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Australian Broker Call *Extra* Edition – Oct 05, 2021

Daily Market Reports | Oct 05 2021

This story features ALPHA HPA LIMITED, and other companies. For more info SHARE ANALYSIS: A4N

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)

A4N   ABB   ABY   AHX   ALU (2)   ASG   BET   BKG   BUB   CBR   CTT   CXL   DDH   DEG   FFX   FMG (2)   GNP   HMY   HUO   HVN (2)   IGO   IVC (2)   LDX   LGP   MCR   NXS   PBH   PDN   REG (2)   RRL   SGH   SHV   SRG   WBC   WEB   WOA  

A4N    ALPHA HPA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.46

Euroz Hartleys rates ((A4N)) as Speculative Buy (2) –

Alpha HPA provides leverage to to the decarbonisation trend and product pricing and Euroz Hartleys notes volume bids have been placed for multiple contracts on the back of successful product evaluation.

Initial product offtake agreements seem imminent, as the broker notes eight orders have been placed in the last fortnight with the majority relating to HPA products for application in CMP slurries. The broker maintains a Speculative Buy rating with a target of $1.

This report was published on August 31, 2021.

Target price is $1.00 Current Price is $0.46 Difference: $0.54
If A4N meets the Euroz Hartleys target it will return approximately 117% (excluding dividends, fees and charges).

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

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $5.02

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

Shaw and Partners increases its price target to $4.16 from $3.33 after raising operating profit forecasts for FY21-23 by 18%, 8% and 5%, respectively. FY21 results broadly exceeded estimates and the new financial year has begun well. 

The analyst expects continued outperformance and connection growth alongside M&A, and upgrades profit estimates. 

The Buy rating is unchanged.

This report was published on August 31, 2021.

Target price is $4.16 Current Price is $5.02 Difference: minus $0.86 (current price is over target).
If ABB meets the Shaw and Partners target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 10.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.92.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.30 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 0.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.42.

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

ABY    ADORE BEAUTY GROUP LIMITED

Household & Personal Products – Overnight Price: $4.60

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

Shaw and Partners assesses a strong FY21 result, with FY21 revenue growth of 48% versus the guidance range of 43%-47%. Year-to-date FY22 trading is up 26% on the previous corresponding period. 

The analyst likes management’s focus on analytical revenue drivers and customer engagement. It’s thought the company is ideally positioned for long-term growth and a fragmented and large addressable market should allow for increased market share.

The Buy rating is maintained and $6 target price are unchanged.

This report was published on August 31, 2021.

Target price is $6.00 Current Price is $4.60 Difference: $1.4
If ABY meets the Shaw and Partners target it will return approximately 30% (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 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 131.43.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.79.

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

AHX    APIAM ANIMAL HEALTH LIMITED

Healthcare services – Overnight Price: $0.98

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

Shaw and Partners increases its price target to $1.25 from $1.07 and retains its Buy rating following in-line FY21 results. Taking into account problematic international supply chains and a volatile east coast operating environment, it’s thought the result was strong.

Like-for-like (LFL) growth of 13% for dairy and mixed animals was considered exceptional, while the feedlot and pigs segment revenues were down – 12% LFL.

The analyst expects a continuation of acquisitions and greenfield clinic expansions, and feels tailwinds may strengthen in the first half of 2022 as companion and wholesale animal conditions improve.

This report was published on August 31, 2021.

Target price is $1.25 Current Price is $0.98 Difference: $0.27
If AHX meets the Shaw and Partners target it will return approximately 28% (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 2.50 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.30 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 3.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.95.

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

ALU    ALTIUM

Hardware & Equipment – Overnight Price: $34.40

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

Following FY21 results, Bell Potter feels the shift to term licenses has impacted upon the fall in earnings (EBITDA) margin, (including TASKING), to 36.1% versus the guidance range of 37-39%.

Part of the earnings miss from continuing operations was driven by a number of one-off factors including M&A costs, a write-back and restructuring costs, explains the analyst. The Hold rating is unchanged. 

The 21cps final dividend bettered the broker's 19cps estimate and was unexpectedly partially franked. Bell Potter modestly downgrades earnings and profit forecasts and reduces a valuation metric to arrive at a target price of $32.50, down from $35.

This report was published on August 31, 2021.

Target price is $32.50 Current Price is $34.40 Difference: minus $1.9 (current price is over target).
If ALU meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $31.50, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 55.84 cents and EPS of 47.99 cents.
At the last closing share price the estimated dividend yield is 1.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.6, implying annual growth of N/A.
Current consensus DPS estimate is 49.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 69.4.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 61.15 cents and EPS of 61.55 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.8, implying annual growth of 18.5%.
Current consensus DPS estimate is 54.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 58.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

Shaw and Partners believes FY22 guidance confirms the cyclical recovery is gaining momentum, despite slightly softer FY21 margins. Moreover, the Autodesk offer has engendered confidence in the 500m FY26 revenue target, despite a deferral from FY25.

Positives highlighted by the analyst include a second half recovery in the core printed circuit board (PCB) business and a good start to FY22. Also, Altium 365 adoption continues, along with record growth for Octopart.

On the flipside, guidance is for softer earnings than consensus forecasts. Shaw and Partners maintains its Buy rating and reduces its price target to $37.90 from $38.50.

This report was published on August 31, 2021.

Target price is $37.90 Current Price is $34.40 Difference: $3.5
If ALU meets the Shaw and Partners target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $31.50, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 79.50 cents and EPS of 49.59 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 69.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.6, implying annual growth of N/A.
Current consensus DPS estimate is 49.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 69.4.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 91.07 cents and EPS of 56.63 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.8, implying annual growth of 18.5%.
Current consensus DPS estimate is 54.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 58.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $2.51

Moelis rates ((ASG)) as Buy (1) –

Moelis assesses a very strong FY21 result 9% ahead of guidance. There was a 7cps fully-franked final dividend. Gross profit margins improved to 17.1% from 15.6% in FY20 due to favourable industry conditions, which management expects to continue throughout FY22.

Management also forecasts a strong bounce-back post lockdowns and points to M&A potential.  Additionally, dealerships will be consolidated into hubs to reduce costs structurally.

On the basis of lockdowns continuing until November, the analyst makes FY22 forecast downgrades and lowers the target price to $3 from $3.10. The Hold rating is unchanged.

This report was published on August 31, 2021.

Target price is $3.00 Current Price is $2.51 Difference: $0.49
If ASG meets the Moelis target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 11.30 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.04.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.80 cents and EPS of 21.50 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.67.

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

BET    BETMAKERS TECHNOLOGY GROUP LIMITED

Gaming – Overnight Price: $1.09

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

Betmakers' domestic business has performed better than Canaccord Genuity anticipated, providing evidence there is potential still to be obtained.

The main opportunities are in the US market, with Sportech expected to more than triple group revenue. In underlying EBITDA loss of -$3m in FY21 reflects investments the company has made ahead of first revenue from its international operations, the broker points out.

Sportech is expected to provide substantial global reach in terms of administering totes.

The Buy rating and target price of $1.45 are retained.

This report was published on September 2, 2021.

Target price is $1.45 Current Price is $1.09 Difference: $0.36
If BET meets the Canaccord Genuity target it will return approximately 33% (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 0.00 cents.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

BKG    BOOKTOPIA GROUP LIMITED

Online media & mobile platforms – Overnight Price: $2.65

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

Following FY21 results and a strong trading update, Shaw upgrades profit estimates by 6.5% in FY22 and 4% for FY23 onwards. The price target declines to $3.86 from $4.05, following a reduction in the average peer group multiple.

The analyst forecasts $45m earnings (EBITDA) by FY24, which should equate to over $7 per share. Management has flagged M&A opportunities both in Australia and overseas. 

While no guidance was provided, management pointed towards July/August being ahead of the previous corresponding period. The Buy rating is unchanged.

This report was published on August 31, 2021.

Target price is $3.86 Current Price is $2.65 Difference: $1.21
If BKG meets the Shaw and Partners target it will return approximately 46% (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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.86.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 4.00 cents and EPS of 13.40 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 19.78.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.37

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

FY21 result was stronger than Bell Potter anticipated. No formal earnings guidance was provided. The broker reduces forecast operating losses in FY22-23.

Changes are largely based on reduced overheads and stronger gross margins. The broker assesses the  business case is attractive, particularly if the company is successful in achieving its FY25 targets.

Hold rating retained with the target price declining to $0.46 from $0.54.

This report was published on August 31, 2021.

Target price is $0.46 Current Price is $0.37 Difference: $0.09
If BUB meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.76.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.13.

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

CBR    CARBON REVOLUTION LIMITED

Automobiles & Components – Overnight Price: $1.19

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

FY21 results were largely pre-released. Wheel sales declined -8.6% and combined with slightly lower pricing drove a -10.3% reduction in revenue.

No FY22 guidance was provided although the company reiterated expectations for significantly higher sales in the second half because of the introduction of a new program.

Constant production volumes are expected to be maintained for the anticipated uplift in sales. Bell Potter considers the stock undervalued although acknowledges upside is contingent on execution.

Speculative Buy rating is reiterated with a target of $1.80, raised from $1.78.

This report was published on August 31, 2021.

Target price is $1.80 Current Price is $1.19 Difference: $0.61
If CBR meets the Bell Potter target it will return approximately 51% (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 15.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.48.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.95.

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

CTT    CETTIRE LIMITED

Apparel & Footwear – Overnight Price: $3.18

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

FY21 results were well ahead of the prior year and achieved guidance. Bell Potter strengthens FY22 and FY23 estimates for sales by 12% and 7.4%, respectively.

There are a number of levers supporting sales growth including the new partnership with Klarna, a broadening supplier base and the recent expansion into childrenswear.

Bell Potter increases the target to $3.10 from $1.90 and maintains a Buy rating.

This report was published on August 31, 2021.

Target price is $3.10 Current Price is $3.18 Difference: minus $0.08 (current price is over target).
If CTT meets the Bell Potter 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:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 636.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 795.00.

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

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $4.82

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

Following FY21 results, Shaw and Partners reiterates the combination of ESG tailwinds and the opportunity for the Calciner technology remains very positive. The Buy rating and $4 target price are unchanged.

The analyst estimates lower future earnings, reflecting an increased rate of investment in the business though remains comfortable, as long as the aim is to commercialise the technology. Moreover, the increased spend was largely covered via product sales and grants.

A strong pipeline of additional catalysts over the next 12 months is expected to support a further re-rating, notes the broker.

This report was published on August 31, 2021.

Target price is $4.00 Current Price is $4.82 Difference: minus $0.82 (current price is over target).
If CXL meets the Shaw and Partners target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 89.26.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 114.76.

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

DDH    DDH1 LIMITED

Mining Sector Contracting – Overnight Price: $1.24

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

Bell Potter assesses a strong FY21 result, with drilling revenues growing 17.3% year-on-year. This occurred from a combination of drill rig fleet growth, higher-than-forecast revenue per shift and expanding utilisation. Current utilisation is in the mid-80%'s.

After implied second half utilisation of around 79.5%, according to the analyst, momentum has continued into FY22. There was a slightly lower earnings (EBITDA) margin, due to higher costs from covid and labour, notes the broker.

The final fully franked dividend was 2.18cps versus Bell Potter's estimate of 1.9cps. It's thought rates will increase in FY22 due to high demand, constrained rig supply, and tight labour. The target rises to $1.48 from $1.45 and the Buy rating is unchanged.

This report was published on August 31, 2021.

Target price is $1.48 Current Price is $1.24 Difference: $0.24
If DDH meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 3.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.25.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 4.80 cents and EPS of 13.50 cents.
At the last closing share price the estimated dividend yield is 3.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.19.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $0.97

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

Infill results from Diucon demonstrate significant potential for the resource to grow, Canaccord Genuity asserts. Diucon and Eagle currently stand at 1.45m ounces, grading 0.9g/t.

The broker also finds there is increasingly a correlation between drill density and higher grade tenor, demonstrated in the maiden Hemi resource where the grade is around 28% higher on average in the indicated category.

Speculative Buy retained with a $1.75 target.

This report was published on September 1, 2021.

Target price is $1.75 Current Price is $0.97 Difference: $0.78
If DEG meets the Canaccord Genuity target it will return approximately 80% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

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

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

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

FFX    FIREFINCH LIMITED

Gold & Silver – Overnight Price: $0.62

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

Shareholder approval has been obtained for Ganfeng to progress with its 50% acquisition of the Goulamina lithium project.

Euroz Hartleys believes this lithium asset has been largely ignored by the market, meaning it is one of the cheapest developments ready, conventional lithium projects on ASX.

Ganfeng will be required to make its initial -US$39m investment in the joint venture once two other conditions are satisfied, including Chinese and Marlian approvals. The broker maintains a Speculative Buy rating and $1.10 target.

This report was published on September 1, 2021.

Target price is $1.10 Current Price is $0.62 Difference: $0.48
If FFX meets the Euroz Hartleys target it will return approximately 77% (excluding dividends, fees and charges).

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

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $14.40

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

Apart from a dividend miss ($2.11) versus Bell Potter's estimate of $2.40, the FY21 result was largely in-line. The earnings (EBITDA) margin rose to 73% in FY21 from 65% in FY20, on cost control, iron ore pricing and a record operational performance, notes the broker.

The broker lifts its rating to Buy from Hold. It's thought a key support for the share price are the elevated fully franked dividends, supported by operating cash flow and profitability.

After minor forecast changes and making an estimate of $3.31 for the 12-month dividend, Bell Potter lifts its target price to $22.52 from $22.03.

This report was published on August 31, 2021.

Target price is $22.52 Current Price is $14.40 Difference: $8.12
If FMG meets the Bell Potter target it will return approximately 56% (excluding dividends, fees and charges).
Current consensus price target is $18.88, suggesting upside of 31.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 440.04 cents and EPS of 416.11 cents.
At the last closing share price the estimated dividend yield is 30.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 369.0, implying annual growth of N/A.
Current consensus DPS estimate is 330.9, implying a prospective dividend yield of 23.0%.
Current consensus EPS estimate suggests the PER is 3.9.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 245.95 cents and EPS of 223.35 cents.
At the last closing share price the estimated dividend yield is 17.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 215.2, implying annual growth of -41.7%.
Current consensus DPS estimate is 186.4, implying a prospective dividend yield of 12.9%.
Current consensus EPS estimate suggests the PER is 6.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

Both the FY21 profit and fully franked final dividend of $2.11 were in-line with Shaw and Partners expectations. It’s thought earnings and the share price have peaked and will be lower over time. 

Management reiterated FY22 guidance and noted a strong start to FY22. The broker lowers its target price to $19.50 from $21.50 and retains its Hold rating.

This report was published on August 31, 2021.

Target price is $19.50 Current Price is $14.40 Difference: $5.1
If FMG meets the Shaw and Partners target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $18.88, suggesting upside of 31.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 404.68 cents and EPS of 372.37 cents.
At the last closing share price the estimated dividend yield is 28.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 369.0, implying annual growth of N/A.
Current consensus DPS estimate is 330.9, implying a prospective dividend yield of 23.0%.
Current consensus EPS estimate suggests the PER is 3.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 210.45 cents and EPS of 191.97 cents.
At the last closing share price the estimated dividend yield is 14.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 215.2, implying annual growth of -41.7%.
Current consensus DPS estimate is 186.4, implying a prospective dividend yield of 12.9%.
Current consensus EPS estimate suggests the PER is 6.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GNP    GENUSPLUS GROUP LIMITED

Infrastructure & Utilities – Overnight Price: $1.05

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

FY21 results met prospectus forecasts. Growth in FY22 is expected to be from expansion of the core electricity capabilities on the east coast and leveraging Tandem to grow telecommunications revenue.

Bell Potter expects FY22 guidance, for revenue of $400m and EBITDA of $34-38m, will increase the market's confidence in the outlook.

The broker believes the stock is a unique investment proposition that has material growth potential and raises the target to $1.40 from $1.30. Buy rating is unchanged.

This report was published on August 30, 2021.

Target price is $1.40 Current Price is $1.05 Difference: $0.35
If GNP meets the Bell Potter target it will return approximately 33% (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 2.50 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 2.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.29.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 3.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.75.

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

HMY    HARMONEY CORP LIMITED

Diversified Financials – Overnight Price: $1.76

Jarden rates ((HMY)) as Buy (1) –

FY21 originations grew strongly, with Australia up 93% half on half and supported by the launch of the latest credit decision process. NZ growth also recovered, as new customer originations rose 81%.

The company has guided to at least 20% growth in FY22, which highlights a resumption of book growth and operating leverage, Jarden asserts. The broker considers guidance conservative and retains a Buy rating with a $3.30 target.

This report was published on August 31, 2021. 

Target price is $3.30 Current Price is $1.76 Difference: $1.54
If HMY meets the Jarden target it will return approximately 87% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.88 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 93.82.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 4.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.64.

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

HUO    HUON AQUACULTURE GROUP LIMITED

Aquaculture – Overnight Price: $3.54

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

Following FY21 results, Bell Potter maintains its Hold rating and $3.725 target price, predicated on a successful takeover by Brazilian meat processor JBS. The Hold rating is unchanged.

Operating losses of -$37m were modestly higher than the broker expected. Management expects the retail channel to lift to around 32%, and spot export sales to fall to circa 20% of FY22 volumes. Also, costs are forecast to be at less than $9.50/kg ex-freight.

Stronger broker forecasts for pricing and channel mix are offset by forecast earnings downgrades and weaker production.

This report was published on August 31, 2021.

Target price is $3.73 Current Price is $3.54 Difference: $0.185
If HUO 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 12.50 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.24.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.23.

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

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $4.91

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

FY21 sales were ahead of Goldman Sachs' estimates. International earnings were also ahead while Australia missed forecasts. Overall, the broker makes slight changes to underlying sales and margin forecasts.

The comparable growth outlook for FY22 is pegged back to reflect a normalising of the underlying growth trend. Goldman Sachs retains a Neutral rating and raises the target to $5.40 from $5.10.

This report was published on August 31, 2021.

Target price is $5.40 Current Price is $4.91 Difference: $0.49
If HVN meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $6.29, suggesting upside of 28.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 36.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 7.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.3, implying annual growth of -38.8%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 11.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 35.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 7.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.4, implying annual growth of 0.2%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 11.9.

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


Jarden rates ((HVN)) as Underweight (2) –

FY21 results were ahead of Jarden estimates. Still, the broker was disappointed with the dividend and the soft cash flow. The trading update for the start of FY22 was also weaker than expected.

FY22 estimates are reduced by -5% to reflect weaker trading and the slower rolling out of stores in Asia over the short term. The broker envisages growing risk to the Australasian businesses as competition accelerates.

The main catalyst is capital management, considered likely when economies re-open and working capital normalises, albeit this is probably after the first half. Underweight maintained. Target is reduced to $5.40 from $5.60.

This report was published on August 31, 2021.

Target price is $5.40 Current Price is $4.91 Difference: $0.49
If HVN meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $6.29, suggesting upside of 28.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 40.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.3, implying annual growth of -38.8%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 11.9.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 39.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.4, implying annual growth of 0.2%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 11.9.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $8.65

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

FY21 results were in line with expectations. FY22 guidance for Nova is unchanged with 27-29,000t of nickel expected at cash costs of $2.40-2.80/lb.

Goldman Sachs notes no update was provided around the preliminary's discussions with Western Areas ((WSA)). The broker updates estimates to reflect increased nickel price forecasts.

Target is raised 5% to $10 and a Buy rating is maintained. The broker assesses the stock is trading at a significant relative discount to peers despite its high-quality portfolio and supportive cash flow.

This report was published on September 1, 2021.

Target price is $10.00 Current Price is $8.65 Difference: $1.35
If IGO meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $7.86, suggesting downside of -9.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 9.00 cents and EPS of 39.10 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.4, implying annual growth of -53.9%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 15.00 cents and EPS of 46.20 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.0, implying annual growth of 13.8%.
Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.8.

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

IVC    INVOCARE LIMITED

Consumer Products & Services – Overnight Price: $11.88

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

Due to lockdowns, Bell Potter reduces average revenue per funeral (ARPF) assumptions, despite a slight beat for first half results. However, as the business is performing well, the analyst lifts valuation assumptions and raises the target price to $13.80 from $12.20.

The broker points out a strong focus on costs enabled positive operating leverage on improving revenue. Pet cremations were considered ahead of expectations and all business segments grew.

Management expects a likely short-term impact on ARPF and sales opportunities at memorial parks though a minimal winter flu season is expected in Australia.

This report was published on August 31, 2021.

Target price is $13.80 Current Price is $11.88 Difference: $1.92
If IVC meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $11.53, suggesting downside of -2.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 17.80 cents and EPS of 25.70 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of N/A.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 45.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 26.20 cents and EPS of 37.50 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.8, implying annual growth of 43.7%.
Current consensus DPS estimate is 31.1, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 31.4.

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


Moelis rates ((IVC)) as Upgrade to Buy from Hold (1) –

Moelis lifts its target price to $13.77 from $11.57 after first half operating earnings (EBITDA) beat expectations. A 6.7% increase in pricing on the previous corresponding period was thought largely responsible, along with margin expansion in Funerals and Cem/Crem.

For the latter, the analyst highlights business burials and memorialisations were up 9.7% and 12%. Management expects a renewed lockdown-induced softening of conditions, which should affect case average and sales at memorial parks in the short term.

The analyst feels the strong result should represent the nadir of the operational turnaround and upgrades its rating to Buy from Hold.

This report was published on August 31, 2021.

Target price is $13.77 Current Price is $11.88 Difference: $1.89
If IVC meets the Moelis target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $11.53, suggesting downside of -2.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 20.70 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of N/A.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 45.2.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 39.80 cents and EPS of 37.70 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.8, implying annual growth of 43.7%.
Current consensus DPS estimate is 31.1, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 31.4.

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

LDX    LUMOS DIAGNOSTICS HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $0.88

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

Bell Potter makes no changes to forecasts following FY21 results and retains its Buy rating and $1.70 target price. The outlook is for the Services business to continue outperforming, with strong interest in the Contract Manufacturing offering.

In this area, Product revenue growth will be dependent upon approval timing, with management having met all of the FDA’s requirements, highlights the analyst. 

The demand for covid rapid antigen tests is expected to last though delays to FebriDx approval could weaken first half FY22 results, cautions the broker.

This report was published on August 31, 2021.

Target price is $1.70 Current Price is $0.88 Difference: $0.82
If LDX meets the Bell Potter target it will return approximately 93% (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 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.54.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.33.

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

LGP    LITTLE GREEN PHARMA LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.68

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

FY21 results revealed an increase in revenue of almost 300%. Canaccord Genuity asserts the business is a potential leader in the emerging global medicinal cannabis industry.

The recent acquisition of a medicinal facility in Denmark is also likely to accelerate the growth profile. Contracts have already been announced, underpinning near-term revenue growth. The broker maintains a Speculative Buy rating and $1.13 target.

This report was published on September 1, 2021.

Target price is $1.13 Current Price is $0.68 Difference: $0.45
If LGP meets the Canaccord Genuity target it will return approximately 66% (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 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.58.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.59.

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

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $1.28

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

FY21 results were as expected by Shaw and Partners. The Hold rating and $1.14 target price are unchanged. It’s thought the progress of the Kambalda project is now largely reflected in the share price, unless current nickel price strength is sustainable.

At spot nickel prices the analyst’s valuation increases to $1.46. Additional upside is considered to depend upon mine life extensions from resource upgrades and the strategic appeal of the Kambalda project.

This report was published on August 31, 2021.

Target price is $1.14 Current Price is $1.28 Difference: minus $0.14 (current price is over target).
If MCR meets the Shaw and Partners target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.67.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 7.00 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.67.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.27

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

First half results were in line with the update in July. Progress on XPerience, the surgical solution to prevent infection, has exceeded Bell Potter's expectations. The company has also secured distributors for the BlastX wound care product.

The broker has become increasingly optimistic, expecting upgrades to the FY22 outlook.

Obstacles in the short term are recent litigation efforts by Zimmer and Irramax, but the broker interprets this to mean certain peers feel threatened by the increased attention the company has received for its technology. Hold rating and $1.70 target maintained.

This report was published on August 31, 2021.

Target price is $1.70 Current Price is $1.27 Difference: $0.43
If NXS meets the Bell Potter target it will return approximately 34% (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 5.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.49.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.14.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $10.16

Jarden rates ((PBH)) as Buy (1) –

FY21 finished strongly with a year of significant achievements capped off with a major media agreement with NBC and successful entry in several US states.

Jarden frames its view by the rapidly developing US gaming market and the company's strong record of execution. Revenue forecasts are reduced by -11% and -3% for FY22 and FY23, respectively, as the broker adjusts net win assumptions for the Australian segment.

Yet, the forecast loss (EBITDA) has narrowed for FY22. Buy rating retained. Target is reduced to $16.40 from $16.58.

This report was published on August 31, 2021. 

Target price is $16.40 Current Price is $10.16 Difference: $6.24
If PBH meets the Jarden target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 112.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.06.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of minus 69.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.60.

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

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $0.76

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

It is Shaw and Partners' view Paladin Energy has recorded outstanding FY21 results. Notably, the company's share price has benefited from a 415% increase in the last year.

The broker noted the company also reset its capital structure in the last year, allowing it to exit FY21 debt free and with net cash of around US$31m. 

Looking ahead, the company is preparing for the restart of the Langer Heinrich uranium mine, which the broker expects will happen in FY23.

Shaw and Partners continues to consider Paladin Energy a uranium sector stand out.The Buy rating and target price of $0.56 are retained. 

This report was published on August 30, 2021.

Target price is $0.56 Current Price is $0.76 Difference: minus $0.2 (current price is over target).
If PDN meets the Shaw and Partners target it will return approximately minus 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 190.48.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1.86 cents and EPS of 5.58 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 13.61.

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

REG    REGIS HEALTHCARE LIMITED

Aged Care & Seniors – Overnight Price: $2.00

Jarden rates ((REG)) as Upgrade to Buy from Overweight (1) –

Net profit in FY21 beat expectations because of property revaluations. Jarden notes this was a tough year for the company because of the pandemic and associated occupancy pressures.

The broker believes the operating and funding environment for aged care is in a trough and higher earnings from improved asset utilisation and fundamentals will occur.

Cash conversion is expected to outperform EPS growth and RAD cash flows benefit from increased occupancy and tighter supply of quality beds. Rating is upgraded to Buy from Overweight and the target lifted to $3.02 from $2.64.

This report was published on August 31, 2021.

Target price is $3.02 Current Price is $2.00 Difference: $1.02
If REG meets the Jarden target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $2.27, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 26.7%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of 26.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.9.

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


Moelis rates ((REG)) as Buy (1) –

While Regis Healthcare's full-year underlying earnings of $73.5m were a -10% miss on Moelis' forecasts, the broker is forecasting underlying earnings of $147m for FY22. Moelis noted $7.1m in expenses related to employee underpayments drove the earnings miss.

Despite remaining historically low, average occupancy for Regis Healthcare increased during the second half of FY21 to 89.6%. FY22 forecasts suggest a 1.5 percentage point improvement to average occupancy of 90.5%. 

The Buy rating is retained and the target price increases to $2.56 from $2.23.

This report was published on September 1, 2021. 

Target price is $2.56 Current Price is $2.00 Difference: $0.56
If REG meets the Moelis target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $2.27, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 49.50 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 24.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 26.7%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 51.90 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 25.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of 26.2%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.9.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.07

Goldman Sachs rates ((RRL)) as Sell (5) –

FY21 results were slightly ahead of expectations while FY22 guidance is unchanged and Goldman Sachs reduces FY22-24 estimates by -4-12%.

The broker notes no tangible progress on the McPhillamys approvals and, given the risk, along with reduced gold price leverage from a hedge book that is out of the money, a Sell rating is maintained. Target is $2.50.

This report was published on August 31, 2021.

Target price is $2.50 Current Price is $2.07 Difference: $0.43
If RRL meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.13, suggesting upside of 51.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 6.00 cents and EPS of 27.30 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.4, implying annual growth of -3.7%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 8.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.00 cents and EPS of 27.50 cents.
At the last closing share price the estimated dividend yield is 2.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of -1.6%.
Current consensus DPS estimate is 7.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 8.3.

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

SGH    SLATER & GORDON LIMITED

Legal – Overnight Price: $0.78

Moelis rates ((SGH)) as Buy (1) –

Following FY21 results, Moelis increases FY22-24 EPS forecasts on an estimated rise in operating margins, while also adopting a conservative approach, given the limited visibility for case settlements. 

Gross revenue and earnings (EBITDA) were a beat of 3.4% and 56.1% versus the broker's estimates, resulting from organic growth after a significant digital capability outlay. Management noted future potential covid-impacts upon fees billed and cash flows.

Moelis lifts its target price to $1.07 from $1.03 and retains its Buy rating.

This report was published on August 31, 2021.

Target price is $1.07 Current Price is $0.78 Difference: $0.29
If SGH meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.00.

Forecast for FY23:

Moelis 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 5.38.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $8.23

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

After updating forecasts to reflect pricing in the spot market, Bell Potter upgrades FY21-23 profit estimates by 133%, 16% and 3%, respectively. The target price rises to $8.50 from $7.35. Management guided to unchanged 2021 crop forecast.

The company also announced the sale of its Lucky and Sunsol brands for $1.5m plus finished good inventory of circa $7.5m.

While conditions in California have driven the almond price so far, the snow pack formation over January to April 2022 will determine whether prices are sustainable, explains the analyst. The Hold rating remains unchanged.

This report was published on August 31, 2021.

Target price is $8.50 Current Price is $8.23 Difference: $0.27
If SHV meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 9.00 cents and EPS of 17.70 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 46.50.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 20.00 cents and EPS of 37.60 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.89.

Market Sentiment: 1.0
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: $0.50

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

SRG Global's FY21 results revealed a 61% year-on-year underlying earnings increase, with the total $47.1m a small beat on Shaw and Partners' forecast. 

The company moves into FY22 with $1bn work in hand, and a $6bn opportunity pipeline, with an expected 15% underlying earnings growth. The broker noted SRG Global ended the year with $12.2m in net cash, compared to $8.4m net debt at the end of FY20.

It is the broker's view that SRG Global is less exposed to cost and wage inflation than competitors. The Buy rating and target price of $0.75 are retained. 

This report was published on August 30, 2021.

Target price is $0.75 Current Price is $0.50 Difference: $0.25
If SRG meets the Shaw and Partners target it will return approximately 50% (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 2.50 cents and EPS of 4.30 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 11.63.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.00 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 6.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.62.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $25.95

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

Westpac has completed the sale of its lenders mortgage insurance business to Arch Capital. Bell Potter notes the transaction simplifies the business portfolio and allows more of the bank's customers into home ownership.

The parties have entered into an exclusive 10-year supply agreement. There is no change to earnings projections yet Bell Potter increases the target to $27.50 from $27.00. Hold maintained.

This report was published on August 31, 2021.

Target price is $27.50 Current Price is $25.95 Difference: $1.55
If WBC meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $28.37, suggesting upside of 9.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 112.00 cents and EPS of 178.00 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 172.0, implying annual growth of 169.9%.
Current consensus DPS estimate is 115.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 15.1.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 124.00 cents and EPS of 184.00 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 183.3, implying annual growth of 6.6%.
Current consensus DPS estimate is 127.3, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.2.

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

WEB    WEBJET LIMITED

Travel, Leisure & Tourism – Overnight Price: $6.66

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

Ahead of its AGM, Webjet has indicated its Online Republic and online travel agency (OTA) businesses have been affected by the lockdowns in Australasia.

Importantly, Goldman Sachs notes the WebBeds business was profitable over July and August amid strong demand in North America and Europe.

WebBeds has also improved the mix of local business to 46% over April to July. The broker retains a Buy rating with a $6.40 target.

This report was published on August 31, 2021.

Target price is $6.40 Current Price is $6.66 Difference: minus $0.26 (current price is over target).
If WEB meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.09, suggesting downside of -8.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 74.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.5, 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 N/A.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.6, implying annual growth of N/A.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 30.8.

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

WOA    WIDE OPEN AGRICULTURE LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.70

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

Revenue was up 198% in FY21 although margins were slightly lower than expected. Euroz Hartleys attributes this to higher input costs that were not passed on to the consumer.

Margins are expected to improve throughout FY22 as prices are increased amid a growing contribution from OatUP and other higher margin products.

The broker has a Speculative Buy rating and $1.50 target.

This report was published on September 1, 2021.

Target price is $1.50 Current Price is $0.70 Difference: $0.8
If WOA meets the Euroz Hartleys target it will return approximately 114% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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


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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A4N ABB ABY AHX ALU ASG BET BKG BUB CBR CTT CXL DDH DEG FFX FMG GNP HMY HUO HVN IGO IVC LDX LGP MCR NXS PBH PDN REG RRL SGH SHV SRG WBC WEB WOA WSA

For more info SHARE ANALYSIS: A4N - ALPHA HPA LIMITED

For more info SHARE ANALYSIS: ABB - AUSSIE BROADBAND LIMITED

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For more info SHARE ANALYSIS: CBR - CARBON REVOLUTION LIMITED

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For more info SHARE ANALYSIS: FFX - FIREFINCH LIMITED

For more info SHARE ANALYSIS: FMG - FORTESCUE METALS GROUP LIMITED

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For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

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For more info SHARE ANALYSIS: SGH - SLATER & GORDON LIMITED

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