Daily Market Reports | Sep 18 2023
An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listedequities.
In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArenahas now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listedstocks, also enlarging the number of stocks that make up the FNArenauniverse.
One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)
BTH FSG GSS IPH LKE LLL MGV MND PMT TIE VGL
BTH BIGTINCAN HOLDINGS LIMITED
Cloud services - Overnight Price: $0.31
Canaccord Genuity rates ((BTH)) as Buy (1) -
Bigtincan Holdings has highlighted its cost reduction strategyin its business update, targeting a further -10% reduction in operating expenditure with a focus on non customer-facing roles.
The change of control proposalinitiatedlast December is ongoing with the company indicating multiple parties are interested and active in thedata room.
The company plans to issue FY24 guidance at or before the AGM and expects growth in annual recurringrevenue, targeting positive free cash flow.
Canaccord Genuity finds the multiples undemanding and awaits further guidance at the AGM in November. Buy rating unchanged. Target is reduced to $0.80 from $1.00.
This report was published on September 15, 2023.
Target price is $0.80 Current Price is $0.31 Difference: $0.49
If BTH meets the Canaccord Genuity target it will return approximately 158% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.75.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.32.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FSG FIELD SOLUTIONS HOLDINGS LIMITED
Telecommunication - Overnight Price: $0.04
Petra Capital rates ((FSG)) as Buy (1) -
Petra Capital found Field Solutions' FY23 results in line with expectations. Growth in both revenue and EBITDA occurred with 21 new network sites delivered and 127 due to be live by FY24.
Progress has been made on the delivery of RCP2 with Field Solutionsexpected to receive $18-22m in government receipts for FY24.
The broker also notes the proposed acquisition of Cirrus ((CNW)) by Atturra ((ATA)), which it believes highlights the value in the Field Solutions business. Buy retained. Target is $0.22.
This report was published on September 15, 2023.
Target price is $0.22 Current Price is $0.04 Difference: $0.177
If FSG meets the Petra Capital target it will return approximately 412% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.50.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.00.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
GSS GENETIC SIGNATURES LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.52
Taylor Collison rates ((GSS)) as Outperform & Accumulate (2) -
Genetic Signatures has submitted an application for US FDA clearance for marketing its EasyScreengastrointestinal parasite detection kit.
Taylor Collison likes the fact the molecular testing for gastrointestinal pathogens is already reimbursed in the US and the kit replaces low-value, microscope-based testing.
The broker will review pricing assumptions post the FDA clearance and highlights the risk that additional funds may be required in FY24 or FY25.
Outperform rating maintained. Target is $2.19.
This report was published on September 12, 2023.
Target price is $2.19 Current Price is $0.52 Difference: $1.675
If GSS meets the Taylor Collison target it will return approximately 325% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.28.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.71.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IPH IPH LIMITED
Legal - Overnight Price: $7.52
Petra Capital rates ((IPH)) as Buy (1) -
Petra Capital analyses the patent filing numbersfor the Australian market based ondata sourced from IP Australia, noting in the case of IPH, this is really only relevant for its Australian operations.
Assessing the August highlights the broker finds no reason to change forecasts, noting the company's filings improved during the month following a weak July.
Notwithstanding the flow-through of price increases from July the broker assumes low single-digit organic growth for Australasia in its FY24 EBITDA forecasts. Buy rating and $10.70 target maintained.
This report was published on September 15, 2023.
Target price is $10.70 Current Price is $7.52 Difference: $3.18
If IPH meets the Petra Capital target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $10.49, suggesting upside of 39.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 33.70 cents and EPS of 44.30 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.98.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 44.0, implying annual growth of 53.7%.
Current consensus DPS estimate is 34.3, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 17.1.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 36.00 cents and EPS of 47.20 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.93.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 46.9, implying annual growth of 6.6%.
Current consensus DPS estimate is 36.3, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 16.0.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE
