The broker highlighted Charter Hall Retail as well-diversified and in value territory after a -7% share price decline in the last month. 

Moelis considers Charter Hall Retail's asset mix to offer low-risk exposure to sub-regional and neighbourhood centres, BP service stations and a Coles ((COL)) distribution centre. 

52% of the company's income is from market leading tenants Woolworths ((WOW)), Coles ((COL)), Wesfarmers ((WES)) and BP. Discount department store tenants such as Kmart have also fared well through covid. The broker forecasts a FY22 dividend yield of 6.9%

The Buy rating is retained and the target price increases to $3.87 from $3.86. 

This report was published on May 27, 2021.

Target price is $3.87 Current Price is $3.78 Difference: $0.09
If CQR meets the Moelis target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $3.72, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 23.40 cents and EPS of 27.30 cents.
At the last closing share price the estimated dividend yield is 6.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.8, implying annual growth of 183.3%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 25.50 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.8, implying annual growth of 3.7%.
Current consensus DPS estimate is 24.9, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 13.6.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.19

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

Following a recent site visit, Canaccord Genuity has further reason to assume the broker's expectations for De Grey Mining's maiden Hemi Resource continues to look increasingly conservative.

While excluding Diucon and Eagle which have only been recently discovered, the broker now sees good potential for it to be included in the maiden resource, which could drive a beat versus Cannacord's expectations.

While Cannacord recognises De Grey is trading in line with base case valuation, the broker maintains a Speculative Buy recommendation with good potential for further valuation upside across a number of scenarios.

Buy rating is maintained with the target rising to $1.60 from $1.50.

This report was published on June 2, 2021.

Target price is $1.60 Current Price is $1.19 Difference: $0.41
If DEG meets the Canaccord Genuity target it will return approximately 34% (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 0.00 cents.

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

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $4.35

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

Jarden initiates coverage on HR software company Elmo Software. The company has a broad integrated software suite that covers the entire HR lifecycle, from recruitment to payroll.

The broker highlights Elmo Software is well-positioned for market share expansion in a growing industry, as digital workforce management software demand increases with organisations shifting towards increased remote work arrangements.

The broker explains this company has already made nine acquisitions in the past five years, and maintains a track record of around 23% organic compound annual growth rate for the three years up to FY20. Jarden forecasts a 24% compound annual growth rate between FY21 and FY24.

Jarden initiates with an Overweight rating and a target price of $5.89. 

This report was published on June 2, 2021. 

Target price is $5.89 Current Price is $4.35 Difference: $1.54
If ELO meets the Jarden target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.26.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 29.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.90.

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

EMN    EURO MANGANESE, INC

Overnight Price: $0.48

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

Euro Manganese has acquired an existing 1.2% royalty over the Chvaletice Manganese Project for US$4.5m.

Payment for the royalty will occur over two tranches of US$0.9m, paid 31 May 2021, and US$3.6m payable by 31 January 2022 in either cash or Euro Manganese shares.

In Cannacord Genuity's view, the purchase of the royalty cleans up the story for Euro Manganese and may help with a future selldown of the asset.

Cannacord's updated model for the removal of the royalty and first half 2021 results leads to an estimated -$2.8m fall in the broker's FY21 earnings. 

The broker continues to view Euro Manganese as a leverage play to the battery thematic and maintains a Speculative Buy rating.

The target price of 1.30 is unchanged.

This report was issued June 1, 2021.

Target price is $1.30 Current Price is $0.48 Difference: $0.82
If EMN meets the Canaccord Genuity target it will return approximately 171% (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 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4800.00.

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

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $5.57

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

Despite challenges, Eroad delivered a strong FY21 result according to Bell Potter, who notes the company exceeded expectations for revenue, underlying earnings and net profit after tax. 

Year-on-year, group revenue was up 12.8% to total NZ$91.6m and underlying earnings were up 14% to total NZ$30.9m. An increase in SaaS revenue of 11.4% year-on-year drove group increases. 

Eroads is now guiding to a target of 160,000 units in 18 months, representing unit growth of 26.8%. This is higher than Bell Potter's forecast, largely due to North American variance of 6,360 units. 

The Buy rating is retained and the target price increases to $6.05 from $5.62.

This report was published on June 1, 2021.

Target price is $6.05 Current Price is $5.57 Difference: $0.48
If ERD meets the Bell Potter target it will return approximately 9% (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 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 206.30.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 146.58.

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

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $23.14

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

After a 12-week project review Fortescue Metal Group now expects Iron Bridge to cost US$3.3bn to US$3.5bn to complete, up from a “up to US$3bn” estimate in February 2021 and an original cost of US$2.6bn when this project was approved in April 2019.

Fortescue now expects to complete construction of Iron Bridge by the end of 2022, a delay of 6 months from its initial timing, and it could be June 2024 before the project is running at full capacity.

Due to increased up front capex, opex and sustaining capex, plus timeline slippage, the project net present value basis has declined over -35% to US$1.2bn (FY22), the ungeared internal rate of return has declined -14%, and payback has pushed out to 13 years.

Commenting on the update, Shaw and Partners notes, it wasn’t just cost and capex that got in the way, but “culture issues” reared as an issue in early 2021. The broker believes addressing the latter is critical to Fortescue's overall way forward.

Hold rating unchanged and price target $20.00.

This report was issued June 1, 2021.

Target price is $20.00 Current Price is $23.14 Difference: minus $3.14 (current price is over target).
If FMG meets the Shaw and Partners target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $22.35, suggesting downside of -3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 431.79 cents and EPS of 402.33 cents.
At the last closing share price the estimated dividend yield is 18.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 422.8, implying annual growth of N/A.
Current consensus DPS estimate is 377.7, implying a prospective dividend yield of 16.3%.
Current consensus EPS estimate suggests the PER is 5.5.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 206.45 cents and EPS of 198.96 cents.
At the last closing share price the estimated dividend yield is 8.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 299.4, implying annual growth of -29.2%.
Current consensus DPS estimate is 268.7, implying a prospective dividend yield of 11.6%.
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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $1.10

Moelis rates ((GDI)) as Buy (1) –

Following an underwhelming first half FY21 result, Moelis believes GDI Property remains well positioned to benefit from an improving Perth market.

Moelis expects Perth business conditions and confidence, currently at 15-year highs, to eventually materially translate into incremental office demand. However, the broker notes, timing remains the big uncertainty and assumes only gradual let up at Westralia Square.

The main catalysts Moelis expects to drive net tangible assets higher include ongoing lease up of Westralia Square, accretive acquisitions, and execution of the development application at WS2.

Another driver is the ongoing progress at the Mill Green development site, particularly in the event GDI can secure a major pre-commit tenant.

Moelis retains its Buy rating with the target price falling to $1.43 from $1.44.

This report was published on June 4, 2021.

Target price is $1.43 Current Price is $1.10 Difference: $0.33
If GDI meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.80 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 7.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.64.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.80 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 7.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.07.

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

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $1.51

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

GR Engineering has provided an increase to FY21 revenue guidance, increasing the range to $370-390m from $340-360m. This brings guidance more in line with Bell Potter's previous forecast of $369.8m. 

High commodity prices are continuing to drive project activity, with GR Engineering's recent contract awards including a $75.5m contract with Calidus Resources ((CAI)) and a $59.5m contract with Pantoro ((PNR)).

The company also highlighted no current margin impact from a tightening Australian labour market and no material covid impact on FY21 results. 

The Buy rating is retained and the target price increases to $1.60 fro $1.50. 

This report was published on June 1, 2021.

Target price is $1.60 Current Price is $1.51 Difference: $0.09
If GNG meets the Bell Potter target it will return approximately 6% (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 10.00 cents and EPS of 11.60 cents.
At the last closing share price the estimated dividend yield is 6.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.02.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.00 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 7.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.34.

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

GNP    GENUSPLUS GROUP LIMITED

Infrastructure & Utilities – Overnight Price: $0.94

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

GenusPlus Group has announced the acquisition of Connect Engineering Pty Ltd for $5.55m.

With the Connect acquisition expected to help GenusPlus meet its prospectus forecasts and improve confidence in the FY22 revenue outlook, Bell Potter has upgraded the company to Buy from Hold, and increased the target price to $1.25 from $1.05.

The broker expects the recent establishment of a Renewable Energy division, combined with the company's core capabilities, including an expanding electrical and instrumentation capability via West Australian electrical contractor ECM, to aid GenusPlus's key growth themes. 

These growth themes include: East Coast expansion, transmission investment opportunities, and renewables.

Following revisions to forecasts in light of recent announcements, the broker raises earnings per share estimates by 0.2%, 9.9%, and 14.8% across FY21-FY23 respectively.

This report was published on June 2, 2021.

Target price is $1.25 Current Price is $0.94 Difference: $0.31
If GNP meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.32.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.50 cents and EPS of 10.30 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.13.

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

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.28

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

Gold Road Resources' Gruyere mine is being repositioned as one of the largest, longest life gold mines in Australia, pointing to strong earnings for the company moving forward, according to Bell Potter. 

According to the broker, exploration into steepening open pit walls is expected to increase reserves and extend mine life, while successful resource extensions could have the potential to support underground mining. The Gruyere JV is targeting rates of 10m tonnes per annum to allow for gold production of 380,000 ounces per annum.

Gold Road Resources is focusing majority spend at its 100% owned assets, and maintains $250m in undrawn debt facilities to support growth. 

The Buy rating is retained and the target price decreases to $1.75 from $2.00. 

The report was published on June 1, 2021. 

Target price is $1.75 Current Price is $1.28 Difference: $0.47
If GOR meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.00 cents and EPS of 8.60 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 14.88.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.50 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.48.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $28.28

JP Morgan rates ((HUB)) as Initiation of coverage with Underweight (5) –

In a mid-year review, JP Morgan nominates Hub24 as the bottom pick in the technology space. Margins are considered at-risk in the near term, and the platform market is becoming increasingly commoditised as competition catches up in technology and feature offerings.

This is likely to lead to pricing pressure and with interest rates at record lows for longer, the company’s cash margins also appear under threat, explains the broker.

The analyst suggests strong market-share gains over recent years have led to an elevated valuation, which is currently at a significant premium to the market and peers. The Underweight rating and $19 target are maintained.

This report was published on May 31, 2021.

Target price is $19.00 Current Price is $28.28 Difference: minus $9.28 (current price is over target).
If HUB meets the JP Morgan target it will return approximately minus 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $26.06, suggesting downside of -7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 10.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 0.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 94.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of 113.3%.
Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 101.0.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 18.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 0.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.9, implying annual growth of 60.4%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 63.0.

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

IFM    INFOMEDIA LIMITED

Automobiles & Components – Overnight Price: $1.46

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

Within a recent FY21 trading update, Infomedia announced the completion of the SimplePart acquisition sooner than Bell Potter had anticipated.

Infomedia also expects revenue of between $95-96m, slightly below the broker's forecasts.

Bell Potter has downgraded earnings per share forecasts in FY21, FY22 and FY23 by -2%, -4% and -4% respectively.

In FY22 and FY23 the broker has modestly trimmed revenue and margin forecasts for conservatism and now assumes only modest organic growth in FY22 before a return to low double digit growth in FY23. 

Bell Potter's forecasts assume no further acquisitions after SimplePart, although with $50m-plus cash remaining on the balance sheet the broker anticipates more acquisitions over the next 1-2 years.

Bell Potter's Buy rating is unchanged, with the price target lowered to $1.80 from $1.90.

This report was published on June 2, 2021.

Target price is $1.80 Current Price is $1.46 Difference: $0.34
If IFM meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.30 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.80.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.07.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $7.43

JP Morgan rates ((IGO)) as Overweight (1) –

JP Morgan increases forecast spodumene prices 10-25% over the next five years, to reflect spodumene catching up to the improving chemical prices, continued tightness across the lithium supply chain, plus the lack of any significant supply response.

The broker includes IGO Ltd among preferences and now forecasts more downstream capacity, assuming a desire for production to stay integrated and the requirement to fully ramp-up production at Greenbushes. The Overweight rating is maintained.

The acquisition of the Greenbushes project and Kwinana has added lithium to the portfolio of assets, making the company a one-stop stock for electric vehicle raw materials, summarises the analyst. The price target is increased to $8.40 from $7.60.

This report was published on June 4, 2021.

Target price is $8.40 Current Price is $7.43 Difference: $0.97
If IGO meets the JP Morgan target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $7.01, suggesting downside of -5.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 9.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of -11.1%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 32.2.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 11.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.0, implying annual growth of -0.4%.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 32.3.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.88

CCZ Equities rates ((JAN)) as No Rating (-1) –

The acceleration of global ‘ed-tech’ spend post-covid is a key tailwind which CCZ Equities believes is driving Janison Education Group's platform growth.

Combined with higher gross profit margin projects that are having an increasing contribution to platform revenue, the broker expects both group revenue and gross profit margin to grow rapidly.

Based on a 5% increase in group gross margin annually, CCZ Equities expects a group gross margin of 75% by 2025.

Janison's management is still aiming for $100m revenue by FY25 and the broker believes this is also a likely outcome.

As a result, CCZ Equities believes Janison is a rapidly growing tech company which appears undervalued at the current enterprise value of $177.1m.

The broker has no rating or price target for the stock, but offers a valuation range for the base case of $304m-$345m, implying a valuation of $1.44-$1.64 per share.

This report was published on June 1, 2021.

Current Price is $0.88. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities 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 88.00.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 97.78.

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: $5.01

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

Link Administration has confirmed PEXA has signed an underwriting agreement to proceed with a proposed IPO. This follows KKR's proposal to acquire 100% of PEXA for $3bn plus cash on balance sheet in mid-May. 

Link's share price has initially reacted negatively, but Goldman Sachs points out the IPO process delivers more value on paper for shareholders than the KKR offer. 

Link Administration noted the underwritten price of the IPO implies enterprise value for PEXA of $3.3bn. The company highlighted it would receive a minimum of $50m in cash as a result of the IPO process, with Goldman Sachs forecasting this amount will be upwards of $200m. 

The broker also notes Link appears to suggest it will retain its stake in PEXA, and that its ownership may increase to 47% from 44.2% as part of the IPO process. 

The Neutral rating and target price of $5.06 are retained. 

This report was published on May 31, 2021.

Target price is $5.06 Current Price is $5.01 Difference: $0.05
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 11.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.50 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.78.

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 22.6.

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 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

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

LOT    LOTUS RESOURCES LIMITED

Mining – Overnight Price: $0.17

Canaccord Genuity rates ((LOT)) as Initiation of coverage with Hold (3) –

Canaccord Genuity initiates coverage of Lotus Resources with a Hold rating and a price target of $0.21. Lotus Resources is focused on restarting the idled Kayelekera Uranium Project in Malawi.

While not at the bottom of the cost curve, the broker believes mines such as Kayelekera will be required in the medium term to alleviate the current primary supply deficit. Cannacord estimates a -25Mlb deficit in 2020 and again a similar deficit in 2021 as the demand outlook for nuclear improves.

The broker believes Kayelekera is well positioned to benefit from any upswing in pricing as a proven producer that can react quickly to utility re-contracting.

Lotus currently owns 65% of KUP but is moving to 85%, subject to shareholder approval.

This report was issued June 2, 2021.

Target price is $0.21 Current Price is $0.17 Difference: $0.04
If LOT meets the Canaccord Genuity target it will return approximately 24% (excluding dividends, fees and charges).

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.13.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.25.

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

MFD    MAYFIELD CHILDCARE LIMITED

Childcare – Overnight Price: $1.07

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

Largely on the back of cost efficiencies and overall improved operational performance, Mayfield Childcare flagged strong earnings performance in the March quarter FY21 versus the previous period, with like-for-like occupancy running at 1% compared to the prior period.

Mayfield also announced a single centre acquisition, which takes its portfolio to 21 centres.

Cannacord Genuity notes, given the latter centre is about 50% more profitable than the average Mayfield centre, the purchase should result in an estimated 7% increase in earnings for the business on an annualised basis.

The acquisition cost of -$2.3m will be internally funded and therefore will be earnings per share (EPS) accretive immediately. As a result, Cannacord has raised calendar year 2021-2022 EPS estimates by 5% and 7% respectively.

The Buy rating is unchanged, and the price target increases to $1.25 from $1.16.

This report was published on June 2, 2021.

Target price is $1.25 Current Price is $1.07 Difference: $0.18
If MFD meets the Canaccord Genuity target it will return approximately 17% (excluding dividends, fees and charges).

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 8.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 7.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.64.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 9.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 8.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.13.

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: $53.65

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

Magellan Financial Group has launched its long awaited income product ‘FuturePay’.

As an equity income product, FuturePay will pay a fixed distribution benchmarked to inflation, where the distributions are supported by an ancillary fund, like a SupportTrust. This  builds reserves from a mix of customer contributions and fund outperformance beyond distribution requirements.

Magellan has prepped the market for an innovative product which addresses a material product gap in the industry. However, for investors, Goldman Sachs thinks the proposition is less appealing, based on benchmarking the product against other typical domestic income products, particularly with reference to fees, target returns and added complexity around the SupportTrust.

Goldman Sachs suspects it will take some time for the product to be rated by research houses, added to investment platforms and for Magellan's distribution team to embark on an education drive. In the interim, the broker has made no adjustment to earnings, and will look to incorporate sales in coming months.

The Sell rating and the target price of $47.97 are both retained.

This report was published on June 1, 2021.

Target price is $47.97 Current Price is $53.65 Difference: minus $5.68 (current price is over target).
If MFG meets the Goldman Sachs target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $50.34, suggesting downside of -6.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 212.00 cents and EPS of 236.00 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 22.73.

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 23.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 249.00 cents and EPS of 276.00 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.44.

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 21.2.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $18.20

Canaccord Genuity rates ((MP1)) as Buy (1) –

Following the showcasing of the new Megaport Virtual Edge (MVE) in an investor briefing, Canaccord Genuity has made modest uplifts to revenue and earnings forecasts.

Canaccord has tentatively introduced MVE into its modeling. Canaccord makes no changes to FY21 forecasts. Incorporating those figures into the broker's model sees forecast revenue increase by 3% and 6% in FY22 and FY23, respectively, and earnings by 9% and 7%.

Cannacord expects changes to MVE forecasts to likely be driven by the size of average customer uptake, the sales model, the rate of adding new customers and the USD/AUD exchange rate.

Canaccord Genuity prefers to remain at Buy with the target price increasing to $17.40 from $16.35.

This report was published on June 3, 2021.

Target price is $17.40 Current Price is $18.20 Difference: minus $0.8 (current price is over target).
If MP1 meets the Canaccord Genuity target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.48, suggesting downside of -15.0%(ex-dividends)
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 37.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -22.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 155.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -9.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

MRM    MMA OFFSHORE LIMITED

Energy Sector Contracting – Overnight Price: $0.42

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

MMA Offshore has announced $54m worth of contracts, which increases to $70m when the option periods are included.

Contract wins include a three-year vessel contract in New Zealand gas plus a two-year vessel contract extension with INPEX in the Ichthys field in north-west Australia. Then there is a four-month contract for the Australian Department of Defence to provide surveying work near Broome, and a three-month contract in Taiwan involving site investigation survey work for offshore wind development.

MMA also announced it has completed the sale of three vessels this half for a total in proceedings of $5m.

Cannacord Genuity has made no changes to revenue or earnings forecasts, but previously assumed $10m of non-core asset sales in FY21. The broker has now lowered this to $5m despite the company noting that it is in the late stages of negotiating the sale of a fourth vessel.

Cannacord believes MMA is in the early stages of a cyclical recovery to its revenue base, as highlighted by oil prices, rig numbers, and recent near-term capex commentary.

On an FY22 basis, the broker estimates the company is trading on an EV/EBITDA of 5.7x, and is trading on a -55% discount to its net tangible assets per share.

The broker maintains a Buy rating and target price of $0.57.

The report was published on June 3, 2021.

Target price is $0.57 Current Price is $0.42 Difference: $0.15
If MRM meets the Canaccord Genuity target it will return approximately 36% (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 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.92.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.26.

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

MWY    MIDWAY LIMITED

Agriculture – Overnight Price: $0.90

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

Despite significant recovery in China pulp prices, Midway's operations are yet to see benefits and the company has downgraded underlying earnings guidance for FY21 to $12.5-$15.5m accordingly. Prices have increased to over US$920 per tonne, from less than US$550 per tonne in mid-2020.

The company pointed to the strong AUD/USD exchange rate on export prices and wet weather as drivers of decreased earnings. 

Bell Potter also notes that while Midway has announced plans to invest -$12-14m on port infrastructure at Bell Bay over the next 2 years, the company lacks a proven record of generating return on investment.

The rating is downgraded to Hold and the target price decreases to $1.05 from $1.25.

This report was published on June 1, 2021.

Target price is $1.05 Current Price is $0.90 Difference: $0.15
If MWY meets the Bell Potter target it will return approximately 17% (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 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.94.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.98.

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

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $2.93

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

Nine Entertainment has finalised its commercial agreements with Facebook & Google, following the legislation of the Digital Platforms Mandatory Bargaining code.

Nine expects its Metro Publishing business to grow earnings by $30-40m in FY22, reflecting a full year of digital platforms revenues and ongoing digital subscription revenue growth. This is expected to be offset by ongoing print advertising/circulation declines of -10% and -6% respectively, and a return of some cyclical costs.

Overall, Goldman Sachs is pleased to see these deals finalised, given their strong earnings contribution and the recurring nature of the payment stream.

The broker notes, Nine now has a number of incremental earnings drivers into FY22, including Digital platforms, WIN affiliate deal, and Domain/Stan growth which more than offset the broker's forecast decline in traditional TV revenues.

Reflecting the recent announcement, Goldman Sachs revises FY22 earnings/earnings per share 2%, and 3% respectively.

The Buy rating is unchanged with the target price rising 3% to $3.40.

This report was published on June 1, 2021.

Target price is $3.40 Current Price is $2.93 Difference: $0.47
If NEC meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 17.7%(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 15.00 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.6, implying annual growth of N/A.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of 8.3%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.3.

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

NWC    NEW WORLD RESOURCES LIMITED

Overnight Price: $0.08

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

Canaccord Genuity initiates coverage of New World Resources with a Buy rating and $0.30 price target. New World Resources is an ASX-listed explorer-developer focused on the high-grade Antler Copper Project in Arizona, US.

The copper-zinc stratabound volcanogenic massive sulfide deposit historically produced 70kt at 5% copper equivalent from underground over 1916-70 with the project lying dormant since then on account of copper prices.

There is currently a non-JORC, historic resource of 4.7Mt at around 3.4% copper equivalent over the project.

Cannacord Genuity estimates cash to be $23m at end of the June quarter and believes New World is well funded to update the resource, commence the project permitting process and pre-feasibility study work later this year.

This report was issued June 3, 2021.

Target price is $0.30 Current Price is $0.08 Difference: $0.22
If NWC meets the Canaccord Genuity target it will return approximately 275% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

NXT    NEXTDC LIMITED

Cloud services – Overnight Price: $11.67

JP Morgan rates ((NXT)) as Overweight (1) –

In a mid-year review, JP Morgan nominates NextDC as the top pick in the technology space. With first-generation data centers in Brisbane, Sydney and Melbourne sold out, a mid-to-high teens internal rate of return (IRR) is expected from larger second-generation centres.

However, the broker is concerned over industry pricing, as a significant amount of capacity is expected to come to market over the next couple of years. Positively, due to Tier IV certification, the company operates with a lower fixed-cost base compared to competitors.

The analyst doesn't expect exponential growth to slow soon and retains the Overweight rating with a $14.50 target price. Potential catalyst are considered to be new hyper-scale contract wins in Melbourne and Sydney, and an acceleration in enterprise colocation demand.

This report was published on May 31, 2021.

Target price is $14.50 Current Price is $11.67 Difference: $2.83
If NXT meets the JP Morgan target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $14.09, suggesting upside of 20.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 233.40.

How do these forecasts compare to market consensus projections?

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

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 291.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 416.8.

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

ORR    ORECORP LIMITED

Gold & Silver – Overnight Price: $0.79

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

OreCorp Limited's application for a special mining license for its 3Moz Nyanzaga gold project has finally been approved by the Tanzanian Cabinet of Ministers.

Canaccord Genuity expects OreCorp to commence working towards a Framework Agreement and Shareholders Agreement in connection with the grant.

With the granting of the special mining license, OreCorp will immediately commence a final detailed definitive feasibility (DFS) study for the project, which Cannacord expects be completed in late 2021/early 2022.

Cannacord's base case modelling sees development of a 12-year open pit and underground project producing an average of 230kozpa with average AISC of US$917/oz.

The broker will look to revise model assumptions on completion of OreCorp's DFS for the project. The Speculative Buy rating is retained and the target price is increased to $1.20 from $1.05. 

This report was published on June 3, 2021. 

Target price is $1.20 Current Price is $0.79 Difference: $0.41
If ORR meets the Canaccord Genuity target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.50.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 79.00.

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $4.72

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

Bell Potter reiterates its FY21 underlying earnings forecast for Over the Wire Holdings of $29.5m, implying strong second half earnings totaling $15.4m. 

According to Bell Potter, six month contributions from the acquisitions of Zintel, Fonebox and Digital Sense will be a key driver for second half earnings. 

The broker has upgraded earnings for FY22 and FY23 by 6% and 5% respectively, but notes it does not expect further near-term acquisitions.

The rating is downgraded to Hold and the target price increases to $5.00 from $4.60. 

This report was published on June 1, 2021. 

Target price is $5.00 Current Price is $4.72 Difference: $0.28
If OTW meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.30 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 0.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.30.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.30 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.55.

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

PEN    PENINSULA ENERGY LIMITED

Uranium – Overnight Price: $0.16

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

Peninsula Energy has announced a $15.4m equity raise at $0.15ps, consisting of a $13.4m completed placement and a $2.0m Share Purchase Plan.

Funds will be used for the strategic purchase of 300klbs of uranium at US$31/lb and general working capital.

Shaw and Partners models the 300klbs uranium bought at US$31/lb (US$9.4m) and sold at US$52/lb in FY23 for a cash margin of US$5.5m.

Shaw expects the acquisition of additional uranium inventory to result in a slightly enhanced financial position to support the planned re-start of the Lance Uranium Project, and increase flexibility regarding the Lance Project restart sequence.

The broker also expects a locked-in cash margin in calendar year 2023 on a portion of the company’s uranium contracts.

Shaw continues to like Peninsula for its operations being in the US and its leverage to a uranium sector upcycle, and expects the company’s next update for its MU1A field demonstration trial early in the September quarter FY21.

Buy rating and price target of $0.17 both retained.

This report was published on June 2, 2021.

Target price is $0.17 Current Price is $0.16 Difference: $0.01
If PEN meets the Shaw and Partners target it will return approximately 6% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 80.00.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $3.80

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

Propel Funerals Partners has entered into Implementation Agreement with Propel Investments. The agreement will involve the termination of the Management Agreement and a $15m payment to Propel Investments, inclusive of $7.5m in new shares and $7.5m in cash.

According to Bell Potter, the move to internalise key senior management functions of the company will unlock the underlying value of Propel Funeral Partner's assets, operations and growth prospects. 

The broker points to a number of advantages that include corporate governance advantages, simplifying management structure, and increasing potential to attract investors. 

The Buy rating is retained and the target price increases to $4.15 from $3.50. 

This report was published on June 1, 2021.

Target price is $4.15 Current Price is $3.80 Difference: $0.35
If PFP meets the Bell Potter target it will return approximately 9% (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 15.40 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.68.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.90 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.75.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $57.91

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

Pro Medicus has signed a multi-year research collaboration with Mayo Clinic, one of the leading academic healthcare networks in the US.

Following the announcement, Goldman Sachs highlights that Pro Medicus has now established R&D collaborations with three different, world-renowned healthcare networks.

These efforts have already yielded an interesting commercial opportunity, which the broker notes could provide a material revenue contribution from FY22.

The Buy rating is unchanged with a target price of $53.80.

This report was published on June 3, 2021.

Target price is $53.80 Current Price is $57.91 Difference: minus $4.11 (current price is over target).
If PME meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 180.97.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 56.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 103.41.

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

PWR    PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

Overnight Price: $3.67

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

Peter Warren Automotive Holdings is an integrated Australian automotive dealership network with operations in New South Wales and Queensland and representing 27 original equipment manufacturers. 

Jarden notes a key feature of the company's network are two owned properties that include the flagship Warwick Farm site. 

The broker highlights increases in house pricing is strongly correlated with increased vehicle sales, and an expectant six-month lag on volume increase could point to growth in the medium-term.

Jarden also points to risk in FY22 from supply constraint, as global production shortages may put pressure on right-hand drive markets as left-hand drive markets are prioritised. Jarden initiates with a Buy rating and a target price of $4.12. 

This report was published on May 31, 2021. 

Target price is $4.12 Current Price is $3.67 Difference: $0.45
If PWR meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 EPS of 24.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.23.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 27.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.44.

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

PYG    PAYGROUP LIMITED

Cloud services – Overnight Price: $0.45

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

After a solid year for new contract wins, PayGroup exits the year with underlying annual recurring revenue (ARR) of $21.7m relative to FY21 ARR of $17.8m, with most of this incremental work to be implemented during the year.

Commenting on the result, Cannacord Genuity notes PayGroup’s FY21 result demonstrated the resilience of its Asia-based payroll administration business during a covid-impacted year. The second half saw a sharp snapback in revenues from domestic workforce management firms as contractor numbers ticked back up to pre-covid levels.

Following a $15m capital raise and share purchase plan in April, PayGroup should have circa $12m in pro forma cash after accounting for the initial consideration for Integrated Workforce Solutions which the company recently acquired for $12.75m.

Cannacord upgrades earnings forecasts by $1.4m in FY22 and $1.7m in FY23.

The Buy rating is maintained. The target price is increased to $0.85 from $0.84.

This report was published on June 2, 2021.

Target price is $0.85 Current Price is $0.45 Difference: $0.4
If PYG meets the Canaccord Genuity target it will return approximately 89% (excluding dividends, fees and charges).

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.00.

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

RCL    READCLOUD LIMITED

Education & Tuition – Overnight Price: $0.36

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

ReadCloud has acquired its third VET course materials business in Ripponlea Institute for $1.2m in cash plus $0.6m in shares based on earnout thresholds.

While acquiring targeted VET course businesses makes sense and will likely produce growth and synergies over time, Canaccord Genuity doesn't believe it achieves the kind of scale ReadCloud needs at this point to create greater investor interest.

Post the third quarter update, the broker has reviewed estimates and downgraded expectations for FY21, with flow-on effects for FY22-FY23.

While the impact of covid has pushed out the earnings/NPAT breakeven point by a year, the broker expects robust growth to resume in FY22, provided the vaccination rollout continues to gain momentum and there are no extended lockdowns.

The Buy rating is maintained with the target price lowering to $0.67 from $0.90.

The report was published on June 3, 2021.

Target price is $0.67 Current Price is $0.36 Difference: $0.31
If RCL meets the Canaccord Genuity target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.73.

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 360.00.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.40

Shaw and Partners rates ((RRL)) as No Rating (-1) –

Regis Resources announced it has adjusted the structure and delivery profile of its gold hedges with Macquarie Bank. Regis has historically had spot deferred hedges and will move to flat forward hedging with immediate effect.

The gold miner currently has 320,000 ounces of gold hedged on a spot deferred basis at an average price of approximately $1,626 per ounce.

Shaw and Partners explaines the revenue from ounces delivered into the hedge book will be fixed and not subject to market movements.

Shaw and Partners notes the out of the money funding charge is fixed and will not rise with any rise in the gold price, hence allowing for a more accurate forecast of future revenues.

Meantime, the addition of around 140koz gold production via the recently announced acquisition of a 30% JV interest in the Tropicana gold mine will further dilute the current gold hedge book as the group's combined production profile from FY22 should head towards circa 500-550koz.

At this rate the annual hedging profile will represent around 20% of sales/revenue, the broker notes.

This report was issued June 1, 2021.

Current Price is $2.40. Target price not assessed.
Current consensus price target is $3.63, suggesting upside of 51.1%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 27.5, implying annual growth of -27.3%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 8.7.

Forecast for FY22:

Current consensus EPS estimate is 36.2, implying annual growth of 31.6%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 6.6.

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

SMP    SMARTPAY HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.81

CCZ Equities rates ((SMP)) as Buy (1) –

Driven by a 46.0% net addition to the number of terminals, revenue in Smartpay's Australian segement grew 80.0%-plus in FY21, while NZ segment revenue was largely stable.

Management indicates its growth in the Australian market validates the customer demand for Smartpay's simple products.

Commenting on the result, CCZ Equities expects Australia to remain the company's key focus and expects to scale quickly with its established in-bound sales capability. The broker also notes Smartpay has proven successful in switching customers away from the Big Four banks in Australia and is established to covert even larger volumes.

CCZ Equities has revised 2022 Australian terminal incremental growth by 200 terminals to align with the broker's March quarter FY21 annualised run rate.

A Buy rating is maintained with a target price increasing to NZ$1.12 from NZ$1.00.

This report was published on May 31, 2021.

Current Price is $0.81. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 861.70.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.83.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.85

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

Wilsons believes new data from Novartis’ ‘VISION’ trial early June provides definitive proof-of-concept that targeted radioligand therapy improves overall survival for men with metastatic castration-resistant prostate cancer (mCRPC).

Whilst robustly competitive towards Telix’s aspirations in mCRPC treatment, Wilsons notes PSMA as a therapeutic target for mCRPC, and  the ‘theranostic’ approach to cancer management more generally, are the key points to take away.

Telix has commenced its Phase III ProstACT program, investigating TLX591 in the treatment of 2nd and 3rd line mCRPC.

Overweight and $5.40 target retained.

This report was first published on June 4, 2021.

Target price is $5.40 Current Price is $5.85 Difference: minus $0.45 (current price is over target).
If TLX meets the Wilsons target it will return approximately minus 8% (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 65.73.

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 57.92.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $3.29

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

Based on an updated price target of $3.20 (previously $2.85) which equates to a total expected return of 7%, well below the required 15% threshold, Bell Potter has downgraded Uniti Group to Hold from Buy.

Despite the downgrade, Bell Potter believes potential catalysts for the stock include likely inclusion in the S&P/ASX 200 index – potentially as early as this month, and a pending trading update.

Another catalyst, notes Bell Potter, could be the annualised underlying earnings which the broker expects to exceed $130m, hence prompting upgrades from the rest of the market.

There is no change in Bell Potter's forecasts with the broker continuing to forecast underlying earnings in FY21 and FY22 of $87.2m and $143.7m.

This report was published on June 4, 2021.

Target price is $3.20 Current Price is $3.29 Difference: minus $0.09 (current price is over target).
If UWL meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 6.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.38.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.12.

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


Jarden rates ((UWL)) as Initiating coverage with Buy (1) –

Based on strong industry drivers and a contracted growth profile delivering double-digit earnings growth, Jarden has initiated coverage on Uniti Group with a Buy rating and target price of $3.89 or -on the broker's own assessment- 29% above consensus valuations.

The broker believes Uniti Group's acquisitions in last mile fibre paves the way for material earnings growth, with Jarden forecasting 5-year earnings per share compound annual growth rate of 16.4%.

Jarden believes the mandated regulatory backdrop requiring all new greenfield developments to be fibre-ready places Uniti Group as a strong competitive alternative versus the NBN.

Another industry tailwind providing a foundation for growth in last mile fibre networks identified by Jarden includes steady dwelling growth of circa 200,000 completions annually. Then there's an anticipated increased consumption for data and greater bandwidth which Jarden expects to increase demand for quality fixed line fibre.

This report was issued June 3, 2021.

Target price is $3.89 Current Price is $3.29 Difference: $0.6
If UWL meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 EPS of 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.69.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 10.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.63.

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


JP Morgan rates ((UWL)) as Initiation of coverage with Overweight (1) –

JP Morgan initiates coverage on Uniti Group with an Overweight rating and $3.45 target price. The core business is constructing, owning and managing a fibre optic network to residential premises. Earnings are derived largely from recurring wholesale broadband services.

The broker's positive view is driven by strong organic growth (with a build book to connect over 150,000 premises in the next five years), and likely corporate appeal. Also, there's considered potential for capital returns as the balance sheet de-levers. 

The biggest variable (both upside and downside) is management’s ability to regrow the construction pipeline as it depletes, explains the analyst. The key risk is considered 5G fixed wireless though significant penetration in urban areas is not expected. 

This report was published on 31 May, 2021.

Target price is $3.45 Current Price is $3.29 Difference: $0.16
If UWL meets the JP Morgan target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.00.

Forecast for FY22:

JP Morgan 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 32.90.

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

WES    WESFARMERS LIMITED

Apparel & Footwear – Overnight Price: $58.91

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

During a recently hosted strategy day, Wesfarmers advised attendees the retail businesses continue to see strong growth on a 2 year basis, but have started turning negative year-on-year as they cycle through strong growth from last year.

A clear theme emanating from Wesfarmers strategy day, notes Goldman Sachs, is digital investment and supply chain automation which the broker suspects will soak up increased amounts of management time and capital over the medium term.

While management is looking to rightsize the balance sheet and hopes to do that in a tax effective way, a decision has not been made regarding the level or method of doing so.

The broker updates FY21 earnings forecasts by 0.6% reflecting stronger expectations for the international business.

The Buy rating and target price of $59.70 are unchanged. 

This report was published on June 3, 2021.

Target price is $59.70 Current Price is $58.91 Difference: $0.79
If WES meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $53.45, suggesting downside of -9.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 184.00 cents and EPS of 218.00 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.8, implying annual growth of 38.5%.
Current consensus DPS estimate is 171.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 28.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 193.00 cents and EPS of 225.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 201.4, implying annual growth of -3.1%.
Current consensus DPS estimate is 174.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 29.3.

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


Jarden rates ((WES)) as Buy (2) –

Jarden's key takeaway from Wesfarmers' recent strategy day is that the company will be accelerating investment to materially increase its long-term market share opportunity.

While little detail was provided, Jarden notes it was the first time management talked explicitly about incremental investment (circa -$100m) in ecosystems with plans to ‘aggressively’ grow share in the marketplace space.

The broker remains positive on the medium-term outlook but is yet to incorporate the broader ‘ecosystem’ opportunity into forecasts. But based on softer trading commentary, the broker has cut FY21-FY23 forecasts between -2 and -3%.

While Jarden sees a material opportunity for Wesfarmers to expand its longer-term addressable market and share beyond FY21, the broker notes significant investment is needed.

Overweight rating is retained and target price is lowered to $59 from $60.

This report was published on June 3, 2021.

Target price is $59.00 Current Price is $58.91 Difference: $0.09
If WES meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $53.45, suggesting downside of -9.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 170.00 cents and EPS of 202.90 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.8, implying annual growth of 38.5%.
Current consensus DPS estimate is 171.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 28.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 169.00 cents and EPS of 204.90 cents.
At the last closing share price the estimated dividend yield is 2.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 201.4, implying annual growth of -3.1%.
Current consensus DPS estimate is 174.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 29.3.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $1.90

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

Newcastle 5,500kcal thermal coal futures recently rose strongly, after Taiwan’s Taipower awarded a tender at US$61.50/mt, and amidst strong Chinese demand and rain-affected Indonesian supply.

While Whitehaven Coal normally would be barely exposed to this market segment, Shaw and Partner's notes recent operational issues at the companies Narrabri underground mine have seen a reduction of coal quality due to geological dilution.

As a result, the broker also notes where Whitehaven would normally have been selling benchmark or just below benchmark spec form, this tine it has slipped (temporarily) into the lower energy segment (5,500kcal).

Under historical trading spreads that would not have been a huge issue. But with spreads for this product widening to -US$50/t, the broker notes it has had a bearing on Whitehaven's average selling price.

Typical Whitehaven group thermal coal sales receive a small premium. But this temporary Narrabri issue capped average selling price at a around -15% discount with guidance for June quarter FY21 at an estimated -13%.

Shaw estimates at current quarter-to-date pricing Whitehaven should post a 9% better average sales price in June quarter FY21 ($83) than in March quarter FY21.

Shaw is still waiting on a risk mitigation update – underground geological drilling/mapping for the current production area – which should be due soon.

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

This report was published on June 2, 2021.

Target price is $2.50 Current Price is $1.90 Difference: $0.6
If WHC meets the Shaw and Partners target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $2.40, suggesting upside of 26.3%(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 118.75.

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 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.08.

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 2.0%.
Current consensus EPS estimate suggests the PER is 12.8.

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

WOR    WORLEY LIMITED

Energy Sector Contracting – Overnight Price: $11.72

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

Worley has provided additional detail around its medium-long term Energy Transition outlook at its recent Investor Day. Bell Potter feels Worley is well-placed to capitalise on increasing sustainability spend through capturing market share. 

Management outlined an expected per annum spend of -$128-468bn through to 2030, with an expenditure focus on decarbonisation, resource stewardship, asset sustainability, and environment and society. 

Worley also pointed to expected half-on-half earnings growth in the second half and sales pipeline growth in the double digits across all sectors. 

The Buy rating and target price of $15.60 are retained. 

This report was published on June 2, 2021. 

Target price is $15.60 Current Price is $11.72 Difference: $3.88
If WOR meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $11.29, suggesting downside of -3.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 49.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 4.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.3, implying annual growth of 31.9%.
Current consensus DPS estimate is 42.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 59.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.7, implying annual growth of 44.8%.
Current consensus DPS estimate is 44.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 18.7.

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


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

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

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

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CHARTS

AIM ARB BGA CAI CDA CIP COL CQR DEG ELO EMN ERD FMG GDI GNG GNP GOR HUB IFM IGO JAN LNK LOT MFD MFG MP1 MRM MWY NEC NWC NXT ORR OTW PEN PFP PME PNR PWR PYG RCL RRL SMP TLX UWL WES WHC WOR WOW

For more info SHARE ANALYSIS: AIM - AI-MEDIA TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: BGA - BEGA CHEESE LIMITED

For more info SHARE ANALYSIS: CAI - CALIDUS RESOURCES LIMITED

For more info SHARE ANALYSIS: CDA - CODAN LIMITED

For more info SHARE ANALYSIS: CIP - CENTURIA INDUSTRIAL REIT

For more info SHARE ANALYSIS: COL - COLES GROUP LIMITED

For more info SHARE ANALYSIS: CQR - CHARTER HALL RETAIL REIT

For more info SHARE ANALYSIS: DEG - DE GREY MINING LIMITED

For more info SHARE ANALYSIS: ELO - ELMO SOFTWARE LIMITED

For more info SHARE ANALYSIS: EMN - EURO MANGANESE, INC

For more info SHARE ANALYSIS: ERD - EROAD LIMITED

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

For more info SHARE ANALYSIS: GDI - GDI PROPERTY GROUP

For more info SHARE ANALYSIS: GNG - GR ENGINEERING SERVICES LIMITED

For more info SHARE ANALYSIS: GNP - GENUSPLUS GROUP LIMITED

For more info SHARE ANALYSIS: GOR - GOLD ROAD RESOURCES LIMITED

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: IFM - INFOMEDIA LIMITED

For more info SHARE ANALYSIS: IGO - IGO LIMITED

For more info SHARE ANALYSIS: JAN - JANISON EDUCATION GROUP LIMITED

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

For more info SHARE ANALYSIS: LOT - LOTUS RESOURCES LIMITED

For more info SHARE ANALYSIS: MFD - MAYFIELD CHILDCARE LIMITED

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

For more info SHARE ANALYSIS: MP1 - MEGAPORT LIMITED

For more info SHARE ANALYSIS: MRM - MMA OFFSHORE LIMITED

For more info SHARE ANALYSIS: MWY - MIDWAY LIMITED

For more info SHARE ANALYSIS: NEC - NINE ENTERTAINMENT CO. HOLDINGS LIMITED

For more info SHARE ANALYSIS: NWC - NEW WORLD RESOURCES LIMITED

For more info SHARE ANALYSIS: NXT - NEXTDC LIMITED

For more info SHARE ANALYSIS: ORR - ORECORP LIMITED

For more info SHARE ANALYSIS: OTW - OVER THE WIRE HOLDINGS LIMITED

For more info SHARE ANALYSIS: PEN - PENINSULA ENERGY LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: PME - PRO MEDICUS LIMITED

For more info SHARE ANALYSIS: PNR - PANTORO LIMITED

For more info SHARE ANALYSIS: PWR - PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

For more info SHARE ANALYSIS: PYG - PAYGROUP LIMITED

For more info SHARE ANALYSIS: RCL - READCLOUD LIMITED

For more info SHARE ANALYSIS: RRL - REGIS RESOURCES LIMITED

For more info SHARE ANALYSIS: SMP - SMARTPAY HOLDINGS LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: WES - WESFARMERS LIMITED

For more info SHARE ANALYSIS: WHC - WHITEHAVEN COAL LIMITED

For more info SHARE ANALYSIS: WOR - WORLEY LIMITED

For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED