{"id":79917,"date":"2019-04-11T11:08:49","date_gmt":"2019-04-11T01:08:49","guid":{"rendered":"https:\/\/www.fnarena.com\/index.php\/2019\/04\/11\/australian-broker-call-extra-edition-apr-11-2019\/"},"modified":"2019-04-11T11:08:49","modified_gmt":"2019-04-11T01:08:49","slug":"australian-broker-call-extra-edition-apr-11-2019","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2019\/04\/11\/australian-broker-call-extra-edition-apr-11-2019\/","title":{"rendered":"Australian Broker Call *Extra* Edition – Apr 11, 2019"},"content":{"rendered":"

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.<\/strong><\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

COMPANIES DISCUSSED IN THIS ISSUE<\/strong><\/p>\n

Click on a symbol for fast access.
\nThe number next to the symbol represents the number of brokers covering it for this report -(if more than 1)<\/p>\n

AHZ<\/a>   AMA<\/a>   BTH<\/a>   FAR<\/a>   LCK<\/a>   LVT<\/a>   MSV<\/a>   NIC<\/a>   SHV (3)<\/a>   SPL<\/a>   SXE<\/a>   SXL<\/a>   Z1P<\/a>  <\/p>\n

AHZ<\/a>    ADMEDUS LTD<\/h2>\n

Pharmaceuticals & Biotech\/Lifesciences – Overnight Price: $0.07 <\/strong><\/p>\n

NDF Research rates ((AHZ)) as Initiation of coverage with Buy High Risk (1) –<\/p>\n

NDF Research has initiated coverage of tissue engineering company Admedus, and bravely leads with a Buy, high risk, rating.<\/p>\n

NDF expects a re-rating of Admedus given the biotech analyst's discounted-cash-flow valuation pegs the stock at between 8c per share and 21c (best-case scenario), well above the share price. Target price is 15c per share, in the mid-range of valuation.<\/p>\n

The stock is reporting revenue of $11.1m and the analyst perceives market potential to be in the hundreds of millions. NDF expects strong growth in the CardioCel and VascuCel products; and notes the company is developing ADAPT technology that allows its products to be used in Transcatheter Aortic Valve Replacement – a market currently pegged at US$3.5bn and forecast to grow to US$12bn by 2025. NDF Research believes the stock has a competitive advantage in this market.<\/p>\n

This report was published on March 20, 2019.<\/p>\n

Target price is $0.15<\/strong> Current Price is $0.07 <\/strong> Difference: $0.08<\/strong>
\nIf AHZ<\/strong> meets the NDF Research target it will return approximately 114%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

AMA<\/a>    AMA GROUP LIMITED<\/h2>\n

Automobiles & Components – Overnight Price: $1.15 <\/strong><\/p>\n

Wilsons rates ((AMA)) as Hold (3) –<\/p>\n

Increasing vehicle complexity is pushing up costs for the industry, assure analysts at Wilsons. They anticipate ongoing pressure on the company's margins, also because motor vehicle insurance claims continue growing at a faster pace than AMA Group's organic growth rate.<\/p>\n

For the company to achieve its targeted 10% operational margin (ebitda), the analysts suggest insurers need to play ball. In the absence of this, margin pressure is likely to remain a defining feature.<\/p>\n

Wilsons acknowledges acquisition activity and total revenue growth continues to track well, but the analysts await signs of sustainable margins and profitability before turning more positive. Hold. Target price $1.08.<\/p>\n

This report was released on April 11, 2019.<\/p>\n

Target price is $1.08<\/strong> Current Price is $1.15 <\/strong> Difference: minus $0.07<\/strong> (current price is over target).
\nIf AMA<\/strong> meets the Wilsons target it will return approximately minus 6%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Wilsons forecasts a full year FY19<\/strong> dividend of 3.00<\/strong> cents and EPS of 5.70<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 2.61%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.18<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Wilsons forecasts a full year FY20<\/strong> dividend of 3.50<\/strong> cents and EPS of 7.00<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 3.04%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.43<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 1.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

BTH<\/a>    BIGTINCAN HOLDINGS LIMITED<\/h2>\n

Cloud services – Overnight Price: $0.54 <\/strong><\/p>\n

Canaccord Genuity rates ((BTH)) as Buy (1) –<\/p>\n

Bigtincan has upgraded revenue growth to the top end of guidance at 40%, thanks to contract enhancements and customer win in new countries and industries, and slowing churn.<\/p>\n

The broker notes that Bigtincan reports a four-year annual recurring revenue organic compound annual growth rate of greater than 40% and has gained larger "lighthouse" contracts – a sign of a maturing stock. <\/p>\n

Cannacord says the stock appears undervalued compared to other mature stocks in the sector, and expects medium-term growth and strong industry tailwinds to aid a re-rating.<\/p>\n

Bigtincan is a provider of cloud-based sales enablement software to large enterprises with global and mobile sales forces and has more than 400 enterprise customers and more than 150,000 users. It has more than 100 technology integrations across a range of end-user functions.<\/p>\n

Cannacord Genuity retains a Buy rating and 60c target price.<\/p>\n

This report was published on April 3, 2019.<\/p>\n

Target price is $0.60<\/strong> Current Price is $0.54 <\/strong> Difference: $0.06<\/strong>
\nIf BTH<\/strong> meets the Canaccord Genuity target it will return approximately 11%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 2.00<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.00<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 2.00<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.00<\/strong>.<\/p><\/blockquote>\n

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

FAR<\/a>    FAR LIMITED<\/h2>\n

Crude Oil – Overnight Price: $0.06 <\/strong><\/p>\n

Canaccord Genuity rates ((FAR)) as Buy (1) –<\/p>\n

Cannacord Genuity has lowered its target price for FAR Ltd but retains its Buy rating.<\/p>\n

The broker notes that despite SNE being a major global oil discovery, FAR has been unable to grain traction, and examines the potential valuation outcomes of selling the asset pre-funding vs progressing through the US$2bn development.<\/p>\n

Target price falls to 12c from 14c to reflect a cut in the broker's oil-price assumptions. Earnings per share forecasts improve in FY19 and FY20.<\/p>\n

This report was published on March 31, 2019.<\/p>\n

Target price is $12.00<\/strong> Current Price is $0.06 <\/strong> Difference: $11.94<\/strong>
\nIf FAR<\/strong> meets the Canaccord Genuity target it will return approximately 19900%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in December.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of 6.00<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.00<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 4.00<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.50<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 1.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

LCK<\/a>    LEIGH CREEK ENERGY LIMITED<\/h2>\n

NatGas – Overnight Price: $0.32 <\/strong><\/p>\n

CCZ Equities rates ((LCK)) as Speculative Buy (1) –<\/p>\n

Leigh Creek Energy has announced maiden 2P reserves totalling 1.153 petajoules, propelling it into the East Coast big time. CCZ Equities notes Leigh Creek is one of few large uncontracted sources of energy on the East Coast, where fundamentals appear firm.<\/p>\n

The broker retains a Speculative Buy recommendation and boosts its target price to 80c a share to reflect an increase in valuation to 50c per gigajoule of enterprise valuation, with funding secured. This compares to $1.52 per gigajoule for the peer average.<\/p>\n

This report was released on March 28, 2019.<\/p>\n

Target price is $0.80<\/strong> Current Price is $0.32 <\/strong> Difference: $0.48<\/strong>
\nIf LCK<\/strong> meets the CCZ Equities target it will return approximately 150%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

LVT<\/a>    LIVETILES LIMITED<\/h2>\n

Cloud services – Overnight Price: $0.59 <\/strong><\/p>\n

Wilsons rates ((LVT)) as Sell (5) –<\/p>\n

Looking through the headline numbers, which included the acquired Wizdom, Wilsons analysts, already sceptical beforehand, are now even more convinced the market is allocating too much optimism to this emerging technology story.<\/p>\n

Organic growth is slowing, points out Wilsons, and it appears running the core operations is becoming less efficient as well (more opex required). Don't overpay, remains the warning that is pretty much hereby reiterated.<\/p>\n

Earnings estimates have been put under review. Also, Wilsons is still awaiting an inflection point in the company's cash burn trajectory. This report was released on April 10, 2019.<\/p>\n

Target price is $0.24<\/strong> Current Price is $0.59 <\/strong> Difference: minus $0.35<\/strong> (current price is over target).
\nIf LVT<\/strong> meets the Wilsons target it will return approximately minus 59%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Wilsons forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 5.10<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.57<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Wilsons forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 3.40<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.35<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 1.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

MSV<\/a>    MITCHELL SERVICES LIMITED<\/h2>\n

Mining Sector Contracting – Overnight Price: $0.06 <\/strong><\/p>\n

Wilsons rates ((MSV)) as Initiation of coverage with Buy (1) –<\/p>\n

Wilsons initiates coverage of Mitchell Services with a Buy rating and sets a target price of 10c. Mitchell Services is a domestic drilling company specialising in coal and gold. <\/p>\n

The broker believes an expansion of exploration and production should yield higher earnings for the stock, given miners are posting record cash generation and given many competitors have withdrawn from the market.<\/p>\n

The broker says the company outperforms peers on several metrics, including rates of return and margins, and expects operating leverage to accelerate thanks to lower depreciation. The company recently declared a special fully franked 1c dividend and is trading at a price-earnings ratio of 9.1x, well below sector multiples.<\/p>\n

This report was published on April 3, 2019.<\/p>\n

Target price is $0.10<\/strong> Current Price is $0.06 <\/strong> Difference: $0.04<\/strong>
\nIf MSV<\/strong> meets the Wilsons target it will return approximately 67%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Wilsons forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of 9.00<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.67<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

<\/blockquote>\n

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

NIC<\/a>    NICKEL MINES LIMITED<\/h2>\n

Nickel – Overnight Price: $0.00 <\/strong><\/p>\n

Canaccord Genuity rates ((NIC)) as Initiation of coverage with Buy (1) –<\/p>\n

ASX-listed Nickel Mines currently holds an 80% interest in the Hengjaya nickel mine located in Morowali Regency, Central Sulawesi, Indonesia. The company also entered into a Collaboration and Subscription Agreement with Tsingshan for the production of up to 300ktpa of Nickel Pig Iron (NPI).<\/p>\n

Canaccord Genuity was co-manager of the company's IPO in August 2018. The broker has now officially initiated coverage with a Buy rating and maiden 90c price target.<\/p>\n

The broker in particular seems excited about Nickel Mines' superior leverage to the price of nickel, also suggesting investors are not yet familiar with nickel pig iron and its idiosyncratic characteristics (which look promising). All in all, the analysts believe the company offers "compelling nickel growth optionality".<\/p>\n

Target price is $0.90<\/strong><\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.14<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.69<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00<\/strong>.<\/p><\/blockquote>\n

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

SHV<\/a>    SELECT HARVESTS LIMITED<\/h2>\n

Agriculture – Overnight Price: $6.78 <\/strong><\/p>\n

Bell Potter rates ((SHV)) as Buy (1) –<\/p>\n

Bell Potter has downgraded its FY20 and FY21 earnings per share forecasts for almond producer Select Harvests by -5% and -2% respectively to reflect higher water cost assumptions in the outer years.<\/p>\n

A positive trading update from almond grower Select Harvests (prices have risen to $8.40-$8.70 per kilogram from $8.20-$8.50) was already factored into broker's FY19 estimates.<\/p>\n

Bell Potter remains positive on the stock, believing headwinds are cyclical rather than structural, and notes strong operating leverage to the almond price given the sharp increase in production.<\/p>\n

Target price inches up to $8 from $7.95. Buy recommendation retained.<\/p>\n

This report was published on April 1, 2019.<\/p>\n

Target price is $8.00<\/strong> Current Price is $6.78 <\/strong> Difference: $1.22<\/strong>
\nIf SHV<\/strong> meets the Bell Potter target it will return approximately 18%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Bell Potter forecasts a full year FY19<\/strong> dividend of 16.00<\/strong> cents and EPS of 30.60<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 2.36%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.16<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Bell Potter forecasts a full year FY20<\/strong> dividend of 23.00<\/strong> cents and EPS of 41.10<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 3.39%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 0.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

\n

E.L. & C Baillieu rates ((SHV)) as Hold (3) –<\/p>\n

Baillieu has upgraded FY19 earnings-per-share forecasts 19% in response to a positive trading update from almond producer Select Harvests.<\/p>\n

The broker notes the company has achieved industry yields 10% above average, just as the Californian almond crop disappointed, boosting prices. Demand from China is also strong. <\/p>\n

More than 50% of Select Harvest's FY19 crop has been sold above previous price guidance, and the balance is being marketed at or above previous guidance, the company forecasting an FY19 price range of $8.40-$8.70 per kilogram, compared with $8.20-$8.50 previously. <\/p>\n

Operational efficiencies have increased, which combined with the positive market, have outweighed concerns over higher water costs. Earnings-per-share forecasts rise 6% to 19% across FY19-FY21, with growth weighted to earlier years. Target price rises to $6.68 from $6.20. Hold rating retained, the broker believing the stock is fairly valued.<\/p>\n

This report was released on April 2, 2019.<\/p>\n

Target price is $6.68<\/strong> Current Price is $6.78 <\/strong> Difference: minus $0.1<\/strong> (current price is over target).
\nIf SHV<\/strong> meets the E.L. & C Baillieu target it will return approximately minus 1%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

E.L. & C Baillieu forecasts a full year FY19<\/strong> dividend of 17.00<\/strong> cents and EPS of 35.30<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 2.51%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.21<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

E.L. & C Baillieu forecasts a full year FY20<\/strong> dividend of 17.00<\/strong> cents and EPS of 37.30<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 2.51%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.18<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 0.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

\n

Wilsons rates ((SHV)) as Hold (3) –<\/p>\n

Almond grower Select Harvests has announced a positive trading update, triggering a 37% rise in Wilsons' FY19 earnings per share forecast, and a 5% rise in the outer years.<\/p>\n

The broker says that while some of the improvement is weather-related, it notes strong structural improvement, pointing to the flow-through of new technology and improved horticultural practices.<\/p>\n

Wilsons says this should sustain above-industry-average yields (currently 10% above peers). Select Harvest has upgraded price guidance to $8.40-$8.70 per kilogram, from $8.20-$8.50.<\/p>\n

Target price rises to $6.60 to reflect higher earnings estimates. Hold rating retained, with the usual agricultural provisos of weather, almond price, FX (the stock is 70% USD hedged) and gearing. <\/p>\n

This report was published on April 2, 2019.<\/p>\n

Target price is $6.60<\/strong> Current Price is $6.78 <\/strong> Difference: minus $0.18<\/strong> (current price is over target).
\nIf SHV<\/strong> meets the Wilsons target it will return approximately minus 3%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Wilsons forecasts a full year FY19<\/strong> dividend of 19.60<\/strong> cents and EPS of 39.10<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 2.89%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.34<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Wilsons forecasts a full year FY20<\/strong> dividend of 20.20<\/strong> cents and EPS of 40.50<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 2.98%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.74<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 0.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

SPL<\/a>    STARPHARMA HOLDINGS LIMITED<\/h2>\n

Pharmaceuticals & Biotech\/Lifesciences – Overnight Price: $1.07 <\/strong><\/p>\n

Bell Potter rates ((SPL)) as Speculative Buy (1) –<\/p>\n

The broker now expects net losses for FY19 and FY20 versus an earlier net profit forecast, after revising timeline and quantum upfront milestones and a revised timeline for receipt of milestone payment from AstraZeneca, increased operating expenditure due to the FDA's demands for further trials on VivaGel, and reduced revenue estimates for VivaGel coated condom.  <\/p>\n

But Starpharma remains one of the broker's top picks for 2019.<\/p>\n

Starpharma and partners are preparing for the commercial launch of its VivaGel over-the-counter bacterial vaginosis product prior to June 30. Stock is being shipped to Australia this week.<\/p>\n

VivaGel is to be launched in Australia, Europe, the Middle East, Africa and Latin America and has one hurdle (most likely a Phase 3 trial) to go before securing US FDA approval.<\/p>\n

Target price edges up 1c to $1.89 from $1.88, and Bell Potter rates the stock as a Speculative Buy.<\/p>\n

This report was released on April 4, 2019.<\/p>\n

Target price is $1.89<\/strong> Current Price is $1.07 <\/strong> Difference: $0.82<\/strong>
\nIf SPL<\/strong> meets the Bell Potter target it will return approximately 77%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Bell Potter forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 4.05<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.42<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Bell Potter forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 1.13<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 94.69<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 1.0<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

SXE<\/a>    SOUTHERN CROSS ELECTRICAL ENGINEERING LTD<\/h2>\n

Mining Sector Contracting – Overnight Price: $0.56 <\/strong><\/p>\n

Moelis rates ((SXE)) as Buy (1) –<\/p>\n

Moelis Australia has reiterated its Buy recommendation for Southern Cross Electrical.<\/p>\n

The broker notes the stock is trading well below its peers, and the share price has fallen -16% in the past few months despite a strong pipeline, a diversified earnings base, solid trading results, and a positive outlook for its markets.<\/p>\n

Moelis says the key growth drivers include: expected growth in net office supply in the Sydney CBD and Canberra office markets; massive multi-year government infrastructure spend; and a forecast rise in construction activity in the resources and oil and gas sectors.<\/p>\n

It also notes the bias to late-stage contracts reduces the company's risk. Given it is early days in the infrastructure and resources investment cycle, this also suggests strength in outer years. Target price is steady at 88c. Buy reiterated.<\/p>\n

This report was published on April 1, 2019.<\/p>\n

Target price is $0.88<\/strong> Current Price is $0.56 <\/strong> Difference: $0.32<\/strong>
\nIf SXE<\/strong> meets the Moelis target it will return approximately 57%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Moelis forecasts a full year FY19<\/strong> dividend of 3.00<\/strong> cents and EPS of 5.30<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 5.36%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.57<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Moelis forecasts a full year FY20<\/strong> dividend of 3.00<\/strong> cents and EPS of 6.10<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 5.36%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.18<\/strong>.<\/p><\/blockquote>\n

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

SXL<\/a>    SOUTHERN CROSS MEDIA GROUP<\/h2>\n

Print, Radio & TV – Overnight Price: $1.16 <\/strong><\/p>\n

Canaccord Genuity rates ((SXL)) as Initiation of coverage with Buy (1) –<\/p>\n

Cannacord Genuity initiates coverage of Southern Cross Media with a Buy rating.<\/p>\n

The broker notes audio represented roughly 70% of revenue and 83% of earnings before interest, tax depreciation and amortisation, excluding corporate costs. Given radio remains resilient while TV continues to suffer, this is taken as a positive.<\/p>\n

The broker notes the stock is trading on an FY19 price earnings ratio of 11.5x, which compares favourably to its closest competitor HT1 at 13.1x, while its high depreciation and amortisation profile results in an enterprise value for FY20 2x higher than HT1.<\/p>\n

Cannacord believes Southern Cross Media could outpace the valuation, but expects it to outperform regardless in the short term, given its superior radio comparatives, superior ratings momentum, and management changes in rivals. Target price starts at $1.36.<\/p>\n

This report was published on March 31, 2019.<\/p>\n

Target price is $1.36<\/strong> Current Price is $1.16 <\/strong> Difference: $0.2<\/strong>
\nIf SXL<\/strong> meets the Canaccord Genuity target it will return approximately 17%<\/strong> (excluding dividends, fees and charges).
\nCurrent consensus price target is $1.10<\/strong>, suggesting downside of -5.2%<\/strong>(ex-dividends)
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY19<\/strong> dividend of 7.75<\/strong> cents and EPS of 10.20<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 6.68%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.37<\/strong>.<\/p>\n

How do these forecasts compare to market consensus projections?<\/p>\n

Current consensus EPS estimate is 10.4<\/strong>, implying annual growth of 5373.7%<\/strong>.
\nCurrent consensus DPS estimate is 7.7<\/strong>, implying a prospective dividend yield of 6.6%<\/strong>.
\nCurrent consensus EPS estimate suggests the PER is 11.2<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 7.75<\/strong> cents and EPS of 10.50<\/strong> cents.
\nAt the last closing share price the estimated dividend yield is 6.68%<\/strong>.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.05<\/strong>.<\/p>\n

How do these forecasts compare to market consensus projections?<\/p>\n

Current consensus EPS estimate is 10.7<\/strong>, implying annual growth of 2.9%<\/strong>.
\nCurrent consensus DPS estimate is 8.3<\/strong>, implying a prospective dividend yield of 7.2%<\/strong>.
\nCurrent consensus EPS estimate suggests the PER is 10.8<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 0.3<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

Z1P<\/a>    ZIP CO LIMITED<\/h2>\n

Business & Consumer Credit – Overnight Price: $2.02 <\/strong><\/p>\n

Shaw and Partners rates ((Z1P)) as Buy (1) –<\/p>\n

Shaw and Partners has reiterated its Buy High Risk rating for Zip Co after conducting a post-capital raising research update.<\/p>\n

The broker says the stock boasts structurally attractive tailwinds; multiple catalysts including operating leverage; pipeline of larger merchants; accelerating customer acquisitions and spend, product initiatives; new geographies; Westpac's notification right for investment and anti-dilution; expected lower financing costs; and is one of the fastest growing and most exciting ASX "tech" stories. <\/p>\n

Shaw upgrades its valuation by 29% to reflect the capital raising. Westpac has, as the broker anticipated, exercised its top-up, so Zip is fully funded to proceed with its $1bn receivables book, accelerate product development and proceed with expansion plans.<\/p>\n

Target price steady at $2.06. Buy High Risk, reiterated.<\/p>\n

This report was published on April 1, 2019.<\/p>\n

Target price is $2.06<\/strong> Current Price is $2.02 <\/strong> Difference: $0.04<\/strong>
\nIf Z1P<\/strong> meets the Shaw and Partners target it will return approximately 2%<\/strong> (excluding dividends, fees and charges).
\nThe company's fiscal year ends in June.<\/p>\n

Forecast for FY19:<\/strong><\/p>\n

Shaw and Partners forecasts a full year FY19<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 1.80<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 112.22<\/strong>.<\/p><\/blockquote>\n

Forecast for FY20:<\/strong><\/p>\n

Shaw and Partners forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 1.20<\/strong> cents.
\nAt the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 168.33<\/strong>.<\/p><\/blockquote>\n

Market Sentiment: 0.8<\/strong>
\nAll consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

\n

Disclaimer:<\/strong>
\nThe 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.<\/p>\n

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, NDF Research, Pitt Street Research, and TMT Analytics.<\/p>\n

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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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