{"id":89580,"date":"2020-10-28T10:00:18","date_gmt":"2020-10-27T23:00:18","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=89580"},"modified":"2020-10-28T10:00:22","modified_gmt":"2020-10-27T23:00:22","slug":"australian-broker-call-extra-edition-oct-28-2020","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/10\/28\/australian-broker-call-extra-edition-oct-28-2020\/","title":{"rendered":"Australian Broker Call *Extra* Edition – Oct 28, 2020"},"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.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)<\/p>\n

APT<\/a>   BET<\/a>   BOQ<\/a>   BSA<\/a>   BUB<\/a>   BVS<\/a>   CGF (2)<\/a>   CWY<\/a>   DUB<\/a>   GDG<\/a>   HUB (2)<\/a>   MAD<\/a>   MNF<\/a>   MSB<\/a>   NXT<\/a>   ORI<\/a>   PFP (2)<\/a>   SSG<\/a>   ST1<\/a>   SXY (2)<\/a>   VTI<\/a>   Z1P<\/a>  <\/p>\n

APT<\/a>    AFTERPAY LIMITED<\/h2>\n

Business & Consumer Credit – Overnight Price: $95.98 <\/strong><\/p>\n

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

Afterpay received clearance from AUSTRAC after an extensive review and external audit. Bell Potter is pleased with the better than expected outcome.<\/p>\n

The company has launched its in-store offering in the US (in time for Christmas). The broker considers this an important step in the company becoming mainstream and a key driver to its customer growth upgrade.<\/p>\n

Revenue estimates for FY21-23 have been revised upwards, driven by higher customer estimates for the three financial years. <\/p>\n

The Buy rating is unchanged and the target price is increased to $121 from $99.10.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $121.00<\/strong> Current Price is $95.98 <\/strong> Difference: $25.02<\/strong>
If APT<\/strong> meets the Bell Potter target it will return approximately 26%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $87.10<\/strong>, suggesting downside of -9.3%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of 12.70<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 755.75<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 9.1<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is 1054.7<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of 27.80<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 345.25<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 40.2<\/strong>, implying annual growth of 341.8%<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is 238.8<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.2<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

BET<\/a>    BETMAKERS TECHNOLOGY GROUP LTD<\/h2>\n

Gaming – Overnight Price: $0.40 <\/strong><\/p>\n

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

Betmakers Technology Group's September quarter demonstrated the company is leveraged to its domestic wagering turnover, comments Canaccord Genuity.<\/p>\n

The group's annualised revenue run-rate of $16m was driven entirely by its Australian operations, highlights the broker, which included increased wagering on new online platforms the group provides trading services for and customer acquisition services provided to corporate bookmakers.<\/p>\n

In the broker's view, December revenues are expected to climb even more with spring racing events a catalyst. The stronger wagering activity momentum has de-risked the broker's near-term revenue forecasts and ample net cash ensures the company is considered well funded for organic\/ acquisitive growth options.<\/p>\n

Canaccord Genuity retains its Buy recommendation with the target price increased to $0.62 from $0.50.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $0.62<\/strong> Current Price is $0.40 <\/strong> Difference: $0.22<\/strong>
If BET<\/strong> meets the Canaccord Genuity target it will return approximately 55%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

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

\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of 0.00<\/strong> cents.<\/p>\n<\/blockquote>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of 1.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00<\/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

BOQ<\/a>    BANK OF QUEENSLAND LIMITED<\/h2>\n

Banks – Overnight Price: $6.51 <\/strong><\/p>\n

Bell Potter rates ((BOQ)) as Hold (3) –<\/p>\n

Bank of Queensland’s FY20 result included a net profit of $115m, lower than Bell Potter's estimated $141m. Loan impairment expenses were -$175m.<\/p>\n

A full year dividend of 12c (fully franked) proved marginally higher than the broker's expected 11c. Bell Potter views this as a credible result despite covid-19 with most metrics in-line with expectations.<\/p>\n

The broker has increased its medium-term cash net profit forecasts for FY21-23 led mostly by a forecast higher net interest margin that is expected to more than offset the lower non-interest income and higher operating expenses.<\/p>\n

Bell Potter retains its Hold rating with the target rising to $7.20 from $6.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $7.20<\/strong> Current Price is $6.51 <\/strong> Difference: $0.69<\/strong>
If BOQ<\/strong> meets the Bell Potter target it will return approximately 11%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $6.85<\/strong>, suggesting upside of 5.2%<\/strong>(ex-dividends)
The company's fiscal year ends in August.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 27.00<\/strong> cents and EPS of 51.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.15%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.76<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 50.4<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is 24.3<\/strong>, implying a prospective dividend yield of 3.7%<\/strong>.
Current consensus EPS estimate suggests the PER is 12.9<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 35.00<\/strong> cents and EPS of 56.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.38%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.62<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 56.7<\/strong>, implying annual growth of 12.5%<\/strong>.
Current consensus DPS estimate is 38.1<\/strong>, implying a prospective dividend yield of 5.9%<\/strong>.
Current consensus EPS estimate suggests the PER is 11.5<\/strong>.<\/p>\n<\/blockquote>\n

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

BSA<\/a>    BSA LIMITED<\/h2>\n

Industrial Sector Contractors & Engineers – Overnight Price: $0.28 <\/strong><\/p>\n

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

BSA has forayed into the wireless telecommunication market via the acquisition of Catalyst ONE, a business providing front-end solutions to the industry from site identification, design and project management.<\/p>\n

The services provider will pay upfront cash of -$2m which can go up to a maximum of -$5.5m over a two-year period.<\/p>\n

Canaccord Genuity notes Catalyst ONE has operations in Sydney and Melbourne and the broker expects management will look to expand the business geographically within the broader wireless telecommunications market.<\/p>\n

The broker has not made any changes to its forecasts since it believes the sectors BSA is exposed to will continue to feel covid-19 related headwinds till the first half of FY21.<\/p>\n

The Buy rating is retained with a target price of $0.45.<\/p>\n

The report was published on October 14, 2020.<\/p>\n

Target price is $0.45<\/strong> Current Price is $0.28 <\/strong> Difference: $0.17<\/strong>
If BSA<\/strong> meets the Canaccord Genuity target it will return approximately 61%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY21<\/strong> dividend of 1.00<\/strong> cents and EPS of 2.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.57%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY22<\/strong> dividend of 1.00<\/strong> cents and EPS of 3.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.57%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.33<\/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

BUB<\/a>    BUBS AUSTRALIA LIMITED<\/h2>\n

Dairy – Overnight Price: $0.71 <\/strong><\/p>\n

Bell Potter rates ((BUB)) as Hold (3) –<\/p>\n

Bubs Australia’s FY20 result noted an operating loss of -$9.1m, higher than Bell Potter's expected -$5.2m. Revenue was up 22% versus last year but was also lower than the broker's forecast.<\/p>\n

The company did not provide any formal FY21 earnings guidance except for setting a revenue target of $400m by FY25.<\/p>\n

The broker has changed its forecast from expecting an operating profit to expecting an operating profit for FY21-22 led by higher expected expenditure on brand support and overheads.<\/p>\n

Bell Potter retains its Hold rating with the target price declining to $0.85 from $1.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $0.85<\/strong> Current Price is $0.71 <\/strong> Difference: $0.14<\/strong>
If BUB<\/strong> meets the Bell Potter target it will return approximately 20%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.90<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 78.89<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.60<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 118.33<\/strong>.<\/p>\n<\/blockquote>\n

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

BVS<\/a>    BRAVURA SOLUTIONS LIMITED<\/h2>\n

Wealth Management & Investments – Overnight Price: $3.13 <\/strong><\/p>\n

Goldman Sachs rates ((BVS)) as Buy (1) –<\/p>\n

Bravura Solutions has acquired Delta Financial Systems, a UK based software company specialised in using technology to manage complex pensions administration of small self-administered schemes and self-invested personal pensions.<\/p>\n

The broker finds the acquisition is complementary to Bravura Solution's core Sonata offering and it also broadens its products and services.<\/p>\n

Goldman Sachs believes Bravura Solutions is well placed due to a high degree of recurring revenues and the emergence of a microservices ecosystem strategy that could see Bravura increase its scope of sales and a net cash position acting as a buffer.<\/p>\n

Goldman Sachs maintains its Buy rating with a target price of $4.80.<\/p>\n

This report was published on October 12, 2020.<\/p>\n

Target price is $4.80<\/strong> Current Price is $3.13 <\/strong> Difference: $1.67<\/strong>
If BVS<\/strong> meets the Goldman Sachs target it will return approximately 53%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 12.00<\/strong> cents and EPS of 17.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.83%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.41<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 13.00<\/strong> cents and EPS of 19.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.15%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.47<\/strong>.<\/p>\n<\/blockquote>\n

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

CGF<\/a>    CHALLENGER LIMITED<\/h2>\n

Wealth Management & Investments – Overnight Price: $4.74 <\/strong><\/p>\n

Bell Potter rates ((CGF)) as Upgrade to Buy from Hold (1) –<\/p>\n

Bell Potter has upgraded Challenger to Buy from Hold following the company's September quarter update.<\/p>\n

Total funds under management (FUM) for the quarter were $88.8bn versus the broker's estimate of $83.5bn. Funds net-flows were $3.6bn versus Bell Potter's expected $0.7bn. The Life business did well and the company anticipates improvement in margins.<\/p>\n

Challenger has reiterated its FY21 profit before tax guidance to range between $390- $440m. The broker expects the company to end up at the upper end of the guidance range.<\/p>\n

The target price rises to $4.70 from $4.20.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $4.70<\/strong> Current Price is $4.74 <\/strong> Difference: minus $0.04<\/strong> (current price is over target).
If CGF<\/strong> meets the Bell Potter target it will return approximately minus 1%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.55<\/strong>, suggesting downside of -4.1%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 20.20<\/strong> cents and EPS of 44.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.26%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.58<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 38.8<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is 20.2<\/strong>, implying a prospective dividend yield of 4.3%<\/strong>.
Current consensus EPS estimate suggests the PER is 12.2<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 22.60<\/strong> cents and EPS of 49.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.77%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.52<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 42.3<\/strong>, implying annual growth of 9.0%<\/strong>.
Current consensus DPS estimate is 24.6<\/strong>, implying a prospective dividend yield of 5.2%<\/strong>.
Current consensus EPS estimate suggests the PER is 11.2<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Goldman Sachs rates ((CGF)) as Neutral (3) –<\/p>\n

Challenger's first-quarter trends were ahead of Goldman Sachs's expectations for the core businesses life insurance and funds management. Funds under management grew by 4.7% in the quarter, beating Goldman Sach's previous first-half forecast.<\/p>\n

Annuity sales grew by 46% over the last year with domestic fixed-term sales up 20% and lifetime sales up 119%. MS&AD Insurance sales rose 79% versus last year.<\/p>\n

The FY21 pre-tax profit guidance range remains unchanged at $390-$440m (the broker expects $415m) but is skewed towards the second half.<\/p>\n

Challenger is positive about the outlook and has seen advisor movement stabilise across the market, along with a pipeline of prospective clients for its Guaranteed index return (GIR) product.<\/p>\n

The update has prompted the broker to increase its net profit estimate for FY21-23 by 2% leading to an increase in the target price to $4.68 from $4.63.<\/p>\n

The Neutral rating has been retained.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $4.68<\/strong> Current Price is $4.74 <\/strong> Difference: minus $0.06<\/strong> (current price is over target).
If CGF<\/strong> meets the Goldman Sachs target it will return approximately minus 1%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.55<\/strong>, suggesting downside of -4.1%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 21.00<\/strong> cents and EPS of 36.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.43%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.17<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 38.8<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is 20.2<\/strong>, implying a prospective dividend yield of 4.3%<\/strong>.
Current consensus EPS estimate suggests the PER is 12.2<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 24.00<\/strong> cents and EPS of 42.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.06%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.29<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 42.3<\/strong>, implying annual growth of 9.0%<\/strong>.
Current consensus DPS estimate is 24.6<\/strong>, implying a prospective dividend yield of 5.2%<\/strong>.
Current consensus EPS estimate suggests the PER is 11.2<\/strong>.<\/p>\n<\/blockquote>\n

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

CWY<\/a>    CLEANAWAY WASTE MANAGEMENT LIMITED<\/h2>\n

Industrial Sector Contractors & Engineers – Overnight Price: $2.11 <\/strong><\/p>\n

Goldman Sachs rates ((CWY)) as Neutral (3) –<\/p>\n

Cleanaway Waste Management expects FY21 operating income to be somewhat higher versus last year, subject to a recovery in the second half. Its first-quarter operating income was in-line with the FY20 run rate, notes Goldman Sachs.<\/p>\n

Goldman Sachs's operating income forecast aligns with the company's guidance, equally assuming a recovery in the second half.<\/p>\n

Regarding the workplace misconduct issues highlighted by the media, the broker points out management has implemented some measures and intends to disclose people-related metrics and targets going forward to ensure transparency and accountability.<\/p>\n

The Neutral rating is retained with a $2.45 target price.<\/p>\n

This report was published on October 14, 2020<\/p>\n

Target price is $2.45<\/strong> Current Price is $2.11 <\/strong> Difference: $0.34<\/strong>
If CWY<\/strong> meets the Goldman Sachs target it will return approximately 16%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $2.52<\/strong>, suggesting upside of 19.2%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 5.00<\/strong> cents and EPS of 8.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.37%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.37<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 8.0<\/strong>, implying annual growth of 45.5%<\/strong>.
Current consensus DPS estimate is 4.5<\/strong>, implying a prospective dividend yield of 2.1%<\/strong>.
Current consensus EPS estimate suggests the PER is 26.4<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 6.00<\/strong> cents and EPS of 10.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.84%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.10<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 9.2<\/strong>, implying annual growth of 15.0%<\/strong>.
Current consensus DPS estimate is 5.4<\/strong>, implying a prospective dividend yield of 2.6%<\/strong>.
Current consensus EPS estimate suggests the PER is 22.9<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.6<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

DUB<\/a>    DUBBER CORPORATION LIMITED<\/h2>\n

Overnight Price: $1.20 <\/strong><\/p>\n

Shaw and Partners rates ((DUB)) as Initiation of coverage with Buy (1) –<\/p>\n

Shaw and Partners initiates coverage on Dubber Corp with a Buy recommendation (High risk) and a target price of $1.85.<\/p>\n

Dubber Corp provides public cloud call recording infrastructure globally. Products include call recording, sentiment analysis, reporting, transcription etc via a subscription-based model. <\/p>\n

Shaw and Partners considers Dubber could represent the infrastructure for the future of compliance, sales, reporting, business continuity and unified communications globally. The company noted an acceleration in users with 70k net users added in the second-half and a yearly growth rate of 165%.<\/p>\n

The broker is of the view the market has not caught on to Dubber's growth dynamics. Covid-19 may accelerate growth even more. The broker considers this to be one of few companies that will "grow faster as it gets bigger". <\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $1.85<\/strong> Current Price is $1.20 <\/strong> Difference: $0.65<\/strong>
If DUB<\/strong> meets the Shaw and Partners target it will return approximately 54%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 5.30<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.64<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 4.80<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.00<\/strong>.<\/p>\n<\/blockquote>\n

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

GDG<\/a>    GENERATION DEVELOPMENT GROUP LIMITED<\/h2>\n

Wealth Management & Investments – Overnight Price: $0.67 <\/strong><\/p>\n

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

Generation Development Group's first-quarter investment bond sales inflows were $82m, lower than Moelis's estimated $88m.<\/p>\n

There was also a one-off circa -$7m redemption. However, Moelis considers the result to be of better quality than last year in terms of new bond applications and new advisers.<\/p>\n

Moelis's investment thesis on the stock includes the group's investment bond business. This business now comprises about 40% of industry sales inflows, highlights Moelis, with highly recurring revenues.<\/p>\n

Moelis reaffirms its Buy Rating with the target price rising to $1.10 from $1.08.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $1.10<\/strong> Current Price is $0.67 <\/strong> Difference: $0.43<\/strong>
If GDG<\/strong> meets the Moelis target it will return approximately 64%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Moelis forecasts a full year FY21<\/strong> dividend of 2.00<\/strong> cents and EPS of 1.20<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.99%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.83<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Moelis forecasts a full year FY22<\/strong> dividend of 2.00<\/strong> cents and EPS of 1.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.99%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.22<\/strong>.<\/p>\n<\/blockquote>\n

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

HUB<\/a>    HUB24 LIMITED<\/h2>\n

Wealth Management & Investments – Overnight Price: $20.97 <\/strong><\/p>\n

Goldman Sachs rates ((HUB)) as Buy (1) –<\/p>\n

Hub24's funds under administration (FUA) rose by 10.4% over the first quarter of FY21. The increase was a mix of net inflows of $1.4bn and a favourable market impact of $0.4bn. The platform's FUA guidance range aims at $28-$32bn by FY22.<\/p>\n

The platform added 101 new advisers during the quarter, up 27.1% versus last year. <\/p>\n

Goldman Sachs expects net FUA inflows of $5.4bn in FY21. Going forward, after a successful trial collaboration with Blackrock, Hub24 will be rolling out its retirement income product offerings nationally over the coming months.<\/p>\n

Continuing to see near term earnings risks skewed positively, Goldman Sachs maintains its Buy rating with the target price rising to $23.20 from $15.80.<\/p>\n

This report was published on October 13, 2020. <\/p>\n

Target price is $23.20<\/strong> Current Price is $20.97 <\/strong> Difference: $2.23<\/strong>
If HUB<\/strong> meets the Goldman Sachs target it will return approximately 11%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $19.27<\/strong>, suggesting downside of -8.1%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 13.00<\/strong> cents and EPS of 28.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 0.62%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 74.89<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 29.3<\/strong>, implying annual growth of 120.3%<\/strong>.
Current consensus DPS estimate is 12.3<\/strong>, implying a prospective dividend yield of 0.6%<\/strong>.
Current consensus EPS estimate suggests the PER is 71.6<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 20.00<\/strong> cents and EPS of 42.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 0.95%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.93<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 40.8<\/strong>, implying annual growth of 39.2%<\/strong>.
Current consensus DPS estimate is 19.0<\/strong>, implying a prospective dividend yield of 0.9%<\/strong>.
Current consensus EPS estimate suggests the PER is 51.4<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.2<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

\n

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

Hub24's first-quarter funds under management were up 32% versus last year and ahead of Shaw and Partner’s forecast. The company saw its market share improve to 2.1% in June 2020 from 1.6% last year.<\/p>\n

The broker is excited and notes Hub24's momentum continues to grow. Noting the platform has attractive financial metrics in a tough industry, the broker highlights Hub24 is generating a strong and attractive return on equity of 15%. This is considered solid for such a competitive and highly commoditised industry.<\/p>\n

The platform operator also boasts of a solid balance sheet, strong cash flows, no debt and access to an undrawn $5m working capital facility. Shaw and Partners expects Hub24's earnings will accelerate as the business benefits from economies of scale.<\/p>\n

The Buy rating is unchanged and the target price is increased to $22 from $16.50.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $22.00<\/strong> Current Price is $20.97 <\/strong> Difference: $1.03<\/strong>
If HUB<\/strong> meets the Shaw and Partners target it will return approximately 5%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $19.27<\/strong>, suggesting downside of -8.1%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY21<\/strong> dividend of 12.00<\/strong> cents and EPS of 28.60<\/strong> cents.
At the last closing share price the estimated dividend yield is 0.57%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.32<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 29.3<\/strong>, implying annual growth of 120.3%<\/strong>.
Current consensus DPS estimate is 12.3<\/strong>, implying a prospective dividend yield of 0.6%<\/strong>.
Current consensus EPS estimate suggests the PER is 71.6<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY22<\/strong> dividend of 18.00<\/strong> cents and EPS of 42.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 0.86%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.11<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 40.8<\/strong>, implying annual growth of 39.2%<\/strong>.
Current consensus DPS estimate is 19.0<\/strong>, implying a prospective dividend yield of 0.9%<\/strong>.
Current consensus EPS estimate suggests the PER is 51.4<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.2<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

MAD<\/a>    MADER GROUP LIMITED<\/h2>\n

Mining Sector Contracting – Overnight Price: $0.91 <\/strong><\/p>\n

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

Mader Group has entered into a three-year contract to provide heavy equipment to Nevada Gold Mines, the largest gold producing joint venture in the world (Barrick Gold and Newmont).<\/p>\n

Mader Group also announced the contract is "just one of several key contracts". Bell Potter notes Mader has a track record of growing key customer penetration.<\/p>\n

Mader's contract with Nevada Gold Mines, when added to the two Australian contracts (Roy Hill and John Holland) the company won in August, de-risks the broker's FY21 growth forecasts.<\/p>\n

Bell Potter reaffirms its Buy rating with a target price of $1.24.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $1.24<\/strong> Current Price is $0.91 <\/strong> Difference: $0.33<\/strong>
If MAD<\/strong> meets the Bell Potter target it will return approximately 36%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 5.14<\/strong> cents and EPS of 14.23<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.64%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.39<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 5.87<\/strong> cents and EPS of 17.46<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.45%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.21<\/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

MNF<\/a>    MNF GROUP LIMITED<\/h2>\n

Telecommunication – Overnight Price: $4.39 <\/strong><\/p>\n

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

US operator Bandwidth Inc acquired the privately-owned Voxbone, a Belgium-based provider of cloud communications services for EUR446m. The broker notes the projected revenue of US$85m implies a revenue multiple paid of around 6x.<\/p>\n

Canaccord Genuity considers Voxbone's services similar to MNF Group's wholesale offerings (which according to the broker is the key to MNF's investment case). If the broker applies Voxbone's revenue mutliple to the group's wholesale segment's combined recurring revenue, the valuation comes to be $540m.<\/p>\n

This is about 33% higher than the group's market capitalisation, finds the broker, and that only accounts for about 50% of the gross profit across its business. This analysis has prompted the broker to increase its valuation for MNF Group to $7.15 from $6.90.<\/p>\n

Buy rating is retained. <\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $7.15<\/strong> Current Price is $4.39 <\/strong> Difference: $2.76<\/strong>
If MNF<\/strong> meets the Canaccord Genuity target it will return approximately 63%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY21<\/strong> dividend of 7.00<\/strong> cents and EPS of 22.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.59%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.95<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY22<\/strong> dividend of 10.00<\/strong> cents and EPS of 27.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.28%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.26<\/strong>.<\/p>\n<\/blockquote>\n

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

MSB<\/a>    MESOBLAST LIMITED<\/h2>\n

Pharmaceuticals & Biotech\/Lifesciences – Overnight Price: $3.04 <\/strong><\/p>\n

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

Mesoblast’s Phase 3 trial with remestemcel-L in ventilator-dependent ICU patients (with moderate\/severe covid-19 ARDS) has passed the half-way enrollment milestone.<\/p>\n

Bell Potter notes the recruitment rate has increased with rising new infections in the US. The company expects to complete recruitment by 2020-end and the broker expects top-line results to be available in the first-quarter 2021. <\/p>\n

The second interim analysis on 135 patients completing the 30-day follow up is due in early November. There is also a third interim analysis round with 60% or 180 patients completing the 30-day follow up. The broker expects the third interim analysis to be in early December.<\/p>\n

The Buy rating is maintained with a target price of $7.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $7.00<\/strong> Current Price is $3.04 <\/strong> Difference: $3.96<\/strong>
If MSB<\/strong> meets the Bell Potter target it will return approximately 130%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of 4.26<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.45<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of 1.03<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 296.01<\/strong>.<\/p>\n<\/blockquote>\n

This company reports in USD<\/strong>. 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<\/p>\n<\/p>\n

NXT<\/a>    NEXTDC LIMITED<\/h2>\n

Cloud services – Overnight Price: $13.09 <\/strong><\/p>\n

Goldman Sachs rates ((NXT)) as Buy (1) –<\/p>\n

NextDC has opted for a new syndicated debt facility agreement to underwrite $1.5bn for a 5-year term.<\/p>\n

Goldman Sachs considers this news positive given NextDC's business is capital intensive and the company needs access to low-cost debt. According to the broker, NextDC could save more than $10m per year in interest expense (assuming it pays 5.1% on existing facilities).<\/p>\n

Also, this facility will increase the company's liquidity by $400m which will act as a support to its ongoing investment pipeline. The broker also calculates every 25bps cost of debt saving will be worth $0.46 to its valuation of the company.<\/p>\n

Goldman Sachs believes NextDC is the best secular growth story in its coverage and re-iterates its Buy rating with a target price of $13.20.<\/p>\n

This report was published on October 12, 2020.<\/p>\n

Target price is $13.20<\/strong> Current Price is $13.09 <\/strong> Difference: $0.11<\/strong>
If NXT<\/strong> meets the Goldman Sachs target it will return approximately 1%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $14.00<\/strong>, suggesting upside of 6.9%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 1.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1309.00<\/strong>.<\/p>\n

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

Current consensus EPS estimate is -0.6<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is N\/A<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of 2.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 654.50<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 4.8<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is 272.7<\/strong>.<\/p>\n<\/blockquote>\n

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

ORI<\/a>    ORICA LIMITED<\/h2>\n

Mining Sector Contracting – Overnight Price: $15.66 <\/strong><\/p>\n

Goldman Sachs rates ((ORI)) as Buy (1) –<\/p>\n

Orica expects FY20 operating income to be slightly above $600m. This figure is in line with Goldman Sachs's $597m estimate, although slightly below consensus of $611m, according to the broker.<\/p>\n

Orica's volumes in the second half were down -15%, right at the bottom end of its -10-15% guidance range on account of the anticipated impact of covid on developing markets.<\/p>\n

The broker expects mining production to bottom out in the second half before returning to growth in FY21-22.<\/p>\n

Goldman Sachs reaffirms its Buy rating with the target unchanged at $20.30.<\/p>\n

Orica will be publishing its FY20 results on November 20.<\/p>\n

This report was published on October 12, 2020.<\/p>\n

Target price is $20.30<\/strong> Current Price is $15.66 <\/strong> Difference: $4.64<\/strong>
If ORI<\/strong> meets the Goldman Sachs target it will return approximately 30%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $18.21<\/strong>, suggesting upside of 16.3%<\/strong>(ex-dividends)
The company's fiscal year ends in September.<\/p>\n

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

\n

Goldman Sachs forecasts a full year FY20<\/strong> dividend of 31.20<\/strong> cents and EPS of 78.60<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.99%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.92<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 81.7<\/strong>, implying annual growth of 26.7%<\/strong>.
Current consensus DPS estimate is 39.3<\/strong>, implying a prospective dividend yield of 2.5%<\/strong>.
Current consensus EPS estimate suggests the PER is 19.2<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 43.60<\/strong> cents and EPS of 96.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.78%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.16<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 93.1<\/strong>, implying annual growth of 14.0%<\/strong>.
Current consensus DPS estimate is 53.3<\/strong>, implying a prospective dividend yield of 3.4%<\/strong>.
Current consensus EPS estimate suggests the PER is 16.8<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.4<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

PFP<\/a>    PROPEL FUNERAL PARTNERS LIMITED<\/h2>\n

Consumer Products & Services – Overnight Price: $2.90 <\/strong><\/p>\n

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

Propel Funeral Partners' first-quarter operating income was up circa 18% versus last year and average revenue per funeral (ARPF) grew within the target range of 2-4%. Cash flow conversion was strong, observes the broker.<\/p>\n

While Bell Potter concedes this is a solid start to FY21, the broker also thinks it is too early to change its forecasts.<\/p>\n

Bell Potter suggests the death care services provider has successfully navigated its way through covid-19 disruptions and considers the stock well placed to consolidate the industry.<\/p>\n

The Buy rating is retained with the target price unchanged at $3.50.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $3.50<\/strong> Current Price is $2.90 <\/strong> Difference: $0.6<\/strong>
If PFP<\/strong> meets the Bell Potter target it will return approximately 21%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 11.00<\/strong> cents and EPS of 15.20<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.79%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.08<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 12.10<\/strong> cents and EPS of 17.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.17%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.76<\/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

\n

Moelis rates ((PFP)) as Hold (3) –<\/p>\n

Propel Funeral Partners' first-quarter operating income is up 18% versus the last year. Moelis is of the view the result reflects strong cost control, resilient pricing and assistance from government subsidies. These factors have managed to offset weaker death volumes.<\/p>\n

Flu cases are about -99% below the 5-year average, mostly on account of social distancing, travel restrictions and better personal hygiene leading to what is being described as "a deferral of deaths into the future".<\/p>\n

The September quarter was much better than Moelis expected and the broker has increased its FY21 operating income forecast by 3.5%. For the rest of FY21, the broker expects weak death volumes to be offset by higher pricing, cost control and earnings from acquisitions.<\/p>\n

Moelis maintains its Hold rating and a target price of $3.34.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $3.34<\/strong> Current Price is $2.90 <\/strong> Difference: $0.44<\/strong>
If PFP<\/strong> meets the Moelis target it will return approximately 15%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Moelis forecasts a full year FY21<\/strong> dividend of 12.30<\/strong> cents and EPS of 15.60<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.24%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.59<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Moelis forecasts a full year FY22<\/strong> dividend of 12.30<\/strong> cents and EPS of 17.60<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.24%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.48<\/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

SSG<\/a>    SHAVER SHOP GROUP LIMITED<\/h2>\n

Household & Personal Products – Overnight Price: $1.03 <\/strong><\/p>\n

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

Shaver Shop Group's first-quarter maintained the strong trajectory from the last four results, observes Shaw and Partners. Sales were up 20% and if annualised, are ahead of the group's $195m forecast for FY21.<\/p>\n

Like for like sales grew by 23% and here the broker especially highlights online sales, noting growth of 193% this quarter versus growth of 104% in June.<\/p>\n

The broker considers the stock to be extremely cheap and notes there exists a valuation disconnect with the market which does not seem to be valuing the group's turnaround performance as well as the online momentum it has achieved over the past two years.<\/p>\n

Despite missing earnings targets and showing poor performance initially, the broker highlights Shaver Shop has been on the right path for the last 24 months. Target price remains intact at $1.10 with a Buy recommendation.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $1.10<\/strong> Current Price is $1.03 <\/strong> Difference: $0.07<\/strong>
If SSG<\/strong> meets the Shaw and Partners target it will return approximately 7%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY21<\/strong> dividend of 5.00<\/strong> cents and EPS of 7.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.85%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.38<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY22<\/strong> dividend of 6.00<\/strong> cents and EPS of 8.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.83%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.84<\/strong>.<\/p>\n<\/blockquote>\n

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

ST1<\/a>    SPIRIT TELECOM LIMITED<\/h2>\n

Telecommunication – Overnight Price: $0.34 <\/strong><\/p>\n

Shaw and Partners rates ((ST1)) as Buy (1) –<\/p>\n

With several organic and acquisitive initiatives completed during the first quarter, Shaw and Partner notes Spirit Telecom continues to be the fastest-growing telecom on the ASX. Revenues were up 30% versus last quarter and up 150% on a yearly basis.<\/p>\n

The broker notes the company's acquisitions (VPD Group and NSW acquisitions) remain on track.<\/p>\n

With the company in a net cash position, the broker believes it can continue its accretive consolidations. The company remains Shaw and Partners' core pick in the telecom space. <\/p>\n

The Buy rating is unchanged and the target price is increased to $0.50 from $0.48.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $0.50<\/strong> Current Price is $0.34 <\/strong> Difference: $0.16<\/strong>
If ST1<\/strong> meets the Shaw and Partners target it will return approximately 47%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of 1.10<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.91<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of 1.60<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.25<\/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

SXY<\/a>    SENEX ENERGY LIMITED<\/h2>\n

Crude Oil – Overnight Price: $0.30 <\/strong><\/p>\n

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

Senex Energy delivered a strong September 2020 quarter, observes Bell Potter, with 13% production growth over the June quarter led by the ramp-up at the Surat Basin.<\/p>\n

Gas production at Roma North continued operating above capacity and production from Atlas was 52% higher than last quarter. Sales revenue was -8% softer as higher sales volumes were more than offset by lower realised oil-linked gas prices.<\/p>\n

The company maintained its FY21 production guidance of 3.2-3.6mmboe and an operating income range of $65-75m. Bell Potter's investment thesis is predicated on Senex's strong free cash flow growth profile on top of the diversified nature of company sales that provides some protection from oil price volatility. <\/p>\n

Bell Potter maintains its Buy rating with a target price of $0.42. <\/p>\n

This report was published on October 13, 2020.<\/p>\n

Target price is $0.42<\/strong> Current Price is $0.30 <\/strong> Difference: $0.12<\/strong>
If SXY<\/strong> meets the Bell Potter target it will return approximately 40%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $0.41<\/strong>, suggesting upside of 37.2%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 0.20<\/strong> cents and EPS of 2.10<\/strong> cents.
At the last closing share price the estimated dividend yield is 0.67%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 1.2<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is 25.0<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 2.00<\/strong> cents and EPS of 3.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.67%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.11<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 3.2<\/strong>, implying annual growth of 166.7%<\/strong>.
Current consensus DPS estimate is 0.2<\/strong>, implying a prospective dividend yield of 0.7%<\/strong>.
Current consensus EPS estimate suggests the PER is 9.4<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

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

With production in the Surat Basin up 22% (quarter on quarter), Canaccord Genuity is not surprised at the sanctioning of expansions at Atlas and Roma North by Senex Energy.<\/p>\n

The broker considers both to be highly accretive organic growth projects and believes they will put Senex Energy on a path towards achieving 72TJ\/d by 2023 from the current circa 40TJ\/d.<\/p>\n

With capex of about -$20m, the expansion at Roma North is considered low cost and high return by the broker. Atlas continues to be the jewel in Senex's crown with gas production 52% higher than the last quarter. The broker notes daily production continues to head towards 32TJ\/d.   <\/p>\n

Cooper Basin oil production fell -13% and Senex expects further decline in FY21. Canaccord Genuity believes the Cooper Basin operation suffers from a lack of scale and suggests selling it when the time is right.<\/p>\n

Canaccord Genuity retains its Buy rating with the target price rising to $0.48 from $0.47.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $0.48<\/strong> Current Price is $0.30 <\/strong> Difference: $0.18<\/strong>
If SXY<\/strong> meets the Canaccord Genuity target it will return approximately 60%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $0.41<\/strong>, suggesting upside of 37.2%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of 1.40<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.43<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 1.2<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is 25.0<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of 2.10<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 3.2<\/strong>, implying annual growth of 166.7%<\/strong>.
Current consensus DPS estimate is 0.2<\/strong>, implying a prospective dividend yield of 0.7%<\/strong>.
Current consensus EPS estimate suggests the PER is 9.4<\/strong>.<\/p>\n<\/blockquote>\n

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

VTI<\/a>    VISIONEERING TECHNOLOGIES, INC<\/h2>\n

Medical Equipment & Devices – Overnight Price: $0.04 <\/strong><\/p>\n

Canaccord Genuity rates ((VTI)) as Hold (3) –<\/p>\n

Visioneering Technologies reported a better September quarter cash flow result, with operating cash flow near breakeven (loss of -$0.1m). Canaccord Genuity considers this to be materially better than the circa -US$1m loss incurred in the June quarter.<\/p>\n

The re-opening of the optometry sector during the US summer season led to growth in cash receipts of circa 74% versus last quarter.<\/p>\n

The broker states the third quarter is typically Visioneering's strongest quarter as seen in the recovery in account numbers which increased to 370 from 317 in the previous quarter.<\/p>\n

The challenge for the company, indicates Canaccord Genuity, is demonstrating resilience in volatile conditions. Infection rates are rising yet again in the US and it is unclear to the broker at present if the recovery is sustainable.<\/p>\n

Hold rating is reaffirmed with the target rising to $0.06 from to $0.04.<\/p>\n

This report was published on October 14, 2020.<\/p>\n

Target price is $0.06<\/strong> Current Price is $0.04 <\/strong> Difference: $0.02<\/strong>
If VTI<\/strong> meets the Canaccord Genuity target it will return approximately 50%<\/strong> (excluding dividends, fees and charges).<\/p>\n

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

\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 1.20<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.33<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Canaccord Genuity forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.60<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.67<\/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

Z1P<\/a>    ZIP CO LIMITED<\/h2>\n

Business & Consumer Credit – Overnight Price: $6.02 <\/strong><\/p>\n

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

Shaw and Partner notes the first quarter was strong for QuadPay with all key metrics like add rates, average spend, transactions, TV and revenues accelerating on a quarterly basis.<\/p>\n

The broker believes this bodes well for the next quarter which includes Christmas, cyber sales, Prime Day etc.<\/p>\n

The broker considers the entire sector to be a buy out to January and advises investors the coming days will be the best time to own the sector with QuadPay as its preferred exposure.<\/p>\n

Going into the strongest quarter of the year, Shaw and Partners reiterates its Buy rating with the target price increasing to $10.<\/p>\n

This report was published on October 15, 2020.<\/p>\n

Target price is $10.00<\/strong> Current Price is $6.02 <\/strong> Difference: $3.98<\/strong>
If Z1P<\/strong> meets the Shaw and Partners target it will return approximately 66%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $6.69<\/strong>, suggesting upside of 11.2%<\/strong>(ex-dividends)
The company's fiscal year ends in June.<\/p>\n

Forecast for FY21:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.20<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3010.00<\/strong>.<\/p>\n

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

Current consensus EPS estimate is -11.9<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is N\/A<\/strong>.<\/p>\n<\/blockquote>\n

Forecast for FY22:<\/strong><\/p>\n

\n

Shaw and Partners forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 0.10<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6020.00<\/strong>.<\/p>\n

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

Current consensus EPS estimate is -6.5<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is N\/A<\/strong>, implying a prospective dividend yield of N\/A<\/strong>.
Current consensus EPS estimate suggests the PER is N\/A<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Disclaimer:<\/strong>
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.<\/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, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.<\/span><\/span><\/span><\/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.<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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