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Australian Broker Call *Extra* Edition – Jul 27, 2021

Daily Market Reports | Jul 27 2021

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M   A4N   AIS   ARX   ASG   CAT   CYM   EDV   FFX   GSS   IGO   JLG (2)   JRV   MZZ   NAN   NTO   NWS   OTW   PDN   RMS   RRL   SRG  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $6.40

Bell Potter rates ((A2M)) as Buy (1) –

Infant formula export volumes to China from Australia have demonstrated their first year-on-year increase since May 2019, up 56%.

Bell Potter welcomes the increase believing it to be indicative of overall market dynamics. Sequentially, volumes appear to have formed a bottom in recent months. Bell Potter retains a Buy rating and $8.50 target.

This report was published on July 2, 2021.

Target price is $8.50 Current Price is $6.40 Difference: $2.1
If A2M meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $6.43, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, 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 37.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 26.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of 63.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 22.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

A4N    ALPHA HPA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.52

Bell Potter rates ((A4N)) as Buy (1) –

Following a $50m equity placement, Alpha HPA is now funded to commence first stage development at its Precursor Production Facility. The facility will fast track commercial volume production of the company's aluminum precursors.

The company expects the facility to generate annual free cash flow of $8-11m from late 2022. 

Bell Potter notes the new facility will accelerate commercial sales by around 12 months, and that bringing forward production will allow Alpha HPA to be a participant in the lithium ion battery supply chain.

The Speculative Buy rating is maintained and the target price increases to $0.83 from $0.81. 

This report was published on June 30, 2021.

Target price is $0.83 Current Price is $0.52 Difference: $0.31
If A4N meets the Bell Potter target it will return approximately 60% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 173.33.

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 173.33.

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

AIS    AERIS RESOURCES LIMITED

Copper – Overnight Price: $0.21

Euroz Hartleys rates ((AIS)) as Buy (1) –

Although early days, Euroz Hartleys sees potential for the supergene zone at Constellation to generate early cashflows through open-pit operation, before moving underground.

Based on the broker's numbers, the company will finish the June quarter with a net cash position of $62m, post the capital raise, including cashflow from the June quarter.

The broker believes the all-in cost remains ‘cheap’ at a current value of $377m, with two processing facilities that remain leveraged to exploration success.

This report was issued July 6, 2021.

Target price is $0.30 Current Price is $0.21 Difference: $0.09
If AIS meets the Euroz Hartleys target it will return approximately 43% (excluding dividends, fees and charges).

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: $1.19

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

After attending Aroa Biosurgery's virtual Investor Day, Wilsons notes the company remains the broker's preferred exposure to this year’s expected recovery in US surgical volumes.

While Aroa did not give any specific update on TELA Bio’s business, the broker believes there may be upside to guidance this year given both PRS and minimally invasive OVITEX sales are exceeding TELA’s internal expectations.

Wilsons also expects surgical clearance rates for the backlog of deferred open ventral procedures to increase as US hospitals continue to open up in 2021.

Overweight and $2 price target retained.

This report was published on July 5, 2021.

Target price is $2.00 Current Price is $1.19 Difference: $0.81
If ARX meets the Wilsons target it will return approximately 68% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.33.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.77.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $2.28

Moelis rates ((ASG)) as Buy (1) –

Due to exceptional trading conditions, Autosports Group is expecting revenue of $1.92-1.96bn and underlying profit before tax of $68-70m, up 199-203% on the previous period.

Moelis attributes the stronger than anticipated result to better than expected demand supporting gross profit margins, combined with an improved second-half contribution from Victoria as covid restrictions were largely relaxed.

Autosports also announced the acquisition of John Newell Mazda, a prominent Mazda dealership in Alexandria – strategically located opposite the company's existing dealerships.

Moelis notes John Newell Mazda is expected to earn $88.9m revenue in FY22 and the broker estimates in a normal environment delivers $3.5-4m in profit before tax.

Moelis retains its Buy rating with the target price increasing to $3.10 from $2.90.

This report was published on July 6, 2021.

Target price is $3.10 Current Price is $2.28 Difference: $0.82
If ASG meets the Moelis target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 5.00 cents and EPS of 24.30 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 9.38.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 12.40 cents and EPS of 25.10 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 9.08.

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

CAT    CATAPULT GROUP INTERNATIONAL LIMITED

Medical Equipment & Devices – Overnight Price: $1.77

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

Catapult Group has announced the acquisition of UK-based SBG Sports Software for up to US$45m and has completed a US$35m equity raise at $1.90ps as funding for the acquisition, coupled with providing further flexibility for future organic growth opportunities and working capital.

Canaccord increases FY22, FY23, and FY24 annual contract value forecasts by 16%, 21%, and 23%, respectively. The broker has also adjusted the cost base in line with management's guidance.

Buy rating unchanged with the target price increasing to $3.00 from $2.45.

This report was published on July 5, 2021.

Target price is $3.00 Current Price is $1.77 Difference: $1.23
If CAT meets the Canaccord Genuity target it will return approximately 69% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.13.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.29.

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

CYM    CYPRIUM METALS LIMITED

Copper – Overnight Price: $0.25

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

Euroz Hartleys believes Cyprium Metals is continuing to make good progress on restart activities for the Nifty Copper Mine, Patterson Province, WA.

The broker notes the company is well-funded for planned activities – with estimated cash of $50m – of resource infill-extensional drilling, development studies, and some early works at Nifty.

Speculative Buy retained as is the target price of $0.70 which uses the broker's copper price deck for average copper prices of US$3.55/lb and forex rate of AUD: US$ of 0.743.

This report was issued July 6, 2021.

Target price is $0.70 Current Price is $0.25 Difference: $0.45
If CYM meets the Euroz Hartleys target it will return approximately 180% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $6.48

Jarden rates ((EDV)) as Initiation of coverage with Underweight (2) –

Jarden initiates coverage on Endeavour Group with Underweight rating and a $5.80 12-month target price.

Jarden rates the management team highly, ex-potential M&A, but sees the likelihood of a material-step change in return on invested capital (ROIC), and earnings growth above the broker's estimates as a standalone entity, as low.

To be more positive, the broker needs greater clarity on the M&A framework, development opportunity across the 49 freehold sites, retail growth, and gaming.

Jarden believes Endeavour's current multiple, which is pricing in a step-change in earnings growth (and ROIC) or M&A, is creating high expectations ahead of unveiling how the strategy as a standalone entity will change.

This report was issued July 4, 2021.

Target price is $5.80 Current Price is $6.48 Difference: minus $0.68 (current price is over target).
If EDV meets the Jarden target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.30, suggesting downside of -2.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 19.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of 43.1%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 24.7.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 20.00 cents and EPS of 28.20 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 22.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.4, implying annual growth of 8.4%.
Current consensus DPS estimate is 20.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 22.8.

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

FFX    FIREFINCH LIMITED

Gold & Silver – Overnight Price: $0.41

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

After producing 12.6koz in the June quarter, Firefinch has increased its production guidance for the upcoming September quarter to 13-15koz, as production ramps up from its satellite pits.

Euroz Hartleys is encouraged by the company’s ability to ramp up production and is looking forward to the company's continual ramp up through the introduction of more satellite ore feed, before restarting the main Morila pit ramping up to 160kozpa.

The broker expects Firefinch to finish the September quarter with $60m in cash, after recently raising $47m before costs.

Speculative Buy maintained, and the target price of $1.03 is currently under review.

This report was issued July 6, 2021.

Target price is $1.03 Current Price is $0.41 Difference: $0.62
If FFX meets the Euroz Hartleys target it will return approximately 151% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

GSS    GENETIC SIGNATURES LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.37

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

Bell Potter reports lower local covid-19 testing demand and a slower international sales ramp-up drove an approximate -$2m dollar miss on expectations for Genetic Signatures' third quarter revenue. 

While revenue of $4.3m was up 136% year-on-year, it was down on the previous two quarters. Despite this total revenue for FY21 year-to-date of $23m is more than double full year revenue of FY20.

The broker expects second half revenue to be almost half of first half revenue, with domestic continuing to be the primary driver of revenue.

Buy (speculative) rating is retained and the target price decreases to $2.20 from $3.20.

The report was published on June 29, 2021.

Target price is $2.20 Current Price is $1.37 Difference: $0.83
If GSS meets the Bell Potter target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 137.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.14.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $8.93

Goldman Sachs rates ((IGO)) as Upgrade to Buy from Neutral (1) –

With IGO Ltd stock trading at 0.9x net asset value (NAV), after including the Tianqi Lithium Energy Australia joint venture, Goldman Sachs has upgraded the company to Buy from Neutral.

In Goldman Sachs' view, IGO’s share price is implying 23x FY22 earnings for the lithium JV versus 30x for global integrated lithium previous analysis.

Goldman Sachs values the combined assets at $4.8bn, adding $3.9/sh to the broker's group NAV, after including expansion at Greenbushes to 2.6Mtpa and all four conversion trains at Kwinana.

The broker forecasts the acquisition will be earnings per share accretive from FY23 and cash flow accretive from FY25, driven by a strengthening lithium price and the ramp-up of production.

The target price is up 37% to $9.30.

This report was issued July 5, 2021.

Target price is $9.30 Current Price is $8.93 Difference: $0.37
If IGO meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $8.02, suggesting downside of -10.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 0.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.0, implying annual growth of -11.5%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 38.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 11.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of 14.3%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 34.0.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $5.50

Canaccord Genuity rates ((JLG)) as Downgrade to Hold from Buy (3) –

Based on a significant new contract with Bushfire Recovery Victoria, Canaccord Genuity has increased Johns Lyng Group FY22 catastrophe revenue forecast by $55.5m to $130.5m, which results in FY22 catastrophe earnings increasing to $15.2m, up 75% from $8.7m.

However, based purely on valuation, with the company currently trading on an FY22 enterprise value multiple of 15.8x and price to earnings ratio of 34x based on Canaccord's estimates, the broker has downgraded the recommendation to Hold from Buy.

The target price is increased to $3.20 from $2.80.

This report was published on July 6, 2021.

Target price is $3.20 Current Price is $5.50 Difference: minus $2.3 (current price is over target).
If JLG meets the Canaccord Genuity target it will return approximately minus 42% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 5.50 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.46.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 7.50 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.67.

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


Moelis rates ((JLG)) as Buy (1) –

Based on three recent material events, including three strategic acquisitions by subsidiary Bright & Duggan for $8m, an appointment to the Vic Government storm damage recovery program, and severe storm events in Vic and WA, Moelis has upgraded Johns Lyng Group earnings forecasts.

The broker views the company's step into building management as a significant positive, with the Johns Lyng now able to consolidate both the strata management and the building management markets – both of which are highly fragmented.

The Buy rating is unchanged. The target price increases to $5.67 from $5.22.

This report was published on July 6, 2021.

Target price is $5.67 Current Price is $5.50 Difference: $0.17
If JLG meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.60 cents and EPS of 9.50 cents.
At the last closing share price the estimated dividend yield is 0.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.89.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.20 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.98.

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

JRV    JERVOIS MINING LIMITED

New Battery Elements – Overnight Price: $0.57

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

Jervois Mining has raised US$100m through the issue of senior secured bonds to fund the construction of the Idaho Cobalt Operation. The bonds were priced with an annual coupon of 12.5% and an issue discount to par of 2%.

Shaw and Partners believes Jervois is a relatively unique opportunity for investors to gain exposure to the battery metal thematic and is impressed by the quality and experience of the Jervois board and management team.

The broker has not made any material changes to its forecasts as a result of the announcement.

The Buy rating and price target of $0.78 were both retained.

This report was published on July 6, 2021. 

Target price is $0.78 Current Price is $0.57 Difference: $0.21
If JRV meets the Shaw and Partners target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.85.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.14.

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

MZZ    MATADOR MINING LIMITED

Gold & Silver – Overnight Price: $0.40

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

Matador Mining has raised $16m via the issuance of 28.6m shares at $0.56ps via a Canadian ‘flow-through’ placement.

Shaw and Partners notes the shares were issued at a premium ($0.56ps) to the current share price because they were issued under the Canadian flow-through regime.

This allows eligible investors to take advantage of exploration tax incentives which can be passed through from the company. The shares were then gifted to Canadian charities and subsequently placed in a block trade to investors at $0.42ps.

The broker believes Matador offers very cheap exposure to an exciting new gold exploration province. 

The Buy rating and $0.80 target are unchanged.

This report was published on July 6, 2021.

Target price is $0.80 Current Price is $0.40 Difference: $0.4
If MZZ meets the Shaw and Partners target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.67.

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 57.14.

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: $5.39

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

Nanosonics has announced the launch of AuditPro, being its first new product since the launch of Trophon 2 in 2018.

AuditPro is complementary to the AcuTrace function built into Trophon 2 and provides a point of care system for the tracking and tracing of re-useable medical instruments that have the potential to transmit infection between patients.

Based on Bell Potter's assumption of US$1,000 per year per console, AuditPro is cheap and represents good value for hospitals, suggests the broker.

Based on the broker's analysis, the forecast for FY22 which includes $1m in revenues from AuditPro is reasonable.

However, the broker believes the consensus revenue estimate for FY22 at $130m is high with downgrades likely, and for this key reason maintains a Sell recommendation.

Bell Potter retains the target price of $4.50.

This report was published on July 2, 2021.

Target price is $4.50 Current Price is $5.39 Difference: minus $0.89 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.82, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 770.00.

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 269.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 234.35.

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 89.8.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $3.44

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

Nitro Software has announced the acquisition of PDFpen for US$6m. Shaw and Partners describes the acquisition as a market-leading suite of PDF productivity applications for Mac, iPhone and iPad. 

According to the broker this a strategic acquisition that extends Nitro Software's reach into the Mac and mobile markets. The company has maintained FY21 guidance, and Shaw and Partners have increased revenue forecasts by 1-2% through to FY23. 

The Buy rating is retained and the target price increases to $3.90 from $3.69. 

This report was published on June 29, 2021.

Target price is $3.69 Current Price is $3.44 Difference: $0.25
If NTO meets the Shaw and Partners target it will return approximately 7% (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 10.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.26.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.09.

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $32.28

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

Following News Corp's completion of the HMH Books & Media, Investors Business Daily, and Mortgage Choice acquisitions, Goldman Sachs is forecasting FY22 earnings growth of 15%, with underlying organic growth of 2%.

With strong earnings momentum and clear valuation support, Goldman Sachs believes News Corp is the most compelling idea within the broker's Media coverage and reiterates a Buy rating.

Combined with the acquisitions, the target price increases 5% to $44.3.

This report was published on July 5, 2021.

Target price is $44.30 Current Price is $32.28 Difference: $12.02
If NWS meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $39.27, suggesting upside of 21.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 26.66 cents and EPS of 75.98 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.6, implying annual growth of N/A.
Current consensus DPS estimate is 27.2, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 46.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 26.66 cents and EPS of 90.64 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.9, implying annual growth of 39.2%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 33.3.

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $4.47

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

Over the Wire Holdings has reported it expects negative impact on FY21 revenue given that a hardware sale expected to be recognised this financial year is now set to be completed in FY22.

The sale is expected to contribute $5m in revenue and $1.5m in underlying earnings to FY22 results. 

According to Bell Potter the delay of the sale does not make a material difference, as it's impact in FY21 would have been an additional $2m in revenue but a -$1m loss in underlying earnings compared to the brokers forecast.

The broker downgrades FY21 revenue and underlying earnings by -3% and -9% respectively. 

The Hold rating and target price of $5.00 are retained. 

This report was published on June 30, 2021. 

Target price is $5.00 Current Price is $4.47 Difference: $0.53
If OTW meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.00 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 0.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.95.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.30 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.65.

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

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $0.49

Canaccord Genuity rates ((PDN)) as Upgraded to Buy from Hold (1) –

Canaccord Genuity believes a transformational equity raising combined with improving uranium sentiment has placed Paladin Energy in its strongest position for over a decade and has upgraded the recommendation to Buy from Hold.

With the high cost debt overhang removed, the broker believes the company is in a strong position to negotiate offtake contracts with utilities as the uranium market tightens.

The target price increases to $0.60 from $0.49.

This report was published on July 5, 2021.

Target price is $0.60 Current Price is $0.49 Difference: $0.11
If PDN meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.51.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.42.

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

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.65

Euroz Hartleys rates ((RMS)) as Buy (1) –

Euroz Hartleys remains encouraged with the organic value creation currently underway at Ramelius Resources.

Positives include but are not limited to the study of a bulk underground mining operation below the Eridanus open pit and the Edna May stage-3 open pit cutback study, both due to be completed in shortly.

The broker continues to model FY22 production of 279koz and notes Ramelius is a proven cash generator with $234m in net cash. 

Buy recommendation and price target of $2.03.

This report was issued July 6, 2021.

Target price is $2.03 Current Price is $1.65 Difference: $0.38
If RMS meets the Euroz Hartleys target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $2.15, suggesting upside of 30.1%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 16.1, implying annual growth of -2.0%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY22:

Current consensus EPS estimate is 12.5, implying annual growth of -22.4%.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 13.2.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.50

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

If the share price is a measure of success, Canaccord Genuity believes FY21 was one to forget for Regis Resources, with the stock down -52% versus the average peer gold producers down -26%.

While Canaccord remains cautionary with respect to meeting FY21 guidance, looking beyond the short term, the broker sees a buying opportunity remaining for the company.

Buy rating is unchanged and the price target is lowered to $3.15 from $4.70 to include the broker's latest gold price forecasts and the miner's hedging profile.

This report was issued July 6, 2021.

Target price is $3.15 Current Price is $2.50 Difference: $0.65
If RRL meets the Canaccord Genuity target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.64, suggesting upside of 45.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 12.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of -26.8%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 8.00 cents and EPS of 29.00 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 8.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.6, implying annual growth of 24.9%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 7.2.

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

SRG    SRG GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.56

Euroz Hartleys rates ((SRG)) as Buy (1) –

Within a recent update and FY22 outlook, SRG Global expects FY21 earnings to be at the top end of $45-47m guidance, while FY22 earnings are expected to be 15% higher.

Operating cashflows were strong during the FY period, with the company finishing FY21 with $12.2m net cash.

With SRG’s long-term strategy remaining on track, Euroz Hartleys believes the business is well positioned for long-term sustainable growth.

Buy recommendation and the price target of $0.74 both retained.

This report was issued 6 July, 2021.

Target price is $0.74 Current Price is $0.56 Difference: $0.18
If SRG meets the Euroz Hartleys target it will return approximately 32% (excluding dividends, fees and charges).

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


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

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

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

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CHARTS

A2M A4N AIS ARX ASG CAT CYM EDV FFX GSS IGO JLG JRV MZZ NAN NTO NWS OTW PDN RMS RRL SRG

For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED

For more info SHARE ANALYSIS: A4N - ALPHA HPA LIMITED

For more info SHARE ANALYSIS: AIS - AERIS RESOURCES LIMITED

For more info SHARE ANALYSIS: ARX - AROA BIOSURGERY LIMITED

For more info SHARE ANALYSIS: ASG - AUTOSPORTS GROUP LIMITED

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

For more info SHARE ANALYSIS: CYM - CYPRIUM METALS LIMITED

For more info SHARE ANALYSIS: EDV - ENDEAVOUR GROUP LIMITED

For more info SHARE ANALYSIS: FFX - FIREFINCH LIMITED

For more info SHARE ANALYSIS: GSS - GENETIC SIGNATURES LIMITED

For more info SHARE ANALYSIS: IGO - IGO LIMITED

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: JRV - JERVOIS GLOBAL LIMITED

For more info SHARE ANALYSIS: MZZ - MATADOR MINING LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: NWS - NEWS CORPORATION

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

For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED

For more info SHARE ANALYSIS: RMS - RAMELIUS RESOURCES LIMITED

For more info SHARE ANALYSIS: RRL - REGIS RESOURCES LIMITED

For more info SHARE ANALYSIS: SRG - SRG GLOBAL LIMITED