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Australian Broker Call *Extra* Edition – Jul 29, 2021

Daily Market Reports | Jul 29 2021

This story features ADACEL TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: ADA

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)

ADA   AIM   AND   ARB   AUT   BMN   CMM   CXL   FLT   IMM   INA   LDX   MLG   NUF   NXT   PLT (2)   PNV   QUB   S2R   SHV (2)   STN   TSI   TWE   VEA   WBC   WEB   XRO   YFZ  

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $1.02

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

Bell Potter updates FY21 forecasts for the 0.76m shares unexpectedly bought back in the second half, and also now assumes a further 0.5m shares are bought back in the first half FY22 forecast.

The broker continues to forecast FY22 profit (PBT) growth of 10%, and believes that the contract wins announced by Adacel Technologies in the second half support the growth outlook.

With only minor adjustments to its forecasts, Bell Potter maintains its Buy rating and $1.25 target price.

This report was published on July 14, 2021.

Target price is $1.25 Current Price is $1.02 Difference: $0.23
If ADA meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 4.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.50 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 5.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

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

AIM    AI-MEDIA TECHNOLOGIES LIMITED

Commercial Services & Supplies – Overnight Price: $0.91

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

While Bell Potter's earnings forecasts and $1.40 price target remain unchanged, a positive view is predicated on the ability to monetise the industry-leading platform and deliver margin expansion at scale.

The broker currently forecasts gross margins to expand by 13 basis points between 1H21 to 2H22, and believes bias to the upside still remains.

Growth in the Live Enterprise product, which carries the highest gross margin, presents upside to the analyst's current margin assumptions in the company’s core business. Bell Potter retains its Buy rating.

This report was published on July 14, 2021.

Target price is $1.40 Current Price is $0.91 Difference: $0.49
If AIM meets the Bell Potter target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.89.

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

AND    ANSARADA GROUP LIMITED

Software & Services – Overnight Price: $1.52

Moelis rates ((AND)) as Buy (1) –

Net new customers added by Ansarada Group during the fourth quarter reflected 8% sequential growth, which exceeded Moelis's  estimates by circa 15%. International revenue was $4.5m, up 30% on the previous corresponding period (pcp).

Tenders annual contract value (ACV) also rose 31% on the pcp, while revenue exhibited 17% growth on the pcp. The analyst notes higher revenue visibility for FY22, with deferred revenue 76% higher versus the pcp, due largely to annual subscription uptake.

The broker's Buy rating and the target price of $1.94 are maintained.

This report was published on July 14, 2021.

Target price is $1.94 Current Price is $1.52 Difference: $0.42
If AND meets the Moelis target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 36.19.

Forecast for FY22:

Moelis forecasts a full year FY22 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 116.92.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $44.80

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

ARB Corp has confirmed FY21 unaudited sales of $623m, which implies second half FY21 growth of 46%, which is significantly stronger than the 22% growth in the first-half.

The result is consistent with Wilsons' view of increased demand from channels and categories associated with new vehicles.

Following the result, the broker reiterates the view that recent developments in the USA market present ARB with sufficient commercial relevance to consider complementing its wholesale operations with a retail store network.

Wilsons forecasts imply group organic sales compound annual growth rate at 10% in the four years to FY23, which compares to 8% over the prior decade.

The Overweight rating is retained and the target price increases to $48.40 from $47.80.

This report was published on July 15, 2021.

Target price is $48.40 Current Price is $44.80 Difference: $3.6
If ARB meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $44.16, suggesting downside of -1.4%(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 137.70 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.53.

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 1.5%.
Current consensus EPS estimate suggests the PER is 32.8.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 63.00 cents and EPS of 115.10 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 38.92.

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 35.4.

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

AUT    AUTECO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.12

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

Auteco has announced a 71% increase in its Pickle Crow resource to 1.7m ounces following a 45,000m drilling program.

The company has reported an inferred maiden resource of 240,000 ounces at 3.7 grams of gold per tonne in the adjacent banded iron formation, which is expected to grow with further drilling. Shaw and Partners notes Auteco may be able to develop the entire project via an open cut with decline to an underground operation if this proves amenable to open pit mining.

Shaw and Partners initiation price was set based on an upgrade to 1.4m ounces, but Auteco Minerals has exceeded that expectation. The Buy rating is retained and the target price increases to $0.21 from $0.18. 

This report was published on July 19, 2021.

Target price is $0.21 Current Price is $0.12 Difference: $0.09
If AUT meets the Shaw and Partners target it will return approximately 75% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

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 17.14.

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

BMN    BANNERMAN RESOURCES LIMITED

Uranium – Overnight Price: $0.14

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

Following Bannerman Resources' June quarter update, Shaw and Partners awaits the completed Pre-Feasability Study for the Namibian Etango Uranium Project in early August. 

Shaw and Partners notes uranium markets continued to tighten in the quarter, but Bannerman Resources is a highly leveraged play given the 95% owned Etango project is lower grade but higher volume compared to peers. 

The Hold rating and target price of $0.14 are retained.

This report was published on July 13, 2021.

Target price is $0.14 Current Price is $0.14 Difference: $0
If BMN meets the Shaw and Partners target it will return approximately 0% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.00.

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: $2.25

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

Bell Potter considers the recently announced pouring of the company's first gold at the 100%-owned Karlawinda Gold Project is significant. This is because recent labour constraints have emerged across the resources sector in Western Australia, explains the analyst.

The broker anticipates Capricorn Metals will declare commercial production by end of 2021. The first half FY22 production forecast is raised, and it's believed there may be further upside to come.

Bell Potter maintains its Buy rating and lifts the target to $2.54 from $2.48.

This report was published on July 14, 2021.

Target price is $2.54 Current Price is $2.25 Difference: $0.29
If CMM 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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 225.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.86.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $2.97

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

It is Shaw and Partners view that Calix has further de-risked the Calix Flash Calciner, following the announcement of additional agreements with major international companies.

Calix has secured memorandum of agreements with Tarmac for the co-development of a Calix Calciner for lime production and with RHI Magnesita for a refractory market agreement.

The company has also announced a further $39m in additional funding for the Heavy Industry Low-Carbon Transition Cooperative Research Centre and to further develop biotechnology manufacturing capability at Bacchus March.

The Buy rating is retained and the target price increases to $4.00 from $3.00. 

This report was published on July 13, 2021.

Target price is $4.00 Current Price is $2.97 Difference: $1.03
If CXL meets the Shaw and Partners target it will return approximately 35% (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 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 129.13.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2970.00.

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $14.47

Goldman Sachs rates ((FLT)) as No Rating (-1) –

To reflect the slower pace of Australian domestic and international travel recovery, Goldman Sachs has lowered earnings forecasts by -29.4% and -18.6% respectively for Flight Centre over FY22 and FY23.

The broker remains concerned by the impact of prolonged border closures for Flight Centre which has a significant international leisure business based from A&NZ and reiterates at Neutral rating.

Goldman Sachs' revised target price for Flight Centre is lowered to $18.40 from $20.00.

This report was published on July 15, 2021.

Target price is $18.40 Current Price is $14.47 Difference: $3.93
If FLT meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $16.74, suggesting upside of 15.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 45.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -176.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 13.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 105.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -32.1, implying annual growth of N/A.
Current consensus DPS estimate is -0.7, implying a prospective dividend yield of -0.0%.
Current consensus EPS estimate suggests the PER is N/A.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.47

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

Immutep reported a cash balance of $60.6m at the end of fourth-quarter FY21, which includes Tranche 1 placement proceeds of $13.7m and warrant exercise of $0.6m.

Immutep remains one of Bell Potter's key picks in the biotech space for FY22.

The broker's valuation assumes that Immutep shareholders approve the issue of Tranche 2 placement shares at the EGM and the company raises the maximum amount ($5m) via its proposed share purchase plan and the cash raised as a result.

The Buy (Speculative) rating is retained and the target price increases to $1.00 from $0.85.

This report was published on July 15, 2021.

Target price is $1.00 Current Price is $0.47 Difference: $0.53
If IMM meets the Bell Potter target it will return approximately 113% (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 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.87.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.10.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $5.82

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

Despite Goldman Sachs' positive view on the outlook for Ingenia Communities Group, the broker thinks the stock is approaching full value and has downgraded the rating to Neutral from Buy.

The broker notes since upgrading the company to a Buy in Feb 2017, the share price is up 140% versus the ASX200 up 27%.

Minor adjustments to the broker's estimates reflect short-term disruption to the holidays business given current covid restrictions.

Target price increases to $6.55 from $6.10.

This report was published on July 14, 2021.

Target price is $6.55 Current Price is $5.82 Difference: $0.73
If INA meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.71.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 12.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.25.

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

LDX    LUMOS DIAGNOSTICS HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $1.15

Wilsons rates ((LDX)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage of Lumos Diagnostics Holdings with an Overweight rating and $1.52 price target. Lumos is a Melbourne-based developer of rapid point-of-care (POC) diagnostic tests, with all R&D, manufacturing and commercial operations in the US.

The company has developed intellectual property and expertise in POC development. It makes this available as a service to other innovators in the sector seeking to transform new diagnostic assays into commercial product.

The company's development infrastructure is also being leveraged into proprietary POC tests, including its flagship FebriDx diagnostic for characterising the aetiology of acute respiratory infections. Approved in Europe and Canada, US approval is expected shortly. 

FebriDx offers GPs and other healthcare workers a rapid and accurate means of discriminating between bacterial and viral infections. The analyst notes this could be the intervention the global antimicrobial stewardship movement has hereto lacked.

This report was published on July 13, 2021.

Target price is $1.52 Current Price is $1.15 Difference: $0.37
If LDX meets the Wilsons target it will return approximately 32% (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 minus 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.75.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.36.

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

MLG    MLG OZ LIMITED

Mining Sector Contracting – Overnight Price: $0.85

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

Bell Potter initiates coverage on MLG Oz with a Buy recommendation and target price of $1.05.

MLG Oz is a vertically integrated mining services company that provides construction materials, bulk haulage, export logistics, mine site services, and crushing predominantly in Western Australia.

The broker's favourable view is supported by a strong track record of organic growth, cyclical and structural tailwinds to gold haulage, and long-term relationships with high quality, low-cost gold producers.

Equally encouraging, adds Bell Potter, are the historically high tendering levels and two latent fixed plant crushers that can be redeployed to add high margin revenue.

This report was issued 15 July, 2021.

Target price is $1.05 Current Price is $0.85 Difference: $0.2
If MLG 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 2.20 cents and EPS of 10.60 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.02.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.90 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.59.

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

NUF    NUFARM LIMITED

Agriculture – Overnight Price: $4.33

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

With general conditions across Nufarm's core markets remaining favourable, and given the share price contraction, Bell Potter has upgraded the rating to Buy from Hold.

In general, Bell Potter notes there do not appear to be any material areas of concern in Nufarm's main markets, with EU cereal production forecast to lift 4% year-on-year and oilseed production forecast to lift 10% year-on-year.

Target price of $5.30 remains.

This report was published on July 15, 2021.

Target price is $5.30 Current Price is $4.33 Difference: $0.97
If NUF meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.68, suggesting upside of 31.1%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.00 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 0.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 25.5.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.00 cents and EPS of 23.30 cents.
At the last closing share price the estimated dividend yield is 0.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 42.9%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 17.8.

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

NXT    NEXTDC LIMITED

Cloud services – Overnight Price: $12.43

Wilsons rates ((NXT)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage on NextDC with an Overweight rating and target of $15.10. It's a builder, owner, operator of independent, carrier neutral, colocation data centres. It's considered the dominant Australian player and well placed to capitalise on digital trends. 

Over the past decade, the company has delivered ‘order-of-magnitude’ larger digital infrastructure assets for its Enterprise and Hyperscale customers alike, explains the broker. 

The analyst lists several reasons to buy shares including strong growth in revenue from 2nd Generation Assets (S2 and M2), and a non-linear scaleup, which will drive 3rd and 4th generation assets. Additionally, the company is considered to have a strong track record. 

This report was published on July 14, 2021.

Target price is $15.10 Current Price is $12.43 Difference: $2.67
If NXT meets the Wilsons target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $14.09, suggesting upside of 13.3%(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 minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 400.97.

How do these forecasts compare to market consensus projections?

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

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 376.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 443.9.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.56

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

Plenti Group has announced a record quarter (first quarter) of originations and gross loan book, as well as an upsized Automotive warehouse, all of which were well-ahead of Shaw and Partner's expectations.

This result increases the broker's confidence in the group being the first fintech lender to reach a $1bn loan book (forecast to be by March 2022).

The company announced an upgrade to its Automotive warehouse to $450m from $350m, with $190m of headroom remaining at the end of June 2021.

Shaw and Partners increases its cash profit estimates for FY22-24 by 29.5%, 7.1% and 2%, respectively, and increases its price target to $1.90 from $1.74.

This report was published on July 14, 2021.

Target price is $1.90 Current Price is $1.56 Difference: $0.34
If PLT meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 25.57.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 260.00.

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


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

Wilsons gleans from Plenti Group's first quarter trading update that loan originations increased 255% year-on-year to $216.4m, credit losses remain low and warehouse funding facilities were increased.

The broker believes the group remains well placed to take market share from incumbents in its Automotive and Personal lending verticals, and grow the market in the Renewable vertical. 

In the analyst's opinion, the business has begun to demonstrate attractive operational leverage through scalable technology platforms and improved funding profiles. Wilsons increases its target price to $1.75 from $1.60 and retains its Overweight rating.

This report was published on July 13, 2021.

Target price is $1.75 Current Price is $1.56 Difference: $0.19
If PLT meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.16.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.79.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.12

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

PolyNovo announced FY21 product revenue growth of 34% to $25.6m versus Bell Potter's forecast of $29.1m.

Bell Potter believes the current focus remains on the company’s ability to drive ongoing and sustainable sales growth in a relatively competitive sector. 

On the back of slower sales momentum, the broker reduces revenue assumptions for FY22-24 to allow for growth off a lower base and slightly tempered expectations around the cadence of sales uplift.

Hold rating is retained and the target price is lowered to $2.65 from $2.75.

This report was published on July 15, 2021

Target price is $2.65 Current Price is $2.12 Difference: $0.53
If PNV meets the Bell Potter target it will return approximately 25% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 530.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 235.56.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.90

Jarden rates ((QUB)) as Buy (1) –

Qube Holdings has entered into a binding agreement with LOGOS for the purchase of the Moorebank property assets for $1.67bn, which is expected to close in fourth-quarter CY2021, subject to approvals.

Following this announcement of the binding offer, Jarden removes the Moorebank rental forecasts from the broker's Qube model, which results in earnings revisions of -14% from FY23 and beyond.

However, these are offset by Jarden's forecasted $1.0bn of debt repayment in FY22 and a lowering of the broker's capex forecasts, resulting in earnings per share upgrades of 8% for FY22 and 4% for FY23.

The Buy rating is unchanged and the target price is lowered to $3.45 from $3.60.

This report was published July 14, 2021. 

Target price is $3.45 Current Price is $2.90 Difference: $0.55
If QUB meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $3.16, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 5.60 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 1.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.2, implying annual growth of 37.9%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 40.3.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 6.20 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 20.8%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 33.3.

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

S2R    S2 RESOURCES LIMITED

Mining – Overnight Price: $0.16

Bell Potter rates ((S2R)) as Buy (1) –

Bell Potter lowers the price target to $0.20 from $0.40 on more conservative assumptions around the probability of exploration success, applied across the portfolio. The projects are in Australia and Finland and relate to gold, nickel, copper and platinum group elements.

In the short-term, potential catalysts include the release of positive exploration drilling results in Finland and WA, explains the broker. Early work in the West Yilgarn province and in NSW are considered to provide a pipeline of longer-term projects.

Bell Potter maintains its Buy rating.

This report was published on July 14, 2021.

Target price is $0.20 Current Price is $0.16 Difference: $0.04
If S2R meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.41.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 5.71.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $7.66

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

Following the USDA Objective estimate for the 2021 almond crop, Bell Potter notes a downgrade to the 2021 Californian almond crop forecast. This forecast makes it the second largest crop on record at 2.8bnlbs, from a record 3.2bnlbs.

The broker lifts earnings (EBITDA) forecasts for FY21-23 by 31%, 43% and 14%, respectively. This is due to lower estimates for FY21 volumes, a higher Australian dollar almond price assumption and a deconsolidation of the held-for-sale food business.

Bell Potter raises its target price to $7.35 from $6, largely reflecting a reassessment of the value of residual food and water assets, and higher near term cashflows.

This report was published on July 14, 2021.

Target price is $7.35 Current Price is $7.66 Difference: minus $0.31 (current price is over target).
If SHV meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.79.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 16.00 cents and EPS of 32.50 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.57.

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


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

The objective estimate for the 2021 almond crop of 2.80bnlbs was down -13% from the subjective forecast, and is at the low-end of market expectations, highlights Wilsons. The USDA report cited drought, water availability and extreme summer heat as challenges. 

With the 2020 crop carry-out trending down on earlier expectations, coupled with the lower objective estimate of the 2021 crop, total supply is likely to post a low single digit decline, explains Wilsons. This is considered bullish for prices, as it's felt consumption will be rationed. 

The broker retains its Overweight rating and $6.95 target price.

This report was published on July 13, 2021.

Target price is $6.95 Current Price is $7.66 Difference: minus $0.71 (current price is over target).
If SHV meets the Wilsons target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

STN    SATURN METALS LIMITED

Gold & Silver – Overnight Price: $0.48

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

Saturn Metals has reported strong drilling results at the Apollo Hill gold project, with latest results showing thick, shallow, high grade intersections. Shaw and Partners notes results may highlight potential for the existing 944,000 ounce resource to be extended. 

The company aims to expand Apollo Hill to around 1.5m ounces over the next twelve months. According to the broker, the project appears capable of supporting a 4.5m tonne per annum processing mill to produce around 180,000 ounces of gold each year. 

The Buy rating and target price of $0.87 are retained. 

This report was published on July 13, 2021.

Target price is $0.87 Current Price is $0.48 Difference: $0.39
If STN meets the Shaw and Partners target it will return approximately 81% (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 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.26.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 32.00.

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

TSI    TOP SHELF INTERNATIONAL HOLDINGS LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.95

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

Top Shelf International Holdings has announced FY21 revenue of $20.0m in line with its IPO prospectus forecast. 

Branded revenue was $12.7m, 211% up on the previous period and services revenue was $7.3m, up 102% on the previous period.

Wilsons believes a highly commendable result was achieved despite challenges presented through several covid lockdowns.

Overweight and the target price of $2.83 are both retained.

This report was published on July 14, 2021.

Target price is $2.83 Current Price is $1.95 Difference: $0.88
If TSI meets the Wilsons target it will return approximately 45% (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 minus 14.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.45.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.81.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $11.80

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

Goldman Sachs notes the premiumisation trend remains strong, after Treasury Wine Estates' brand sales in the Nielsen US scan data remain ahead of the market on a year-on-year basis.

Meanwhile, wine sales on Tmall/Taobao continue to be down strong double digits, and the company is considerably underperforming the market, points out the analyst.

The above figures are largely a continuation of trend, and the broker retains its Neutral rating and target price of $10.60.

This report was published on July 12, 2021.

Target price is $10.60 Current Price is $11.80 Difference: minus $1.2 (current price is over target).
If TWE meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.94, suggesting downside of -7.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 27.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 2.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, implying annual growth of 15.1%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 28.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 30.00 cents and EPS of 46.00 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.1, implying annual growth of 5.8%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 26.8.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $2.04

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

Viva Energy Group and Ampol ((ALD)) have successfully won 50% funding from the Federal Government for another 90/60ML of diesel storage respectively.

Goldman Sachs notes while the increased storage funding is incrementally positive, the new Mandatory Storage Obligation rules which allow refiners to count crude towards their fuel inventory is a key advantage versus import-only competitors.

In the broker's view, this cost headwind positions Viva and Ampol with a structural advantage going forward to both defending market position and tendering for future growth volumes and market share gains.

Buy recommendation maintained. Target price is $2.70.

This report was issued July 15, 2021.

Target price is $2.70 Current Price is $2.04 Difference: $0.66
If VEA meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $2.38, suggesting upside of 16.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.20 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.3, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.70 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.7, implying annual growth of 41.0%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.4.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $24.56

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

After the target price increasing to $26.50 from $22.50, Bell Potter has opted to downgrade Westpac Banking Corp to a Hold rating from Buy at present and will reassess following finalisation of CET1 capital rules.

Bell Potter expects Westpac's third-quarter FY21 net interest income to be unchanged, with lower margin of around 3bp largely offset by higher average interest-earning assets including Australian mortgages and liquid assets.

Due to slightly higher net interest earnings, higher other income, higher operating expenses, and a slight increase in impairment charges, the broker has increased cash earnings estimates for FY21 by 42%, FY22 by 27%, FY23 by 20%, and FY24 by 18%.

This report was issued July 15, 2021.

Target price is $26.50 Current Price is $24.56 Difference: $1.94
If WBC meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $28.28, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 112.00 cents and EPS of 184.00 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 172.2, implying annual growth of 170.2%.
Current consensus DPS estimate is 115.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 124.00 cents and EPS of 193.00 cents.
At the last closing share price the estimated dividend yield is 5.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 179.0, implying annual growth of 3.9%.
Current consensus DPS estimate is 124.2, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 13.7.

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

WEB    WEBJET LIMITED

Travel, Leisure & Tourism – Overnight Price: $4.85

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

To reflect the slower pace of Australian domestic and international travel recovery, Goldman Sachs has lowered earnings forecasts by -24% and -0.1% respectively over FY22 and FY23 for Webjet Ltd.

The broker expects Webjet to be a structural beneficiary of travel recovery due to its exposures to the online travel agency and Bedbanks businesses.

Buy rating and target price of $6.40 are both unchanged.

This report was published on July 15, 2021.

Target price is $6.40 Current Price is $4.85 Difference: $1.55
If WEB meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $5.59, suggesting upside of 15.3%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 107.78.

How do these forecasts compare to market consensus projections?

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

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of N/A.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 22.0.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $139.13

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

Goldman Sachs regards plans by Xero to increase prices for A&NZ/UK subscribers from Sep-21 as a strong positive for the company in addressing previous concerns on value monetisation, and sees limited risk for increased churn.

The broker notes price increases are consistent with broader industry pricing, with Xero having successfully passed through similarly targeted price rises in September 2018/March 2021, with limited churn impacts.

As a result, Goldman Sachs now forecasts stronger revenue acceleration in FY22 of 33%, with the broker's FY22-FY24 earnings estimates increasing 3-9% given increased monetisation but a higher assumed investment.

The Buy rating is retained and the target price increases 9% to $165.

This report was published on July 16, 2021. 

Target price is $165.00 Current Price is $139.13 Difference: $25.87
If XRO meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $124.50, suggesting downside of -10.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14944.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.7, 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 672.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 996.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.2, implying annual growth of 200.5%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 223.7.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

YFZ    YOUFOODZ HOLDINGS LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.92

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

Youfoodz announced it has entered into a Scheme Implementation Deed with German company HelloFresh. It is proposed HelloFresh will acquire 100% of Youfoodz for $0.93 per share in cash by way of a scheme of arrangement. 

Bell Potter lowers its rating to Hold from Buy and sets the target price at the proposed acquistion price of $0.93 (from $1.10). At face value, the takeover multiple falls below other transactions in this space, and a competing bid could emerge, notes the broker.

However, the analyst highlights that around 40% of Youfoodz's revenue is from B2B, which has been under pressure due to covid, and a new manufacturing facility is needed to support growth. The latter is expected to see capex investment ramp-up in FY22.

The broker makes no changes to its forecasts, which are expected to be reviewed upon release of the fourth quarter update. 

This report was published on July 14, 2021.

Target price is $0.93 Current Price is $0.92 Difference: $0.01
If YFZ meets the Bell Potter target it will return approximately 1% (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 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.90.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.07.

Market Sentiment: 1.0
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

ADA AIM ALD AND ARB AUT BMN CMM CXL FLT IMM INA LDX MLG NUF NXT PLT PNV QUB S2R SHV STN TSI TWE VEA WBC WEB XRO YFZ

For more info SHARE ANALYSIS: ADA - ADACEL TECHNOLOGIES LIMITED

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

For more info SHARE ANALYSIS: ALD - AMPOL LIMITED

For more info SHARE ANALYSIS: AND - ANSARADA GROUP LIMITED

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: AUT - AUTECO MINERALS LIMITED

For more info SHARE ANALYSIS: BMN - BANNERMAN ENERGY LIMITED

For more info SHARE ANALYSIS: CMM - CAPRICORN METALS LIMITED

For more info SHARE ANALYSIS: CXL - CALIX LIMITED

For more info SHARE ANALYSIS: FLT - FLIGHT CENTRE TRAVEL GROUP LIMITED

For more info SHARE ANALYSIS: IMM - IMMUTEP LIMITED

For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP

For more info SHARE ANALYSIS: LDX - LUMOS DIAGNOSTICS HOLDINGS LIMITED

For more info SHARE ANALYSIS: MLG - MLG OZ LIMITED

For more info SHARE ANALYSIS: NUF - NUFARM LIMITED

For more info SHARE ANALYSIS: NXT - NEXTDC LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: PNV - POLYNOVO LIMITED

For more info SHARE ANALYSIS: QUB - QUBE HOLDINGS LIMITED

For more info SHARE ANALYSIS: S2R - S2 RESOURCES LIMITED

For more info SHARE ANALYSIS: SHV - SELECT HARVESTS LIMITED

For more info SHARE ANALYSIS: STN - SATURN METALS LIMITED

For more info SHARE ANALYSIS: TSI - TOP SHELF INTERNATIONAL HOLDINGS LIMITED

For more info SHARE ANALYSIS: TWE - TREASURY WINE ESTATES LIMITED

For more info SHARE ANALYSIS: VEA - VIVA ENERGY GROUP LIMITED

For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION

For more info SHARE ANALYSIS: WEB - WEBJET LIMITED

For more info SHARE ANALYSIS: XRO - XERO LIMITED

For more info SHARE ANALYSIS: YFZ - YOUFOODZ HOLDINGS LIMITED