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Australian Broker Call *Extra* Edition – Jul 21, 2021

Daily Market Reports | Jul 21 2021

This story features ABACUS PROPERTY GROUP, and other companies. For more info SHARE ANALYSIS: ABP

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)

ABP   ACF   ADA   AIS   AMX   APC   APT   ARB   ARV   ARX   ATU   AVN (2)   CAI   CGC (4)   CMM   CQR   CSX   DEG   DGL   EHL   ENN   EYE   GLL   HDN   IRE   NAN (2)   NSR   NXS   OPY   PFP   PLL   PME   QAN   RZI   SLA   SND   ST1   SVW   TUL   UWL   WOW (2)  

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $3.16

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

Jarden initiates coverage on Storage with a positive view on the sector. The broker expects continued demand given strong discretionary spending and a robust housing market. 

As one of three big operators, Abacus Property benefits from a strong national brand, scale and operating platform. The company now has a clear Storage and Commercial strategy that promises less volatility in its earnings growth profile. 

Jarden points to a focus on partnerships from a disciplined acquisition and development pipeline, and proactive asset management to mitigate commercial portfolio deterioration as an attractive risk reward.

The broker also expects funds from operation to benefit investment proceeds in the next 12-18 months. 

Abacus Property is Jarden's preferred pick for Storage exposure. Jarden initiates with an Overweight rating and a target price of $3.40.

This report was published June 22, 2021.

Target price is $3.40 Current Price is $3.16 Difference: $0.24
If ABP meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting downside of -2.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden 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 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of 34.3%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 18.50 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 5.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of 7.4%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 17.0.

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

ACF    ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services – Overnight Price: $0.43

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

Bell Potter's key takeaway from a management update is the consistency of the contribution margin across FY20 to FY22 (around 48%). This is considered to suggest business is being won not on price, but on the value proposition and strong sales execution.

The company's industrial scaffolding division continues to outperform expectations, reflecting an expansion into new markets outside of native Queensland, explains the broker.

Additionally, there was further impetus from an announcement of a new contract servicing Visy Australia’s Tumut Kraft Paper Mill, based in regional NSW. It's estimated this will generate $2.5m in annual revenue, commencing in the first half of 2022.

Management reaffirmed FY21 guidance for revenue of around $106m and underlying earnings (EBITDA) between $23.5-$24.5m, in line with the analyst's current forecasts. The broker retains its Buy rating and increases its target price to $0.46 from $0.45.

This report was published on June 25, 2021.

Target price is $0.46 Current Price is $0.43 Difference: $0.03
If ACF meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.80 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.24.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.00 cents and EPS of 5.60 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.68.

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

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $1.05

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

Adacel Technologies announced another sale of its new ATM system – called Aurora – which by Bell Potter's count is the fifth sale of the upgraded product after Guadeloupe, Fiji, Martinique, and St Lucia. 

The broker believes the sale further validates the product and also the pipeline which the company originally suggested was around 15-20 sites or more.

While there is no change in Bell Potter's forecasts, the broker continues to forecast healthy dividends over the next three years which equates to payout ratios of just over 50% based on profit before tax (PBT).

Bell Potter believes potential catalysts for the stock include achieving the FY21 guidance, a positive outlook or guidance for growth in FY22 and/or renewal of the Federal Aviation Administration's (FAA) Advanced Technologies & Oceanic Procedures (ATOP) contract.

The broker forecasts PBT growth of 10% in FY22 and believes the contract win supports a growth outlook next year.

Buy rating and the target price of $1.25 are both maintained.

This report was published on June 24, 2021.

Target price is $1.25 Current Price is $1.05 Difference: $0.2
If ADA meets the Bell Potter target it will return approximately 19% (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 7.50 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 7.70 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 13.64.

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

AIS    AERIS RESOURCES LIMITED

Copper – Overnight Price: $0.19

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

Aeris Resources has successfully raised $50.4m through an Institutional Placement of 287.9m shares at $0.175 per share.

Funds will be used to sustain organic growth, with a majority $28m set to accelerate the exploration program at the Tritton Copper and Cracow Gold operations. Additional equity will support mine extension projects at Tritton, and provide general working capital.

Bell Potter notes this supports the focus on exploration Aeris Resources has prioritised since its acquisition of Cracow. Exploration success at Tritton is showing solid potential for mine extension according to the broker.

The Buy rating is retained and the target price increases to $0.235 from $0.225.

This report was published on June 28, 2021. 

Target price is $0.24 Current Price is $0.19 Difference: $0.045
If AIS meets the Bell Potter target it will return approximately 24% (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 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.33.

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

AMX    AEROMETREX LIMITED

Software & Services – Overnight Price: $0.78

Taylor Collison rates ((AMX)) as Speculative Buy (1) –

Despite downgrading earnings forecasts on slower than expected MetroMap subscription growth, Taylor Collison believes investors are getting a free option on Aerometrex's foray into the US market with 3D Modelling to potentially transform the business.

But despite Taylor Collison's positive skew, the broker has amended its recommendation to Speculative Buy from Outperform to reflect the increased uncertainty of MetroMap growth given Nearmap's ((NEA)) pricing behaviour.

The broker expects the current valuation gap to close in part by Nearmaps' valuation compressing as Aerometrex takes market share, albeit slower than initially expected.

If Taylor Collison assumes a -20% pullback in Nearmap's FY22 valuation and applies a -40% discount from there for Aerometrex, the broker comes to a multiple of 19.6x EV/earnings which implies a share price of $1.15.

This report was released on June 25, 2021.

Current Price is $0.78. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.38.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.50.

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

APC    AUSTRALIAN POTASH LIMITED

Agriculture – Overnight Price: $0.13

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

Shaw and Partners believes an increase in Intrepid’s contract MOP (muriate of potash) pricing to US$400/t is positive for the sector, resulting in possible upside risks to the broker's price deck.

In the broker's view, Australian potash developers, such as Australian Potash, will benefit from tight MOP markets.

Shaw believes the stock appears very cheap at current levels and reiterates a Buy recommendation and a $0.32 price target.

This report was published on June 25, 2021. 

Target price is $0.32 Current Price is $0.13 Difference: $0.19
If APC meets the Shaw and Partners target it will return approximately 146% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.50.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.57.

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

APT    AFTERPAY LIMITED

Business & Consumer Credit – Overnight Price: $106.62

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

The buy now pay later sector in Australia is becoming increasingly competitive, with both Commonwealth Bank ((CBA)) and PayPal set to enter the market. 

While Wilsons notes Commonwealth Bank's StepPay product remains a customer retention tool for existing customers, PayPal does present a potential threat to US opportunities for Afterpay.

PayPal has increased pricing around 0.6% per transaction, which the broker notes is positive for medium-term merchant fee concerns. 

Wilsons view is that Afterpay has multiple levers of growth at hand. The Overweight rating and target price of $151.05 are retained. 

This report was published on June 23, 2021. 

Target price is $151.05 Current Price is $106.62 Difference: $44.43
If APT meets the Wilsons target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $121.57, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 14.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 745.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -19.6, 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:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 28.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 372.80.

How do these forecasts compare to market consensus projections?

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 400.0.

Market Sentiment: 0.4
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: $45.23

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

It is Wilsons' view that ARB Corp supplying products to Ford for accessory packages on its Bronco and Ranger models represents a significant growth opportunity into the USA truck accessory market. 

According to the broker, ARB's association with Ford is increasing brand awareness sufficiently that the company could consider a retail store network to complement the existing wholesale operations.

The Overweight rating and target price of $47.80 are retained. 

This report was published on June 25, 2021.

Target price is $47.80 Current Price is $45.23 Difference: $2.57
If ARB meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $44.16, suggesting downside of -3.8%(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 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.5, implying annual growth of 90.1%.
Current consensus DPS estimate is 66.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 33.6.

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 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.4, implying annual growth of -7.4%.
Current consensus DPS estimate is 71.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 36.3.

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

ARV    ARTEMIS RESOURCES LIMITED

Mining – Overnight Price: $0.05

Taylor Collison rates ((ARV)) as Speculative Buy (1) –

Having just raised $7m at $0.06/share, Taylor Collison believes Artemis Resources is now well funded for the planned upcoming drilling at Carlow Castle and Paterson South projects, both of which are 100% Artemis owned.

Taylor Collison expects Artemis' active work program going forward to result in steady news flow. Although the Carlow Castle mineral resource estimate update was a setback, the broker believes this has led to a re-set and a base on which to build.

As such, the broker continues to rate Artemis as a Speculative Buy.

This report was published on June 24, 2021.

Current Price is $0.05. Target price not assessed.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.22

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

Aroa Biosurgery's FY21 annual report has provided further detail compared to the update delivered in May. Bell Potter has not made updates to revenue forecast on maintained guidance from the company. 

Of note to Bell Potter is detail around the company's dead space management program, which has been prioritised to accelerate for development and commercialisation. This follows reported positive pre-clinical outcomes for the device over the course of the year.

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

This report was published on June 22, 2021.

Target price is $2.00 Current Price is $1.22 Difference: $0.78
If ARX meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.88.

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

ATU    ATRUM COAL LIMITED

Coal – Overnight Price: $0.06

Shaw and Partners rates ((ATU)) as Downgrade to Hold from Buy (3) –

Shaw and Partners had expected approval of the Grassy Mountain Coal Project to pave the way for Atrum Coal's Elan Coal Project. 

In a move the broker finds surprising, the Grassy Mountain project has been rejected by the Canadian Federal Minister of Environment and Climate Change and the Alberta Regulator.

A 680-page report claimed the benefits of the project do not outweigh potential environmental risks. 

Shaw notes while the rejection was project specific, this makes Atrum Coal's Elan Coal Project less likely to be developed. Atrum Coal will review the report to determine measures that could mitigate concerns. 

The rating is downgraded to Hold with a target price of $0.05.

This report was published on June 23, 2021.

Target price is $0.50 Current Price is $0.06 Difference: $0.44
If ATU meets the Shaw and Partners target it will return approximately 733% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.20.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 1.20.

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

AVN    AVENTUS GROUP

REITs – Overnight Price: $3.08

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

Largely due to a -64 basis point of cap rate compression, Aventus Group recently provided its portfolio valuation update, a 12% gain compared to December 31.

 Aventus also increased FY21 guidance of funds from operations to 19.4cps, ahead of Goldman Sachs estimate of 19.2cps, and equating to 7% earnings growth over FY20.

The update solidifies the broker's view that Aventus is relatively well-positioned in the current environment, given its large format retail portfolio derives 37% of income from everyday needs tenants.

Although the group has re-rated since late May 2020 – up over 62% and outperforming the REIT index by 28% – the broker believes it remains attractive in the current environment given the organic and external growth strengths

Buy Rating is maintained and the target price increases to $3.27.

This report was published on June 23, 2021.

Target price is $3.27 Current Price is $3.08 Difference: $0.19
If AVN meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.06, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 17.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of 85.0%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 3.7%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 15.7.

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


Moelis rates ((AVN)) as Sell (5) –

Aventus Group has released updated valuations resulting in a net uplift of $254m, with cap rates compressing 64bps to 6.01%.

Based on Moelis' estimates, the valuation uplift increases net tangible assets (NTA) to $2.70, with the gains also resulting in gearing reducing to 28%, which the broker expects to decrease further once the group settles on the sale of McGregor in July for $42m.

While the group's FY21 result is slightly elevated due to the one-off recoupment of rent deferred through covid, Moelis still expects 0.8% of earnings per share growth in FY22 given ongoing favourable trading conditions for tenants, and slightly lower interest rates.

Sell rating is maintained, and the target price increases to $2.90 from $2.77 on the basis of higher than expected cap rate compression.

This report was released on June 24, 2021.

Target price is $2.90 Current Price is $3.08 Difference: minus $0.18 (current price is over target).
If AVN meets the Moelis target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.06, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.50 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of 85.0%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 5.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 3.7%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 15.7.

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

CAI    CALIDUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.48

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

After a recent visit to Calidus Resources' Warrawoona Gold Project, Cannacord Genuity notes the company is around 40% of the way through the $125m build and is targeting first gold in June quarter FY22 with the ramp-up completing shortly after.

In the broker's view, the company has done a commendable job in consolidating the tenure, defining resource/reserves, and obtaining approvals to build the mine.

Canaccord believes Calidus continues to offer exposure to one of WA's next gold production stories. But the broker remains unsure whether there is enough of a working capital buffer to see the company through the ramp-up of Warrawoona on the broker's assumptions, and models further equity dilution in 2022.

Speculative Buy and price target of $0.60 are both unchanged.

This report was issued June 24, 2021.

Target price is $0.60 Current Price is $0.48 Difference: $0.12
If CAI meets the Canaccord Genuity target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1600.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 480.00.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.35

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

Following Costa Group's announced acquisition of 2PH Farms for $231m, Bell Potter has downgraded earning per share (EPS) by -14% in calendar year 2021, left them unchanged for 2022, and upgraded them by 13% for 2023.

Bell Potter notes production on the existing orchards is forecast at 30kt in 2021, lifting to around 60kt by 2025 as orchards mature, excluding volumes from new plantings.

Together with previous investments in mushrooms, tomatoes, and International blueberries, Bell Potter believes the acquisition of 2PH Farms is creating an attractive tail of volume and profit growth through to 2025.

Bell Potter retains a Buy rating, and the target price is lowered to $4.30 from $4.60 to reflect lower avocado earnings and dilution from the equity raising, offset in large by 2PH earnings.

This report was published on June 24, 2021.

Target price is $4.30 Current Price is $3.35 Difference: $0.95
If CGC meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $4.07, suggesting upside of 22.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 12.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 3.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 12.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 17.8.

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


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

Given the geographic diversification of production, and clear organic growth profile to 2025, Goldman Sachs thinks Costa Group's proposed acquisition of 2PH Farms – the largest citrus producer in Northern Australia – would be a good fit with the company's existing citrus operations.

Costa expects 10% accretion in FY21 on a pro forma basis, and the broker sees significant potential upside as the 2PH orchards mature.

The broker has cut FY21, FY22, and FY23 earning per share (EPS) estimates by -13%, -7%, and -7% respectively.

But the broker estimates EPS accretion of 14-24% in FY25 as production ramps up from the current 30,000 tonnes in FY21 to 60,000-plus tonnes by 2025.

Buy rating is maintained, and the target price is lowered by -13% to $4.20.

This report was published on June 24, 2021.

Target price is $4.20 Current Price is $3.35 Difference: $0.85
If CGC meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $4.07, suggesting upside of 22.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 9.00 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 3.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.50 cents and EPS of 19.20 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 17.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 17.8.

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


Jarden rates ((CGC)) as Buy (2) –

Jarden increases Costa Group's earning per share (EPS) forecasts by around 8% in FY22/23 to reflect the net impact of the 2PH Farms acquisition – currently the largest citrus producer in Northern Australia – lower tax rate (guidance) and dilution from the rights issue.

Within forecasts, the broker assumes Costa can retain circa 39% earnings margins for 2PH and reach around 60kt of production in 2025.

The Overweight rating is maintained, and the target price is lowered to $3.90 from $4.00, reflecting the net impact of rights issue and acquisition.

This report was published on June 23, 2021. 

Target price is $3.90 Current Price is $3.35 Difference: $0.55
If CGC meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $4.07, suggesting upside of 22.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 9.00 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 3.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 12.00 cents and EPS of 22.10 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 17.8.

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


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

Costa Group announced the acquisition of 2PH Farms, a large citrus and grape orchard in central QLD, for $219M, primarily funded by $190M of new equity.

While the purchase price appears full relative to industry benchmarks, Wilsons believes it is justified by the uniqueness of the asset and strong margin profile.

Incorporating the acquisition, The broker's earnings estimates are upgraded 6% in FY21, 13% in FY22 and 16% in FY23.

Wilsons notes the quantum of upgrades in the outer years reflects the impact of biennial crop volumes and orchard maturity profile.

The Market Weight Rating is retained and the target price is lowered to $3.60 from $4.70.

This report was published on June 24, 2021.

Target price is $3.60 Current Price is $3.35 Difference: $0.25
If CGC meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.07, suggesting upside of 22.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 9.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 3.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 12.10 cents and EPS of 20.20 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of 21.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 17.8.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $1.76

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

Highlighting the quality of the management team, in Cannaccord Genuity's view, Capricorn Metals has completed construction of its 100%-owned Karlawinda Gold Project, and has started continuous ore processing.

The broker expects the project to ramp up quickly during FY22 to establish itself as a 110-125koz per year gold producer, at an all-in sustaining cost (AISC) of $1,180/oz over a 10-year mine life. The broker maintains its Buy rating and sets a $2.15 target price.

This report was published on June 24, 2021.

Target price is $2.15 Current Price is $1.76 Difference: $0.39
If CMM meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

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

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 28.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.29.

Market Sentiment: 0.0
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: $3.64

JP Morgan rates ((CQR)) as Neutral (3) –

JP Morgan updates forecasts for the acquisition of Butler Central Shopping Centre in Perth for $51m on a cap rate of 6%. The centre  is anchored by Woolworths Group ((WOW)) and is expected to be around 1% earnings accretive.

After also reducing rental assistance assumptions, and rolling forward the valuation model, the broker maintains its Neutral rating and lifts its target price to $4.20 from $4.10.

This report was published on June 21, 2021.

Target price is $4.20 Current Price is $3.64 Difference: $0.56
If CQR meets the JP Morgan target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $3.72, suggesting upside of 0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 23.40 cents and EPS of 27.50 cents.
At the last closing share price the estimated dividend yield is 6.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.0, implying annual growth of 185.4%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 26.20 cents and EPS of 29.50 cents.
At the last closing share price the estimated dividend yield is 7.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of 3.3%.
Current consensus DPS estimate is 24.9, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 13.3.

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

CSX    CLEANSPACE HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $1.41

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

According to Wilsons, new US OH&S standards will be broadly supportive for CleanSpace. The interim rule requires healthcare employers to implement a covid-19 plan that includes guidance on respiratory protective equipment requirements. 

Wilsons notes this will encourage US healthcare employers to consider powered air purifying respirators over filtering facepiece respirators in certain situations. Despite this, the broker considers the company's near term earnings visability to be low. 

The Market Weight rating and target price of $2.00 are retained. 

This report was published on June 28, 2021. 

Target price is $2.00 Current Price is $1.41 Difference: $0.59
If CSX meets the Wilsons target it will return approximately 42% (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 16.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.70.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.11.

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: $1.17

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

De Grey Mining's maiden Resource for Hemi has impressively exceeded Canaccord Genuity's expectation. The overall resource base at the Mallina project now stands at 230mt at 1.2g/t for 9moz.

The broker highlights the total discovery and resource definition costs are estimated to be $8.50/oz, well below the industry average of around $20/oz.

Management has flagged that a scoping study will be out in the September quarter, which will look to demonstrate the production potential of the project. The broker retains its Buy rating and $1.60 target price.

This report was published on June 23, 2021.

Target price is $1.60 Current Price is $1.17 Difference: $0.43
If DEG meets the Canaccord Genuity target it will return approximately 37% (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

DGL    DGL GROUP LIMITED

Commercial Services & Supplies – Overnight Price: $1.33

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

Canaccord Genuity initiates coverage of DGL Group with a Buy rating and a price target of $1.45.

According to the report, DGL is a well-established specialty chemical and dangerous goods business offering solutions from production to recycling with substantial manufacturing capacity, chemical storage, and waste processing capability.

The broker believes the shares offer meaningful upside potential on a standalone basis and notes the balance sheet is in rude health, with an estimated $21m of net cash exiting FY21.

This report was issued June 24, 2021.

Target price is $1.45 Current Price is $1.33 Difference: $0.12
If DGL meets the Canaccord Genuity target it will return approximately 9% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.25.

Forecast for FY22:

Canaccord Genuity 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 33.25.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.28

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

Emeco Holdings has announced it will refinance its US nominated debt by issuing $250m in Senior Secured notes. The notes will result in approximately $9.0m per annum in interest savings, and will be 8.5% accretive to FY22 underlying earnings per share according to Bell Potter 

The company has also reiterated guidance for FY21 operating earnings of between $235-238m, although Bell Potter notes that Emeco could exceed that range given coal pricing.

Prices on metallurgical and thermal coal have increased 62.3% and 37.1% respectively since guidance range was first provided. 

The Buy rating is retained and the target price increases to $1.55 from $1.50. 

This report was published on June 28, 2021.

Target price is $1.55 Current Price is $1.28 Difference: $0.27
If EHL meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.80 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.70 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.77.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $1.93

Moelis rates ((ENN)) as Buy (1) –

Elanor Investors Group has guided to FY21 core earnings of $14.6m, or 12cps, which compares to Moelis' estimates of $14.2m, or 11.8cps.

The broker's FY21 earnings estimate moves in line with guidance, resulting in a 2.5% earnings per share uplift.

Moelis notes Elanor has established a strong track record in extracting value from retail value add opportunities, with the Elanor Retail Property Fund ((ERF)) special distribution a positive result for unit holders.

The Buy rating is maintained and the target price increases to $2.10 from $2.05.

The report was published on June 25, 2021.

Target price is $2.10 Current Price is $1.93 Difference: $0.17
If ENN meets the Moelis target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 10.50 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.95.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.80 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.

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

EYE    NOVA EYE MEDICAL LIMITED

Medical Equipment & Devices – Overnight Price: $0.29

Taylor Collison rates ((EYE)) as Speculative Buy (2) –

Taylor Collison notes Nova Eye Medical's plans to drive renewed growth in iTrack sales via development of a next-generation iTrack device, with improved ease of use, and initiate trials of MAGIC, which directly compares iTrack to rival Sight Science’s OMNI device. 

With Nova Eye Medical currently trading at 1.6x trailing EV/sales, the broker believes there is clear scope for a substantial re-rating if the company succeeds in driving renewed iTrack sales growth.

Taylor Collison retains its Outperform rating and target of $0.42.

This report was issued June 25, 2021.

Target price is $0.42 Current Price is $0.29 Difference: $0.13
If EYE meets the Taylor Collison target it will return approximately 45% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 13.50 cents and EPS of minus 1.70 cents.
At the last closing share price the estimated dividend yield is 46.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.06.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.17.

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

GLL    GALILEE ENERGY LIMITED

NatGas – Overnight Price: $0.49

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

Canaccord Genuity's confidence levels around the Galilee pilot continue to grow. Gas rates have now increased to 80kscf/d, up from 70kscf/d, and reservoir pressure continues to fall. The broker increases it target price to $0.95 from $0.83 and retains a Speculative Buy.

Assuming a successful reserve booking, broker observes the company is trading on valuation multiples at a significant discount to prior East Coast CSG transactions.

This report was published on June 24, 2021.

Target price is $0.95 Current Price is $0.49 Difference: $0.46
If GLL meets the Canaccord Genuity target it will return approximately 94% (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 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.21.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.22.

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

HDN    HOMECO DAILY NEEDS REIT

REITs – Overnight Price: $1.50

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

Goldman Sachs has updated forecasts for HomeCo Daily Needs, taking into account the company's recent $265m equity raising and acquisitions. 

Raised equity is being used to partially fund $322m in acquisitions, which includes the purchase of seven large format retail assets from HomeCo. 

The broker notes the purchase of the HomeCo portfolio is dilutive to near-term earnings given timing differences between the equity raising and expected settlement.

The Buy rating is retained and the target price increases to $1.52 from $1.40. 

This report was published on June 22, 2021.

Target price is $1.52 Current Price is $1.50 Difference: $0.02
If HDN meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $1.56, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.0, implying annual growth of N/A.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 37.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 110.0%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 17.6.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $12.62

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

JP Morgan is encouraged that guidance was maintained though Iress has had a slow start to 2021 and will require a strong second half. Management outlined a number of initiatives that are underway to deliver improved shareholder returns and accelerate growth.

The broker has increased its valuation by incorporating a 15% corporate activity premium, driven by the high level of M&A activity in the wealth management software/technology space. Thus, the broker's target rises to $13.80 from $12.00 and its Overweight rating is unchanged.

This report was published on June 15, 2021.

Target price is $13.80 Current Price is $12.62 Difference: $1.18
If IRE meets the JP Morgan target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $11.04, suggesting downside of -12.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 44.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.7, implying annual growth of 26.1%.
Current consensus DPS estimate is 46.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 31.0.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 48.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.1, implying annual growth of 5.9%.
Current consensus DPS estimate is 47.0, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 29.3.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.23

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

Nanosonics has announced the launch of its second product, AuditPro, developed to provide a new digital workflow compliance management system with potential application across a range of medical instruments. 

Cannacord Genuity notes that while the product is complementary with Nanosonics' Trophon2 product, it is also more widely applicable to other ultrasound consoles. The broker notes this allows the system to have a total addressable market around four times that of Trophon in the US.

Canaccord Genuity sees multiple categories where AuditPro can be marketed and add value to Nanosonics, but does expect financial impacts to take some time to emerge.

The Buy rating and target price of $6.36 are retained.

This report was published on June 27, 2021.

Target price is $6.36 Current Price is $5.23 Difference: $1.13
If NAN meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.82, suggesting upside of 10.6%(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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 871.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, implying annual growth of -40.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 263.0.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 93.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of 200.0%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 87.7.

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


Wilsons rates ((NAN)) as Underweight (5) –

Nanosonics is set to launch its AuditPro digital infection control platform, but according to Wilsons, management has flagged additional research and development updates over FY22 that will lead to the market launch of a second platform. 

AuditPro is described as a workflow compliance management system that should assist with high level disinfection compliance.  For healthcare settings seeking compliance with US Joint Commission and US Medicare, this is an auditable key performance indicator. 

Wilsons notes the product appears to ask existing Trophon 2 users to pay for functionality the system already offers. 

The Underweight rating and target price of $3.58 are retained. 

This report was published on June 28, 2021.

Target price is $3.58 Current Price is $5.23 Difference: minus $1.65 (current price is over target).
If NAN meets the Wilsons target it will return approximately minus 32% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.82, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 201.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, implying annual growth of -40.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 263.0.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 108.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of 200.0%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 87.7.

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

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $2.10

Jarden rates ((NSR)) as Initiation of coverage with Neutral (3) –

Jarden initiates coverage on Storage with a positive view on the sector. The broker expects continued demand given strong discretionary spending and a robust housing market. 

As one of three big operators, National Storage benefits from a strong national brand, scale and operating platform. The company is the only Storage pure play in Australia, and has a continued strategy of aggressive acquisitions and developments. 

Jarden notes the company is well-positioned to benefit from demand growth in a largely fragmented industry. The broker also points to potential upside risk from increased corporate activity after three takeover bids in early 2020, but does see better value elsewhere in the sector.

Jarden initiates with a Neutral rating and a target price of $2.10.

This report was published June 22, 2021.

Target price is $2.10 Current Price is $2.10 Difference: $0
If NSR meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $2.04, suggesting downside of -4.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 8.30 cents and EPS of 8.50 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 24.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of -43.4%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 25.4.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 8.90 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.0, implying annual growth of 7.1%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 23.7.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.50

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

Zimmer, Next Science's distribution partner for Bactisure, filed a complaint with a US District Court alleging to have commercial exclusivity rights over Xperience. This is the company's recently approved surgical wash.

This stems from Zimmer’s claim that XPerience competes with Bactisure. Thus, Zimmer claims to have the “exclusive worldwide right to sell any disinfectant solution developed by Next Science, for use as a surgical lavage to clean wounds and reduce the risk of infection”.

Bell Potter is cautious on the stock following the announcement, regardless of the outcome. Even in a win, it's felt Next Science may incur hefty legal fees, which could put pressure on the balance sheet.

The broker awaits further detail on the proceedings before making any changes to forecasts. Bell Potter retains its Hold rating and $1.70 price target.

This report was published on June 25, 2021.

Target price is $1.70 Current Price is $1.50 Difference: $0.2
If NXS meets the Bell Potter target it will return approximately 13% (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 0.00 cents and EPS of minus 6.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.45.

Forecast for FY22:

Bell Potter 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 37.49.

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

OPY    OPENPAY GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.38

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

Openpay is acquiring 100% of Payment Assist, the leading buy now pay later provider for the UK's auto sector. Shaw and Partner's notes this wil transform the company's UK presence. 

Completion of the transaction is expected in the first half of FY22, with Shaw expecting the acquisition to be earnings positive by FY23 at the earliest. According to the broker, the UK auto market represents a total addressable market of GBP26.7bn.

The Buy rating and target price of $4.00 are retained. 

This report was published on June 23, 2021.

Target price is $4.00 Current Price is $1.38 Difference: $2.62
If OPY meets the Shaw and Partners target it will return approximately 190% (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 40.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.37.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 34.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.98.

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: $3.75

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

Propel Funerals Partners has released an Exploratory Memorandum detailing the financial impacts of the proposed internalisation announced in May. 

Bell Potter notes the memorandum outlines a net increase in operating expenses of around $2.6m per annum related to employee expenses. A termination fee of $15m to Propel Investments will also be paid, funded by a $7.5m raise from new shares and $7.5m in cash.

Propel Funeral Partners has unanimously recommended shareholders vote in favour of the transaction. 

The Buy rating is retained and the target price increases to $4.25 from $4.15.

This report was published on June 22, 2021.

Target price is $4.25 Current Price is $3.75 Difference: $0.5
If PFP meets the Bell Potter target it will return approximately 13% (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 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.35.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.10 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.98.

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

PLL    PIEDMONT LITHIUM INC

New Battery Elements – Overnight Price: $0.87

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

The outcomes of Piedmont Lithium's updated scoping study exceeded Canaccord Genuity's prior expectations in terms of project life, concentrate production rates, cash costs and lithium hydroxide (LiOH) production.

However, this is offset by a 32% increase in project capex forecast, due mainly to increased capacity, higher contingency and several project design changes, explains the broker. The latter is considered to have improved the project's sustainability credentials.

The improved sustainability credentials may be beneficial in project financing and product marketing/offtake efforts, points out the analyst. The Broker retains the Speculative Buy rating and increases its target price to $1.20 from $1.15.

This report was published on June 25, 2021.

Target price is $1.20 Current Price is $0.87 Difference: $0.33
If PLL meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8700.00.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $59.47

Bell Potter rates ((PME)) as Sell (5) –

Following the seven contract wins announced by Pro Medicus over the last year, Bell Potter has raised FY22-23 earning per share estimates by 22% and 14% respectively.

Bell Potter notes while the eye-watering multiples attached to this high-performing stock may deter investors, Pro Medicus continues to strongly outperform the market.

In the broker's view, the moat around its earnings continues to widen as the use of sophisticated imaging technology continues to expand.

Bell Potter retains a Hold rating with the price target rising to $49 from $43.

This report was published on June 24, 2021.

Target price is $49.00 Current Price is $59.47 Difference: minus $10.47 (current price is over target).
If PME meets the Bell Potter target it will return approximately minus 18% (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 14.00 cents and EPS of 28.80 cents.
At the last closing share price the estimated dividend yield is 0.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 206.49.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 21.00 cents and EPS of 42.50 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 139.93.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $4.54

Jarden rates ((QAN)) as Buy (1) –

Jarden notes Sydney and Melbourne lockdowns will impact on Qantas' FY21 earnings.

While the company had been guiding to underlying earnings of $400-450m as recently as May, the broker predicts the most recent lockdowns could lead to a -$200-280m decrease on FY21 and FY22 earnings.

It is Jarden's view that potential impact on earnings momentum moving into FY22 is harder to predict. Impacts of lockdown on future booking confidence could cause a further -$50-100m earnings decrease in FY22.

Prior to the recent lockdowns the domestic market recovery was gathering momentum, and Jarden notes capacity was at 75% of pre-covid levels in April.

The Buy rating and target price of $6.75 are retained. 

This report was published June 28, 2021.

Target price is $6.75 Current Price is $4.54 Difference: $2.21
If QAN meets the Jarden target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $5.79, suggesting upside of 27.3%(ex-dividends)
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 61.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -68.7, 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.

Forecast for FY22:

Jarden forecasts a full year FY22 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 168.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of N/A.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 23.1.

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

RZI    RAIZ INVEST LIMITED

Wealth Management & Investments – Overnight Price: $1.63

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

Bell Potter reports Raiz Invest is on track to reach management's funds under management target of $1bn, with Australian funds under management set to grow following the acquisition of Superestate which holds $70m in superannuation.  

Funds under management have increased by 76% in the twelve months to the end of May 2021, to total $762m. The broker notes that during this period monthly funds increase continuously outperformed the ASX200.

According to Bell Potter, innovative investment options and specialised offerings have helped Raiz Invest drive active customers.

The Buy rating is retained and the target price increases to $1.85 from $1.00. 

This report was published on June 28, 2021.

Target price is $1.85 Current Price is $1.63 Difference: $0.22
If RZI meets the Bell Potter target it will return approximately 13% (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 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.22.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.62.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $3.98

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

Silk Laser Australia will pay $47m cash and issue up to $5m in stock to acquire Australian Skin Clinics' 56 practices in A&NZ.

Commenting on the acquisition, Wilsons notes Australian Skin Clinics nearly doubles Silk's clinic numbers, provides new exposures to Victorian & NZ markets, and significantly upgrades their commercial presence in QLD.

The broker suspects Silk may adopt a more conservative clinic roll-out pace over FY22 as the Australian Skin Clinics business is integrated and procurement benefits and synergy opportunities are explored.

In aggregate, the broker's FY22- 23 net profit forecasts are upgraded 8%-20%. Market weight rating is maintained, and the target price is increased 2% to $4.54.

This report was published on June 24, 2021. 

Target price is $4.54 Current Price is $3.98 Difference: $0.56
If SLA meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 14.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.03.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 16.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.27.

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

SND    SAUNDERS INTERNATIONAL LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.80

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

In a preview of FY21 results, CCZ Equities fully expects $110m in revenue (top end of guidance). The main variable risk is considered the second half FY21 earnings (EBIT) margin, forecast by the analyst to be 7.4%, on an underlying basis. 

The broker now forecasts a 10% compound annual growth rate (CAGR) to FY25, up from the prior estimate of 4%. Further upside risk is considered a possibility, subject to the timing of contract awards.

While leaving FY21 forecasts unchanged, the analyst lifts FY22 and FY23 profit forecasts by 9% and 17%. The broker increases its target price to $0.95 from $0.85 and retains the Buy rating.

This report was published on June 22, 2021.

Target price is $0.95 Current Price is $0.80 Difference: $0.15
If SND meets the CCZ Equities target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 1.75 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.38.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 3.00 cents and EPS of 6.30 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 12.70.

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

ST1    SPIRIT TECHNOLOGY SOLUTIONS LIMITED

Telecommunication – Overnight Price: $0.31

Shaw and Partners rates ((ST1)) as Buy (1) –

With operations now up on the entirety of the East Coast, having been only Melbourne-based in calendar year 2019, Shaw and Partners believes Spirit Technology Solutions now has an integrated, wide platform to grow from.

The broker notes the group has grown from signing $20m in total contract value annualised to $85m at third quarter FY21 and now has over $65m in recurring revenues or 2x FY20 total revenues.

Shaw believes Spirit Technology Solutions is now the cheapest telco on the market, with FY22 likely to exhibit significant growth off FY21 exit run-rates alone.

The broker sees the current valuation as undemanding and notes the recent consolidation activity of Superloop ((SLC)) on Exetel provides support.

The Buy rating remains and the target price is lowered to $0.60 from $0.61.

This report was published on June 24, 2021.

Target price is $0.60 Current Price is $0.31 Difference: $0.29
If ST1 meets the Shaw and Partners target it will return approximately 94% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.44.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.09.

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

SVW    SEVEN GROUP HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $22.08

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

JP Morgan considers Seven Group has an undemanding multiple and WesTrac is a key beneficiary of buoyant commodities markets. Meanwhile, Coates Hire is considered a lower risk East Coast infrastructure play.

The broker views equipment hire as a lower risk (contract and labour), higher leverage way to play the increasing the Australian infrastructure spending thematic. The company is JP Morgan's top pick among contractors.

The broker maintains its $26.50 target price and Overweight rating.

This report was published on June15, 2021.

Target price is $26.50 Current Price is $22.08 Difference: $4.42
If SVW meets the JP Morgan target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $27.14, suggesting upside of 22.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 47.00 cents and EPS of 142.00 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.4, implying annual growth of 313.9%.
Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 50.00 cents and EPS of 155.00 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.6, implying annual growth of 10.7%.
Current consensus DPS estimate is 47.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 14.2.

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

TUL    TULLA RESOURCES PLC

Gold & Silver – Overnight Price: $0.56

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

Bell Potter initiates coverage on Tulla Resources with a Speculative Buy rating and $0.91 price target. Tulla is a gold development and mineral exploration company, the primary asset of which is a 50% interest in the Central Norseman Gold project in WA.

The company's interest in the project is currently held in an unincorporated joint venture with Pantoro ((PNR)), which holds the other 50% and management of the project. A definitive feasibility study on the re-start of operations was completed in October 2020.

First production is targeted for late first half 2022. The analyst sees a good value entry point as the re-development and de-risking of the project commences, and an exploration program to double the current reserve base gets underway.

This report was published on June 25, 2021.

Target price is $0.91 Current Price is $0.56 Difference: $0.35
If TUL meets the Bell Potter target it will return approximately 62% (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 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.02.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 186.67.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $3.24

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

NBN Co released a variation discussion paper for its Special Access Undertaking on June 7, 2021. JP Morgan estimates the proposed pricing constructs will result in wholesale prices increasing by a minimum of 13% by mid-2023.

Uniti Group is seen as a beneficiary of the rise, as it utilises NBN Co's pricing card for its own wholesale network, explains the broker.

However, the analyst sees a risk that increasing wholesale prices may drive further investment from the mobile network operators’ in alternative technologies, such as 5G fixed wireless.

The broker maintains its Overweight rating and $3.45 target price.

This report was published on 21 June, 2021.

Target price is $3.45 Current Price is $3.24 Difference: $0.21
If UWL meets the JP Morgan target it will return approximately 6% (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 46.29.

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 32.40.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $38.50

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

Included within recent updates to significant items for FY21, Woolworths will recognise a revaluation profit related to the original 47.2% stake the company held in Quantium prior to the most recent investment.

Woolworths also announced the construction of a new Fresh distribution centre at Wetherill Park in NSW, while an impairment will be charged related to store and lease assets of 13 Metro stores in FY21.

Overall, Woolworths will be reporting a pre-tax gain of $57m in FY21, which compares to Goldman Sachs' current forecast of a significant items loss of -$45m.

The Buy rating and target price of $43.10 are both retained.

This report was published on June 23, 2021. 

Target price is $43.10 Current Price is $38.50 Difference: $4.6
If WOW meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $36.40, suggesting downside of -6.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 113.00 cents and EPS of 152.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.6, implying annual growth of 60.4%.
Current consensus DPS estimate is 104.5, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 119.00 cents and EPS of 159.00 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.8, implying annual growth of -13.3%.
Current consensus DPS estimate is 98.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 30.2.

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


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

Jarden remains positive on Woolworths' outlook on the other side of the Endeavour Group ((EDV)) demerger.

Jarden's view is that Woolworths can generate a higher return on capital as a standalone entity, as well as attract new shareholders with ESG interests and maintain a more focused medium-term ecosystem strategy. 

The Overweight rating and target price of $43.00 are retained.

This report was published on June 22, 2021. 

Target price is $43.00 Current Price is $38.50 Difference: $4.5
If WOW meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $36.40, suggesting downside of -6.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 122.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.6, implying annual growth of 60.4%.
Current consensus DPS estimate is 104.5, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 132.00 cents and EPS of 161.50 cents.
At the last closing share price the estimated dividend yield is 3.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.8, implying annual growth of -13.3%.
Current consensus DPS estimate is 98.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 30.2.

Market Sentiment: -0.2
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

ABP ACF ADA AIS AMX APC APT ARB ARV ARX ATU AVN CAI CBA CGC CMM CQR CSX DEG DGL EDV EHL ENN ERF EYE GLL HDN IRE NAN NEA NSR NXS OPY PFP PLL PME PNR QAN RZI SLA SLC SND ST1 SVW TUL UWL WOW

For more info SHARE ANALYSIS: ABP - ABACUS PROPERTY GROUP

For more info SHARE ANALYSIS: ADA - ADACEL TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: AIS - AERIS RESOURCES LIMITED

For more info SHARE ANALYSIS: AMX - AEROMETREX LIMITED

For more info SHARE ANALYSIS: APC - AUSTRALIAN POTASH LIMITED

For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: ARV - ARTEMIS RESOURCES LIMITED

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: ATU - ATRUM COAL LIMITED

For more info SHARE ANALYSIS: AVN - AVENTUS GROUP

For more info SHARE ANALYSIS: CAI - CALIDUS RESOURCES LIMITED

For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA

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

For more info SHARE ANALYSIS: CMM - CAPRICORN METALS LIMITED

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

For more info SHARE ANALYSIS: CSX - CLEANSPACE HOLDINGS LIMITED

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

For more info SHARE ANALYSIS: DGL - DGL GROUP LIMITED

For more info SHARE ANALYSIS: EDV - ENDEAVOUR GROUP LIMITED

For more info SHARE ANALYSIS: EHL - EMECO HOLDINGS LIMITED

For more info SHARE ANALYSIS: ENN - ELANOR INVESTORS GROUP

For more info SHARE ANALYSIS: ERF - ELANOR RETAIL PROPERTY FUND

For more info SHARE ANALYSIS: EYE - NOVA EYE MEDICAL LIMITED

For more info SHARE ANALYSIS: GLL - GALILEE ENERGY LIMITED

For more info SHARE ANALYSIS: HDN - HOMECO DAILY NEEDS REIT

For more info SHARE ANALYSIS: IRE - IRESS LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: NEA - NEARMAP LIMITED

For more info SHARE ANALYSIS: NSR - NATIONAL STORAGE REIT

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

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

For more info SHARE ANALYSIS: PLL - PIEDMONT LITHIUM INC

For more info SHARE ANALYSIS: PME - PRO MEDICUS LIMITED

For more info SHARE ANALYSIS: PNR - PANTORO LIMITED

For more info SHARE ANALYSIS: QAN - QANTAS AIRWAYS LIMITED

For more info SHARE ANALYSIS: RZI - RAIZ INVEST LIMITED

For more info SHARE ANALYSIS: SLA - SILK LASER AUSTRALIA LIMITED

For more info SHARE ANALYSIS: SLC - SUPERLOOP LIMITED

For more info SHARE ANALYSIS: SND - SAUNDERS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: ST1 - SPIRIT TECHNOLOGY SOLUTIONS LIMITED

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

For more info SHARE ANALYSIS: TUL - TULLA RESOURCES PLC

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED