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Australian Broker Call *Extra* Edition – Nov 03, 2021

Daily Market Reports | Nov 03 2021

This story features AUSTRALIAN AGRICULTURAL COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: AAC

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)

AAC   AD8   BMT   BWX   BXB   CQR   ELO   GPT   HUB   IGL   LME   MMI   MP1   NCK   NWL   OLL   PFP   RFG (2)   RMS (2)   SCP (3)   SOV   TIE   TLX   TPW   VUL   Z1P  

AAC    AUSTRALIAN AGRICULTURAL COMPANY LIMITED

Agriculture – Overnight Price: $1.57

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

Cattle and meat prices are flowing through and Bell Potter updates forecasts. The cattle index has closed the first half 17% higher.

The broker notes an upward move in cattle values lifts the value of live cattle sales as well as the value of the trading herd on the company's balance sheet.

The broker believes improving operating conditions are yet to be fully reflected in the share price. Buy rating retained. Target is raised to $1.65 from $1.55.

This report was published on October 19, 2021.

Target price is $1.65 Current Price is $1.57 Difference: $0.08
If AAC meets the Bell Potter target it will return approximately 5% (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 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 120.77.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 314.00.

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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $8.82

Shaw and Partners rates ((AD8)) as Buy (1) –

Shaw and Partners retains its Buy rating and $12 target following 1Q results by Audinate Group. The broker expects the impact from the industry-wide silicon chip shortage will be felt most directly in the 3Q though believes the long-term growth trajectory is unchanged.

The analyst judges that FY22 revenue is dependent upon several factors including the easing of chip supply constraints and the ability of the company to accelerate work to release the next generation Brooklyn III.

FY22 will also rely upon the capacity of the company's contract manufacturer to meet expected 4Q demand, explains the broker.

This report was published on October 19, 2021.

Target price is $12.00 Current Price is $8.82 Difference: $3.18
If AD8 meets the Shaw and Partners target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $11.25, suggesting upside of 27.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 232.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.2, 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:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 551.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 441.0.

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

BMT    BEAMTREE HOLDINGS LIMITED

Healthcare services – Overnight Price: $0.59

Petra Capital rates ((BMT)) as Initiation of coverage with Buy (1) –

Petra Capital initiates coverage on health-technology company Beamtree with a Buy rating and 77c target price.

The broker views Beamtree as an under-appreciated Medtech company with an attractive global footprint; admires the defensive recurring revenue streams embedded in critical infrastructure (management guides to $50mm annual recurring revenue over five years); and spies appealing end-markets.

Petra notes the company is well on track to achieve revenue targets, is already profitable, and enjoys software leverage in an attractive industry.

The company has made three acquisitions and still has sufficient funds for the product development cycle, says the broker. Beamtree offers a three-year compound average rate of 68% and trades at a discount to peers.

This report was published on October 19, 2021.

Target price is $0.77 Current Price is $0.59 Difference: $0.18
If BMT meets the Petra Capital target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 590.00.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.33.

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

BWX    BWX LIMITED

Household & Personal Products – Overnight Price: $4.69

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

Canaccord Genuity believes organic earnings growth should be supported for BWX through FY22 and FY23. The recent acquisitions of Flora & Fauna in May and a 50.1% stake in Go-To is thought to provide additional growth drivers.

Despite a higher growth rate and superior margins to peers, the analyst points to the company's lower multiples and increases the price target to $5.62 from $5.15. The Buy rating is unchanged.

This report was published on October 20, 2021.

Target price is $5.62 Current Price is $4.69 Difference: $0.93
If BWX meets the Canaccord Genuity target it will return approximately 20% (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 4.80 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.31.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 6.30 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.33.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $10.20

Jarden rates ((BXB)) as Downgrade to Neutral from Buy (3) –

Revenue momentum in the first quarter was strong with growth of 9%. Jarden notes the result revealed an acceleration in the growth rate for the CHEP Americas business albeit decelerating growth in the EMEA business.

Revenue guidance for FY22 is modestly increased to growth of 6-7%. Jarden expects the first half will contribute the majority of growth, as initiatives to pass through costs boost revenue.

The broker upgrades to Neutral from Underweight given the underperformance in the shares. Target is reduced to $11.14 from $11.60.

This report was published on October 19, 2021.

Target price is $11.14 Current Price is $10.20 Difference: $0.94
If BXB meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $12.60, suggesting upside of 23.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 32.60 cents and EPS of 48.23 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.4, implying annual growth of N/A.
Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.45 cents and EPS of 51.01 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.7, implying annual growth of 9.6%.
Current consensus DPS estimate is 34.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $4.11

Jarden rates ((CQR)) as Buy (2) –

Jarden believes Charter Hall Retail can outperform over the next 12 months, noting the attractive valuation versus peers. The trading update has confirmed the resilience of the portfolio.

Earnings guidance of 27.8-28.2c per security and distribution guidance are both slightly ahead of the broker's forecasts. Guidance implies distribution growth of 2.1-3.8%, despite the disruptions caused by lockdowns in the first quarter.

Jarden retains an Overweight rating and raises the target to $4.40 from $4.30.

This report was published on October 19, 2021.

Target price is $4.40 Current Price is $4.11 Difference: $0.29
If CQR meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.19, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 23.90 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of -45.2%.
Current consensus DPS estimate is 24.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 26.10 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 6.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.8, implying annual growth of 3.2%.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 14.3.

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

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $5.29

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

The company reported a record September quarter result with recurring revenue increasing 35% to $88.5m. Canaccord Genuity highlights the quarterly performance was even the more impressive as it came despite severe government lockdowns in the company's primary operating regions.

The broker believes all stocks undergo a material multiple re-rating when approaching breakeven and this has been targeted for the second half of FY23.

This is the "easiest money you can make in a stock" the broker asserts, and it is becoming evident in the share price moves. Buy rating retained. Target is $8.70.

This report was published on October 21, 2021.

Target price is $8.70 Current Price is $5.29 Difference: $3.41
If ELO meets the Canaccord Genuity target it will return approximately 64% (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 28.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.63.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 16.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.30.

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

GPT    GPT GROUP

Infra & Property Developers – Overnight Price: $5.14

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

Goldman Sachs notes, as part of GPT Group's plan to increase weighting to the Logistics sector, a portfolio of 23 Logistics assets and one Office asset was purchased for -$681.7m.

The 100% debt-funded acquisition is estimated to be over 2.5% accretive on an annualised basis, estimates the analyst.

The Buy rating is retained and the target price increases to $5.29 from $5.08.

The report was published on October 19, 2020.

Target price is $5.29 Current Price is $5.14 Difference: $0.15
If GPT meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $5.15, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 30.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.9, implying annual growth of N/A.
Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 34.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.1, implying annual growth of 11.1%.
Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 16.0.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $31.06

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

Jarden expects strong net flows to be a persisting part of Hub24's story in FY22, after the company reported $3bn in net inflows in the September quarter in a strong start to the year. 

The broker notes Hub24 continues to attract advisors to its platform, up to 3,221 from 3,063 in the June quarter.

The broker expects net flows to moderate in outer years leading a decline in organic funds under management growth from an expected 33% in FY22 to 17% by FY24. Earnings per share forecasts upgraded by 3.7% and 4.1% from FY22 and FY23 respectively. 

The Underweight rating is retained and the target price increases to $27.75 from $26.80.

This report was published on October 14, 2021.

Target price is $27.75 Current Price is $31.06 Difference: minus $3.31 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $34.01, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 18.60 cents and EPS of 40.50 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 76.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.7, implying annual growth of 235.7%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 72.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 24.50 cents and EPS of 54.10 cents.
At the last closing share price the estimated dividend yield is 0.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.8, implying annual growth of 35.4%.
Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 53.7.

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

IGL    IVE GROUP LIMITED

Media – Overnight Price: $1.77

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

Bell Potter upgrades estimates on the back of the acquisition of the retail display and 3PL businesses, Active Display Group and AFI Branding Solutions. The company will pay $6.5m for the businesses and fund the transaction through cash.

Synergies were not disclosed yet Bell Potter expects these will be material given the overlap of services and the company's record of success in executing on acquisitions. Buy rating maintained. Target rises to $2.00 from $1.19.

This report was published on October 19, 2021.

Target price is $2.00 Current Price is $1.77 Difference: $0.23
If IGL meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 14.10 cents and EPS of 21.40 cents.
At the last closing share price the estimated dividend yield is 7.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.27.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 16.20 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 9.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.78.

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

LME    LIMEADE, INC

Cloud services – Overnight Price: $0.53

Moelis rates ((LME)) as Buy (1) –

While the overall number of contracts in the pipeline has been reduced, a high percentage is expected to be finalised in the fourth quarter. Moelis estimates new contracts should offset any churn and return the business to organic growth.

This should provide a catalyst for the trading update in January. The broker also notes, given the current valuation and platform validation after the Microsoft Viva integration, there is potential for the business as an M&A target. Buy rating and $1.14 target maintained.

The report was published on October 19, 2021. 

Target price is $1.14 Current Price is $0.53 Difference: $0.61
If LME meets the Moelis target it will return approximately 115% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.71 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.29.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.90.

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

MMI    METRO MINING LIMITED

Coal – Overnight Price: $0.02

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

Metro Mining has previously proposed to double production to 6Mtp from 3 Mtp and Shaw and Partners notes the company is now using a floating crane barge. This allows the loading of larger vessels and reduces freight costs, points out the broker.

The company's average freight rate in the 2Q was $29.7/t, well above its historic average $17.3/t. Higher production will reduce unit site costs, and the use of Capesize vessels will reduce freight costs, explains the analyst.

Shaw and Partners cautions that management is yet to lock in offtake agreements for the expanded output.

The Buy rating and target price of $0.07 are retained. 

This report was published on October 19, 2021.

Target price is $0.07 Current Price is $0.02 Difference: $0.05
If MMI meets the Shaw and Partners target it will return approximately 250% (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 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.45.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $19.27

Canaccord Genuity rates ((MP1)) as Buy (1) –

Canaccord Genuity notes the business reached $100m in annualised recurring revenue in the September quarter. Cash usage also stepped up with both operating and capital expenditure increasing.

The company has added Versa to its MVE partner group which means it has 50% of the SD-WAN infrastructure market and this will increase to 70% with two more partners.

MVE has been added to the Cisco global price list from the end of September to further improve distribution. The broker retains a Buy rating and $19.70 target.

This report was published on October 21, 2021.

Target price is $19.70 Current Price is $19.27 Difference: $0.43
If MP1 meets the Canaccord Genuity target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $17.68, suggesting downside of -8.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 240.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -18.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 305.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.6, 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.

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

NCK    NICK SCALI LIMITED

Furniture & Renovation – Overnight Price: $15.25

Wilsons rates ((NCK)) as Upgrade to Overweight from Market Weight (1) –

Nick Scali has announced the acquisition of Plush Sofas for $103.0m, in a move that Wilsons feels offers attractive opportunity for revenue, supplier and operational synergies. The Plush Sofas name and branding will be retained. 

Wilsons expects further detail at the upcoming annual general meeting. The broker upgrades underlying earnings 5.1% and 25.7% in FY22 and FY23 respectively, assuming $5.2m in synergies and four new stores in FY23. 

The rating is upgraded to Overweight from Market Weight and the target price increases to $17.00 from $11.35. 

This report was published on October 19, 2021.

Target price is $17.00 Current Price is $15.25 Difference: $1.75
If NCK meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 64.50 cents and EPS of 76.20 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.01.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 75.50 cents and EPS of 88.70 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.19.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $17.15

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

Netwealth Group has issued upgrades to its FY22 flow outlook following a strong first quarter, with reported flows of $4.0bn a beat on Jarden's forecast $2.8bn. The company is now guiding to full-year flows of $12.5bn, up from $10.0bn.

The broker notes despite strong flows, revenue impacts will be somewhat muted given that fees were capped for two clients that contributed $0.9bn. Jarden's earnings per share forecasts are upgraded 2.8% and 3.8% for FY22 and FY23 respectively. 

The Underweight rating is retained and the target price increases to $14.50 from $13.90. 

This report was published on October 14, 2021. 

Target price is $14.50 Current Price is $17.15 Difference: minus $2.65 (current price is over target).
If NWL meets the Jarden target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $17.97, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 21.70 cents and EPS of 26.30 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 17.5%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 64.7.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 24.50 cents and EPS of 29.60 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.7, implying annual growth of 19.6%.
Current consensus DPS estimate is 25.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 54.1.

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

OLL    OPENLEARNING LIMITED

Education & Tuition – Overnight Price: $0.10

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

The company reported an increase in quarterly receipts underpinned by substantial growth in platform revenue. Canaccord Genuity observes the push towards usage-based pricing and revenue sharing arrangements is starting to be evident in quarterly reports.

Potential catalysts include a full re-opening of Australian borders and new enrolments, including CS101 which was launched in October with a starting point of over 50 students.

The broker finds the valuation undemanding, reducing the target of $0.36 from $0.39 and retaining a Speculative Buy rating.

This report was published on October 21, 2021.

Target price is $0.36 Current Price is $0.10 Difference: $0.26
If OLL meets the Canaccord Genuity target it will return approximately 260% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.50.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 5.00.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $4.33

Moelis rates ((PFP)) as Buy (1) –

Propel Funeral Partners has raised $50m in equity at $4.10 a share to reduce debt and increase the capacity for potential acquisitions. Moelis envisages there are plenty of prospects.

The recent results for the first quarter highlighted a recovery in funeral volumes and margins, despite the adverse impacts of lockdowns. The broker remains positive about the stock as an attractive defensive business and maintains a Buy rating with a $4.80 target.

This report was published on October 19, 2021. 

Target price is $4.80 Current Price is $4.33 Difference: $0.47
If PFP meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 9.70 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.15.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 11.00 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.41.

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

RFG    RETAIL FOOD GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.08

Petra Capital rates ((RFG)) as Buy (1) –

Petra Capital sees substantial upside for shares of Retail Food Group on a re-opening trade and further upside should there be a resolution of the ACCC mediation process. For the latter, some form of settlement is expected, which would improve operational certainty.

The analyst is impressed with innovations (eg Gloria Jeans drive-thru) that have enabled a reasonable level of profitability in difficult times. The Buy rating and $0.12 target price are unchanged.

This report was published on October 19, 2021.

Target price is $0.12 Current Price is $0.08 Difference: $0.04
If RFG meets the Petra Capital target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.20 cents and EPS of 0.70 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.40 cents and EPS of 0.90 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 8.89.

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


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

Retail Food Group has announced a class action has been brought by a former franchisee of the Michel's Patisserie on behalf of other franchisees.

The allegations are denied by the company but include charges relating to the historical conduct and operation of the Michel's Patisserie under the former leadership.

Shaw and Partners believes a reasonable conclusion will be reached, highlighting the allegations are historical and only relate to the Michel's Patisserie network.

The broker suspects this class action is likely connected to the ongoing court case with the ACCC and believes the financial impact will be contained.

The Buy rating and $0.14 target price are unchanged.

This report was published on October 20, 2021.

Target price is $0.14 Current Price is $0.08 Difference: $0.06
If RFG meets the Shaw and Partners target it will return approximately 75% (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 0.20 cents and EPS of 0.80 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.50 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.00.

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

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.60

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

September quarter production was in line with expectations. Cash and gold on hand increased to $274m after receipt of the Kathleen lithium royalty.

Canaccord Genuity notes the conditional takeover bid for Apollo Consolidated ((AOP)), and the counter bid by Gold Road ((GOR)).

Based on the current terms, the broker believes Gold Road is in a strong position as it has already accumulated 19.9% of the stock and is offering cash with no conditions. The broker retains a Buy rating and $2.10 target.

This report was published on October 21, 2021.

Target price is $2.10 Current Price is $1.60 Difference: $0.5
If RMS meets the Canaccord Genuity target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting upside of 24.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.1, implying annual growth of -22.6%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY23:

Current consensus EPS estimate is 11.8, implying annual growth of -2.5%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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

Ramelius Resources has been looking for a third (around 100koz pa) processing hub to add to its Mount Magnet and Edna May production hubs in WA, notes Shaw and Partners. 

As a result, the company has made a takeover offer for Apollo Consolidated ((AOP)) for $0.34/share and 0.1375 Ramelius shares for each Apollo Consolidated share.

The broker makes minor earnings forecasts, allowing for slightly lower net interest income and a -5% EPS dilution from more shares on issue. The Buy rating and $2.49 price target are maintained.

This report was published on October 19, 2021. 

Target price is $2.49 Current Price is $1.60 Difference: $0.89
If RMS meets the Shaw and Partners target it will return approximately 56% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting upside of 24.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.00 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.1, implying annual growth of -22.6%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 10.00 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.8, implying annual growth of -2.5%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SCP    SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP RE LIMITED

REITs – Overnight Price: $2.78

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

As part of Shopping Centres Australasia Property Group's trading update, guidance for both 2H adjusted funds from operations (A-FFO) and dividends exceeded Goldman Sachs' estimates.

However, the analyst expects earnings growth to remain subdued, partly due to prolonged headwinds facing supermarket sales. Management is considering a number of acquisition opportunities for FY22.

The Sell rating is retained with the target price rising to $2.39 from $2.33.

This report was published on October 19, 2021.

Target price is $2.39 Current Price is $2.78 Difference: minus $0.39 (current price is over target).
If SCP meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.77, suggesting downside of -0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -62.3%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.2.

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 16.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 6.2%.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 16.2.

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


Jarden rates ((SCP)) as Buy (1) –

Jarden was encouraged by the trading update which indicates upgrades to earnings amid evidence of sector consolidation. As NSW and Victoria are opening up the company now expects to deliver 19% growth in earnings from operations in FY22.

The rising number of transactions in the sector is also pointing to significant upside to net tangible assets. Jarden retains a Buy rating and raises the target to $3.15 from $2.95.

This report was published on October 19, 2021.

Target price is $3.15 Current Price is $2.78 Difference: $0.37
If SCP meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.77, suggesting downside of -0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 15.00 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 5.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -62.3%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 16.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 6.2%.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 16.2.

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


Moelis rates ((SCP)) as Hold (3) –

Shopping Centres Australasia signalled a first quarter performance that was better than Moelis expected. There was just $400,000 in rent waivers during the quarter and $500,000 in deferrals.

While these figures are expected to grow as applications for rental relief are received in the second quarter, the broker reduces the expected pandemic impact on the first half to -$4.5m from -$6.0m.

The company has also announced the acquisition of four shopping centres for $108m, the largest being the NH centre in Brisbane for $55m.

Moelis factors in a less pronounced effect from the pandemic along with the acquisitions. Hold maintained. Target rises to $2.87 from $2.70.

The report was published on October 20, 2021.

Target price is $2.87 Current Price is $2.78 Difference: $0.09
If SCP meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.77, suggesting downside of -0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.00 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 5.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -62.3%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 15.70 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 6.2%.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 16.2.

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

SOV    SOVEREIGN CLOUD HOLDINGS LIMITED

Cloud services – Overnight Price: $0.62

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

Canaccord Genuity initiates coverage on Sovereign Cloud Holdings with a Buy rating and $1.05 price target. The cloud-based infrastructure as a service (IaaS) company offers official and protected data community environments.

Current clients include the Australian Government, the Australian Defence Force and critical national industry communities. The IaaS solutions incorporate networking, storage, servers and virtualisation.

The analyst believes the company’s sovereignty credentials provides a significant moat. 

This report was published on October 20, 2021.

Target price is $1.05 Current Price is $0.62 Difference: $0.43
If SOV meets the Canaccord Genuity target it will return approximately 69% (excluding dividends, fees and charges).

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.05.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.75.

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

TIE    TIETTO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.41

Petra Capital rates ((TIE)) as Buy (1) –

Petra Capital initiates coverage of Tietto Minerals with a Buy rating and $0.90 target price. The company's Abujar Gold Project is located in Cote d'Ivoire and is thought to be West Africa’s next major gold mine.

The broker expects the resource of 3.35Moz at 1.2g/t gold will grow as drilling continues. A recent definite feasability study (DFS) shows a low-cost open pit operation with expectation for 200koz per year over the first six years of an initial 11-year life-of-mine.

Management expects first gold production by late 2022.

This report was published during October 2021.

Target price is $0.90 Current Price is $0.41 Difference: $0.49
If TIE meets the Petra Capital target it will return approximately 120% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.57.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.55.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.18

Jarden rates ((TLX)) as Initiation of coverage with Buy (1) –

Jarden initiates coverage on oncology company Telix Pharmaceuticals. Specialising in molecularly targeted radiation, Telix Pharmaceuticals is currently waiting on FDA approval on its first imaging product ILLUCCIX which could win significant market share. 

The company has a deep research and development pipeline. Notably, its TLX-591 product will offer a second-line therapy for SMA-expressing metastatic castration resistant prostate cancer, with a total addressable market of $5.2bn and expected 2026 launch. 

The broker expects the company will need funding in the short term to support research and development and clinical trial costs.

The broker initiates with a Buy rating and a target price of $7.90.

This report was published on October 15, 2021.

Target price is $7.90 Current Price is $7.18 Difference: $0.72
If TLX meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 21.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.40.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 94.47.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $12.28

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

Bell Potter notes recent lockdowns appear to have benefited Temple & Webster Group's sales, with the company reporting revenue growth is up 56% year-on-year to-date, on a comparable 138% growth in the previous year. 

Additionally, the company reiterated a 2-4% underlying earnings margin guide for FY22, expecting a slight second half skew. The broker updates its earnings per share forecast for FY22 by around 13%. 

The Hold rating is retained and the target price increases to $12.75 from $12.40.

This report was published on October 18, 2021.

Target price is $12.75 Current Price is $12.28 Difference: $0.47
If TPW meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $15.11, suggesting upside of 23.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 9.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 132.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of -29.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 149.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 36.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 109.6.

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

VUL    VULCAN ENERGY RESOURCES LIMITED

New Battery Elements – Overnight Price: $10.81

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

Vulcan Energy has raised $203m through a placement and share purchase plan. The funds will be used, substantially, for the acquisition of existing energy and brine infrastructure.

Canaccord Genuity includes the funds in its modelling and increases risking to 60% from 50% to account for the potential of a brownfields acquisition.

Vulcan Energy has signed its third offtake, this time with Umicore for 28-42,000t over a five-year period from 2025. The broker believes this is a strong endorsement of the company's technology and progress to date. Buy rating maintained. Target rises to $21.00 from $16.75.

This report was published on October 21, 2021.

Target price is $21.00 Current Price is $10.81 Difference: $10.19
If VUL meets the Canaccord Genuity target it will return approximately 94% (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 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 90.08.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 49.14.

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

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $6.22

Shaw and Partners rates ((Z1P)) as Buy (1) –

Zip Co's 1Q results were broadly ahead of Shaw and Partners forecasts. The broker notes 52% of revenue is now being derived from international markets, which broadly outperformed during the quarter.

Shaw and Partners upgrades FY22-24 revenue forecasts by 4.5%, 3.5% and 3.1%, respectively, and lifts its target price to $16.10 from $15.36. The Buy rating is maintained.

The broker estimates the company is trading well below intrinsic value, in a rapidly consolidating market looking to pay much higher multiples for immediate scale and accretion.

This report was published on October 19, 2021.

Target price is $16.10 Current Price is $6.22 Difference: $9.88
If Z1P meets the Shaw and Partners target it will return approximately 159% (excluding dividends, fees and charges).
Current consensus price target is $7.31, suggesting upside of 17.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 9.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 64.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -18.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 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 1036.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.4, 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.

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


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

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

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

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CHARTS

AAC AD8 AOP BMT BWX BXB CQR ELO GOR GPT HUB IGL LME MMI MP1 NCK NWL OLL PFP RFG RMS SCP SOV TIE TLX TPW VUL Z1P

For more info SHARE ANALYSIS: AAC - AUSTRALIAN AGRICULTURAL COMPANY LIMITED

For more info SHARE ANALYSIS: AD8 - AUDINATE GROUP LIMITED

For more info SHARE ANALYSIS: AOP - APOLLO CONSOLIDATED LIMITED

For more info SHARE ANALYSIS: BMT - BEAMTREE HOLDINGS LIMITED

For more info SHARE ANALYSIS: BWX - BWX LIMITED

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For more info SHARE ANALYSIS: GPT - GPT GROUP

For more info SHARE ANALYSIS: HUB - HUB24 LIMITED

For more info SHARE ANALYSIS: IGL - IVE GROUP LIMITED

For more info SHARE ANALYSIS: LME - LIMEADE, INC

For more info SHARE ANALYSIS: MMI - METRO MINING LIMITED

For more info SHARE ANALYSIS: MP1 - MEGAPORT LIMITED

For more info SHARE ANALYSIS: NCK - NICK SCALI LIMITED

For more info SHARE ANALYSIS: NWL - NETWEALTH GROUP LIMITED

For more info SHARE ANALYSIS: OLL - OPENLEARNING LIMITED

For more info SHARE ANALYSIS: PFP - PROPEL FUNERAL PARTNERS LIMITED

For more info SHARE ANALYSIS: RFG - RETAIL FOOD GROUP LIMITED

For more info SHARE ANALYSIS: RMS - RAMELIUS RESOURCES LIMITED

For more info SHARE ANALYSIS: SOV - SOVEREIGN CLOUD HOLDINGS LIMITED

For more info SHARE ANALYSIS: TIE - TIETTO MINERALS LIMITED

For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: TPW - TEMPLE & WEBSTER GROUP LIMITED

For more info SHARE ANALYSIS: VUL - VULCAN ENERGY RESOURCES LIMITED

For more info SHARE ANALYSIS: Z1P - ZIP CO LIMITED