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Australian Broker Call *Extra* Edition – Sep 22, 2021

Daily Market Reports | Sep 22 2021

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

FNArena will be updating Special Editions of this Report in September dedicated to the August Reporting Season.

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AD8   ALD   ARB   BRG   BRI   COE   CQR   CTD   ENN   EVN   EVT   FBU   FPH   GDI   GEM (2)   GNG   HPI   HUB   LBL   MAD   MLD (2)   MND   NHF   NWL   OML (2)   OZL   PRN   REH   RWC   SRG   UWL   XRF  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $10.08

Canaccord Genuity rates ((AD8)) as Buy (1) –

Canaccord Genuity has described Audinate Group's FY21 result as strong, with revenue of $33.5m, gross profit of $25.5m and underlying earnings of $3.0m. The broker noted the company achieved a record interim result of US$13.9m in the second half. 

Commentary looking ahead is positive given a sale order backlog at record levels and industry sentiment at all time highs in July. The company also expects positive sales momentum from Dante Video products in FY22. 

Despite the broker expecting supply chain and manufacturing risks to persist into FY22, the company is guiding to a return to historical revenue ranges of US$32-33m for the next year. 

The Buy rating is retained and the target price increases to $11.20 from $10.50. 

This report was published on August 23, 2021.

Target price is $11.20 Current Price is $10.08 Difference: $1.12
If AD8 meets the Canaccord Genuity target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $11.72, suggesting upside of 16.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 252.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.9, 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 FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 504.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, 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 288.0.

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

ALD    AMPOL LIMITED

Consumer Products & Services – Overnight Price: $26.93

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

While Ampol's first half profit after tax of $205m was a 10% beat on Goldman Sachs' forecast, the broker notes lockdowns have already impacted on second half results with CR fuel volumes down 15% and 18% on the previous corresponding period for July and August.

The company has flagged that given current run rates Australian volumes will likely be below the previous guidance range of 13.5-14.0bn litres. Elsewhere, Ampol has submitted a non-binding indicative proposal to acquire Z Energy ((ZEL)). 

Goldman Sachs is not rated and there is no target price. 

This report was published on August 23, 2021. 

Current Price is $26.93. Target price not assessed.
Current consensus price target is $31.12, suggesting upside of 15.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 164.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 142.8, implying annual growth of N/A.
Current consensus DPS estimate is 87.2, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 189.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 178.0, implying annual growth of 24.6%.
Current consensus DPS estimate is 104.8, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.1.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $47.34

JP Morgan rates ((ARB)) as Underweight (5) –

JP Morgan assesses a strong FY21 result, in line with recent company guidance. The broker retains its Underweight rating as earnings are likely elevated (from increased domestic travel and leisure) and the shares are trading on a high multiple.

Management highlighted the strong sales trajectory for the business has continued into the start of FY22, and the near-term outlook for the business remains robust. A fully franked final dividend of 39cps was declared. The price target is raised to $33.00 from $32.50.

This report was published on August 18, 2021.

Target price is $33.00 Current Price is $47.34 Difference: minus $14.34 (current price is over target).
If ARB meets the JP Morgan target it will return approximately minus 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $46.93, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 63.00 cents and EPS of 126.00 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.9, implying annual growth of -0.8%.
Current consensus DPS estimate is 72.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 34.1.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 53.00 cents and EPS of 105.00 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 144.0, implying annual growth of 3.7%.
Current consensus DPS estimate is 74.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 32.9.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $29.70

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

JP Morgan considers management made conservative outlook statements which spooked the market after FY21 results. It's thought the result could have been materially stronger had the company not reinvested in the business to support further growth.

The analyst retains a Neutral rating on valuation though believes the company is well positioned to continue strong top-line and earnings (EBIT) growth over the longer-term. A final dividend of 13.5cps (100% franked) was declared.

This report was published on August 18, 2021.

Target price is $29.00 Current Price is $29.70 Difference: minus $0.7 (current price is over target).
If BRG meets the JP Morgan target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.59, suggesting upside of 13.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 30.00 cents and EPS of 75.00 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.6, implying annual growth of 16.5%.
Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 38.8.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 35.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 1.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.9, implying annual growth of 14.8%.
Current consensus DPS estimate is 35.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 33.8.

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

BRI    BIG RIVER INDUSTRIES LIMITED

Building Products & Services – Overnight Price: $1.97

Moelis rates ((BRI)) as Buy (1) –

Big River Industries' FY21 result was in line with expectations, and Moelis noted the company showed strong growth on the previous period.

Moelis also highlighted the acquisition of Revolution Wood Panels in Brisbane, for a total consideration of $8m. Revolution Wood Panels has revenue of around $15m per annum, and the transaction is expected to complete in October. 

The company is guiding to revenue growth of 19-24% in FY22. The broker estimates underlying earnings of $26.8m and $30.4m for FY22 and FY23 respectively. 

The Buy rating is retained and the target price increases to $2.51 from $2.24.

This report was published on August 25, 2021. 

Target price is $2.51 Current Price is $1.97 Difference: $0.54
If BRI meets the Moelis target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 5.60 cents and EPS of 11.70 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.84.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 6.00 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.97.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.23

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

Cooper Energy battled another frustrating year in FY21 according to Canaccord Genuity, with failures by APA Group ((APA)) to deliver the contractually required 68 terajoule per day Orbost gas plant reflecting on earnings and perceived value. 

While improvements have been implemented allowing the plant to generate 40 terjoules per day, it is the broker's view that Cooper Energy should be considering if and how APA Group could be removed as operator of Orbost. 

The Buy rating and target price of $0.40 are retained. 

This research update was released on August 24, 2021.

Target price is $0.40 Current Price is $0.23 Difference: $0.17
If COE meets the Canaccord Genuity target it will return approximately 74% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity 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 115.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.8, 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 N/A.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, 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 25.6.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $3.95

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

FY21 operating earnings were in line with JP Morgan and guidance. No FY22 guidance was provided due to new covid-19 restrictions. It's thought restrictions will impact the first half with 11% of stores by income currently not trading.

The analyst points out the second half result shows performance quickly rebounds in the portfolio once restrictions ease. Portfolio occupancy is at its highest level since 2015. The broker retains its Neutral rating and lowers its target price to $4.00 from $4.10.

This report was published on August 18, 2021.

Target price is $4.00 Current Price is $3.95 Difference: $0.05
If CQR meets the JP Morgan target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.05, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 22.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of -45.6%.
Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 27.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.5, implying annual growth of 2.9%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 13.9.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $21.50

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

A better-than-expected full year earnings (EBITDA) loss was driven by a much stronger-than-anticipated fourth quarter, assesses JP Morgan. Earnings of $13.6m in the fourth quarter were a strong beat against implied consensus of $6.4m.

While management guided to four quarters of profitability in FY22, no directional guidance for the first quarter relative to the fourth was provided, explains the analyst. The Neutral rating and $21 target price are unchanged. 

Management also expects a full recovery to pro forma 2019 levels would see the company generating $235m of earnings and believes the combined business can return to historical margins. This is despite the lower margins for the new Travel & Transport business.

This report was published on August 19, 2021.

Target price is $21.00 Current Price is $21.50 Difference: minus $0.5 (current price is over target).
If CTD meets the JP Morgan target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $23.85, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 21.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 0.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.7, implying annual growth of N/A.
Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 48.1.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 51.00 cents and EPS of 108.00 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.7, implying annual growth of 114.1%.
Current consensus DPS estimate is 42.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.5.

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

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $2.04

Moelis rates ((ENN)) as Buy (1) –

Elanor Investors Group's core earnings of $15.1m for FY21 were in line with Moelis' expectations. Funds under management increased to $2.1bn, and Moelis notes funds under management have increased at a 57% compound annual growth rate since the initial public offering. 

The broker also highlighted a strong start to FY22 with the acquisition of 50 Cavill Ave and the effective merger of the regional and luxury hotel funds to create the Elanor Hotel Accommodation Fund. 

This fund results in $25m in capital being released to Elanor Investors Group  for future growth opportunity, and generates around $3.9m in transaction fees as well as an approximate $10.5m profit on the sale. 

The Buy rating is retained and the target price increases to $2.31 from $2.10. 

The report was published on August 24, 2021.

Target price is $2.31 Current Price is $2.04 Difference: $0.27
If ENN meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.80 cents and EPS of 23.30 cents.
At the last closing share price the estimated dividend yield is 5.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.76.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 12.60 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 6.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $3.74

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

Both Evolution Mining's FY21 profit after tax of $354m and underlying earnings of $914m were slightly ahead of consensus forecast, but lower year-on-year. 

Shaw and Partners noted the company added another acquisition in July to transform the WA Mungari project into a cornerstone asset, and is guiding to FY22 gold production of 700,000-760,000 ounces. 

It is Shaw's view that the company's collective acquisition record is steering to 1m ounce per annum production by FY25. 

The Buy rating is retained and the target price decreases to $5.30 from $7.00. 

This report was published on August 23, 2021.

Target price is $5.30 Current Price is $3.74 Difference: $1.56
If EVN meets the Shaw and Partners target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $4.23, suggesting upside of 13.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 14.00 cents and EPS of 23.70 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of -20.3%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 23.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 18.00 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 4.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 25.5%.
Current consensus DPS estimate is 3.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 18.5.

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

EVT    EVENT HOSPITALITY & ENTERTAINMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $14.96

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

FY21 earnings came in ahead of JP Morgan's expectations, driven by a strong second half recovery. The beat was driven largely by a significant claim under a German damage compensation program for covid-19 impacted businesses, explains the analyst.

The broker is heartened by a strong performance in the company’s businesses when open. During FY21 for example, Thredbo grew earnings (EBITDA) by 20% despite -49% fewer skier days and Hotels has had positive earnings every month since September 2020.

The broker retains its Neutral rating and increases its price target to $13.20 from $11.10.

This report was published on August 24, 2021.

Target price is $13.20 Current Price is $14.96 Difference: minus $1.76 (current price is over target).
If EVT meets the JP Morgan target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 14.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 0.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 115.08.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 40.00 cents and EPS of 78.00 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.18.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $6.94

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

FY21 results came in ahead of JP Morgan's expectations with all divisions, bar Australia and Construction, generating record or near-record levels of earnings (EBIT).

The broker's and consensus forecasts are well short of management's target for a group-level earnings margin of 10% by FY23. The company is considered undervalued even at the lower margin trajectory.

With JP Morgan's EPS forecasts rising by around 2% on average over FY22-25, the Overweight rating is retained. The target price falls to NZ$8.25 from NZ$8.30.

This report was published on August 19, 2021.

Current Price is $6.94. Target price not assessed.
Current consensus price target is $8.40, suggesting upside of 21.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 29.51 cents and EPS of 49.65 cents.
At the last closing share price the estimated dividend yield is 4.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.8, implying annual growth of N/A.
Current consensus DPS estimate is 31.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 30.91 cents and EPS of 51.52 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.7, implying annual growth of 3.8%.
Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.4.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $31.70

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

For the first four months of FY22, hardware sales dramatically exceeded JP Morgan's forecast, reflecting the surge in covid cases in many regions outside North America and Europe.

However, consumables sales fell short as utilisation rates dropped sharply in the US and to a lesser degree in Europe, explains the analyst. It's expected consumables sales will pick-up over the remainder of FY22.

Fears of weaker utilisation will likely prove unfounded thanks to continuing covid waves, believes the broker. However, it's thought the pandemic will likely hinder the company's efforts to train and promote the use of its high-flow therapy on non-covid patients.

The Overweight rating is maintained and the target rises to NZ$32 from $NZ$30.

This report was published on August 19, 2021.

Current Price is $31.70. Target price not assessed.
Current consensus price target is $32.50, suggesting upside of 2.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 39.81 cents and EPS of 59.02 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.0, implying annual growth of N/A.
Current consensus DPS estimate is 37.8, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 50.3.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 34.66 cents and EPS of 55.27 cents.
At the last closing share price the estimated dividend yield is 1.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.5, implying annual growth of 2.4%.
Current consensus DPS estimate is 41.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 49.1.

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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $1.14

Moelis rates ((GDI)) as Buy (1) –

GDI Property Group's funds from operations of 5.37 cents per share was a slight miss on Moelis' forecast of 5.56 cents per share. 

Moelis notes the company has sold 50 Cavill Ave for $113.5m, initially acquired for $48.75m in 2016, expecting to net $109m after selling costs which implies an 8% premium to book value. 

It is Moelis' view that the company remains well positioned to execute on its strategic initiatives in Perth over the next year. 

The Buy rating and target price of $1.43 are retained.

This report was published on August 24, 2021.

Target price is $1.43 Current Price is $1.14 Difference: $0.29
If GDI meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.80 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.10.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.80 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.26.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.00

Canaccord Genuity rates ((GEM)) as Hold (3) –

G8 Education's first half result was better than expected, according to Canaccord Genuity, with occupancy rates continuing to improve.

The broker highlights occupancy averaged 68% in the half, just 2.4 percentage points behind the first half of FY19, until July. 

Despite this, the broker notes uncertainty in the second half. Lack of government stimulus during current lockdowns and a wage increase in July are likely to impact on margins. 

The Hold rating is retained and the target price decreases to $1.07 from $1.13. 

The report was published on August 24, 2021.

Target price is $1.07 Current Price is $1.00 Difference: $0.07
If GEM meets the Canaccord Genuity target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.08, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 3.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.2, implying annual growth of N/A.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 83.3%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.0.

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


Moelis rates ((GEM)) as Hold (3) –

G8 Education's first half results showed improved occupancy rate to 72.6%, implying a -1 percentage point miss on 2019 levels. Moelis notes given lockdown impact this has since widened to a -2.6 percentage point gap on 2019. 

The company reported earnings before tax of $39m and around $10m in net debt in July, which the broker noted was a strong balance sheet. 

Reflecting impacts of lockdowns, Moelis is forecasting earnings before tax of $69m for 2021, and looks to potential demand drivers impacting on FY22. 

The Hold rating is retained and the target price increases to $1.10. 

This report was released on August 24, 2021.

Target price is $1.10 Current Price is $1.00 Difference: $0.1
If GEM meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $1.08, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 1.70 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.2, implying annual growth of N/A.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.70 cents and EPS of 6.80 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 83.3%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.0.

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

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $1.76

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

GR Engineering Services' FY21 profit of $23.2m exceeded the $20m expected by Euroz Hartleys. The 7cps dividend also exceeded the expectation for 5cps.

FY22 revenue guidance was for $440-460m, beating the broker's $400m estimate. The analyst has the target price under review and maintains the Buy rating.

In FY22 there will potentially be a significant shortage of engineering, procurement and construction (EPC) capability and urgency to get projects into production, notes the broker. As a result, there's considered potential for both strong revenue and margins.

This report was published on August 24, 2021.

Current Price is $1.76. Target price not assessed.

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

HPI    HOTEL PROPERTY INVESTMENTS LIMITED

Infra & Property Developers – Overnight Price: $3.44

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

Hotel Property Investments' FY21 adjusted funds from operations of $32.6m were roughly in line with Goldman Sachs' forecast. The company benefited from an 8.6% rental income increase, as well as acquisitions, annual rental increases, and minor covid tenant relief. 

Goldman Sachs notes the company continues to reinvest in its properties, with a $30m capital refurbishment program enhancing performance of the underlying pub business. 

The broker highlights given the company's exposure to Queensland, impacts from recent lockdowns are likely to be minimal. 

The Neutral rating is retained and the target price increases to $3.28 from $3.18.

The report was published on August 24, 2021.

Target price is $3.28 Current Price is $3.44 Difference: minus $0.16 (current price is over target).
If HPI meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.38.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 24.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.33.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $29.32

JP Morgan rates ((HUB)) as No Rating (-1) –

The FY21 result was broadly in-line with the estimates of JP Morgan. The company continues to benefit from a strong outlook on flows, notes the analyst, with management again increasing its custody funds under administration (FUA) target for FY23 to $63-70bn.

A fall in platform revenue margin was largely driven by a reduction in the administration fee margin, a lower RBA cash rate, normalised trading volumes and dilution from Xplore, explains the analyst.

The broker retains its Underweight rating both on valuation and a likely further risk to margins in the medium term. The price target rises to $23 from $20.40.

This report was published on August 24, 2021.

Target price is $23.00 Current Price is $29.32 Difference: minus $6.32 (current price is over target).
If HUB meets the JP Morgan target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $29.79, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 19.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.8, implying annual growth of 205.0%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 75.6.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 24.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.2, implying annual growth of 26.8%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 59.6.

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

LBL    LASERBOND LIMITED

Mining Sector Contracting – Overnight Price: $0.88

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

Canaccord Genuity has described LaserBond's FY21 results as creditable given the frustrations of the year. The company reported $24.7m in revenue and $6.4m in underlying earnings, which the broker notes demonstrates strong cost discipline in the year. 

Products division had a strong year, with revenue up 41%, Services struggled but reported a 4% year-on-year increase in the second half assisted by contribution from the United Surface Technologies acquisition, while Technology looks to a $1.5m revenue add in FY22 from its cladding equipment agreement. 

LaserBond remains committed to reaching $40m in revenue in FY22, and the broker expects an acquisition is likely to assist in that effort.

The Buy rating and target price of $0.80 are retained. 

This report was published on August 24, 2021.

Target price is $0.80 Current Price is $0.88 Difference: minus $0.08 (current price is over target).
If LBL meets the Canaccord Genuity target it will return approximately minus 9% (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 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.33.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.00.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $1.42

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

Euroz Hartleys notes FY21 results were consistent with a fourth quarter operational update provided in late July. However, new detail emerged in the form of robust targets in FY22 guidance, which the analyst thinks are achievable. A final dividend of 1.5c was declared.

Guidance included revenue of between $355m and $365m, and a profit forecast between $23m and $25m. The midpoint of the profit forecast is a 24.5% increase on 2021, representing a significant upgrade on consensus expectations, notes the broker.

Euroz Hartleys maintains its Buy rating and the $1.21 price target is under review. 

This report was published on August 24, 2021.

Target price is $1.21 Current Price is $1.42 Difference: minus $0.21 (current price is over target).
If MAD meets the Euroz Hartleys target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

MLD    MACA LIMITED

Mining Sector Contracting – Overnight Price: $0.70

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

Both Maca's FY21 results and FY22 guidance have exceeded Canaccord Genuity's expectations. 48% revenue growth in FY21 was 22% organic, with the remainder driven by the Downer West acquisition which generated $201m in revenue in five months. 

The broker notes while the Downer West acquisition was expected to push margins lower, second half margins were down around -450 basis points half-on-half. 

Looking ahead, the company is guiding to FY22 revenue of $1.4bn, with the Mining segment having already secured $1.2bn of work. The company also flagged a tender pipeline of $11bn, of which $2.3bn is expected to be awarded in FY22. 

The Buy rating is retained and the target price decreases to $1.13 from $1.19. 

This report was published on August 24, 2021.

Target price is $1.13 Current Price is $0.70 Difference: $0.43
If MLD meets the Canaccord Genuity target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 7.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.67.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 5.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 7.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.36.

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


Moelis rates ((MLD)) as Buy (1) –

Maca's reported FY21 underlying earnings of $162m and earnings before tax of $66.1m were a -3% and -9% miss on Moelis' forecasts respectively. An underlying earnings margin of 16% for the Mining segment in the second half was also down on the broker's expectations. 

The company is guiding to FY22 revenue of $1.4bn which includes $1.2bn secured in Mining. The broker updates underlying earnings for FY22 and FY23 by -5% and -9% respectively. 

The Buy rating is retained and the target price decreases to $1.46 from $1.52. 

This report was released on August 24, 2021.

Target price is $1.46 Current Price is $0.70 Difference: $0.76
If MLD meets the Moelis target it will return approximately 109% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.00 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 8.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.83.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 6.40 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 9.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.40.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $9.09

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

Euroz Hartleys assesses an in-line FY21 result overall, with earnings a beat, margins in-line and profit a miss. A 21cps dividend was declared, which was less than the 28cps expected.

Management noted FY22 revenue is likely to be lower due to timing of new major projects, while stronger construction activity is forecast in FY23. The broker's price target of $13.36 is under review and the Buy rating is unchanged.

This report was published on August 24, 2021.

Current Price is $9.09. Target price not assessed.
Current consensus price target is $10.97, suggesting upside of 20.7%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 47.6, implying annual growth of -4.2%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 19.1.

Forecast for FY23:

Current consensus EPS estimate is 61.5, implying annual growth of 29.2%.
Current consensus DPS estimate is 52.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.8.

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $6.85

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

nib Holdings reported FY21 profit after tax of $160.5m, a -6% miss on Goldman Sachs' forecast, and a final dividend per share of 14 cents. Both underlying operating profit and statutory operating profit were well below the broker's expectations. 

Goldman Sachs highlighted policyholder growth of 4.2% within Arhi was in line with forecasts, and nib Holdings is guiding to 2-3% growth in FY22. Covid restrictions are expected to impact international student arrivals, and Iihi results, for the remainder of 2021.

The Neutral rating is retained and the target price increases to $6.08 from $5.84. 

This report was published on August 23, 2021.

Target price is $6.08 Current Price is $6.85 Difference: minus $0.77 (current price is over target).
If NHF meets the Goldman Sachs target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.74, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of -9.5%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 22.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.5, implying annual growth of 1.9%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 21.1.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $14.73

JP Morgan rates ((NWL)) as Upgrade to Neutral from Underweight (3) –

Despite a -4% miss for FY21 earnings versus the JP Morgan estimate, the rating rises to Neutral from Underweight, as the broker increases funds under administration (FUA) net inflow assumptions. The price target lifts to $13.50 from $12.50.

Platform FUA jumped 50% on the previous corresponding period, driven by $9.8bn of net inflows over FY21 and a strong market tailwind of $5.8bn, explains the analyst.

Management highlighted a step change for reinvestment in FY22, predominantly across the people and technology streams. JP Morgan expects this will have a short term impact to earnings (EBITDA) margins.

This report was published on August 19, 2021.

Target price is $13.50 Current Price is $14.73 Difference: minus $1.23 (current price is over target).
If NWL meets the JP Morgan target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.53, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 21.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.8, implying annual growth of 14.4%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 57.1.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 23.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 1.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.0, implying annual growth of 16.3%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 49.1.

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

OML    OOH!MEDIA LIMITED

Out of Home Advertising – Overnight Price: $1.73

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

Given current lockdowns, Canaccord Genuity lowers revenue and earnings forecasts for FY21, causing impacts into FY22 and FY23. The broker notes these lockdowns have interrupted oOh!media's otherwise compelling recovery story.

The company reported revenue of $252m and underlying earnings of $33.3m, a beat on the broker's expected $26.0m, in the first half. The third quarter already looks to be pacing up 38% on the same quarter in FY20 and up 74% on the same quarter in FY19. 

The broker updates underlying earnings forecasts by -21%, -4% and -10% through to FY23. 

The Buy rating is retained  and the target price decreases to $1.70 from $1.90.

The report was published on August 24, 2021.

Target price is $1.70 Current Price is $1.73 Difference: minus $0.03 (current price is over target).
If OML meets the Canaccord Genuity target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.59, suggesting downside of -8.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 0.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, 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 57.7.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of 160.0%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 22.2.

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


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

oOh!media's first half sales and underlying earnings of $252m and $33m were respectively a -3% and -28% miss on Goldman Sachs' forecast. The broker notes while revenue was ahead of expectations, the miss was driven by higher costs. 

Goldman Sachs also highlights the company was able to pay down around $4m in debt, showing cash flow strength despite uncertainty. Despite lockdowns, third quarter pace is already tracking 38% above the same quarter in FY20. 

Thr broker updates underlying earnings by -2% to -28% for FY21-FY23. The Buy rating is retained and the target price decreases to $2.04 from $2.10.

This report was published on August 23, 2021.

Target price is $2.04 Current Price is $1.73 Difference: $0.31
If OML meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $1.59, suggesting downside of -8.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs 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 173.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, 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 57.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of 160.0%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 22.2.

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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $21.71

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

First half earnings (EBITDA) were in-line with JP Morgan, while profit missed on higher D&A. The 16cps total dividend was below the broker's 24cps forecast. The Overweight rating and $28 target price are unchanged.

An additional -$37m (mid-point) of growth capex has been guided at Prominent Hill with no other changes to guidance.

This report was published on August 19, 2021.

Target price is $28.00 Current Price is $21.71 Difference: $6.29
If OZL meets the JP Morgan target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $24.80, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

JP Morgan forecasts a full year FY21 dividend of 45.00 cents and EPS of 163.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 170.2, implying annual growth of 161.0%.
Current consensus DPS estimate is 35.3, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 53.00 cents and EPS of 178.00 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.7, implying annual growth of -6.8%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 13.7.

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

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.83

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

While FY21 results for Perenti Global were in-line, Euroz Hartleys assesses a big positive, given further disappointment was likely factored-in. It's thought the company will be a big beneficiary of a more open Australian international border, presumably in FY23.

Guidance for earnings (EBITA) of $165-185m implies there is still a chance of only flat profits though the skew is still for potential growth, estimates the analyst. The broker's $1.55 target price is under review and the Buy rating is unchanged.

This report was published on August 24, 2021.

Current Price is $0.83. Target price not assessed.

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

REH    REECE LIMITED

Furniture & Renovation – Overnight Price: $19.77

JP Morgan rates ((REH)) as Underweight (5) –

Reece reported FY21 profit of $286m, ahead of the $271m estimate by JP Morgan and consensus forecasts for $278m, while group earnings (EBITDA) were in-line with the analyst's forecast.

While the US division missed the broker's estimates by -9%, A&NZ was a 7% beat and the DPS of 18cps was above the projected 14cps.

Management highlighted continuing covid-19 related challenges and an 'unpredictable future'. The adverse impact of labour market shortages and tight supply chains was outlined. The broker maintains its Underweight rating and $14 target price.

This report was published on August 24, 2021.

Target price is $14.00 Current Price is $19.77 Difference: minus $5.77 (current price is over target).
If REH meets the JP Morgan target it will return approximately minus 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.02, suggesting downside of -13.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Current consensus EPS estimate is 51.4, implying annual growth of 16.3%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 38.5.

Forecast for FY23:

Current consensus EPS estimate is 58.7, implying annual growth of 14.2%.
Current consensus DPS estimate is 27.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 33.7.

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

RWC    RELIANCE WORLDWIDE CORP. LIMITED

Building Products & Services – Overnight Price: $5.44

JP Morgan rates ((RWC)) as Downgrade to Neutral from Overweight (3) –

FY21 profit of $212m was ahead of JP Morgan's estimate for $200m and well above the consensus forecast for $192m. However, after adjusting for a $10.9m ‘profit-in-stock realisation’, earnings (EBITDA) were in-line.

While the company is well positioned for growth above market in all its key regions over the medium term, the analyst downgrades the rating to Neutral from Overweight after a recent share price rally. The price target rises to $5.90 from $5.80.

Management highlighted all cost escalation, particularly copper and resin, will be captured through higher prices and guidance is for prices to rise 6% on average across the business as whole in FY22.

This report was published on August 24, 2021.

Target price is $5.90 Current Price is $5.44 Difference: $0.46
If RWC meets the JP Morgan target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.25, suggesting upside of 14.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 13.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.7, implying annual growth of 11.1%.
Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 14.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.4, implying annual growth of 6.4%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.2.

Market Sentiment: 0.5
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: $0.51

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

Euroz Hartleys considers SRG Global had a terrific 2021, winning a huge amount of work, which has in turn translated to a significant increase in earnings and order book. Earnings are considered to have pivoted to a recurring and annuity style.

A much improved margin and cashflow was generated from modestly growing revenues as legacy activities were replaced with those higher quality annuity and recurring style of revenues, explains the broker.

Management noted a record $1bn order book, up 41% on 2020, and a $6bn opportunity pipeline. The Buy rating is retained and the price target set at $0.83.

This report was published on August 24, 2021.

Target price is $0.83 Current Price is $0.51 Difference: $0.32
If SRG meets the Euroz Hartleys target it will return approximately 63% (excluding dividends, fees and charges).

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.03

JP Morgan rates ((UWL)) as Downgrade to Neutral from Overweight (3) –

JP Morgan assesses a strong FY21 financial result that was in-line with growth expectations, with the highlight being strong growth in the contract book. The broker downgrades its rating to Neutral from Overweight after shares have risen 144% since the start of the year.

The analyst estimates the company gained 69% market share in the half, which demonstrates the company’s superior offering. Hence, earnings forecasts and valuation rise and the broker lifts its target price to $4.20 from $3.45.

Management announced the Board was undertaking a review into capital management now that cash flows are strong, with both share buybacks and dividends being discussed.

This report was published on August 24, 2021.
 

Target price is $4.20 Current Price is $4.03 Difference: $0.17
If UWL meets the JP Morgan target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.19.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.79.

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

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting – Overnight Price: $0.63

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

FY21 results for XRF Scientific exceeded Euroz Hartley's estimates on all measures. A 2cps dividend was declared for the full year versus the 1.5cps forecast. The broker retains its Speculative Buy rating and has its target price under review.

Management's outlook is for continued expansion in the Precious Metals segment, with profit growth expected to continue. Geographic expansion activities are also expected to progress.

Within the Consumables segment there was strong demand from the mining sector (domestic and international) and new customer acquisitions continue at a steady rate, notes the analyst.

Results in the Precious Metals segment included the first profit from the German office ($0.2m), while product development activities continue on two new machines in Capital Equipment.

This report was published on August 24, 2021.

Current Price is $0.63. Target price not assessed.

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

AD8 ALD APA ARB BRG BRI COE CQR CTD ENN EVN EVT FBU FPH GDI GEM GNG HPI HUB LBL MAD MLD MND NHF NWL OML OZL PRN REH RWC SRG UWL XRF ZEL

For more info SHARE ANALYSIS: AD8 - AUDINATE GROUP LIMITED

For more info SHARE ANALYSIS: ALD - AMPOL LIMITED

For more info SHARE ANALYSIS: APA - APA GROUP

For more info SHARE ANALYSIS: ARB - ARB CORPORATION LIMITED

For more info SHARE ANALYSIS: BRG - BREVILLE GROUP LIMITED

For more info SHARE ANALYSIS: BRI - BIG RIVER INDUSTRIES LIMITED

For more info SHARE ANALYSIS: COE - COOPER ENERGY LIMITED

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

For more info SHARE ANALYSIS: CTD - CORPORATE TRAVEL MANAGEMENT LIMITED

For more info SHARE ANALYSIS: ENN - ELANOR INVESTORS GROUP

For more info SHARE ANALYSIS: EVN - EVOLUTION MINING LIMITED

For more info SHARE ANALYSIS: EVT - EVENT HOSPITALITY & ENTERTAINMENT LIMITED

For more info SHARE ANALYSIS: FBU - FLETCHER BUILDING LIMITED

For more info SHARE ANALYSIS: GDI - GDI PROPERTY GROUP

For more info SHARE ANALYSIS: GEM - G8 EDUCATION LIMITED

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

For more info SHARE ANALYSIS: HPI - HOTEL PROPERTY INVESTMENTS LIMITED

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: LBL - LASERBOND LIMITED

For more info SHARE ANALYSIS: MAD - MADER GROUP LIMITED

For more info SHARE ANALYSIS: MLD - MACA LIMITED

For more info SHARE ANALYSIS: MND - MONADELPHOUS GROUP LIMITED

For more info SHARE ANALYSIS: NHF - NIB HOLDINGS LIMITED

For more info SHARE ANALYSIS: NWL - NETWEALTH GROUP LIMITED

For more info SHARE ANALYSIS: OML - OOH!MEDIA LIMITED

For more info SHARE ANALYSIS: OZL - OZ MINERALS LIMITED

For more info SHARE ANALYSIS: PRN - PERENTI GLOBAL LIMITED

For more info SHARE ANALYSIS: REH - REECE LIMITED

For more info SHARE ANALYSIS: RWC - RELIANCE WORLDWIDE CORP. LIMITED

For more info SHARE ANALYSIS: SRG - SRG GLOBAL LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: XRF - XRF SCIENTIFIC LIMITED

For more info SHARE ANALYSIS: ZEL - Z ENERGY LIMITED