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Australian Broker Call *Extra* Edition – Nov 15, 2021

Daily Market Reports | Nov 15 2021

This story features BATHURST RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: BRL

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)

BRL   BTN   BWX   CHN   CUV   DMP   KMD   LKE   M7T   MGH   MNF   NTO (2)   OBL   OFX   PBH   PDN   PSC   RWC   SLK   UWL  

BRL    BATHURST RESOURCES LIMITED

Coal – Overnight Price: $0.77

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

Bathhurst Resources' quarterly production of 300,000 tonnes was not only a miss on Bell Potter's forecast but a -15% quarter-on-quarter decline, driven largely by weather impacts on production at the North Island Domestic business. 

Positively, stronger realised prices on hard coking coal offered revenue support and kept revenue consistent quarter-on-quarter. The company has retained its full-year guidance.

Bell Potter expects further upside to hard coking coal to benefit the company in the December quarter.

The rating is upgraded to Buy from Hold and the target price of $0.98 is retained. 

This report was published on November 5, 2021.

Target price is $0.98 Current Price is $0.77 Difference: $0.21
If BRL meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 37.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.06.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.27 cents and EPS of 23.20 cents.
At the last closing share price the estimated dividend yield is 14.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.32.

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

BTN    BUTN LIMITED

Overnight Price: $0.31

Canaccord Genuity rates ((BTN)) as Initiation of coverage with a Speculative Buy (1) –

Canaccord Genuity initiates coverage on Butn with a Speculative Buy rating and a $0.55 price target. The SME funder operates via a proprietary fintech platform that automates the funding process as well as integrating into third-party platform partners. 

The analyst likes the focus upon platform partners, which enables a greater potential to scale relative to traditional SME financiers. Also, its technology stack is platform-agnostic and its partners have global reach.

In addition, MYOB has a 19.9% shareholding which aligns its interests with Butn's growth plans, explains the broker. Risks include competition from large financial institutions, emerging fintechs and shadow lenders, cautions Canaccord.

This report was published on November 5, 2021.

Target price is $0.55 Current Price is $0.31 Difference: $0.24
If BTN meets the Canaccord Genuity target it will return approximately 77% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 15.50.

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: $4.47

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

Moelis expects domestic sales for BWX to be weak in the first half of FY22 given skincare sales in both pharmacy and grocery declined during the quarter, while margins will likely be impacted by supply chain issues and increased freight costs. 

Additionally, further delays in the construction of a new manufacturing facility mean gross profit margin improvements expected to be driven by the facility won't be realised until FY23. Earnings per share forecasts are downgraded -14% to -16% through to FY24. 

The rating is downgraded to Hold from Buy and the target price decreases to $5.20 from $6.05.

This report was published on November 10, 2021.

Target price is $5.20 Current Price is $4.47 Difference: $0.73
If BWX meets the Moelis target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 4.70 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 1.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.04.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 6.50 cents and EPS of 20.60 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 21.70.

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

CHN    CHALICE MINING LIMITED

Industrial Metals – Overnight Price: $9.78

Bell Potter rates ((CHN)) as Speculative Buy (1) –

Chalice Mining has published its maiden Mineral Resource Estimate for the Gonneville deposit in Western Australia, revealing a large, lower grade pit-constrained resource and a higher grade sulphide resource.

Bell Potter describes the resource as globally significant and strategic.

The broker says both resources are of high quality with roughly half available to conversion to reserves, the sulphide resource suggesting a mine life of at least 12 years and the lower grade resource suggesting a multi-generational mine life.

Bell Potter says the resources also support the green thematic, most notably green hydrogen, green ammonia and hydrogen fuel-cell production, with nickel and copper constituting about 35% of the recovered value.

Speculative Buy rating retained. Target price rises to $11.73 from $6.35.

This report was published on November 10, 2021.

Target price is $11.73 Current Price is $9.78 Difference: $1.95
If CHN meets the Bell Potter target it will return approximately 20% (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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $32.18

Wilsons rates ((CUV)) as Downgrade to Market Weight from Overweight (3) –

Noting that recent share volatility for Clinuvel Pharmaceuticals has corrected, Wilsons has downgraded its rating on the company. 

The company's aim is now to diversify into the commercialisation of NEURACTHEL adrenocorticotropic hormones, but in Wilsons' view the portfolio addition is a confusing one, with launch pathways unclear and apparent limited expansion opportunity. 

The broker will look to 2021 product launches and progress on the vitiligo program to support a more positive long-term view on the company.

The rating is downgraded to Market Weight from Overweight and the target price of $33.19 is retained.

This report was published on November 9, 2021. 

Target price is $33.19 Current Price is $32.18 Difference: $1.01
If CUV meets the Wilsons target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 5.80 cents and EPS of 68.20 cents.
At the last closing share price the estimated dividend yield is 0.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.18.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 6.10 cents and EPS of 79.70 cents.
At the last closing share price the estimated dividend yield is 0.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.38.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $121.71

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

Weaker trading in Japan was largely responsible for a significant earnings miss by Domino's Pizza Enterprises versus the expectations held by Goldman Sachs. After the trading update, the analyst reduces the FY22 earnings forecast for Japan by -13.4%.

While same store sales growth in Japan has turned negative since the end of the state of emergency, A&NZ and European trading have remained resilient after reopening, explains the broker. Overall Goldman Sachs' long term outlook is unchanged.

The target price falls to $147 from $154.90 and the Buy rating is unchanged.

This report was published on November 3, 2021.

Target price is $147.00 Current Price is $121.71 Difference: $25.29
If DMP meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $127.88, suggesting upside of 0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 202.00 cents and EPS of 252.50 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 232.5, implying annual growth of 9.3%.
Current consensus DPS estimate is 186.1, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 54.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 251.20 cents and EPS of 314.00 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.9, implying annual growth of 23.8%.
Current consensus DPS estimate is 231.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 44.1.

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

KMD    KATHMANDU HOLDINGS LIMITED

Sports & Recreation – Overnight Price: $1.52

Canaccord Genuity rates ((KMD)) as Downgrade to Hold from Buy (3) –

Canaccord Genuity expects revisions to consensus forecasts for Kathmandu Holdings' FY22 results given not unexpected reports from the company of a first half profitability drag from store closures, with earnings before tax taking a roughly -NZ$35m hit in three months. 

Positively, with markets reopening the company has pointed to growth opportunity in the second half but the broker notes supply chain issues are evident and warns not to expect normalised earnings until the first half of FY23.

The rating is downgraded to Hold from Buy and the target price of $1.52 is retained.

This report was published on November 10, 2021.

Target price is $1.52 Current Price is $1.52 Difference: $0
If KMD meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.65, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.64 cents and EPS of 7.52 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of N/A.
Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 8.46 cents and EPS of 12.23 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 18.8%.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 11.4.

This company reports in NZD. 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

LKE    LAKE RESOURCES N.L.

Overnight Price: $0.98

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

Bell Potter initiates coverage on Lake Resources. The company's focus is the development of the Kachi lithium brine project in north west Argentina, modeled as a 25,500 tonne per annum lithium carbonate project with potential annual underlying earnings of $260m.

Alongside tech partner Lilac Solutions, Lake Resources aims to employ direct lithium extraction technology, offering huge ESG benefits. Lilac Solutions's recent funding round was supported by high profile funds and groups focused on decarbonisation tech. 

A Definitive Feasibility Study is due in the second quarter of 2022.

The broker initiates with a Buy rating and a target price of $1.37.

This report was published on November 5, 2021.

Target price is $1.37 Current Price is $0.98 Difference: $0.39
If LKE meets the Bell Potter target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 326.67.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

M7T    MACH7 TECHNOLOGIES LIMITED

Healthcare services – Overnight Price: $0.93

Shaw and Partners rates ((M7T)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on Mach7 Technologies, a leading enterprise data management and enterprise imaging solutions company providing services in North America, Asia Pacific and the Middle East.

The broker sees potential for the company to improve revenue over $40m by FY25, implying a 21% compound annual growth rate given early global take up of enterprise imaging, recent contract success for the company and new business opportunity. 

Additionally, Shaw and Partners finds outlook potential is not currently captured in the company's valuation. 

The broker initiates with a Buy rating and a target price of $1.50. 

This report was published on November 10, 2021.

Target price is $1.50 Current Price is $0.93 Difference: $0.57
If M7T meets the Shaw and Partners target it will return approximately 61% (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 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 54.71.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 116.25.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $4.59

Moelis rates ((MGH)) as Buy (1) –

MAAS Group Holdings is guiding to 58% year-on-year growth for FY22 at the midpoint, in line with Moelis' expectations but confirming the company's strong growth outlook.

Second half skew is now expected to be more weighted than previously thought at around 65%, largely on timing of residential settlements. Forecasts are retained, but Moelis notes potential upside from organic growth or acquisitive activity. 

The Buy rating is retained and the target price decreases to $5.92 from $5.97.

This report was published on November 9, 2021. 

Target price is $5.92 Current Price is $4.59 Difference: $1.33
If MGH meets the Moelis target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.00 cents and EPS of 22.50 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.00 cents and EPS of 24.40 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.81.

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

MNF    MNF GROUP LIMITED

Telecommunication – Overnight Price: $7.30

Moelis rates ((MNF)) as Hold (3) –

Moelis notes MNF Group has reported a strong start in Singapore and the company has already flagged Malaysia as its next focus market for further expansion into the south east Asia market, with Taiwan, South Korea and Japan also flagged as shortlisted regions. 

The company reaffirmed a goal of 100m phone numbers by 2030 and is aiming to go live in Malaysia by December 2022, with Moelis assuming the company has around $42m net cash to fund acquisition and offshore growth. 

FY22 underlying earnings guidance range of $35-38m was announced, accounting for $11.2m in investments to support expansion. 

The Hold rating is retained and the target price increases to $7.63 from $6.68. 

This report was published on November 11, 2021.

Target price is $7.63 Current Price is $7.30 Difference: $0.33
If MNF meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.40 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.20.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 8.10 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.25.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $3.72

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

Nitro Software is buying leading Belgium eSign SaaS business for Eur70m, through a fully underwritten $140m capital raising.

The deal positions Nitro as the third global player in the enterprise eSign market behind Adobe and Docusign, and Nitro snaps up Connective's presence in 12 other European markets.

Nitro expects the deal will generate annualised revenue synergies of $2.5m by December 2022 by selling Connective's solutions to Nitro's 12,000 business customers.

Bell Potter upgrades revenue estimates 13% and 16% for FY2022 and FY23 and Nitro reiterates 2021 guidance.

Target price steady at $4.50. Buy rating retained.

This report was published on November 10, 2021.

Target price is $4.50 Current Price is $3.72 Difference: $0.78
If NTO meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 12.71 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.26.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.05.

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


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

Nitro Software has announced the acquisition of Connective at a cost of US$81m to be funded by a US$105m capital raising, the balance of which Shaw and Partners notes will cover transaction and integration costs and provide working capital. 

Highlighting that the transaction allows Nitro to expand into enterprise e-signing, a US$11bn market opportunity, the broker noted the price was at the higher end of expectations and an all-cash transaction structure allows little protection for underperformance. 

The Buy rating is retained and the target price decreases to $4.15 from $4.75.

This report was published on November 11, 2021.

Target price is $4.15 Current Price is $3.72 Difference: $0.43
If NTO meets the Shaw and Partners target it will return approximately 12% (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 11.52 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.29.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 9.67 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.49.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $2.89

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

Following the loss of the Wivenhoe appeal Omni Bridgeway's share price has declined -36%, but in Goldman Sachs' view the decline is unjustified and the shares are undervalued. 

According to the broker the company is implementing strategy to generate a higher rate of return and more stable income for shareholders, and notes income has been delayed rather than lost. 

The Buy rating is retained and the target price decreases to $5.30 from $5.70.

This report was published on November 10, 2021. 

Target price is $5.30 Current Price is $2.89 Difference: $2.41
If OBL meets the Goldman Sachs target it will return approximately 83% (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 4.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.27.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 31.00 cents and EPS of 123.00 cents.
At the last closing share price the estimated dividend yield is 10.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.35.

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

OFX    OFX GROUP LIMITED

Diversified Financials – Overnight Price: $1.75

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

It was a strong first half result from OFX Group, with Canaccord Genuity noting a 20% revenue increase on the previous corresponding period, a 27% increase on net operating income and a 88% increase to underlying earnings. 

The broker also noted momentum remains strong and top-line growth is expected to continue into the second half. Revenue forecasts are lifted 2% and 1% for FY22 and FY23 respectively, while underlying earnings forecasts increase 5%, 4% and 2% through to FY24.

The Buy rating is retained and the target price increases to $2.00 from $1.85. 

The report was published on November 10, 2021.

Target price is $2.00 Current Price is $1.75 Difference: $0.25
If OFX meets the Canaccord Genuity target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.33.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 4.70 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.03.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $8.94

JP Morgan rates ((PBH)) as Neutral (3) –

Following a negative market reaction after the release of 1Q results by PointsBet Holdings, JP Morgan still believes there's a lack of valuation support and lowers its target price to $9 from $9.75. The analyst expects an upcoming capital raise.

The broker notes that management commentary repeatedly referred to the word 'competition', and the broker expects costs to continue to increase substantially. The Neutral rating is maintained. Neither Canada nor iGaming are seen as material near-term contributors.

JP Morgan thinks the next catalyst may arise from the granting of a license in New York.  

This report was published on October 28, 2021.

Target price is $9.00 Current Price is $8.94 Difference: $0.06
If PBH meets the JP Morgan target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 60.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.90.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 55.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.25.

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

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $1.01

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

A Langer Heinrich restart study has confirmed the mine (75% owned by Paladin Energy) stands ready for an expedited restart. Canaccord Genuity increases its target to $1.05 from $1.02.

First production from Langer Heinrich is anticipated within 18 months of the decision to restart, though flexibility may be introduced to reduce the project delivery schedule, notes the analyst.

A US$65/lb long-term price forecast is retained and the broker maintains its Buy rating. Canaccord has greater confidence in this project than other alternatives due to a 11 year and 43Mlb production history.

The report was published on November 5, 2021.

Target price is $1.05 Current Price is $1.01 Difference: $0.04
If PDN meets the Canaccord Genuity target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 95.37.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 152.57.

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

PSC    PROSPECT RESOURCES LIMITED

New Battery Elements – Overnight Price: $0.55

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

Canaccord Genuity initiates coverage on Prospect Resources, an Australian-based company developing the Arcadia lithium project in Zimbabwe. The broker notes the large-scale resource is in the top ten global lithium resources, and also offers high levels of petalite. 

An Optimised Feasibility Study from the company outlines a two-stage development at a cost of US$212m, for eventual 2.4m tonne per annum production over a 20 year mine life.

Financing, construction and ramp-up schedule would de-risk Canaccord Genuity's valuation and provide upside to the target price.

The broker initiates with a Speculative Buy rating and a target price of $1.15. 

This report was published on November 8, 2021.

Target price is $1.15 Current Price is $0.55 Difference: $0.6
If PSC meets the Canaccord Genuity target it will return approximately 109% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

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

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 55.00.

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

RWC    RELIANCE WORLDWIDE CORP. LIMITED

Building Products & Services – Overnight Price: $6.38

JP Morgan rates ((RWC)) as Neutral (3) –

JP Morgan increases its target price on Reliance Worldwide to $6.10 from $5.90 after incorporating into earnings estimates the -US$325m acquisition of EZ-FLO expected to be completed in November 2021. The transaction is fully funded via existing debt facilities.

The analyst estimates $10 million in targeted cost synergies by FY24. The Neutral rating is unchanged.

This report was published on October 28, 2021.

Target price is $6.10 Current Price is $6.38 Difference: minus $0.28 (current price is over target).
If RWC meets the JP Morgan target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.43, suggesting downside of -0.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 14.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.3, implying annual growth of 17.7%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 15.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.8, implying annual growth of 8.8%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 21.0.

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

SLK    SEALINK TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $7.41

Evans and Partners rates ((SLK)) as Initiation of coverage with Positive (1) –

Evans and Partners initiates coverage on Sealink Travel Group, the largest supplier of public transport buses in Australia alongside other tourist and marine transport segments. 

The company is undertaking a growth strategy, tendering for contracts in Sydney, Darwin and the UK, and eventually examining regional Victoria and merger and acquisition opportunities. The broker estimates debt could be increased to $400m to fund growth.

The broker initiates with a Positive rating alongside a valuation of $9.90. 

This report was published on November 6, 2021.

Current Price is $7.41. Target price not assessed.
Current consensus price target is $9.59, suggesting upside of 0.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Evans and Partners forecasts a full year FY22 dividend of 19.60 cents and EPS of 25.20 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 29.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.7, implying annual growth of 94.7%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Evans and Partners forecasts a full year FY23 dividend of 24.00 cents and EPS of 31.20 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.8, implying annual growth of 24.0%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.04

JP Morgan rates ((UWL)) as Neutral (3) –

JP Morgan believes an announced share buyback suggests Uniti Group will not pursue any near-term large acquisitions and will focus on organic growth. It's also suggests to the analyst the stock is currently undervalued. 

Under a range of scenarios the broker forecasts the buyback could be up to 9% EPS accretive.

This report was published on October 27, 2021.

Target price is $4.20 Current Price is $4.04 Difference: $0.16
If UWL meets the JP Morgan target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.25.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.86.

Market Sentiment: 0.3
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

BRL BTN BWX CHN CUV DMP KMD LKE M7T MGH NTO OBL OFX PBH PDN PSC RWC UWL

For more info SHARE ANALYSIS: BRL - BATHURST RESOURCES LIMITED

For more info SHARE ANALYSIS: BTN - BUTN LIMITED

For more info SHARE ANALYSIS: BWX - BWX LIMITED

For more info SHARE ANALYSIS: CHN - CHALICE MINING LIMITED

For more info SHARE ANALYSIS: CUV - CLINUVEL PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: DMP - DOMINO'S PIZZA ENTERPRISES LIMITED

For more info SHARE ANALYSIS: KMD - KMD BRANDS LIMITED

For more info SHARE ANALYSIS: LKE - LAKE RESOURCES N.L.

For more info SHARE ANALYSIS: M7T - MACH7 TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: MGH - MAAS GROUP HOLDINGS LIMITED

For more info SHARE ANALYSIS: NTO - NITRO SOFTWARE LIMITED

For more info SHARE ANALYSIS: OBL - OMNI BRIDGEWAY LIMITED

For more info SHARE ANALYSIS: OFX - OFX GROUP LIMITED

For more info SHARE ANALYSIS: PBH - POINTSBET HOLDINGS LIMITED

For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED

For more info SHARE ANALYSIS: PSC - PROSPECT RESOURCES LIMITED

For more info SHARE ANALYSIS: RWC - RELIANCE WORLDWIDE CORP. LIMITED

For more info SHARE ANALYSIS: UWL - UNITI GROUP LIMITED