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Australian Broker Call *Extra* Edition – Sep 24, 2021

Daily Market Reports | Sep 24 2021

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

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)

AMA   ECF   EHE   GNG   HUB   IPD   JAN   JLG   LOV   MAD   MAH   MAQ   MND   MNF   MVP   NAN   NTO (2)   PSI   RDY   SLK   TRJ   UWL   WSA (2)   XRF  

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.48

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

AMA Group's underlying FY21 earnings were slightly above Bell Potter's forecast on better revenues and margins. An impairment charge was not expected, hence a greater loss than forecast, while no dividend was delivered nor expected.

No FY22 guidance was offered either, as expected given the current covid impact which the company describes as "situational" and not "structural". AMA may nevertheless may raise capital to provide balance sheet flexibility.

Due to ongoing lockdowns, the broker has downgraded earnings forecasts and its target price to 50c from 65c, and downgraded to Hold from Buy.

This report was published on August 25, 2021.

Target price is $0.50 Current Price is $0.48 Difference: $0.02
If AMA meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter 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 36.92.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 240.00.

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

ECF    ELANOR COMMERCIAL PROPERTY FUND

REITs – Overnight Price: $1.13

Moelis rates ((ECF)) as Reinstate Coverage with Buy (1) –

FY21 distributions of 10.03c and earnings of 12.55c per unit imply a highly conservative pay-out ratio of 86.5% and yield of 9.0%, Moelis asserts. Occupancy is unchanged at 94.6%.

The main leasing highlights, Moelis notes, include a lease with Hub Australia to take the remaining vacant space at 200 Adelaide Street and renewal of several tenants at the Nexus Centre. The broker reinstates coverage with a Buy rating and $1.20 target.

This report was published on August 24, 2021.

Target price is $1.20 Current Price is $1.13 Difference: $0.07
If ECF meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.40 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 8.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.37.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.50 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 8.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.91.

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

EHE    ESTIA HEALTH LIMITED

Aged Care & Seniors – Overnight Price: $2.27

Moelis rates ((EHE)) as Buy (1) –

FY21 revealed another strong performance despite a challenging operating environment and, while occupancy could be under pressure over the first half of FY22, Moelis expects Estia Health will cope better than most industry participants.

The business has a strong management track record and well-established model of care. The balance sheet is also strong with around $244m in liquidity available.

Moelis estimates FY22 EBITDA of $81m and assumes average occupancy increases to 92.5% from 91.2%. The broker retains a Buy rating with a $2.94 target.

This report was published on August 24, 2021.

Target price is $2.94 Current Price is $2.27 Difference: $0.67
If EHE meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $2.33, suggesting upside of 2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.70 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 269.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.7.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 8.90 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 28.2%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 20.8.

Market Sentiment: 0.2
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: $1.81

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

Materially stronger second half margins led GR Engineering to a substantial beat in FY21 on record earnings. The company continued to deliver very impressive cash flow, Bell Potter notes.

On strong contracted revenue and a solid track record, the broker forecasts another earnings record in FY22. Ongoing commodity price
strength and new contract wins in oil & gas have the potential to lift longer-term estimates.

Buy retained, target rises to $1.85 from $1.60.

Target price is $1.85 Current Price is $1.81 Difference: $0.04
If GNG meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 14.00 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 7.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.97.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 10.00 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.61.

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: $30.21

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

FY21 results included underlying EBITDA of $36.2m, ahead of expectations. Management is investing in growth with operating leverage expected to accelerate in FY22.

Shaw and Partners anticipates underlying EBITDA of $57m in FY22 and $72m in FY23 before a full $10m in annual synergies occurs from FY24 onwards.

The company has provided a platform funds under administration target of $63-70m for FY23. The broker continues to laud the market leading platform and growth prospects and reiterates a Buy rating. Target is raised to $31.11 from $30.00.

This report was published on August 25, 2021.

Target price is $31.11 Current Price is $30.21 Difference: $0.9
If HUB meets the Shaw and Partners target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $29.79, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 12.40 cents and EPS of 42.70 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.75.

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 77.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 16.90 cents and EPS of 58.20 cents.
At the last closing share price the estimated dividend yield is 0.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.91.

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 61.4.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.11

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

FY21 results were better than Canaccord Genuity expected. Despite the restrictions caused by the pandemic, sales growth was at a record and total revenue was boosted by the contribution from the leases to AstraZeneca.

The broker notes a number of catalysts that could provide material upside risk in FY22 including lymphoedema and further progress on heart and renal failure applications.

The Buy rating and target price of $0.23 are retained.

The report was published on August 26, 2021.

Target price is $0.23 Current Price is $0.11 Difference: $0.12
If IPD meets the Canaccord Genuity target it will return approximately 109% (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 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 11.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 15.71.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.96

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

A strong result from Janison Education was in line with previously announced expectations. No FY22 guidance was provided as expected.

Management does nevertheless expect continued sales momentum and revenue growth, and margin expansion as new higher-margin clients are brought on board to join lower margin legacy clients. The balance sheet offers M&A capacity, Bell Potter notes.

A 90c target is unchanged and a Hold rating maintained on valuation grounds.

This report was published on August 25, 2021.

Target price is $0.90 Current Price is $0.96 Difference: minus $0.06 (current price is over target).
If JAN meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 240.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.57.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $6.25

Moelis rates ((JLG)) as Buy (1) –

FY21 results revealed strong growth with underlying EBITDA of $52.6m, up 28.3%. This was broadly in line with Moelis' estimates and guidance. The company has guided to $635.4m in revenue in FY22

Johns Lyng is demonstrating an ability to maximise the opportunities which will drive multi-year earnings growth, the broker asserts. There is a focus on strata, facilities management and broker markets over FY22-23.

Acquisitions have performed strongly at the commencement of the new financial year and there is increased penetration of the US market. Moelis retains a Buy rating with a $7.17 target.

This report was published on August 25, 2021.

Target price is $7.17 Current Price is $6.25 Difference: $0.92
If JLG meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.40 cents and EPS of 13.50 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 46.30.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.10 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.65.

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

LOV    LOVISA HOLDINGS LIMITED

Luxury – Overnight Price: $19.82

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

Canaccord Genuity assesses a recovery is underway, noting FY21 EBIT was up 40%. The broker recognises the effort the company has made in establishing a supply chain that will support a much larger network.

Long-term investments such as these are expected to pay dividends as reopening occurs. Still, there are logistics challenges in the short term.

The broker points out the company is effectively an overseas retailer, with international stores now two thirds of the network and increasing. Buy rating retained. Target rises to $20.40 from $14.20.

This report was published on August 26, 2021.

Target price is $20.40 Current Price is $19.82 Difference: $0.58
If LOV meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $19.89, suggesting upside of 0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 30.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 92.6%.
Current consensus DPS estimate is 33.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 44.5.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 42.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.9, implying annual growth of 34.6%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 33.1.

Market Sentiment: 0.5
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: $1.50

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

Mader Group delivered a result in line with guidance, with strength in Australia and the US offsetting weakness in rest-of-world. FY22 guidance is very impressive, but Bell Potter sees it as conservative on border reopening uncertainty.

FY21 margins were constrained by labour mobility issues but the broker expects normalisation in FY22, and higher margins in the US and RoW. A capex guidance increase reflects strong growth ambitions here and in the US, the broker suggests.

Buy retained, target rises to $1.38 from $1.35.

This report was published on August 25, 2021.

Target price is $1.38 Current Price is $1.50 Difference: minus $0.12 (current price is over target).
If MAD meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.92 cents and EPS of 16.23 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.24.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.45 cents and EPS of 18.35 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.17.

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

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.20

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

FY21 revenue and earnings were in line with guidance and slightly ahead of expectations. Canaccord Genuity believes the business is positioned to grow, managing labour availability effectively as 60% of contracts are structured in an alliance style, which allows for better risk management.

The next major catalyst is the extension of the Bata Hijau phase 8 contract. Canaccord Genuity retains a Buy rating and raises the target to $0.30 from $0.28.

This report was published on August 26, 2021.

Target price is $0.30 Current Price is $0.20 Difference: $0.1
If MAH meets the Canaccord Genuity target it will return approximately 50% (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 0.70 cents and EPS of 2.70 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.41.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.80 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.67.

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

MAQ    MACQUARIE TELECOM GROUP LIMITED

Telecommunication – Overnight Price: $78.00

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

Operating earnings were in line with forecasts in FY21. The broker notes the company is encouraged by developments in cyber security and will make significant investments to take advantage of the opportunity.

Operating earnings are expected to grow in FY22 with a skew to the second half, supported by investments in CS&G and data centres.

Telecom revenue is being affected by the lockdowns which reduces the office-based higher-margin voice usage and access lines. Canaccord Genuity takes account of the lower reset of Telecom earnings and retains a Buy rating. Target is raised to $94 from $88.

This report was published on August 26, 2021.

Target price is $94.00 Current Price is $78.00 Difference: $16
If MAQ meets the Canaccord Genuity target it will return approximately 21% (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 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2600.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 79.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 98.73.

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: $9.29

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

Monadelphous enjoyed strong revenue growth in FY21 on a solid ramp-up in engineering activity, but weak margins given resourcing restraints in WA.

Major pre-pandemic contracts should be completed in the first half FY22 after which Bell Potter expects a return to normal margins. But claims are likely to be elevated in the current environment, somewhat increasing earnings risks until fully processed and resolved.

The broker recently downgraded to Hold on valuation and retains that for now, with its target falling to $11.00 from $12.50.

This report was published on August 25, 2021.

Target price is $11.00 Current Price is $9.29 Difference: $1.71
If MND meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $10.97, suggesting upside of 18.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 45.00 cents and EPS of 49.80 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.65.

How do these forecasts compare to market consensus projections?

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 4.3%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 58.00 cents and EPS of 67.80 cents.
At the last closing share price the estimated dividend yield is 6.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.70.

How do these forecasts compare to market consensus projections?

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 5.7%.
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

MNF    MNF GROUP LIMITED

Telecommunication – Overnight Price: $6.57

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

Moelis observes FY21 was a transformational year for MNF Group as most of the retail operations were divested to focus on higher margin software communications. Operating earnings (EBITDA) of $43.1m proved at the top of guidance.

Moelis increases FY22 EBITDA forecast by 2% to $41.6m, reflecting gross profit growth across all three continuing business segments. The broker downgrades to Hold from Buy and raises the target to $6.68 from $6.28.

This report was published on August 25, 2021.

Target price is $6.68 Current Price is $6.57 Difference: $0.11
If MNF meets the Moelis target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.20 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.29.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 11.20 cents and EPS of 25.70 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 25.56.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.23

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

Canaccord Genuity found the FY21 results messy, albeit in line with the review released in July. The pre-impairment loss was -$4.7m. Impairments related to the CSIRO project on continuous flow technology and goodwill for the medical device business.

The broker still expects significant growth over the medium to longer term on the assumption the company will execute on a turnaround in the EU, yet expects further consolidation in the share price. As a result, the Hold rating is maintained with a $4.40 target.

This report was published on August 26, 2021.

Target price is $4.40 Current Price is $5.23 Difference: minus $0.83 (current price is over target).
If MVP meets the Canaccord Genuity target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 74.71.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 217.92.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $6.37

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

A strong second half recovery led Nanosonics to increased revenues in FY21 but higher expenses meant a decline in earnings. No dividend was declared as expected.

The US continues to be the major market generating 86% of group revenues, Bell Potter notes, and accounts for the vast majority of the group’s global installed base. The company also provided a first glimpse of its next product, with a launch expected in 2023.

Reduction in execution risk for the new technology platform leads to a target price increase to $6.35 from $4.50. Sell retained.

This report was published on August 25, 2021.

Target price is $6.35 Current Price is $6.37 Difference: minus $0.02 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.42, suggesting upside of 0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 227.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of 54.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 144.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 122.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 75.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 82.7.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $3.67

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

Nitro Software's fist half loss was not as extensive as Bell Potter had forecast, on better revenues and lower expenses. No dividend as expected.

Full-year guidance is reaffirmed, which the broker expected given the hiring of new sales staff in the first half. It takes a few months for new staff to begin generating new revenues, thus growth is weighted to the second half.

The broker forecasts 25%pa revenue growth to 2023 and earnings breakeven in 2023. Buy and $4.00 target retained.

This report was published on August 25, 2021.

Target price is $4.00 Current Price is $3.67 Difference: $0.33
If NTO meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.05.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.31 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.46.

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


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

Shaw and Partners found the first half results solid. With first half revenue of around 50% of the midpoint of 2021 guidance the broker believes the business is in a strong position to deliver at the upper end of its forecast range of $47-49m.

The main positive is the multiple levers to drive revenue growth in FY22 and beyond, while the main downside is the lack of specific catalysts, in the broker's view. Buy rating retained. Target rises to $4.35 from $4.20.

This report was published on August 25, 2021.

Target price is $4.35 Current Price is $3.67 Difference: $0.68
If NTO meets the Shaw and Partners target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 12.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.05.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 13.17 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.87.

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

PSI    PSC INSURANCE GROUP LIMITED

Insurance – Overnight Price: $4.29

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

PSC Insurance reported an exceptionally strong FY21 result, Bell Potter concludes, featuring solid growth across each business division. The result was primarily driven by strong earnings growth within the company’s UK segment.

Management noted surplus debt capacity should additional acquisition opportunities arise, and declared a final dividend of 6.5c (ff).

Adjusting for the result and recent Alliance acquisition, the broker trims revenue forecasts but increases earnings on better margins. Buy retained, target rises to $4.50 from $3.90.

This report was published on August 25, 2021.

Target price is $4.50 Current Price is $4.29 Difference: $0.21
If PSI meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.50 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 2.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.20 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.51.

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $3.33

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

ReadyTech Holdings FY21 results were ahead of guidance. Guidance for FY22 implies acceleration in organic growth to 18% from the 13% achieved in FY21.

Shaw and Partners upgrades forecasts for FY22-24 revenue by 5-14% and EBITDA by 3-13%.

The broker reiterates a Buy rating and raises the target to $3.60 from $3.00, now forecasting FY26 revenue of $121m, slightly below management's target.

This report was published on August 25, 2021.

Target price is $3.60 Current Price is $3.33 Difference: $0.27
If RDY meets the Shaw and Partners target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.22.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.97.

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

SLK    SEALINK TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $9.16

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

FY21 Australian business earnings (EBITDA) were $90.1m and international business $39.1m. Marine and tourism delivered $59m in operating earnings.

Canaccord Genuity notes the negative share price reaction to the result, which it attributes to the second half loss in London and the lockdown affecting marine & tourism.

The broker understands there is scope for the company to reposition the London assets by way of transactions with unnamed parties and is interested in the next steps that will be taken in building upscale in the UK and Europe.

Buy rating retained. Target rises to $9.94 from $9.89.

This report was published on August 26, 2021.

Target price is $9.94 Current Price is $9.16 Difference: $0.78
If SLK meets the Canaccord Genuity target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $10.00, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 17.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.0, implying annual growth of 96.4%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 22.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.1, implying annual growth of 23.8%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 21.8.

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

TRJ    TRAJAN GROUP HOLDINGS LIMITED

Overnight Price: $3.32

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

Trajan Group reported revenue growth of around 6.6% in its maiden results as a listed company. Canaccord Genuity believes this understates the strength of the business, noting positive momentum from second half growth of 9.5% as FY22 opens.

The company has reiterated its intentions on M&A and is working on a number of targets. FY22 revenue is expected to be $82.5m and EBITDA $10.7m.

Timing is the main risk, the broker asserts, yet believes deal flows should commence in the first half of FY22. The broker retains a Buy rating and $2.86 target.

This report was published on August 26, 2021.

Target price is $2.86 Current Price is $3.32 Difference: minus $0.46 (current price is over target).
If TRJ meets the Canaccord Genuity target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.55.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.06.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.24

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

Uniti Group's earnings result beat Bell Potter by 7% on higher revenues and in-line margins. Free cash flow was better than expected but no dividend was declared, as expected.

Nor did the broker expect any FY22 guidance but notes a solid run-rate out of the final quarter. The company expects to be able to declare franked dividends, or a buyback, in the future.

The broker has increased earnings forecasts and its assumed PE multiple, which leads to a target increase to $4.50 from $3.60. As this is in line with valuation, the broker downgrades to Hold from Buy.

This report was published on August 25, 2021.

Target price is $4.50 Current Price is $4.24 Difference: $0.26
If UWL meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.86.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.50 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 0.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.64.

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

WSA    WESTERN AREAS LIMITED

Nickel – Overnight Price: $3.01

Bell Potter rates ((WSA)) as Downgrade to Sell from Hold (5) –

Western Areas reported key FY21 metrics essentially in line with Bell Potter's forecasts, with the minor loss largely reflecting a disrupted first half production and cost performance offsetting the strongest A$ nickel price environment since FY11.

With FY22 shaping up as a year of unchanged production, higher costs and higher capital expenditure, the focus now is on the proposed merger with IGO Ltd ((IGO)). This has led to a large valuation premium.

The broker sees sense in the merger, and notes a premium for the company's stake in Panoramic Resources ((PAN)) is fair, but IGO has a track record of walking away from deals. Target falls to $2.31 from $2.48, downgrade to Sell from Hold.

This report was published on August 25, 2021.

Target price is $2.31 Current Price is $3.01 Difference: minus $0.7 (current price is over target).
If WSA meets the Bell Potter target it will return approximately minus 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.91, suggesting downside of -3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 150.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 94.1.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, implying annual growth of -96.9%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 3010.0.

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


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

FY21 results beat estimates, reflected in a significant turnaround in the second half. Guidance has been reiterated.

A return to normal operations of Forrestania along with the medium-term production profile means there is no "hole" in the earnings profile, the broker observes. Shaw and Partners expects the approach by IGO Ltd ((IGO)) will mean the share price/valuation gap closes.

The broker retains a Buy rating with a $3.20 target.

This report was published on August 25, 2021.

Target price is $3.20 Current Price is $3.01 Difference: $0.19
If WSA meets the Shaw and Partners target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $2.91, suggesting downside of -3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 94.1.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, implying annual growth of -96.9%.
Current consensus DPS estimate is 0.4, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 3010.0.

Market Sentiment: 0.2
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: $0.67

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

Earnings growth was ahead of forecasts in FY21. No guidance was provided but the company has indicated margins have expanded. Canaccord Genuity notes pre-tax profit margins have reached 19% in FY21.

An estimated 70% of revenue is currently coming from mining companies with mineral exploration services experiencing heightened demand.

The broker increases FY22 and FY23 forecasts for EBITDA by 23% and 20%, respectively. A Speculative Buy rating is maintained and the target raised to $0.65 from $0.54.

This report was published on August 26, 2021.

Target price is $0.65 Current Price is $0.67 Difference: minus $0.02 (current price is over target).
If XRF meets the Canaccord Genuity target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.10 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.75.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.10 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.75.

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

AMA ECF EHE GNG HUB IGO IPD JAN JLG LOV MAD MAH MAQ MND MVP NAN NTO PAN PSI RDY TRJ UWL WSA XRF

For more info SHARE ANALYSIS: AMA - AMA GROUP LIMITED

For more info SHARE ANALYSIS: ECF - ELANOR COMMERCIAL PROPERTY FUND

For more info SHARE ANALYSIS: EHE - ESTIA HEALTH LIMITED

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

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: IGO - IGO LIMITED

For more info SHARE ANALYSIS: IPD - IMPEDIMED LIMITED

For more info SHARE ANALYSIS: JAN - JANISON EDUCATION GROUP LIMITED

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

For more info SHARE ANALYSIS: LOV - LOVISA HOLDINGS LIMITED

For more info SHARE ANALYSIS: MAD - MADER GROUP LIMITED

For more info SHARE ANALYSIS: MAH - MACMAHON HOLDINGS LIMITED

For more info SHARE ANALYSIS: MAQ - MACQUARIE TELECOM GROUP LIMITED

For more info SHARE ANALYSIS: MND - MONADELPHOUS GROUP LIMITED

For more info SHARE ANALYSIS: MVP - MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

For more info SHARE ANALYSIS: NAN - NANOSONICS LIMITED

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: PAN - PANORAMIC RESOURCES LIMITED

For more info SHARE ANALYSIS: PSI - PSC INSURANCE GROUP LIMITED

For more info SHARE ANALYSIS: RDY - READYTECH HOLDINGS LIMITED

For more info SHARE ANALYSIS: TRJ - TRAJAN GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED

For more info SHARE ANALYSIS: WSA - WESTERN AREAS LIMITED

For more info SHARE ANALYSIS: XRF - XRF SCIENTIFIC LIMITED