{"id":89726,"date":"2020-11-04T10:35:31","date_gmt":"2020-11-03T23:35:31","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=89726"},"modified":"2020-11-04T10:35:33","modified_gmt":"2020-11-03T23:35:33","slug":"australian-broker-call-extra-edition-nov-04-2020","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/11\/04\/australian-broker-call-extra-edition-nov-04-2020\/","title":{"rendered":"Australian Broker Call *Extra* Edition – Nov 04, 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

AD8<\/a>   ADH (2)<\/a>   AQR<\/a>   EML<\/a>   EOS<\/a>   GOR<\/a>   IAG<\/a>   IGL<\/a>   MCP (2)<\/a>   MIN<\/a>   MYS<\/a>   NCK<\/a>   NIC (2)<\/a>   OPT<\/a>   PPS (3)<\/a>   SMR<\/a>   TNE<\/a>   TPW (2)<\/a>   UMG (2)<\/a>   WSP (2)<\/a>   WZR<\/a>  <\/p>\n

AD8<\/a>    AUDINATE GROUP LIMITED<\/h2>\n

Hardware & Equipment – Overnight Price: $7.27 <\/strong><\/p>\n

Shaw and Partners rates ((AD8)) as Hold (3) –<\/p>\n

Audinate Group noted better-than-expected sales in the first quarter. Shaw and Partners may upgrade its forecast by 5-10% if this improvement continues into the second quarter and beyond.<\/p>\n

The broker suggests the company would do well to bring in more transparency to its earnings disclosures.  <\/p>\n

For now, the broker prefers to sit on the sidelines until there is clarity about the post-covid-19 landscape. Over the long term, Audinate is looked upon as a strong story with compelling attractions and a clear earnings runway.<\/p>\n

Looking at the already stretched valuations, Shaw and Partners retains its Hold rating. The target price rises to $7.25 from $5.75.<\/p>\n

This report was published on October 16, 2020.<\/p>\n

Target price is $7.25<\/strong> Current Price is $7.27 <\/strong> Difference: minus $0.02<\/strong> (current price is over target).
If AD8<\/strong> meets the Shaw and Partners target it will return approximately minus 0%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.83<\/strong>, suggesting upside of 7.7%<\/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 1.80<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 403.89<\/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 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 1.80<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 403.89<\/strong>.<\/p>\n

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

Current consensus EPS estimate is -0.2<\/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 N\/A<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.7<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

ADH<\/a>    ADAIRS LIMITED<\/h2>\n

Furniture & Renovation – Overnight Price: $3.80 <\/strong><\/p>\n

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

Adairs' trading update for the first 17 weeks of FY21 highlighted elevated sales despite 43 stores in Melbourne being affected since August. This is well ahead of last year.<\/p>\n

Goldman Sachs notes 41% of the total sales were online, a big jump from 17% last year. Gross margin was ahead of last year but the broker expects it to moderate for the rest of FY20.  <\/p>\n

The company did not provide any guidance and has cautioned investors against projecting this sales and margin growth across the balance of FY21, in light of the uncertain macro economic environment.<\/p>\n

Goldman Sachs retains its Buy rating with a target price of $3.65.<\/p>\n

This report was published on October 26, 2020.<\/p>\n

Target price is $3.65<\/strong> Current Price is $3.80 <\/strong> Difference: minus $0.15<\/strong> (current price is over target).
If ADH<\/strong> meets the Goldman Sachs target it will return approximately minus 4%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 15.00<\/strong> cents and EPS of 24.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.95%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.83<\/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 27.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.26%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.07<\/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

\n

Wilsons rates ((ADH)) as Overweight (1) –<\/p>\n

Adairs' trading update revealed a continuation of the strong sales growth experienced earlier this year. The first half total sales were up 22% versus last year while online sales grew by 134%.<\/p>\n

Wilsons highlights the sales growth was achieved in the face of inventory shortages which has positively impacted gross margins.<\/p>\n

While cautious on like for like sales volatility in the second half of FY21, the broker notes the signs of market share gains, continuing trends to home furnishings and earnings upside from Mocka.<\/p>\n

Wilsons maintains its Overweight rating with a target price of $4.13.<\/p>\n

The report was published on October 26, 2020.<\/p>\n

Target price is $4.13<\/strong> Current Price is $3.80 <\/strong> Difference: $0.33<\/strong>
If ADH<\/strong> meets the Wilsons target it will return approximately 9%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

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

\n

Wilsons forecasts a full year FY21<\/strong> dividend of 15.00<\/strong> cents and EPS of 33.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.95%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.41<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Wilsons forecasts a full year FY22<\/strong> dividend of 21.00<\/strong> cents and EPS of 33.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.53%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.28<\/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

AQR<\/a>    APN CONVENIENCE RETAIL REIT<\/h2>\n

REITs – Overnight Price: $3.63 <\/strong><\/p>\n

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

APN Convenience Retail REIT will be acquiring a service station in Perth for $6.96m. The deal, expected to settle before the end of December 2020, includes a relatively long weighted average lease expiry (WALE) of 11.7 years.<\/p>\n

The company has guided towards a funds from operations (FFO) and dividend range of 21.8-22c for FY21 but Moelis believes more acquisitions could lead to an upward revision to this guidance range.<\/p>\n

The broker considers the REIT's cash flows stable enough and believes there is potential for more acquisitions which should continue to drive earnings growth over time.<\/p>\n

Hold rating retained. Target price rises slightly to $4.06 from $4.05.<\/p>\n

This report was published on October 19, 2020.<\/p>\n

Target price is $4.06<\/strong> Current Price is $3.63 <\/strong> Difference: $0.43<\/strong>
If AQR<\/strong> meets the Moelis target it will return approximately 12%<\/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 22.00<\/strong> cents and EPS of 22.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.06%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Moelis forecasts a full year FY22<\/strong> dividend of 22.60<\/strong> cents and EPS of 22.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.23%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.85<\/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

EML<\/a>    EML PAYMENTS LIMITED<\/h2>\n

Business & Consumer Credit – Overnight Price: $2.98 <\/strong><\/p>\n

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

EML Payments released a first quarter trading update broadly in-line with Canaccord Genuity’s earnings estimates.<\/p>\n

Of particular note for the analyst was the somewhat return to normal of the highly profitable gift and incentive division (around 45% of group gross profit), which was materially impacted by covid-19 (shopping mall shutdowns).<\/p>\n

The broker points out transaction volumes have recovered strongly since the depths of the pandemic with gross debit volume (GDV) and revenue increasing over 20% quarter-on-quarter.<\/p>\n

The Buy rating and $4.20 target are unchanged.<\/p>\n

This report was published on October 21, 2020.<\/p>\n

Target price is $4.20<\/strong> Current Price is $2.98 <\/strong> Difference: $1.22<\/strong>
If EML<\/strong> meets the Canaccord Genuity target it will return approximately 41%<\/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 0.00<\/strong> cents and EPS of 9.50<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.37<\/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 14.50<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.55<\/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

EOS<\/a>    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED<\/h2>\n

Hardware & Equipment – Overnight Price: $5.47 <\/strong><\/p>\n

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

Canaccord Genuity initiates coverage on  Electro-Optic Systems Holdings with a Buy rating and a target price of $8.20.<\/p>\n

Electro Optic Systems (EOS) is Australia’s largest aerospace entity and the largest defence exporter in the southern hemisphere. With customers in 18 countries, EOS uses lasers and the accompanying software across various military and commercial use cases.<\/p>\n

Canaccord Genuity observes monetisation of the company's core laser technology has accelerated in recent years. At the core of its portfolio is a range of Remote Weapon Systems, the use of which is becoming common across the world.<\/p>\n

Canaccord Genuity notes EOS's systems are more lethal and weigh less than competitors and pegs its FY20 revenue forecast at $201m with a backlog of more than $540m. For the company's space division, the broker estimates revenue to be $5m in FY20.<\/p>\n

With a considerable revenue backlog of $570m overall, Canaccord Genuity expects higher inflows in 2021-25. Also, the Australian government plans to increase its defence spending budget by 30% over 10 years, expected to benefit EOS immensely.<\/p>\n

This report was published on October 19, 2020.<\/p>\n

Target price is $8.20<\/strong> Current Price is $5.47 <\/strong> Difference: $2.73<\/strong>
If EOS<\/strong> meets the Canaccord Genuity target it will return approximately 50%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in December.<\/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 18.70<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.25<\/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 25.50<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.45<\/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

GOR<\/a>    GOLD ROAD RESOURCES LIMITED<\/h2>\n

Gold & Silver – Overnight Price: $1.39 <\/strong><\/p>\n

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

Gold Road Resources' Gruyere mine's performance in the September quarter was well below Bell Potter's expectations. Gold output declined by -22% versus last quarter and at higher costs. The miss was driven mainly by plant led issues.<\/p>\n

The miner sold 31.5koz of gold, up 10% but at a -3% lower average realised gold price. The company has retained its 2020 production guidance of 250–270koz, implying a strong rebound from here.<\/p>\n

The broker notes even with a production setback, the company managed to generate strong free cash flow and repay all of its debt. The December quarter is expected to be much better with the Gruyere mine expected to bounce back. <\/p>\n

Earnings per share forecast for 2020 has been reduced by -2% while forecasts have been increased for 2021-22 by 11% and 5%.<\/p>\n

Bell Potter upgrades its rating to Buy from Hold with the target raised to $1.85 from $1.75. <\/p>\n

The report was published on October 26, 2020.<\/p>\n

Target price is $1.85<\/strong> Current Price is $1.39 <\/strong> Difference: $0.46<\/strong>
If GOR<\/strong> meets the Bell Potter target it will return approximately 33%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in December.<\/p>\n

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

\n

Bell Potter forecasts a full year FY20<\/strong> dividend of 2.00<\/strong> cents and EPS of 9.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.44%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.04<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 3.00<\/strong> cents and EPS of 12.10<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.16%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.49<\/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

IAG<\/a>    INSURANCE AUSTRALIA GROUP LIMITED<\/h2>\n

Insurance – Overnight Price: $4.80 <\/strong><\/p>\n

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

Insurance Australia Group's first-quarter trading update delivered few surprises, comments Bell Potter, with stable performance based on low single-digit premium growth, low natural peril events and broadly neutral covid-19 impacts.<\/p>\n

All else being equal, Bell Potter expects the insurer to resume paying dividends after its first-half result, forecasting an interim dividend of 9c. No guidance was given for FY21 citing uncertainty from the pandemic.<\/p>\n

Noting the stock is trading at an eight-year low, the broker believes value has re-emerged and has upgraded its rating to Buy from Hold with a target price of $5.60.<\/p>\n

This report was published on October 26, 2020.<\/p>\n

Target price is $5.60<\/strong> Current Price is $4.80 <\/strong> Difference: $0.8<\/strong>
If IAG<\/strong> meets the Bell Potter target it will return approximately 17%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $5.85<\/strong>, suggesting upside of 21.9%<\/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 17.00<\/strong> cents and EPS of 32.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.54%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 29.6<\/strong>, implying annual growth of 55.4%<\/strong>.
Current consensus DPS estimate is 22.2<\/strong>, implying a prospective dividend yield of 4.6%<\/strong>.
Current consensus EPS estimate suggests the PER is 16.2<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 21.00<\/strong> cents and EPS of 34.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.38%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.12<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 31.9<\/strong>, implying annual growth of 7.8%<\/strong>.
Current consensus DPS estimate is 25.7<\/strong>, implying a prospective dividend yield of 5.4%<\/strong>.
Current consensus EPS estimate suggests the PER is 15.0<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.7<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

IGL<\/a>    IVE GROUP LIMITED<\/h2>\n

Media – Overnight Price: $0.77 <\/strong><\/p>\n

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

IVE Group signed a five-year contract with Australian Community Media involving printing and distribution of publications managed by the media company. Bell Potter envisages the agreement to generate revenues of circa $100m over the next five years or about $20m per annum.<\/p>\n

According to the broker, this contract, combined with the cost reductions undertaken by the group in the June quarter, has the capacity to offset a large portion of the lost earnings from the Coles contract reduction that occurred on 9 September 2020.<\/p>\n

With improving consumer confidence and the reopening of retail in Victoria in late October, Bell Potter thinks the outlook is better.<\/p>\n

Earnings growth estimates have been upgraded by 1.9%, 3.8% and 3.6% for FY21-23. <\/p>\n

Led by a better outlook, new contract win and the prospect of dividends resuming, Bell Potter reiterates its Buy recommendation with the target slightly increased to $1.10 from $1.05.<\/p>\n

This report was published on October 27, 2020.<\/p>\n

Target price is $1.10<\/strong> Current Price is $0.77 <\/strong> Difference: $0.33<\/strong>
If IGL<\/strong> meets the Bell Potter target it will return approximately 43%<\/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 8.20<\/strong> cents and EPS of 21.20<\/strong> cents.
At the last closing share price the estimated dividend yield is 10.65%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.63<\/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 20.50<\/strong> cents.
At the last closing share price the estimated dividend yield is 15.71%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.76<\/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

MCP<\/a>    MCPHERSON'S LIMITED<\/h2>\n

Health & Nutrition – Overnight Price: $2.20 <\/strong><\/p>\n

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

McPhersons’s issued a strong first quarter trading update, in the opinion of Moelis, with solid top-line growth in owned brand, supplemented by foreign exchange tailwinds. <\/p>\n

Continued market share gains in four of the six owned brands bodes well for a stronger second quarter, projects the broker.<\/p>\n

The company also announced a non-recurring -$5.7m write-down of hand sanitiser product.<\/p>\n

The company guides to an underlying FY21 profit (PBT) growth of 5-10%, which although in-line with the broker’s estimates, is still considered conservative. This is because the analyst sees upside from Dr LeWinn’s and Multix. Additionally, demand for Dr LeWinn’s into China is considered robust.<\/p>\n

The Buy rating and $3.57 price target are unchanged.<\/p>\n

This report was published on October 20, 2020.<\/p>\n

Target price is $3.57<\/strong> Current Price is $2.20 <\/strong> Difference: $1.37<\/strong>
If MCP<\/strong> meets the Moelis target it will return approximately 62%<\/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 11.40<\/strong> cents and EPS of 17.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.18%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.36<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Moelis forecasts a full year FY22<\/strong> dividend of 11.60<\/strong> cents and EPS of 20.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.27%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.84<\/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

\n

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

McPhersons’s released third quarter results and provided guidance which appears conservative to Shaw and Partners.<\/p>\n

Issues with a delay\/customer have resulted in the company announcing a non-recurring provision of -$5.7m for hand sanitiser inventory, which disappoints the broker. However, it’s considered a one-off and on a statutory basis equates to a circa -20% hit to earnings.<\/p>\n

The company provided guidance of first half profit (PBT) growth greater than 20-30% year-on-year. The broker points out the run-rates look materially better than guidance.<\/p>\n

The Buy rating is unchanged and the target price is decreased by -6% to $3.45. <\/p>\n

This report was published on October 20, 2020.<\/p>\n

Target price is $3.45<\/strong> Current Price is $2.20 <\/strong> Difference: $1.25<\/strong>
If MCP<\/strong> meets the Shaw and Partners target it will return approximately 57%<\/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 11.80<\/strong> cents and EPS of 16.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.36%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.17<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Shaw and Partners forecasts a full year FY22<\/strong> dividend of 13.70<\/strong> cents and EPS of 19.40<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.23%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.34<\/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

MIN<\/a>    MINERAL RESOURCES LIMITED<\/h2>\n

Iron Ore – Overnight Price: $25.09 <\/strong><\/p>\n

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

Mineral Resources’ September quarterly production highlighted the negligible impact of the coronavirus on Western Australian mining operations.<\/p>\n

Iron ore shipments were down -20%. Shipments fell at the Koolyanobbing operation due to groundwater issues. The Iron Valley project saw a -26.4% decline due to shipments delayed to the second quarter. FY21 guidance remains unchanged.<\/p>\n

The company has purchased the Wonmunna Iron Ore Project from Australian Aboriginal Mining Corporation (AAMC) with exports expected to commence in the second half.<\/p>\n

Incorporating Wonmunna in its forecasts leads Bell Potter to raise its target to $28.50 from $28.10. Rating is upgraded to Buy from Hold. <\/p>\n

This report was published on October 26, 2020.<\/p>\n

Target price is $28.50<\/strong> Current Price is $25.09 <\/strong> Difference: $3.41<\/strong>
If MIN<\/strong> meets the Bell Potter target it will return approximately 14%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $26.57<\/strong>, suggesting upside of 5.9%<\/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 120.00<\/strong> cents and EPS of 225.40<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.78%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.13<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 352.7<\/strong>, implying annual growth of -33.8%<\/strong>.
Current consensus DPS estimate is 129.5<\/strong>, implying a prospective dividend yield of 5.2%<\/strong>.
Current consensus EPS estimate suggests the PER is 7.1<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 77.00<\/strong> cents and EPS of 150.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.07%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.69<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 258.4<\/strong>, implying annual growth of -26.7%<\/strong>.
Current consensus DPS estimate is 108.5<\/strong>, implying a prospective dividend yield of 4.3%<\/strong>.
Current consensus EPS estimate suggests the PER is 9.7<\/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

MYS<\/a>    MYSTATE LIMITED<\/h2>\n

Banks – Overnight Price: $4.07 <\/strong><\/p>\n

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

MyState’s underlying business is performing “exceptionally well" according to management’s first quarter update. Bell Potter also believes the regional growth story remains intact in FY21.<\/p>\n

The company expects dividends to resume after the end of the first half.<\/p>\n

Highlights for the broker included 9% higher total operating income, 21% higher core earnings, 22% higher net profit after tax and 15 basis points higher NIM (all on a pcp basis).<\/p>\n

The analyst perceives the company is well provided for any downside credit risk.<\/p>\n

In line with much improved trends in the first quarter, Bell Potter increases the cash profit (NPAT continuing) by 4% in FY21 and by 7-8% in FY22 and beyond.<\/p>\n

The Buy rating is unchanged and the target is increased to $4.50 from $4.20.<\/p>\n

This report was published on October 23, 2020.<\/p>\n

Target price is $4.50<\/strong> Current Price is $4.07 <\/strong> Difference: $0.43<\/strong>
If MYS<\/strong> meets the Bell Potter target it will return approximately 11%<\/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 25.00<\/strong> cents and EPS of 44.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.14%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.19<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 26.00<\/strong> cents and EPS of 44.50<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.39%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.15<\/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

NCK<\/a>    NICK SCALI LIMITED<\/h2>\n

Furniture & Renovation – Overnight Price: $8.29 <\/strong><\/p>\n

Wilsons rates ((NCK)) as Market Weight (3) –<\/p>\n

Nick Scali has continued to see strong sales order growth during the first quarter despite some stores closing down. Online sales accelerated and Wilsons estimates online sales now represent about 4 physical stores on an annualised basis.<\/p>\n

While impressive, the broker feels Nick Scali's current like-for-like sales growth is not sustainable and expects some moderation in the second half and into the first half of FY22.<\/p>\n

The broker rates the stock as Hold with a target price of $7.70.<\/p>\n

This report was published on October 26, 2020.<\/p>\n

Target price is $7.70<\/strong> Current Price is $8.29 <\/strong> Difference: minus $0.59<\/strong> (current price is over target).
If NCK<\/strong> meets the Wilsons target it will return approximately minus 7%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.<\/p>\n

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

\n

Wilsons forecasts a full year FY21<\/strong> dividend of 63.50<\/strong> cents and EPS of 66.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 7.66%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.41<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Wilsons forecasts a full year FY22<\/strong> dividend of 42.50<\/strong> cents and EPS of 50.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.13%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.48<\/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

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

Nickel – Overnight Price: $0.84 <\/strong><\/p>\n

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

A memorandum of understanding signed with Shanghai Decent Investment will see Nickel Mines acquire a stake of 70% in four RKEF lines in Indonesia for US$490m. Canaccord Genuity notes the lines would produce 36kt per year of contained nickel once ramped up.<\/p>\n

The broker is of the view this acquisition should double Nickel Mines' nickel production to circa 58kt per annum in 2025, making the miner the sixth largest nickel producer globally and the largest pure-play nickel producer on the ASX.<\/p>\n

Buy rating retained with the target rising to $1.60 from $1.05.<\/p>\n

This report was published on October 19, 2020.<\/p>\n

Target price is $1.60<\/strong> Current Price is $0.84 <\/strong> Difference: $0.76<\/strong>
If NIC<\/strong> meets the Canaccord Genuity target it will return approximately 90%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in December.<\/p>\n

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

\n

Canaccord Genuity forecasts a full year FY20<\/strong> dividend of 2.93<\/strong> cents and EPS of 7.33<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.49%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.46<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Canaccord Genuity forecasts a full year FY21<\/strong> dividend of 2.93<\/strong> cents and EPS of 8.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.49%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.55<\/strong>.<\/p>\n<\/blockquote>\n

This company reports in USD<\/strong>. All estimates have been converted into AUD by FNArena at present FX values.
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

\n

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

Nickel Mines signed a memorandum of understanding with Shanghai Decent to acquire a 70% interest in PT Angel Nickel Industry (ANI) for US$490m. The agreement will increase Nickel Mines' nickel production by 75% to circa 58ktpa from circa 33ktpa.<\/p>\n

The payment will be made in two stages: -US$210m in the first quarter and -US$280m in the last quarter of 2021. In the broker's view, the acquisition won't need any equity raising and can be funded from a mix of internal cash flow and debt.<\/p>\n

Considering Nickel Mines is the largest pure exposure on the ASX and also the cheapest, the buy rating is retained with the target rising to $1.33 from $1.08.<\/p>\n

This report was published on October 19, 2020.<\/p>\n

Target price is $1.33<\/strong> Current Price is $0.84 <\/strong> Difference: $0.49<\/strong>
If NIC<\/strong> meets the Shaw and Partners target it will return approximately 58%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in December.<\/p>\n

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

\n

Shaw and Partners forecasts a full year FY20<\/strong> dividend of 4.25<\/strong> cents and EPS of 8.07<\/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 10.42<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Shaw and Partners forecasts a full year FY21<\/strong> dividend of 10.41<\/strong> cents and EPS of 13.93<\/strong> cents.
At the last closing share price the estimated dividend yield is 12.39%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.03<\/strong>.<\/p>\n<\/blockquote>\n

This company reports in USD<\/strong>. All estimates have been converted into AUD by FNArena at present FX values.
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

OPT<\/a>    OPTHEA LIMITED<\/h2>\n

Pharmaceuticals & Biotech\/Lifesciences – Overnight Price: $2.19 <\/strong><\/p>\n

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

Opthea's Nasdaq IPO raised proceeds of US$128.2m via issuance of 8.6m American Depositary Shares (ADSs). The amount raised was higher than expected by Bell Potter.<\/p>\n

The broker believes Opthea's major priority for the next 3 years will be its Phase 3 program for wet age-related macular degeneration (AMD), with the majority of the company's funding directed towards it.<\/p>\n

The Buy rating is unchanged and the target price is decreased to $4.40 from $4.90.<\/p>\n

This report was published on October 27, 2020.<\/p>\n

Target price is $4.40<\/strong> Current Price is $2.19 <\/strong> Difference: $2.21<\/strong>
If OPT<\/strong> meets the Bell Potter target it will return approximately 101%<\/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 13.20<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.59<\/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 24.10<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.09<\/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

PPS<\/a>    PRAEMIUM LIMITED<\/h2>\n

Wealth Management & Investments – Overnight Price: $0.68 <\/strong><\/p>\n

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

Following Praemium’s quarterly update, and after including the Powerwrap acquisition in Bell Potter’s numbers, the broker upgrades underlying cash EPS forecasts by 3.2%, 9.3% and 11.3% for FY21, FY22 and FY23 respectively.<\/p>\n

The changes are driven by the value accretive acquisition and a better than expected quarterly update.<\/p>\n

The analyst points out the robust growth in the Australia Platform, International Platform and Funds and across the VMA and VMASS products.<\/p>\n

Growth is considered to have returned throughout the business, and the Powerwrap business is expected to show $6m in synergies flowing through over the next three years.<\/p>\n

The Buy rating is unchanged and the target price is increased to $0.85 from $0.62.<\/p>\n

 This report was published on October 23, 2020.<\/p>\n

Target price is $0.85<\/strong> Current Price is $0.68 <\/strong> Difference: $0.17<\/strong>
If PPS<\/strong> meets the Bell Potter target it will return approximately 25%<\/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 1.50<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.33<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 1.30<\/strong> cents and EPS of 2.42<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.91%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.10<\/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

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

The combined first quarter platform funds under administration (FUA) of $18.5bn was largely in-line with Canaccord Genuity’s forecast for $18.4bn. The broker estimates an initial contribution of around $9.2bn from the recently acquired Powerwrap.<\/p>\n

FUA growth reflects net inflows of $733m and positive market movement of $377m, before the ongoing client transitional outflow of -$269m, notes the broker.<\/p>\n

The strong FUA result helps underpin the broker’s existing forecast for FY21 platform FUA of $19.9bn and underlying earnings (EBITDA) of $16.3m.<\/p>\n

The Buy rating and target price of $0.80 are unchanged.<\/p>\n

This report was published on October 21, 2020.<\/p>\n

Target price is $0.80<\/strong> Current Price is $0.68 <\/strong> Difference: $0.12<\/strong>
If PPS<\/strong> meets the Canaccord Genuity target it will return approximately 18%<\/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 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 34.00<\/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 2.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.00<\/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

\n

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

After a strong first quarter performance by Praemium, Shaw and Partners sees a continuation of momentum from a strong FY19 result into the first half of FY20 and now exiting a solid FY20\/first quarter FY21.<\/p>\n

The broker points out global funds under administration (FUA), including the Powerwrap acquisition contribution, now equals $31.2b (Platform FUA and VMAAS). VMAAS stands for virtual managed accounts administration services.<\/p>\n

Positives for the broker include an attractive total addressable market (TAM), an impressive forecast five-year earnings (EBITDA) compound annual growth rate of 14% and double-digit EPS and profit growth for each of the next three years.<\/p>\n

The Buy rating is unchanged and the target price is increased to $0.80 from $0.65.<\/p>\n

This report was published on October 22, 2020.<\/p>\n

Target price is $0.80<\/strong> Current Price is $0.68 <\/strong> Difference: $0.12<\/strong>
If PPS<\/strong> meets the Shaw and Partners target it will return approximately 18%<\/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 1.40<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.57<\/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 1.90<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.79<\/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

SMR<\/a>    STANMORE COAL LIMITED<\/h2>\n

Coal – Overnight Price: $0.73 <\/strong><\/p>\n

Bell Potter rates ((SMR)) as Sell (5) –<\/p>\n

Stanmore Coal's coal production was weak during the September quarter but coal sales were another story with stocks drawn and normalising demand for met coal.<\/p>\n

Bell Potter considers one of the key risks to the company to be maintaining production through its transition to the new Isaac Downs development.<\/p>\n

The broker is not happy with Stanmore's reduced disclosure levels that make gauging the company's outlook a difficult task. <\/p>\n

Sell recommendation is retained given the downside risk to Stanmore's share price from low trading liquidity and risks to production continuity. The target price declines to $0.50 from $0.60.<\/p>\n

This report was published on October 26, 2020.<\/p>\n

Target price is $0.50<\/strong> Current Price is $0.73 <\/strong> Difference: minus $0.23<\/strong> (current price is over target).
If SMR<\/strong> meets the Bell Potter target it will return approximately minus 32%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 2.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.50<\/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 6.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17<\/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

TNE<\/a>    TECHNOLOGYONE LIMITED<\/h2>\n

IT & Support – Overnight Price: $8.87 <\/strong><\/p>\n

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

TechnologyOne indicated its FY20 result will be at the lower end of guidance as a result of the additional -$3.6m provision for the adverse court ruling. In Bell Potter's view, there are many unknown drivers of the result.<\/p>\n

The broker notes these drivers will not only impact the FY20 result but also the short to medium-term outlook. Bell Potter's forecast remains unchanged and it expects profit before tax of $82.5m, at the lower end of the guidance range.<\/p>\n

Also, the broker continues to expect strong cash flows in FY20. Bell Potter maintains its Buy rating with the target price rising to $10 from $9.50.<\/p>\n

This report was published on October 27, 2020.<\/p>\n

Target price is $10.00<\/strong> Current Price is $8.87 <\/strong> Difference: $1.13<\/strong>
If TNE<\/strong> meets the Bell Potter target it will return approximately 13%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $8.12<\/strong>, suggesting downside of -8.5%<\/strong>(ex-dividends)
The company's fiscal year ends in September.<\/p>\n

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

\n

Bell Potter forecasts a full year FY20<\/strong> dividend of 13.10<\/strong> cents and EPS of 19.70<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.48%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.03<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 19.3<\/strong>, implying annual growth of 4.7%<\/strong>.
Current consensus DPS estimate is 12.6<\/strong>, implying a prospective dividend yield of 1.4%<\/strong>.
Current consensus EPS estimate suggests the PER is 46.0<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 15.10<\/strong> cents and EPS of 23.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.70%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.57<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 21.3<\/strong>, implying annual growth of 10.4%<\/strong>.
Current consensus DPS estimate is 14.5<\/strong>, implying a prospective dividend yield of 1.6%<\/strong>.
Current consensus EPS estimate suggests the PER is 41.6<\/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

TPW<\/a>    TEMPLE & WEBSTER GROUP<\/h2>\n

Furniture & Renovation – Overnight Price: $10.00 <\/strong><\/p>\n

Bell Potter rates ((TPW)) as Downgrade to Hold from Buy (3) –<\/p>\n

After a trading update by Temple & Webster, Bell Potter highlights the moderating sales growth, but expects future operating leverage.<\/p>\n

The broker points out earnings (EBITDA) are at an upward inflection point, rising from $1.1m in FY19 to $8.5m in FY20 and forecast to be $27.8m in FY21 by Bell Potter.<\/p>\n

This clearly demonstrates the operating leverage in the company’s business to the analyst, with contribution margin continuing to run at greater than 15% and fixed costs as a percentage of revenue continuing to fall.<\/p>\n

The broker lifts margin forecasts, given the stronger than expected opex leverage in the business. Bell Potter increases FY21-FY23 EPS forecasts by 42%, 42% and 37%, respectively.<\/p>\n

The rating is decreased to Hold from Buy (the company is seen as fair value after a share price rally) and the target price is increased to $12.60 from $11.40.<\/p>\n

This report was published on October 23, 2020.<\/p>\n

Target price is $12.60<\/strong> Current Price is $10.00 <\/strong> Difference: $2.6<\/strong>
If TPW<\/strong> meets the Bell Potter target it will return approximately 26%<\/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 21.70<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.08<\/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 29.40<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.01<\/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

\n

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

After a trading update, Canaccord Genuity believes investors (in selling the stock) focused on Temple & Webster’s decelerating top-line versus the positive earnings revisions.<\/p>\n

The broker believes the growth deceleration is exacerbated by the improving growth rate in the previous corresponding period.<\/p>\n

Nevertheless, this likely slows the perceived future revenue\/earnings upgrade cycle experienced over the previous four years, suggests the analyst.<\/p>\n

Morgans maintains current revenue forecasts, but upgrades short-term earnings (EBITDA) forecasts following a reduction in first half fixed operating expense assumptions.<\/p>\n

The Buy rating is unchanged and the target price is increased to $12 from $10.<\/p>\n

This report was published on October 22, 2020.<\/p>\n

Target price is $12.00<\/strong> Current Price is $10.00 <\/strong> Difference: $2<\/strong>
If TPW<\/strong> meets the Canaccord Genuity 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

Canaccord Genuity forecasts a full year FY21<\/strong> EPS of 22.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.45<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Canaccord Genuity forecasts a full year FY22<\/strong> EPS of 27.00<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.04<\/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

UMG<\/a>    UNITED MALT GROUP LIMITED<\/h2>\n

Agriculture – Overnight Price: $4.08 <\/strong><\/p>\n

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

United Malt Group's sales from the UK operations were up 17% with operating income up 37%. The UK operations account for about 11% of the group's FY19 operating income while accounting for circa 20% of the group's production capacity.<\/p>\n

The group expects FY20 volumes to be more or less the same as FY19, implying lower second-half volumes. Since Bell Potter had already anticipated a materially lower returns profile in the UK operations, the broker makes no major changes to its forecasts.<\/p>\n

The Hold rating is maintained. The target price is increased to $4.20 from $4.<\/p>\n

The report was published on October 27, 2020.<\/p>\n

Target price is $4.20<\/strong> Current Price is $4.08 <\/strong> Difference: $0.12<\/strong>
If UMG<\/strong> meets the Bell Potter target it will return approximately 3%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $4.46<\/strong>, suggesting upside of 9.4%<\/strong>(ex-dividends)
The company's fiscal year ends in September.<\/p>\n

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

\n

Bell Potter forecasts a full year FY20<\/strong> dividend of 8.00<\/strong> cents and EPS of 16.20<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.96%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.19<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 16.8<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is 1.2<\/strong>, implying a prospective dividend yield of 0.3%<\/strong>.
Current consensus EPS estimate suggests the PER is 24.3<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY21<\/strong> dividend of 15.60<\/strong> cents and EPS of 21.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.82%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.72<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 20.1<\/strong>, implying annual growth of 19.6%<\/strong>.
Current consensus DPS estimate is 12.2<\/strong>, implying a prospective dividend yield of 3.0%<\/strong>.
Current consensus EPS estimate suggests the PER is 20.3<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.5<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

\n

Wilsons rates ((UMG)) as Overweight (1) –<\/p>\n

Trading conditions for the United Malt Group continue to improve, observes Wilsons. The broker notes improving earnings results of the group's peers, corroborated by industry feedback that suggests better ordering patterns in recent weeks.<\/p>\n

The broker has made minor changes to its operating income forecasts with higher volumes and margins offset by less favourable FX assumptions. The group is expected to achieve its cost reduction target of -$10m in the second half.<\/p>\n

Overall, the operating income forecasts are 3% above consensus in FY20 and 10% above in FY21. Wilsons is attracted to United Malt’s asset base and reasonably defensive revenue profile. <\/p>\n

Overweight rating retained with a target price at $4.81.<\/p>\n

This report was published on October 26, 2020.<\/p>\n

Target price is $4.81<\/strong> Current Price is $4.08 <\/strong> Difference: $0.73<\/strong>
If UMG<\/strong> meets the Wilsons target it will return approximately 18%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $4.46<\/strong>, suggesting upside of 9.4%<\/strong>(ex-dividends)
The company's fiscal year ends in September.<\/p>\n

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

\n

Wilsons forecasts a full year FY20<\/strong> dividend of 0.00<\/strong> cents and EPS of 20.50<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.90<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 16.8<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is 1.2<\/strong>, implying a prospective dividend yield of 0.3%<\/strong>.
Current consensus EPS estimate suggests the PER is 24.3<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Wilsons forecasts a full year FY21<\/strong> dividend of 13.50<\/strong> cents and EPS of 26.50<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.31%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.40<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 20.1<\/strong>, implying annual growth of 19.6%<\/strong>.
Current consensus DPS estimate is 12.2<\/strong>, implying a prospective dividend yield of 3.0%<\/strong>.
Current consensus EPS estimate suggests the PER is 20.3<\/strong>.<\/p>\n<\/blockquote>\n

Market Sentiment: 0.5<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

WSP<\/a>    WHISPIR LIMITED<\/h2>\n

Cloud services – Overnight Price: $3.47 <\/strong><\/p>\n

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

Canaccord Genuity considers Whispir’s first quarter result was strong, with record first quarter net customer adds of over 35, and with the company’s customer “pipeline two times larger than this time last year”.<\/p>\n

The company is on track to deliver net revenue retention (NRR) of 120% in FY21, which remains best in class among SaaS peers and highlights long-term value of customers, explains the broker. <\/p>\n

The company also reported customer churn of around -8% and revenue churn of less than -3%, which highlights the stickiness of customers to the analyst.<\/p>\n

Management reiterated FY21 annual recurring revenue (ARR) guidance of $51.1-55.3m, which represents growth of over 21%-30%, points out the broker.<\/p>\n

The Buy rating and $4.75 target price are unchanged.<\/p>\n

This report was published on October 22, 2020.<\/p>\n

Target price is $4.75<\/strong> Current Price is $3.47 <\/strong> Difference: $1.28<\/strong>
If WSP<\/strong> meets the Canaccord Genuity target it will return approximately 37%<\/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 0.00<\/strong> cents and EPS of minus 6.40<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 54.22<\/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 minus 3.80<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 91.32<\/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

\n

Wilsons rates ((WSP)) as Overweight (1) –<\/p>\n

While Wilsons admits some metrics of the first quarter result for Whispir could have been stronger, there are many reasons to like the company, the broker concedes.<\/p>\n

These reasons include solid customer additions and guidance for circa 120% net revenue retention.<\/p>\n

Additionally, the company is considered to have a very strong sales pipeline and is exposed to the ongoing acceleration of the secular trend of improved digital communications.<\/p>\n

The broker highlights catalysts including a US go-to-market strategy (early Nov-20), capitalising on strong net customer additions and clear evidence of operating leverage.<\/p>\n

Operating cash flow of -$2m, while meeting Wilsons' forecast, may have heightened capital concerns. However, the company indicated this was more of a timing issue.<\/p>\n

The Overweight rating and target price of $5.40 are unchanged.<\/p>\n

This report was published on October 22, 2020.<\/p>\n

Target price is $5.40<\/strong> Current Price is $3.47 <\/strong> Difference: $1.93<\/strong>
If WSP<\/strong> meets the Wilsons target it will return approximately 56%<\/strong> (excluding dividends, fees and charges).
The company's fiscal year ends in June.<\/p>\n

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

\n

Wilsons forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 7.60<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.66<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Wilsons forecasts a full year FY22<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 2.20<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 157.73<\/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

WZR<\/a>    WISR LIMITED<\/h2>\n

Business & Consumer Credit – Overnight Price: $0.20 <\/strong><\/p>\n

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

Following Wisr's first quarter update, Shaw and Partners comments all metrics are trending in the right direction.<\/p>\n

Wisr saw better-than-expected new loan originations growth of 47% versus the previous period with revenue growing by 385% and a decline in debt levels to a record low of 1%.<\/p>\n

Additionally, the analyst notes significant improvement in recovery from the impact of covid-19, with 89% of initial payment assistance customers resuming payments. The company remains one of Shaw and Partners’ key small caps picks in 2020.<\/p>\n

The Buy rating and the target price of $0.40 are unchanged. <\/p>\n

This report was published on October 20, 2020.<\/p>\n

Target price is $0.40<\/strong> Current Price is $0.20 <\/strong> Difference: $0.2<\/strong>
If WZR<\/strong> meets the Shaw and Partners target it will return approximately 100%<\/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 1.50<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.33<\/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 1.20<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.67<\/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

\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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