Australian Broker Call *Extra* Edition – Oct 28, 2021

Daily Market Reports | Oct 28 2021

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)

AMS   BLX   BSX   CAR   CKF (3)   CMM   CXL   DDH   DEG   DHG   EML   EVS   GTK   IMD (2)   LGL   MIN   MMI   OPY (2)   REA   SFR   SLX   TNT   VHT   VVA   WGO   ZBT  

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices - Overnight Price: $1.24

Bell Potter rates ((VHT)) as Buy (1) -

Bell Potter notes recent partnerships with AI software providers Riverain and RevealDX have allowed Volpara Health Technologies to expand its US lung cancer screening offerings and to offer a first-to-market, single comprehensive lung screening solution.

The broker highlights products from both Riverain and RevealDX are expected to receive FDA approval in 2022. 

The Buy rating and target price of $1.60 are retained. 

This report was published on October 6, 2021.

Target price is $1.60 Current Price is $1.24 Difference: $0.36
If VHT meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.40.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.54 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.90.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism - Overnight Price: $2.30

Moelis rates ((VVA)) as Buy (1) -

While August revenue was down -53% due to lockdowns, 97% of the Viva Leisure's Membership had been retained as at end of August, points out Moelis. It's expected the near-term reopening of gyms will allow the focus to be on growth via the roll-out strategy.

More acquisitions and greenfield sites are likely to complete in the first half than the analyst expected. The Buy rating is maintained and a $2.73 target price is set.

This report was published on October 6, 2021.

Target price is $2.73 Current Price is $2.30 Difference: $0.43
If VVA meets the Moelis target it will return approximately 19% (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 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.40.

Forecast for FY23:

Moelis 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 26.14.

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

WGO    WARREGO ENERGY LIMITED

NatGas - Overnight Price: $0.14

Canaccord Genuity rates ((WGO)) as Downgrade to Hold from Buy (3) -

Canaccord Genuity lowers its rating to Hold from Speculative Buy and reduces its target price to $0.22 from $0.34 for Warrego Energy. The broker no longer believes there's a clear case for Stage 2 and lowers its risking for West Erregullato to  25% from 75%.

This comes after an independent expert's reserve estimate was well below the analyst's expectations. The position will be reviewed as more data becomes available from the likes of WE3 deepening, WE5 re-testing and WE6 drilling (targeted for FY23).

Canaccord Genuity points out the company is adequately funded for its FY22 work program.

This report was published on October 12, 2021.

Target price is $0.22 Current Price is $0.14 Difference: $0.08
If WGO meets the Canaccord Genuity target it will return approximately 57% (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 minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.33.

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

ZBT    ZEBIT, INC

Business & Consumer Credit - Overnight Price: $0.53

Shaw and Partners rates ((ZBT)) as Buy (1) -

Zebit has launched its mobile app - a significant milestone given mobile transactions are the fastest growing channel for retail merchants in the US, says Shaw and Partners.

Shaw believes the time is right for a first-mover US e-commerce company such as Zebit given the continued decline in bricks and mortar.

The broker retains a Buy rating, maintaining Zebit has validated its IPO model and strategy by beating prospectus forecast across nearly all metrics. Target price is steady at $2.

This report was published on October 8, 2021.

Target price is $2.00 Current Price is $0.53 Difference: $1.47
If ZBT meets the Shaw and Partners target it will return approximately 277% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.96.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.77.

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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