article 3 months old

Australian Broker Call *Extra* Edition – Oct 25, 2021

Daily Market Reports | Oct 25 2021

This story features AUSTRALIAN CLINICAL LABS LIMITED, and other companies. For more info SHARE ANALYSIS: ACL

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)

ACL   ADI   AQR   BML   BPT (2)   CIP   DTC   FWD   GDC   GEN   LTR   MMM   MNF   OPY   PMV   RDY (2)   RZI   SFR   SM1   UBN   WGX  

ACL    AUSTRALIAN CLINICAL LABS LIMITED

Healthcare services – Overnight Price: $4.29

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

Australian Clinical Labs upgrades guidance for the second time in a month (thanks to covid testing and a recovery in the base business) and is targeting first-half revenue growth 33% above prospectus, reports Goldman Sachs.

The broker perceives the company's recent covid targets to be conservative; expects testing volumes should remain a strong source of volume for several years; and spies strong scale/fixed cost leverage in the company's business models (75% of costs are fixed).

Covid testing earnings are expected to fall sharply in FY22.

Goldman Sachs retains a Buy rating, reflecting strength in the base business combined with strong margins (expected to settle at 27% as covid testing tapers); roughly 100% cash conversion; and low leverage allowing capital deployment (most likely M&A).

Earnings are revised upward and the broker raises its target price 4% to $5.70 from $5.50. Buy rating retained.

This report was published on September, 2021. 

Target price is $5.70 Current Price is $4.29 Difference: $1.41
If ACL meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 38.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 8.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.15.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 16.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.32.

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

ADI    DEXUS INDUSTRIA REIT

REITs – Overnight Price: $3.42

Moelis rates ((ADI)) as Hold (3) –

Dexus Industria REIT will acquire 51 industrial properties for $503m in a move that Moelis believes is both transformational and significantly improves the quality of the portfolio.

The purchases will be funded by a $100m institutional placement and a $250m entitlement offer at $3.45/unit.

Around $430m of these new assets were purchased through a 33.3% stake in the Jandakot Airport precinct in Perth. The broker trims its target price to $3.39 from $3.41 and maintains its Hold rating.

This report was issued on September 27, 2021.

Target price is $3.39 Current Price is $3.42 Difference: minus $0.03 (current price is over target).
If ADI meets the Moelis target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.69.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.40 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.54.

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

AQR    APN CONVENIENCE RETAIL REIT

REITs – Overnight Price: $3.47

Moelis rates ((AQR)) as Buy (1) –

APN Convenience Retail REIT has finalised its $55m equity raising and deployed the funds to buy two more service stations (Ampol's Warrego leased asset and Mobil's Dubbo leased asset) at an average weighted average lease expiry (WALE) of 11.7 years in ine with the balance of the REIT's portfolio.

Moelis notes company guidance implies a FY22 dividend yield of 6.5%, making APN the highest yielding long-WALE REIT on the ASX, yet the lowest price in income terms.

The broker appreciates the defensive nature of service stations, pointing to margin resilience during the covid lockdowns, which in turn illustrates the pricing power of the fuel retailer.

Moelis' restrictions on rating have been lifted and the broker returns with a Buy rating and $4 target price.

This report was published on September 29, 2021.

Target price is $4.00 Current Price is $3.47 Difference: $0.53
If AQR 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 22.90 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 23.60 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.

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

BML    BOAB METALS LIMITED

Mining – Overnight Price: $0.37

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

After recent assay results from the Phase 5 drilling program at 75%-owned Sorby Hills, Euroz Hartleys maintains its Speculative Buy for Boab Metals and sets a $0.80 price target.

The analyst expects an updated resource in the fourth quarter of 2021, feeding into the definitive feasability study (DFS) due in the first quarter of 2022, and the final investment decision (FID) in the following quarter.

Euroz Hartleys notes management is already in discussions with Federal government agencies to provide debt financing for the project development.

This report was published on September 28, 2021.

Target price is $0.80 Current Price is $0.37 Difference: $0.43
If BML meets the Euroz Hartleys target it will return approximately 116% (excluding dividends, fees and charges).

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.38

Canaccord Genuity rates ((BPT)) as Upgrade to Spec Buy from Hold (1) –

Canaccord Genuity upgrades Beach Energy to Speculative Buy (the broker exercising caution given previous disappointments) from Hold and the target price to $1.60 from $1.35.

A company presentation reveals a shift in focus from the disappointing Western Flank (oil) to gas; and the broker perceives Beach Energy's agreement to take out the entirety of Waitsia Stage 2 as a watershed; Otway drillilng met expectations, and the company reports exploration success at Endeavour.

Management is reviewing its capital management options and the broker welcomes discipline on this front.

This report was published on September 29, 2021.

Target price is $1.60 Current Price is $1.38 Difference: $0.22
If BPT meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 36.2%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.00 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -12.7%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 8.7.

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


Jarden rates ((BPT)) as Upgrade to Buy from Neutral (1) –

Jarden upgrades Beach Energy to a Buy from Neutral to reflect its rising exposure to the tightening gas market.

A company presentation reports the company is switching its focus from oil (Western Flank) to its gas projects; that the gas outlook is strong; and that group production is set to rise sharply. 

Beach Energy reiterates guidance; points to further drilling in the Perth Basin and Otway; and exploration drilling for oil on the Western Flank.

The company is weighing capital management options, such as off-market buybacks, boasting $500m in franking credits and low peak gearing at less than 10%, reports Jarden.

Target price rises t $1.60 from $1.50.

This report was published on September 28, 2021.

Target price is $1.60 Current Price is $1.38 Difference: $0.22
If BPT meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 2.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 36.2%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 2.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -12.7%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 8.7.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.75

Moelis rates ((CIP)) as Hold (3) –

Centuria Industrial REIT has announced it will acquire an additional eight assets for a total $351.3m, with Moelis noting a weighted average lease expiry for the portfolio of 3.8 years allows potential to capture some benefit from a current strong leasing market. 

An approximate $200m distribution centre, noted as being being in super prime real estate, will anchor the additional seven acquisitions which are a mix of distribution centres, transport and logistics assets, and cold storage.

The company noted there are further assets to the tune of $100m in due diligence. 

The Hold rating is retained and the target price decreases to $3.85 from $3.89.

This report was published on September 24, 2021.

Target price is $3.85 Current Price is $3.75 Difference: $0.1
If CIP meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.96, suggesting upside of 4.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -84.6%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.00 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 4.4%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 19.9.

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $0.96

Moelis rates ((DTC)) as Hold (3) –

Damstra Holdings has announced the acquisition of TIKS Solutions for a total of $25m. The transaction is comprised of an initial $18m consideration, with $2.5m cash upfront, $12m in scrip and $3.5m cash to be paid in twelve months, and a conditional $7m earn-out.

Moelis notes TIKS Solutions generated $4.1m in revenue in FY21, and the company is guiding to a positive, if immaterial, benefit to FY22 underlying earnings. The broker highlights the transaction is in line with Damstra Holdings' growth strategy. 

The Hold rating is retained and the target price deceases to $0.96 from $1.35.

This report was published on September 30, 2021.

Target price is $0.96 Current Price is $0.96 Difference: $0
If DTC meets the Moelis target it will return approximately 0% (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 minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.97.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.27.

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

FWD    FLEETWOOD LIMITED

Infra & Property Developers – Overnight Price: $2.52

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

Canaccord Genuity reports Fleetwood Limited continues to be impacted by covid-related disruptions. Construction shutdowns in Victoria have weakened confidence in project spending, compounding impacts from restrictions in New South Wales and South Australia. 

Despite this, the broker highlights Fleetwood Limited maintains a substantial order book to address following the easing of restrictions, and a number of projects offer potential to benefit FY22 and FY23 earnings. 

Canaccord decreases its FY22 earnings before tax forecast by -38% to $15.4m from $24.7m, but the FY23 outlook remains unchanged. 

The Buy rating and target price of $3.30 are retained. 

The report was published on September 24, 2021.

Target price is $3.30 Current Price is $2.52 Difference: $0.78
If FWD meets the Canaccord Genuity target it will return approximately 31% (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 10.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.20.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 22.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 8.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.45.

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

GDC    GLOBAL DATA CENTRE GROUP

Cloud services – Overnight Price: $1.95

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

Shaw and Partners updates forecasts to incorporate Global Data Centre Group's recent capital raise, a change in major shareholder and a likely ramp-up of the data centre strategy. The target price falls to $2.95 from $3.14 and the Buy rating is unchanged.

A placement and an SPP raised $19m and $5m at $1.93. The broker estimates there is around $60m now available to pursue further acquisitions and organic expansion of data centre assets. Fund manager 360 Capital has sold its stake, which is thought to aid liquidity.

The analyst feels the current valuation incorporates the Perth data centre and AirTrunk valuations, though largely neglects value for the European, South American and Guam data centres.

This report was published on September 27, 2021. 

Target price is $2.95 Current Price is $1.95 Difference: $1
If GDC meets the Shaw and Partners target it will return approximately 51% (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 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 108.33.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.90.

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

GEN    GENMIN LIMITED

Iron Ore – Overnight Price: $0.18

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

Bell Potter initiates coverage on iron-ore exploration and development company Genmin with a Buy recommendation and 17c target price.

The company has pipeline of projects in the Republic of Gabon in Africa, the main ones being Bakoumba, Minvoul/Bitlam and Baniaka. The latter has delivered strong ore grades and product yields as well as potential upside to the resource upgrade.

Given China's announcement that it will diversify away from Australia, Bell Potter believes the Baniaka Resource represents an attractive alternative given its established rail and port infrastructure, renewable hydro-electric power and relatively stable political environment.

This report was published on September 29, 2021.

Target price is $17.00 Current Price is $0.18 Difference: $16.82
If GEN meets the Bell Potter target it will return approximately 9344% (excluding dividends, fees and charges).

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $1.68

Canaccord Genuity rates ((LTR)) as Initiation of coverage with Spec Buy (1) –

Cannacord Genuity initiates coverage on Australian lithium miner Liontown Resources with a Speculative Buy rating and $1.70 target price.

The company is developing the large-scale Kathleen Valley global top-10 hard-rock lithium project in WA; gold and nickel projects on the Julimar Trend, and the Buldaniu lithium project.

Liontown is also scoping options for a downstream integrated lithium refinery in late 2020, requiring $1.1bn capital expenditure.

Cannacord notes that Kathleen Valley is one of the few such large-scale developments globally under which all production is uncommitted under offtake and perceives the development to be well-timed to market inflections.

This report was published on September 28, 2021.

Target price is $1.70 Current Price is $1.68 Difference: $0.02
If LTR meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $1.50

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

Wilsons reports mixed trading conditions for the meal-kit market as easing northern hemisphere lockdowns and higher skip rates thanks to the northern summer, were partly offset by stronger lockdown-induced Australian volumes.

The broker remains positive on the total addressable market for meal kits and retains an Overweight rating for Marley Spoon, but downgrades the target price to $2.80 from $3.06 to reflect lower peer multiples and foreign currency movements.

This report was published on September 29, 2021.

Target price is $2.80 Current Price is $1.50 Difference: $1.3
If MMM meets the Wilsons target it will return approximately 87% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 25.36 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.91.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 17.12 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.76.

This company reports in EUR. 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

MNF    MNF GROUP LIMITED

Telecommunication – Overnight Price: $7.00

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

Canaccord Genuity has described MNF Group's outlook as ambitious, with the company outlining an intention to have 100m telephone numbers on network by 2030. The company also revealed new segments that should allow for a more intuitive product.

The broker also noted the company's Communications Platform as a Service segment reported 44% revenue growth per annum for the last two years, among the fastest in its peer group, in a segment expected to almost double by 2023. 

The Buy rating and target price of $7.95 are retained.

This report was published on September 24, 2021.

Target price is $7.95 Current Price is $7.00 Difference: $0.95
If MNF meets the Canaccord Genuity target it will return approximately 14% (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 7.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.18.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 7.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.00.

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

OPY    OPENPAY GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.38

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

Openpay Group has confirmed a significant new contract win with Nissan Australia and an extension of its existing relationship with Kogan. 

Nissan Australia will offer new payment options through 188 dealerships, with Shaw and Partners noting the contract win builds on Openpay's existing auto portfolio. Updates to Kogan's contract will see additional B2B services added to B2C offerings already in place. 

The broker notes Openpay could be laying groundwork for a significant FY22 by building scale through long-term growth investment and strategic partnerships. 

The Buy rating and target price of $3.50 are retained. 

This report was published on September 24, 2021.

Target price is $3.50 Current Price is $1.38 Difference: $2.12
If OPY meets the Shaw and Partners target it will return approximately 154% (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 minus 34.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.95.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 16.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.36.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $31.28

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

Premier Investment's FY21 results were largely in line with Goldman Sachs forecasts and company guidance.

The broker notes results were impacted by store closures, with are expected to continue to impact on first half sales, although the Peter Alexander, Portmans and Just Jeans brands all reported sales increases.  

The Smiggle brand is also expected to benefit from global re-openings. Goldman Sachs raised concern about the outlook for Smiggle given permanent store closures, particularly in Europe. Profit after tax forecasts increase 13.5% and 12% for FY22 and FY23.

The Sell rating is retained and the target price increases to $23.40 from $21.10.

This report was published on September 24, 2021.

Target price is $23.40 Current Price is $31.28 Difference: minus $7.88 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $30.20, suggesting downside of -4.0%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 80.00 cents and EPS of 119.00 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 131.2, implying annual growth of -23.3%.
Current consensus DPS estimate is 88.4, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 24.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 83.00 cents and EPS of 116.00 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 26.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.5, implying annual growth of 7.9%.
Current consensus DPS estimate is 101.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 22.2.

Market Sentiment: 0.4
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: $3.75

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

ReadyTech Holdings has acquired Avaxa, a tertiary student management systems software vendor.

Shaw and Partners views the purchase as highly complimentary, offering good leverage of Avaxa's customer base and reputation in the TAFE sector – an important lynch pin for ReadyTech's growth strategy.

Avaxa enjoys recurring revenue of roughly $1m. The deal is struck on a cash payment of $0.7m and a deferred payment of up to $1.5m within a year and will be funded from ReadyTech's cash reserves.

The broker upgrades FY21 earnings forecasts 1% and increases its FY22 closing net debt estimate to $9.8m from $7.4m.

Target price rises to $3.75 from $3.60. Buy retained.

This report was published on September 28, 2021.

Target price is $3.75 Current Price is $3.75 Difference: $0
If RDY meets the Shaw and Partners target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.25.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.68.

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


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

ReadyTech has acquired Avaxa, a student management system provider to the tertiary sector for $2.2m – on a multiple of 2x.

Wilsons views the deal as well-priced and as offering customer-transition and acquisition opportunities.

The broker suggests the deal adds 20% to its valuation and reiterates ReadyTech's status as a high-conviction stock.

Target price rises to $4.04 from $3.59. Overweight rating retained.

This report was published on September 27, 2021.

Target price is $4.04 Current Price is $3.75 Difference: $0.29
If RDY meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.98.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 6.30 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.73.

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

RZI    RAIZ INVEST LIMITED

Wealth Management & Investments – Overnight Price: $1.84

Taylor Collison rates ((RZI)) as Speculative Buy (1) –

In Taylor Collison's view Raiz Invest continues to display positive momentum despite boardroom conflict that has seen two directors stand down and a co-CEO instated since early September, following a request from a company associated with CEO George Lucas. 

Despite this, the company has reported successful expansion into Indonesia and Malaysia, with customer adds up 46.3% and 37.4% respectively for the quarter up to August as compared to the three months prior. 

Australian funds under management were up 94.2% year-on-year, suggesting users increased contributions, and additional portfolio options should encourage this trend. The purchase of SuperEstate also allows investment in residential property as an asset class. 

The broker notes boardroom conflict does highlight the speculative risk in a fast-growing tech company. The Speculative Buy rating is retained and no price target is provided.

This report was published on September 21, 2021.

Current Price is $1.84. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 92.00.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 306.67.

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

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $5.53

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

Sandfire Resources finally snared Spanish copper producer MATSA for US$1.865bn, transforming Sandfire into one of the biggest ASX-listed copper producers with a significantly expanded asset life. The mine also produces lead and zinc concentrate.

Shaw & Partners says the deal will fill the FY23 production dip as De Grussa cycles out, and Sandfire describes the acquisition as a "low-risk plug".

The funding is via equity and debt: $120m placement to AustralianSuper; a $963m one-for-one renounceable right issue; and a $165m institutional placement. The latter two were struck at $5.40 a share – a 13.2% discount to the last close, notes the broker. Then there was the $1.1bn in fresh debt.

Shaw describes the deal as fair but not great (yet), if larger than expected, but estimates break-even is about 12 years in.

Target price falls to $7.80 from $8.60. Buy rating retained.

This report was published on September 28, 2021. 

Target price is $7.80 Current Price is $5.53 Difference: $2.27
If SFR meets the Shaw and Partners target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $6.62, suggesting upside of 17.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 10.00 cents and EPS of 96.30 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.3, implying annual growth of -10.7%.
Current consensus DPS estimate is 25.1, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 7.0.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.00 cents and EPS of 49.80 cents.
At the last closing share price the estimated dividend yield is 0.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of -61.4%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 18.2.

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

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $3.64

Bell Potter rates ((SM1)) as Buy (1) –

Synlait Milk's FY21 loss fell at the lower end of guidance.

Wilsons advises debt has been hit by elevated ingredient inventories, which should ease in FY22, and that the company has entered into a sale and leaseback of its Auckland facility, freeing NZ$30m of capital.

The company guides to a return to strong profitability in FY22, a reduction in debt and an at-least steady exit run-rate in FY23.

Wilsons downgrades earnings -3% in FY22 and -5% in FY23.

Buy rating and $4.40 target price retained.

This report was published on September 27, 2021.

Target price is $4.40 Current Price is $3.64 Difference: $0.76
If SM1 meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $2.55, suggesting downside of -29.6%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 18.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 14.28 cents and EPS of 20.48 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 17.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 70.3%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 13.5.

This company reports in NZD. 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

UBN    URBANISE.COM LIMITED

Software & Services – Overnight Price: $1.38

Taylor Collison rates ((UBN)) as Initiation of coverage with Speculative Buy (1) –

Taylor Collison initiates coverage on Urbanise.com, a company providing software as a service solutions for strata and facilities management. The broker notes the company is close to becoming cash-flow positive following a challenging period since 2015. 

Urbanise signed a deal with PICA Group in 2016 to finance its software development. That platform is now finalised, allowing the company to turn attention to promotion and sales. Licensing payments will likely see strong operating cash flow generation.

The broker notes the Australian facilities management outsourcing industry is worth around $20bn, and the company has a clear strategy to take the platform to market. 

The broker initiates with a Speculative Buy rating but no target price is provided. 

This report was published on September 21, 2021.

Current Price is $1.38. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.04.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.12.

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

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.95

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

Westgold Resources has provided a guide to FY22 production and capital allocation, with Canaccord Genuity noting production guidance of more than 270,000 ounces at an all-in sustaining cost of $1,500-1,700 per ounce, and total capital expenditure of $166m.

The company has guided to a production ramp-up at Big Bell in the second half of FY22. The broker expects nameplate production of 1m tonnes per annum to be reached in the March quarter, and sees potential for above-nameplate production in the medium-term. 

The Buy rating is retained and the target price increases to $2.50 from $2.40. 

This report was published on September 24, 2021.

Target price is $2.50 Current Price is $1.95 Difference: $0.55
If WGX meets the Canaccord Genuity target it will return approximately 28% (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 3.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.26.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 3.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.48.

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


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

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

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

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms

CHARTS

ACL ADI AQR BML BPT CIP DTC FWD GDC GEN LTR MMM OPY PMV RDY RZI SFR SM1 UBN WGX

For more info SHARE ANALYSIS: ACL - AUSTRALIAN CLINICAL LABS LIMITED

For more info SHARE ANALYSIS: ADI - DEXUS INDUSTRIA REIT

For more info SHARE ANALYSIS: AQR - APN CONVENIENCE RETAIL REIT

For more info SHARE ANALYSIS: BML - BOAB METALS LIMITED

For more info SHARE ANALYSIS: BPT - BEACH ENERGY LIMITED

For more info SHARE ANALYSIS: CIP - CENTURIA INDUSTRIAL REIT

For more info SHARE ANALYSIS: DTC - DAMSTRA HOLDINGS LIMITED

For more info SHARE ANALYSIS: FWD - FLEETWOOD LIMITED

For more info SHARE ANALYSIS: GDC - GLOBAL DATA CENTRE GROUP

For more info SHARE ANALYSIS: GEN - GENMIN LIMITED

For more info SHARE ANALYSIS: LTR - LIONTOWN RESOURCES LIMITED

For more info SHARE ANALYSIS: MMM - MARLEY SPOON AG

For more info SHARE ANALYSIS: OPY - OPENPAY GROUP LIMITED

For more info SHARE ANALYSIS: PMV - PREMIER INVESTMENTS LIMITED

For more info SHARE ANALYSIS: RDY - READYTECH HOLDINGS LIMITED

For more info SHARE ANALYSIS: RZI - RAIZ INVEST LIMITED

For more info SHARE ANALYSIS: SFR - SANDFIRE RESOURCES LIMITED

For more info SHARE ANALYSIS: SM1 - SYNLAIT MILK LIMITED

For more info SHARE ANALYSIS: UBN - URBANISE.COM LIMITED

For more info SHARE ANALYSIS: WGX - WESTGOLD RESOURCES LIMITED