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Australian Broker Call *Extra* Edition – Jul 13, 2021

Daily Market Reports | Jul 13 2021

This story features AUDINATE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AD8

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)

AD8   AMA   AMN   AVH   BOQ   BXB   CIM   CQR   DGL   DMP (2)   GEM   IMD   JLG   LIC   NHC   PBP   PMV (3)   PPM   RMD   SHV   SKC   SSG   SSM   SZL   UWL   Z1P  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $9.98

Shaw and Partners rates ((AD8)) as Buy (1) –

Shaw and Partners highlights improving sentiment and confidence in the AV space globally as positive for Audinate Group. In particular the broker notes channel checks have suggested a recovery in live events is occurring. 

A third quarter trading update from the company reported 31% revenue increase on the same period in 2020, but flagged some residual caution on chip shortages and supply chain issues of raw materials. 

Audinate Group's alternate supply and manufacturing hub in Malaysia aims to address some of these supply chain constraints. 

The Buy rating and target price of $10.00 are retained.

This report was published on June 17, 2021.

Target price is $10.00 Current Price is $9.98 Difference: $0.02
If AD8 meets the Shaw and Partners target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $10.33, suggesting upside of 1.3%(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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 285.14.

How do these forecasts compare to market consensus projections?

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

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1663.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.54

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

While trading conditions remain mixed, Wilsons is encouraged by confirmation that AMA Group remains compliant with its banking covenants and retains access to financial resources for acquisition activity.

The broker's forecasts imply a leverage ratio at 2.7-3.0x over the forecast period, balancing the expected funding requirements of growing the store network within covenant limits.

Market Weight rating is unchanged and the target price increases to $0.60 from $0.58.

This report was published on June 15, 2021.

Target price is $0.60 Current Price is $0.54 Difference: $0.06
If AMA meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.42.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.48.

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

AMN    AGRIMIN LIMITED

Agriculture – Overnight Price: $0.48

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

Bell Potter initiates coverage on Agrimin, a company focused on developing the Mackay Potash Project.

A 2020 definitive feasibility study outlined 450,000 tonnes per annum over a 40-year lifespan for the project. With capital costs estimated at US$415m, the project is the world's lowest cost supply of seaborne sulphate of potash, as well as being the largest potash project in Australia by annual production.

Bell Potter also notes that Agrimin is committed to develop the project in line with UN Sustainability Goals, with processing and infrastructure expected to be powered by renewable energy. 

With a cash balance of $7.3m and no debt, Agrimin is comfortably funded in the short-term, but the broker does expect the company to raise an additional $10-20m within the next six months to support construction works. 

Bell Potter initiates with a Buy rating and a target price of $0.97. 

This report was published on June 17, 2021.

Target price is $0.97 Current Price is $0.48 Difference: $0.49
If AMN meets the Bell Potter target it will return approximately 102% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.00.

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

AVH    AVITA MEDICAL INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.22

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

In Bell Potter's view, the significant underperformance of most small market cap medical device stocks, including Avita Medical, is directly related to covid related restrictions.

As covid restrictions in the US hospital sector ease, the broker believes trading conditions will also improve, particularly so for Avita with the label expansion for Recell.

In a surprise development the FDA has approved expanded use of the Recell system for the treatment of all sizes of acute full thickness thermal burn wounds in paediatric and adult patients.

While the label extension for Recell is a significant positive for the stock, the broker believes the US hospital sector will probably lag the recovery of the broader US economy.

Buy rating is maintained, and the target is lowered to $9.80 from $10.50.

This report was published on June 16, 2021.

Target price is $9.80 Current Price is $5.22 Difference: $4.58
If AVH meets the Bell Potter target it will return approximately 88% (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 122.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.25.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 119.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.38.

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

BOQ    BANK OF QUEENSLAND LIMITED

Banks – Overnight Price: $9.01

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

Primarily due to the improved economic outlook, improved data quality relating to collateral and better volume performance from housing, Bank of Queensland announced that collective provisions are expected to decrease -$75m relating to the period ending 31 May 2021.

As a result, Goldman Sachs has adjusted FY21, FY22, and FY23 cash earnings per share estimates by 13.1%, -0.7%, and 2.5% respectively.

Goldman Sachs retains its Buy rating and the target price increases to $9.85 from $9.83.

This report was published on June 15, 2021.

Target price is $9.85 Current Price is $9.01 Difference: $0.84
If BOQ meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $9.84, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 37.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.4, implying annual growth of 174.1%.
Current consensus DPS estimate is 39.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 13.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 41.00 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.8, implying annual growth of 2.0%.
Current consensus DPS estimate is 45.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.8.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $11.30

Jarden rates ((BXB)) as Buy (2) –

Jarden believes the nearer-term focus for Brambles is likely going to orientate around the company's ability to generate margin expansion in the CHEP Americas division in a strong revenue environment – driven by both price and organic volumes.

The broker is slightly more cautious on the outlook than consensus data in FY21-FY22 given considerable cost inflation across all key cost inputs into FY22.

Also fuelling the broker's caution are prospects for new pallet growth ahead of volume growth, and uncompelling economics for the plastics pallets rollout under the scenarios the broker has modelled.

Key risks to Jarden's investment view are elevated cost inflation, irrational competition in key markets, and sub-economic returns in plastic.

Overweight rating and target price of $11.85 both remain unchanged.

This report was published on June 15, 2021.

Target price is $11.85 Current Price is $11.30 Difference: $0.55
If BXB meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $12.04, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 31.12 cents and EPS of 49.68 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.7, implying annual growth of N/A.
Current consensus DPS estimate is 29.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 31.65 cents and EPS of 53.02 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.9, implying annual growth of 9.9%.
Current consensus DPS estimate is 33.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 19.7.

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

CIM    CIMIC GROUP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $19.59

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

Despite the poor start to 2021, Shaw and Partners continues to view favourably the short and long-term outlook for Cimic Group in Services, Mining and Construction.

The broker believes the key for Cimic is to get the new awards run-rate back towards that $15bn-plus level in 2021, which will naturally then drive a recovery in revenue in 2022.

Shaw expects Cimic to re-rate through 2021 as the business environment continues to improve and the equity market starts to focus on what hopefully will be a material jump in earnings in FY22.

Given the upside in valuation and likely positive catalysts from the tendering pipeline in 2021, the broker continues to rate the stock a Buy.

Target price of $28 is also unchanged.

This report was issued June 16, 2021.

Target price is $28.00 Current Price is $19.59 Difference: $8.41
If CIM meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $23.91, suggesting upside of 22.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 90.00 cents and EPS of 139.30 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 135.7, implying annual growth of N/A.
Current consensus DPS estimate is 84.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 130.00 cents and EPS of 223.50 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.6, implying annual growth of 16.1%.
Current consensus DPS estimate is 98.9, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.4.

Market Sentiment: 0.3
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: $3.75

Moelis rates ((CQR)) as Downgrade to Hold from Buy (3) –

Charter Hall Retail has agreed to acquire the Butler Central Shopping Centre for $51.2m, with the company expecting net tangible assets to increase by 7% to an estimated $4.02 from $3.77. 

The company also announced a second half distribution of 12.7 cents per unit, implying a full year distribution of 23.4 cents per unit. 

The rating is downgraded to Hold and the target price increases to $3.89 from $3.86. 

This report was published on June 17, 2021.

Target price is $3.89 Current Price is $3.75 Difference: $0.14
If CQR meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.72, suggesting downside of -0.8%(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 6.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.74.

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 14.0.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 25.50 cents and EPS of 28.60 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.11.

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 13.5.

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

DGL    DGL GROUP LIMITED

Overnight Price: $1.37

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

Bell Potter has initiated coverage of DGL Group with a Buy recommendation and target price of $1.50.

DGL Group is a vertically integrated specialty chemicals logistics company providing end-to-end supply chain and environmental services for Trans-Tasman agriculture, mining and construction industries.

Bell Potter's favourable view is supported by improving sector demand, and a large cross-sell opportunity underpinned by new heavy vehicle and environmental regulations.

The broker is also attracted to the company's market-leading used lead acid battery recycling capabilities- positioned to pivot into lithium ion over the mid-term – plus a well-defined commercial and technical development pipeline.

The broker expects the existing pipeline to generate 300-400bps of earnings margin growth by FY23/24, and to position the company as a leading acid and alkali waste specialist capable of taking market share off well-entrenched competitors.

This report was issued June 16, 2021.

Target price is $1.50 Current Price is $1.37 Difference: $0.13
If DGL 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 3.40 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.05.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.86.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $116.44

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

Allowing for the Domino Pizza's plan to acquire a 100% of PizzaVest (“Domino’s Taiwan”) for $79m, Bell Potter has upgraded earnings per share forecasts of 0.3%-2% for FY22 and FY23.

The broker believes the acquisition is attractive on several fronts, including proximity to Japan, ample runway for growth, and attractive margin upside.

Bell Potter maintains its Buy rating with the target price increasing to $132 from $122.

This report was published on June 15, 2021.

Target price is $132.00 Current Price is $116.44 Difference: $15.56
If DMP meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $100.43, suggesting downside of -13.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 154.70 cents and EPS of 214.10 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 216.2, implying annual growth of 34.3%.
Current consensus DPS estimate is 154.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 53.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 183.40 cents and EPS of 255.90 cents.
At the last closing share price the estimated dividend yield is 1.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 251.4, implying annual growth of 16.3%.
Current consensus DPS estimate is 175.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 46.3.

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


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

Domino’s Pizza Enterprises has entered into an agreement to purchase a 100% interest in PizzaVest Company Limited which operates 157 corporate and franchised stores in Taiwan.

The acquisition is expected to cost $79m on a debt free basis, implying 16.5x FY20 earnings, and to close in first half FY22.

Goldman Sachs believes the acquisition provides scope to increase total stores for Domino's by 7.3% and demonstrates the growth potential for the company through further bolt on acquisitions.

The broker maintains its Buy rating and target price of $112.60.

This report was published on June 11, 2021.

Target price is $112.60 Current Price is $116.44 Difference: minus $3.84 (current price is over target).
If DMP meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $100.43, suggesting downside of -13.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 226.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 216.2, implying annual growth of 34.3%.
Current consensus DPS estimate is 154.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 53.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 281.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 251.4, implying annual growth of 16.3%.
Current consensus DPS estimate is 175.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 46.3.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.00

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

Based on G8 Education's recent development strategy update, Wilsons' analysis implies capital allocation by centre has improved materially with every annual cohort, while the harvesting of 16 centres to the core portfolio in second half FY21 suggest centres are trading to targets.

Wilsons estimates the 31 greenfield centres, excluding 13 impaired centres, could achieve earnings of $15.2m if they hit targets, which implies a further 43.6% upside to calendar year 2020 earnings of $10.6m.

The broker estimates this would result in upgrades of 5.1% to calendar 2022 forecasts on a pro-forma basis.

Wilsons retains its Overweight rating with a target price of $1.60.

This report was published on June 16, 2021.

Target price is $1.60 Current Price is $1.00 Difference: $0.6
If GEM meets the Wilsons target it will return approximately 60% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting upside of 11.7%(ex-dividends)
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 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of N/A.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 3.00 cents and EPS of 6.20 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of 47.3%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.3.

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

IMD    IMDEX LIMITED

Mining Sector Contracting – Overnight Price: $2.07

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

Imdex has reported a positive trading update for the second half of FY21. Rented instruments have continued to grow on first half records and customer adoption of the IMDEXHUB-IQ is accelerating. 

The company will increase research and development investment and undertake further digitisation to increase operating efficiency. 

Bell Potter has increased underlying earnings per share estimates by 2.2%, 2.9% and 0.1% for FY21, FY22 and FY23 respectively. 

The Buy rating is retained and the target price increases to $2.35 from $2.20. 

This report was published on June 17, 2021.

Target price is $2.35 Current Price is $2.07 Difference: $0.28
If IMD meets the Bell Potter target it will return approximately 14% (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 2.50 cents and EPS of 6.50 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 31.85.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.80 cents and EPS of 9.50 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.79.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $4.97

Moelis rates ((JLG)) as Buy (1) –

On the back of strong demand for the group’s core BaU and CAT services, Johns Lyng Group has upgraded to group revenue guidance of $558.2m, 6.5% up on to previous guidance.

Management also flagged that the recent northern NSW and south-east Queensland storms are providing some uplift to FY21, with the bulk of the revenue from these storms to materialise in FY22, combined with a significant pipeline of workflow.

Included within a series of catalysts the broker expects to drive near to medium-term earnings are combustible cladding work in Victoria, and $70m total work from NSW/SE-QLD storms being realised over the next 24 months.

Moelis also notes the ramp-up of new contract panel wins in core IB&RS segment will be realised in FY22 & FY23.

While not currently included, Moelis believes M&A or growth from the US Steamatic business could provide significant upside to the broker's estimates.

The Buy rating is unchanged. The target price is $5.22.

This report was published on June 16, 2021.

Target price is $5.22 Current Price is $4.97 Difference: $0.25
If JLG meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.50 cents and EPS of 9.30 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 53.44.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.20 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.38.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $14.84

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

Supported by compressed cap rates, which could allow Lifestyle Communities to step up and maintain its land acquisition pace towards three sites per year, Goldman Sachs believes the medium term catalyst should be an increase in the company's debt facilities.

The broker sees upside risk if the company can secure more land.

Goldman Sachs notes over the medium term settlements can grow to 450pa, but if Lifestyle Communities can step up its land acquisition to 3 sites pa, the broker sees this number growing to around 600 settlements pa.

Goldman Sachs maintains a Buy rating. The target price is increased 3.4% to $16.50.

This report was published on June 15, 2021.

Target price is $16.50 Current Price is $14.84 Difference: $1.66
If LIC meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 7.00 cents and EPS of 62.00 cents.
At the last closing share price the estimated dividend yield is 0.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.94.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 82.00 cents.
At the last closing share price the estimated dividend yield is 0.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.10.

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

NHC    NEW HOPE CORPORATION LIMITED

Coal – Overnight Price: $1.87

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

Driven by realised price and forex movements between now and the end of July, New Hope has provided an out of cycle market update guiding to earnings of $330-390m for FY21 (July year-end), up 25% year-on-year, and a net debt to earnings ratio of below 0.5x by the end of FY21.

New Hope has noted that the Japanese Reference price for Japanese year-end FY21 was recently settled at US$109.97/t, which reflects a 60% increase year-on-year.

Goldman Sachs notes Japan represented circa 41% of the company's sales in FY20.

Based on the broker's estimates, New Hope will have net debt, gearing, and leverage of $180m, 6%, and 0.5x by the end of FY21 (July).

Buy rating and $2.20 target price both unchanged.

This report was published on June 15, 2021.

Target price is $2.20 Current Price is $1.87 Difference: $0.33
If NHC meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.12, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 11.60 cents and EPS of 159.00 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of N/A.
Current consensus DPS estimate is 14.5, implying a prospective dividend yield of 7.8%.
Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.80 cents and EPS of 163.00 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.6, implying annual growth of 63.1%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 8.8%.
Current consensus EPS estimate suggests the PER is 7.3.

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

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.10

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

Despite providing a trading update for FY21 which is -7% below Shaw and Partners' forecast, the broker believes Probiotec has multiple avenues to earnings improvement into FY22 and beyond post a cyclical low in cold/flu due to covid.

The broker believes the current share price doesn’t include any upside for the recovery in earnings for cold/flu and the contribution of further contracts likely to contribute in FY23 ($15-$20m revenues).

With value/recovery trades back in vogue, Shaw also expects Probiotec to likely see increasing attention into second half FY22, and flags the potential likelihood of the company becoming a potential M&A target.

Shaw has reduced earnings estimates by -8% in FY22-23. Buy rating is reaffirmed with the target lowered -6% to $2.77.

The report was published on June 16, 2021.

Target price is $2.77 Current Price is $2.10 Difference: $0.67
If PBP meets the Shaw and Partners target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 5.20 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 8.20 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $27.09

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

Premier Investments now expects Premier Retail FY21 earnings to range between $340m to $360m, 5-11% ahead of Bell Potter's estimate of $324.1m.

Much of the guidance upgrade can be attributed to strong sales performance, with total global sales for the first 18 weeks of second half FY21 up 70.0% versus second half FY20.

Since reopening during April and May 2021, trading in Smiggle stores in the UK and Ireland has been in line with the company's expectations.

The net effect is FY21 and FY22 EPS estimate upgrades by Bell Potter of 7.9%, 3.0%, although there is no change to the broker's FY23 EPS estimates.

While the update is strong, Bell Potter believes a large component of this is cyclical, and continues to focus on valuation on a normalised earnings base, which the broker believes to be fair.

Hold rating is unchanged, with a target price increasing to $26.10 from $25.00.

This report was published on June 15, 2021.

Target price is $26.10 Current Price is $27.09 Difference: minus $0.99 (current price is over target).
If PMV meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.22, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 83.50 cents and EPS of 170.80 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 15.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.7, implying annual growth of 82.6%.
Current consensus DPS estimate is 88.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 92.00 cents and EPS of 134.00 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.2, implying annual growth of -20.5%.
Current consensus DPS estimate is 89.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.8.

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


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

Due to strong sales during the Easter Holiday period and record Mother’s Day, Premier Investments reported sales growth for the 18 weeks of second half FY21 to be at 70% versus the previous period.

The company has increased its earnings outlook to $340m-$360m versus $318m previously, and notes strong full price sell-through of winter apparel is a positive driver.

Revised to reflect the stronger higher margin sales, Goldman Sachs' FY21 forecast implies earnings of $358.6m at the upper end of the revised guidance range.

The Sell rating is maintained, and target price is increased to $21.10 from $20.20.

This report was published on June 14, 2021.

Target price is $21.10 Current Price is $27.09 Difference: minus $5.99 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.22, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 89.00 cents and EPS of 168.00 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.7, implying annual growth of 82.6%.
Current consensus DPS estimate is 88.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 76.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 2.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.2, implying annual growth of -20.5%.
Current consensus DPS estimate is 89.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.8.

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


Jarden rates ((PMV)) as Buy (2) –

Increases to earnings guidance suggest momentum has improved for Premier Investments, which is now guiding 7-13% ahead of the forecast it provided in May. 

Jarden notes strong second half sales, up 70%, and continued strong online performance have driven better-than-expected year-end results. The broker is now guiding to retail profit for FY21 of $348m and notes upside risk as the global economy continues to open. 

The Overweight rating is retained and the target price increases to $31.80 from $30.20. 

This report was published on June 11, 2021.

Target price is $31.80 Current Price is $27.09 Difference: $4.71
If PMV meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $27.22, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 60.00 cents and EPS of 162.90 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.7, implying annual growth of 82.6%.
Current consensus DPS estimate is 88.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 70.00 cents and EPS of 130.40 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.2, implying annual growth of -20.5%.
Current consensus DPS estimate is 89.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.8.

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

PPM    PEPPER MONEY LIMITED

Business & Consumer Credit – Overnight Price: $2.55

Goldman Sachs rates ((PPM)) as Initiation of coverage with Buy (1) –

Goldman Sachs initiates coverage on Pepper Money, a specialist residential mortgage and consumer lender. The company targets segments which are under-serviced by traditional banks and lenders. 

The broker notes Pepper Money has a strong growth outlook and a capital-light business mode. The non-bank residential home loan lending sector has grown loan originations from 2% market share in March 2015 to 5% market share in September 2020.

The company also utilises its own in-house, purpose built system to support mortgage distribution, which it continues to refine.

Goldman Sachs initiates with a Buy rating and a target price of $3.55. 

This report was published on June 17, 2021. 

Target price is $3.55 Current Price is $2.55 Difference: $1
If PPM meets the Goldman Sachs target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.11.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 33.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.73.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $33.16

Jarden rates ((RMD)) as Buy (2) –

Supply chain disruptions caused by the recall of Philips' DreamStation 1 will potentially allow ResMed to launch its Airsense11 in enviable conditions, the broker suggests. The company is positioned to take better-than-expected market share.

With the launch of the product designated for the second half of 2021, ResMed had guided to low single digit growth over the third quarter as purchasing slows in anticipation of a new product.

But Phillips' supply issues have left ResMed's Airsense10 as the only viable alternative on the market for sleep apnea sufferers. 

The Overweight rating is retained and the target price increases to $33.10 from $30.39. 

This report was issued June 16, 2021.

Target price is $33.10 Current Price is $33.16 Difference: minus $0.06 (current price is over target).
If RMD meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $30.82, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 209.67 cents and EPS of 713.94 cents.
At the last closing share price the estimated dividend yield is 6.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.3, implying annual growth of N/A.
Current consensus DPS estimate is 21.3, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 46.9.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 235.18 cents and EPS of 833.20 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 3.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.7, implying annual growth of 16.0%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 40.4.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $6.49

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

Partly reflecting the impact of more pronounced supply chain bottlenecks and delays in April, the May position report from the Almond Board of California confirmed total shipments up 43% on the previous period, and year-to-date up 21% on the previous period.

According to Wilsons, what's most noteworthy in terms of impact on the almond price is the uncommitted inventory, which stands at 398M lbs, previously 331M lbs.

Overweight rating and target price of $6.95 both retained.

Report first published June 11, 2021.

Target price is $6.95 Current Price is $6.49 Difference: $0.46
If SHV meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).

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

SKC    SKYCITY ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $3.16

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

With weeks to go until year end, SkyCity Entertainment Group is guiding to underlying earnings for the year of NZ$247-253m. At the mid-point, this implies around 5% upgrade to Jarden's underlying earnings forecast.

The broker notes this solid fourth quarter performance is good news following the surprise AUSTRAC warning earlier in the week flagging non-compliance by the Adelaide casino. At this point, Jarden highlights it is difficult to assess the impact, if any, of the warning. 

Despite this the broker upgrades underlying earnings for FY21, FY22 and FY23 by 5%, 3% and 2% respectively to reflect stronger domestic play. 

The rating is downgraded to Overweight from Buy and the target price increases to NZ$3.75 from NZ$3.40.

This report was published on June 11, 2021.

Current Price is $3.16. Target price not assessed.
Current consensus price target is N/A
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 4.65 cents and EPS of 10.61 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of N/A.
Current consensus DPS estimate is 6.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 34.1.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 9.31 cents and EPS of 13.86 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of 62.4%.
Current consensus DPS estimate is 13.1, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 21.0.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SSG    SHAVER SHOP GROUP LIMITED

Household & Personal Products – Overnight Price: $1.00

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

Shaw and Partners has provided updated guidance on Shaver Shop Group, upgrading net profit estimates by 8% for FY21 in line with the company's guidance range of $16.75-17.50m. The broker has also reduced forecasts by -15% for FY22 as like-for-like sales moderate. 

Shaver Shop is guiding to total sales of $221-213m, implying 8-9% growth on FY20. 

Shaw highlights Shaver Shop as one of the best positioned retailers in Australia and in the best shape of its life. Online penetration is improving and six A-grade stores were acquired in the second half of FY21. 

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

This report was published on June 17, 2021.

Target price is $1.50 Current Price is $1.00 Difference: $0.5
If SSG meets the Shaw and Partners target it will return approximately 50% (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 6.20 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.46.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 7.00 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 7.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.94.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.92

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

The confirmation of Service Stream's FY21 guidance, which is for second half FY21 earnings to be in-line with first half FY21, suggests to Bell Potter that the company may be managing costs better than the broker had previously forecast.

Service Stream noted in its business update that its Fixed Communications and Network Construction divisions were restructured into a single business unit, which will reduce the Telecommunications operating cost base.

Bell Potter expects the re-alignment of costs to new revenue levels to aid the company's future margin outlook.

The Buy is unchanged and the target price increases to $1.10 from $1.05.

This report was published on 16 June, 2021. 

Target price is $1.10 Current Price is $0.92 Difference: $0.18
If SSM meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.00 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 5.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.39.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 6.60 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.94.

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

SZL    SEZZLE INC

Diversified Financials – Overnight Price: $8.68

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

Jarden initiates coverage on Sezzle Inc, a smaller buy now pay later company with a long-term strategy for emerging markets. 

Jarden notes the buy now pay later market is large, but largely fully penetrated in A&NZ, overly competitive in the US, and facing a strong competitor in Klarna. Many BNPL companies are exploring loyalty affiliate marketing programs and pay anywhere cards to expand their product offerings. 

Sezzle has the largest merchant penetration but lower transaction frequency and customer numbers. In a competitive market, Jarden notes the company may face challenges in materially penetrating enterprise merchants.

The broker also expects the company to have to raise equity to fund near-term growth. 

Jarden initiates coverage with a Sell rating and target price of $5.60. 

This report was published on June 11, 2021. 

Target price is $5.60 Current Price is $8.68 Difference: minus $3.08 (current price is over target).
If SZL meets the Jarden target it will return approximately minus 35% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $3.38

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

Commenting on a recent meeting with Uniti Group, Goldman Sachs notes the company's contracted development pipeline is building rapidly, and has line of sight to its 50%-plus residential greenfield target.

Other positives highlighted by the broker include revelations Uniti has an opportunity to work with Tier 1 developers in whole of business capacity, while recent pricing proposals from NBN Co were also viewed favorably, particularly the annual, above inflation price rise.

Goldman Sachs has increased FY22-25 earnings estimates to 6%, noting the long lead times on new contracted developments means the majority of earnings benefits from existing contract wins are long-dated in nature.

Buy rating is maintained, and target price increases 10% to $3.30.

This report was released on June 11, 2021.

Target price is $3.30 Current Price is $3.38 Difference: minus $0.08 (current price is over target).
If UWL meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.25.

Forecast for FY22:

Goldman Sachs 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 33.80.

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

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $8.23

Jarden rates ((Z1P)) as Initiation of coverage with Overweight (2) –

Jarden initiates coverage on buy now pay later company Zip Co with an Overweight rating and target price of $8.40.

Jarden notes the BNPL market is large, but largely fully penetrated in A&NZ, overly competitive in the US, and facing a strong competitor in Klarna. Many BNPL companies are exploring loyalty affiliate marketing programs and pay anywhere cards to expand their product offerings. 

Zip Co is reporting increasing transaction frequency, and Jarden highlights key earnings drivers for the company are market share gain and increasing repeat customer transactions.

Afterpay ((APT)) is Jarden's value buy now pay later stock pick.

This report was published on June 11, 2021. 

Target price is $8.40 Current Price is $8.23 Difference: $0.17
If Z1P meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $8.69, suggesting upside of 4.0%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is -27.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Current consensus EPS estimate is -4.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.1
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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AD8 AMA AMN APT AVH BOQ BXB CIM CQR DGL DMP GEM IMD JLG LIC NHC PBP PMV PPM RMD SHV SKC SSG SSM SZL UWL Z1P

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For more info SHARE ANALYSIS: SSM - SERVICE STREAM LIMITED

For more info SHARE ANALYSIS: SZL - SEZZLE INC

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: Z1P - ZIP CO LIMITED