{"id":91053,"date":"2021-01-20T10:00:08","date_gmt":"2021-01-19T23:00:08","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=91053"},"modified":"2021-01-20T10:00:09","modified_gmt":"2021-01-19T23:00:09","slug":"australian-broker-call-extra-edition-jan-20-2021","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2021\/01\/20\/australian-broker-call-extra-edition-jan-20-2021\/","title":{"rendered":"Australian Broker Call *Extra* Edition – Jan 20, 2021"},"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

ALU<\/a>   ANP<\/a>   AQR<\/a>   BGA<\/a>   CSX<\/a>   CUP<\/a>   ELO<\/a>   ENN<\/a>   GDF<\/a>   IRI<\/a>   LYL<\/a>   MFG<\/a>   PMV<\/a>   PSQ<\/a>   PXS<\/a>  <\/p>\n

ALU<\/a>    ALTIUM LIMITED<\/h2>\n

Hardware & Equipment – Overnight Price: $28.75 <\/strong><\/p>\n

Bell Potter rates ((ALU)) as Upgrade to Hold from Sell (3) –<\/p>\n

With the recent fall in share price, Altium is no longer considered overvalued and Bell Potter upgrades its rating to Hold from Sell.<\/p>\n

Altium's unaudited revenue figure for the first half, at circa US$89.6m, was -3% below the year prior. The company blamed covid conditions in the US and Europe and challenging economic conditions.<\/p>\n

The company did reiterate its FY21 guidance with the expectation of a stronger second half with growth in the Americas, China and NEXUS. <\/p>\n

The biggest risks to the stock, according to the broker, stem from covid and the tense political situation in the US negatively impacting customer behaviour.  <\/p>\n

The target price has decreased to $31.25 from $32.50.<\/p>\n

This report was published on January 13, 2021.<\/p>\n

Target price is $31.25<\/strong> Current Price is $28.75 <\/strong> Difference: $2.5<\/strong>
If ALU<\/strong> meets the Bell Potter target it will return approximately 9%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $34.23<\/strong>, suggesting upside of 19.0%<\/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 57.57<\/strong> cents and EPS of 55.84<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.00%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.48<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 50.5<\/strong>, implying annual growth of N\/A<\/strong>.
Current consensus DPS estimate is 45.6<\/strong>, implying a prospective dividend yield of 1.6%<\/strong>.
Current consensus EPS estimate suggests the PER is 56.9<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 66.21<\/strong> cents and EPS of 63.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.30%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.99<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 56.2<\/strong>, implying annual growth of 11.3%<\/strong>.
Current consensus DPS estimate is 50.4<\/strong>, implying a prospective dividend yield of 1.8%<\/strong>.
Current consensus EPS estimate suggests the PER is 51.2<\/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: 0.3<\/strong>
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources<\/p>\n<\/p>\n

ANP<\/a>    ANTISENSE THERAPEUTICS LIMITED<\/h2>\n

Pharmaceuticals & Biotech\/Lifesciences – Overnight Price: $0.25 <\/strong><\/p>\n

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

Wilsons initiates coverage on Antisense Therapeutics with an Overweight rating and price target of $0.57.<\/p>\n

Antisense is a clinical-stage biopharmaceutical company focused on antisense drugs for rare diseases. The company's primary asset -ATL1102 – is being developed for treating Duchenne muscular dystrophy, a genetic disease affecting boys causing severe muscle wastage leading to premature death.<\/p>\n

The company is planning a Phase II study in Europe with ATL1102 in the second half.<\/p>\n

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

Target price is $0.57<\/strong> Current Price is $0.25 <\/strong> Difference: $0.32<\/strong>
If ANP<\/strong> meets the Wilsons target it will return approximately 128%<\/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 3.40<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.35<\/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 1.00<\/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: 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: $3.49 <\/strong><\/p>\n

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

APN Convenience Retail REIT has completed the pending acquisition of 12 service stations for a total consideration of -$75.3m.<\/p>\n

This transaction leads to a 14.5% increase in portfolio size with the weighted average lease expiry (WALE) increasing to 16.4 years from 11.1 for the existing assets.<\/p>\n

Moelis views the REIT as a compelling investment proposition, with the recent share price underperformance providing a particularly attractive entry point.<\/p>\n

The REIT has a reasonable prospect of entering the ASX300 index in 2021, states Moelis and retains its Buy rating with the target price rising slightly to $4.08 from $4.07.<\/p>\n

This report was published on January 7, 2021.<\/p>\n

Target price is $4.08<\/strong> Current Price is $3.49 <\/strong> Difference: $0.59<\/strong>
If AQR<\/strong> meets the Moelis target it will return approximately 17%<\/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 6.30%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.86<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Moelis forecasts a full year FY22<\/strong> dividend of 23.30<\/strong> cents and EPS of 23.50<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.68%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.85<\/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

BGA<\/a>    BEGA CHEESE LIMITED<\/h2>\n

Dairy – Overnight Price: $5.25 <\/strong><\/p>\n

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

A lot has happened over the past two months with Bell Potter noting a material change in industry dynamics in favour of Bega Cheese.<\/p>\n

Bega Cheese will be acquiring the Lion Dairy & Drinks business for -$764m and the transaction is expected to be earnings accretive in FY22. Bega believes synergies worth circa $41m can be achieved from this acquisition.<\/p>\n

The acquisition comes as a time when Freedom Foods has disclosed material losses over FY19-20 in its dairy operations. It looks like Freedom Foods has been materially overpaying for milk.<\/p>\n

Bell Potter believes the latter event may signal a shift in the competitive landscape for farmgate pricing at a time when Lion Dairy is shifting to Bega. Earnings forecasts have been downgraded by -35% for FY21 followed by upgrades of 10% in FY22 and 9% in FY23. <\/p>\n

Rating is upgraded to Buy from Hold and the target price is increased to $6.20 from $5.35.<\/p>\n

This report was published on January 11, 2021.<\/p>\n

Target price is $6.20<\/strong> Current Price is $5.25 <\/strong> Difference: $0.95<\/strong>
If BGA<\/strong> meets the Bell Potter 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

Bell Potter forecasts a full year FY21<\/strong> dividend of 11.00<\/strong> cents and EPS of 13.10<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.10%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.08<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 18.00<\/strong> cents and EPS of 29.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.43%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.92<\/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

CSX<\/a>    CLEANSPACE HOLDINGS LIMITED<\/h2>\n

Medical Equipment & Devices – Overnight Price: $7.15 <\/strong><\/p>\n

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

Wilsons maintains its Overweight rating with the target rising to $7.50 from $6.50.<\/p>\n

Cleanspace Holding lifted its first-half revenue guidance to $39-$41m with margins reflecting higher direct selling into the US healthcare market. The new operating income range of $17-$19m reflects an upgrade of 20%.<\/p>\n

The company did not provide any outlook commentary for the second half. Even as covid vaccination schedules have started in the US, Wilsons doubts they will have any immediate impact on demand for respirators.<\/p>\n

This report was published on December 18, 2020.<\/p>\n

Target price is $7.50<\/strong> Current Price is $7.15 <\/strong> Difference: $0.35<\/strong>
If CSX<\/strong> meets the Wilsons target it will return approximately 5%<\/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 27.30<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.19<\/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 16.90<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.31<\/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

CUP<\/a>    COUNTPLUS LIMITED<\/h2>\n

Commercial Services & Supplies – Overnight Price: $1.22 <\/strong><\/p>\n

Wilsons rates ((CUP)) as Upgrade to Overweight from Market Weight (1) –<\/p>\n

Countplus has formed partnerships with two adviser firms – Venture Financial Advisers and Ascent Private Wealth.<\/p>\n

While the impact to Countplus's forecasts is not material, Wilsons is pleased by the willingness of high-quality firms to join the Count Financial platform. <\/p>\n

As a result, the broker has upgraded its assumptions around the likely success the company may have in attracting further advisers over the next 6-36 months. <\/p>\n

Wilsons has upgraded its rating to Overweight from Market Weight with the target rising to $1.30 from $0.95.<\/p>\n

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

Target price is $1.30<\/strong> Current Price is $1.22 <\/strong> Difference: $0.08<\/strong>
If CUP<\/strong> meets the Wilsons 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

Wilsons forecasts a full year FY21<\/strong> dividend of 2.50<\/strong> cents and EPS of 2.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.05%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.07<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Wilsons forecasts a full year FY22<\/strong> dividend of 2.60<\/strong> cents and EPS of 2.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.13%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.07<\/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

ELO<\/a>    ELMO SOFTWARE LIMITED<\/h2>\n

Jobs & Skilled Labour Services – Overnight Price: $6.88 <\/strong><\/p>\n

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

Elmo software acquired Webexpense, an expense management SaaS platform in the UK for a price of circa -$58m. Webexpense has more than 1,000 customers in the UK which, Wilsons thinks, may allow for future cross-sell of Elmo Software modules and vice versa.<\/p>\n

With Webexpense focused on the mid-market and in the UK, the broker highlights the acquisition is complementary to Elmo Software's strategy. In the coming months, Wilsons expects Webexpense to be integrated into the broader Elmo platform.<\/p>\n

On the flip side, the broker cautions unless investment costs are slowed by FY23, Elmo Software may require another "top-up". Wilsons has downgraded its rating to Market Weight from Overweight with the target price rising to $6.79 from $6.33.<\/p>\n

This report was published on December 18, 2020.<\/p>\n

Target price is $6.79<\/strong> Current Price is $6.88 <\/strong> Difference: minus $0.09<\/strong> (current price is over target).
If ELO<\/strong> meets the Wilsons target it will return approximately minus 1%<\/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 0.00<\/strong> cents and EPS of minus 31.60<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.77<\/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 30.70<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.41<\/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

ENN<\/a>    ELANOR INVESTORS GROUP<\/h2>\n

Wealth Management & Investments – Overnight Price: $1.58 <\/strong><\/p>\n

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

Elanor Investors Group announced a first-half dividend range of 3.6-3.9c with core earnings of approx $5.03m.<\/p>\n

The group delivered a strong first half within its core business, observes Moelis, with the four new funds totalling circa $200m in new funds under management, ahead of Moelis's estimates.<\/p>\n

This was offset by weaker than anticipated co-investment distributions from the group's syndicates with many still recovering from covid related challenges.<\/p>\n

Moelis has downgraded its rating to Hold from Buy with the target price rising to $1.72 from $1.55.<\/p>\n

The report was published on December 22, 2020.<\/p>\n

Target price is $1.72<\/strong> Current Price is $1.58 <\/strong> Difference: $0.14<\/strong>
If ENN<\/strong> meets the Moelis 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

Moelis forecasts a full year FY21<\/strong> dividend of 9.80<\/strong> cents and EPS of 11.50<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.20%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.74<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Moelis forecasts a full year FY22<\/strong> dividend of 11.80<\/strong> cents and EPS of 13.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 7.47%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.45<\/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

GDF<\/a>    GARDA PROPERTY GROUP<\/h2>\n

REITs – Overnight Price: $1.16 <\/strong><\/p>\n

Moelis rates ((GDF)) as Downgrade to Hold from Buy (3) –<\/p>\n

Garda Property Group secured Fuji Xerox as its foundation tenant for the completed Botanicca 9 development. Fuji Xerox has agreed to lease 2,400sqm.<\/p>\n

Leasing at Botanicca 9 is one of the key outcomes Moelis was looking for and notes the lease with Fuji Xerox will provide confidence in the attractiveness of Botanicca 9.<\/p>\n

The broker considers the outcome hugely positive since it secures cashflow for FY22 and will likely make it easier to secure smaller tenants now that the group has a foundation tenant.<\/p>\n

Noting the recent share price strength, Moelis has maintained its Hold rating with the target price rising to $1.24 from $1.18.<\/p>\n

This report was published on December 17, 2020.<\/p>\n

Target price is $1.24<\/strong> Current Price is $1.16 <\/strong> Difference: $0.08<\/strong>
If GDF<\/strong> meets the Moelis 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

Moelis forecasts a full year FY21<\/strong> dividend of 7.20<\/strong> cents and EPS of 7.60<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.21%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.26<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Moelis forecasts a full year FY22<\/strong> dividend of 7.50<\/strong> cents and EPS of 8.30<\/strong> cents.
At the last closing share price the estimated dividend yield is 6.47%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.98<\/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

IRI<\/a>    INTEGRATED RESEARCH LIMITED<\/h2>\n

IT & Support – Overnight Price: $2.58 <\/strong><\/p>\n

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

Integrated Research's latest trading update has been described as "weak", with the company further downgrading its first-half revenue and net profit guidance to between $34-37m from $41-47m and $0-$2m from $5-$8m.<\/p>\n

Bell Potter notes the company's trading performance has been below expectations with customers deferring business decisions. Some other reasons could include unfavourable exchange rate, lengthening of sales cycles and shortening of licence terms.<\/p>\n

Earnings forecasts for FY21-23 have been downgraded by -9-40%. <\/p>\n

Hold rating retained with the target price falling to $2.75 from $3.<\/p>\n

This report was published on January 11, 2021.<\/p>\n

Target price is $2.75<\/strong> Current Price is $2.58 <\/strong> Difference: $0.17<\/strong>
If IRI<\/strong> meets the Bell Potter 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

Bell Potter forecasts a full year FY21<\/strong> dividend of 3.00<\/strong> cents and EPS of 5.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.16%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.48<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 5.50<\/strong> cents and EPS of 10.90<\/strong> cents.
At the last closing share price the estimated dividend yield is 2.13%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.67<\/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

LYL<\/a>    LYCOPODIUM LIMITED<\/h2>\n

Mining Sector Contracting – Overnight Price: $5.27 <\/strong><\/p>\n

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

Aided by a global monetary stimulus-led surge in commodity prices, Bell Potter believes Lycopodium will see a material increase in opportunities once travel normalises. <\/p>\n

The company has been awarded a contract for Sandfire Resources’ ((SFR)) Motheo Project in Botswana while Orezone (Canada) has awarded Lycopodium a contract for its Bomboré Gold Project in Burkina Faso.<\/p>\n

The company's pipeline of opportunities continues to mature with many projects expected to deliver final investment decisions across 2021. The broker feels this will likely provide Lycopodium with the opportunity to materially grow its revenue in FY22.<\/p>\n

The Hold rating is unchanged and the target price rises to $6 from $4.85.<\/p>\n

This report was published on January 13, 2021.<\/p>\n

Target price is $6.00<\/strong> Current Price is $5.27 <\/strong> Difference: $0.73<\/strong>
If LYL<\/strong> meets the Bell Potter target it will return approximately 14%<\/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 20.00<\/strong> cents and EPS of 25.60<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.80%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.59<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Bell Potter forecasts a full year FY22<\/strong> dividend of 30.00<\/strong> cents and EPS of 37.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 5.69%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.94<\/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

MFG<\/a>    MAGELLAN FINANCIAL GROUP LIMITED<\/h2>\n

Wealth Management & Investments – Overnight Price: $49.55 <\/strong><\/p>\n

Goldman Sachs rates ((MFG)) as Sell (5) –<\/p>\n

Magellan Financial Group's funds under management (FUM) were down -1.6% to $101.4bn from $103.0bn during December, driven by negative investment returns of -2.1% and somewhat offset by organic growth of 0.6%.<\/p>\n

As a result, the group's end of period FUM was well below Goldman Sachs's forecast of $106.4bn for the first half. The group also announced its first-half performance fee will be circa $12m, a far cry from the broker's already reduced estimate of $17m.<\/p>\n

Sell rating is retained with the target falling to $52.52 from $54.86.<\/p>\n

This report was published on January 11, 2021.<\/p>\n

Target price is $52.52<\/strong> Current Price is $49.55 <\/strong> Difference: $2.97<\/strong>
If MFG<\/strong> meets the Goldman Sachs target it will return approximately 6%<\/strong> (excluding dividends, fees and charges).
Current consensus price target is $57.15<\/strong>, suggesting upside of 15.3%<\/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 232.00<\/strong> cents and EPS of 246.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 4.68%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.14<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 235.9<\/strong>, implying annual growth of 8.1%<\/strong>.
Current consensus DPS estimate is 216.0<\/strong>, implying a prospective dividend yield of 4.4%<\/strong>.
Current consensus EPS estimate suggests the PER is 21.0<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 254.00<\/strong> cents and EPS of 280.00<\/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 17.70<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 266.9<\/strong>, implying annual growth of 13.1%<\/strong>.
Current consensus DPS estimate is 239.2<\/strong>, implying a prospective dividend yield of 4.8%<\/strong>.
Current consensus EPS estimate suggests the PER is 18.6<\/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

PMV<\/a>    PREMIER INVESTMENTS LIMITED<\/h2>\n

Apparel & Footwear – Overnight Price: $23.46 <\/strong><\/p>\n

Goldman Sachs rates ((PMV)) as Sell (5) –<\/p>\n

Premier Investments' trading update for the 24 weeks of sales to 9 Jan 2021 noted sales of $716.9m, up 5% year on year. Sales and gross margins for Peter Alexander, Just Jeans and Jay Jays proved in line with the broker's expectations.<\/p>\n

The company has guided to a first-half operating income between $221-$233m, materially higher than Goldman Sachs's forecast of $126.5m. <\/p>\n

The broker suggests the material "beat "demonstrates a strong sales surge driving gross margins and operating leverage with consumer spending recovering across some apparel categories.<\/p>\n

Goldman Sachs has maintained its Sell rating with a target price of $19.20.<\/p>\n

This report was published on January 13, 2021.<\/p>\n

Target price is $19.20<\/strong> Current Price is $23.46 <\/strong> Difference: minus $4.26<\/strong> (current price is over target).
If PMV<\/strong> meets the Goldman Sachs target it will return approximately minus 18%<\/strong> (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $24.92<\/strong>, suggesting upside of 6.2%<\/strong>(ex-dividends)
The company's fiscal year ends in July.<\/p>\n

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

\n

Goldman Sachs forecasts a full year FY21<\/strong> dividend of 71.00<\/strong> cents and EPS of 94.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.03%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.96<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 130.5<\/strong>, implying annual growth of 50.2%<\/strong>.
Current consensus DPS estimate is 94.1<\/strong>, implying a prospective dividend yield of 4.0%<\/strong>.
Current consensus EPS estimate suggests the PER is 18.0<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Goldman Sachs forecasts a full year FY22<\/strong> dividend of 71.00<\/strong> cents and EPS of 90.00<\/strong> cents.
At the last closing share price the estimated dividend yield is 3.03%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.07<\/strong>.<\/p>\n

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

Current consensus EPS estimate is 112.6<\/strong>, implying annual growth of -13.7%<\/strong>.
Current consensus DPS estimate is 86.7<\/strong>, implying a prospective dividend yield of 3.7%<\/strong>.
Current consensus EPS estimate suggests the PER is 20.8<\/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

PSQ<\/a>    PACIFIC SMILES GROUP LIMITED<\/h2>\n

Healthcare services – Overnight Price: $2.65 <\/strong><\/p>\n

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

Wilsons has maintained its Overweight rating with the target rising to $2.76 from $2.<\/p>\n

Pacific Smiles Group opened seven practices in the first half with another seven planned for the second half. The group has revised its FY21 patient fee growth guidance to 25-30% from 15% with operating income guided to 35-45% (also initially 15%).<\/p>\n

Wilsons has lifted its FY21 profit forecast by 35% to $12.4m with FY22-23 forecasts upgraded by 26-28%. The broker notes Pacific Smiles is trading well above pre-covid levels organically with investments into systems now leveraging into genuine earnings growth.<\/p>\n

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

Target price is $2.76<\/strong> Current Price is $2.65 <\/strong> Difference: $0.11<\/strong>
If PSQ<\/strong> meets the Wilsons target it will return approximately 4%<\/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 3.90<\/strong> cents and EPS of 8.10<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.47%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.72<\/strong>.<\/p>\n<\/blockquote>\n

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

\n

Wilsons forecasts a full year FY22<\/strong> dividend of 5.10<\/strong> cents and EPS of 8.80<\/strong> cents.
At the last closing share price the estimated dividend yield is 1.92%<\/strong>.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.11<\/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

PXS<\/a>    PHARMAXIS LTD<\/h2>\n

Pharmaceuticals & Biotech\/Lifesciences – Overnight Price: $0.09 <\/strong><\/p>\n

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

Bell Potter views the FDA approval for Bronchitol as a key milestone and an important turning point for the business.<\/p>\n

With the target market for Bronchitol expanded to the US, which incidentally also accounts for more than 65% of the global cystic fibrosis market, the mannitol business (Bronchitol+Aridol) is expected to become profitable from FY21, asserts Bell Potter.<\/p>\n

With Bell Potter's Pharmaxis valuation weighted towards the mannitol business, the broker has upgraded its rating to Buy from Hold. The target price rises to $0.14 from $0.09.<\/p>\n

This report was published on January 11, 2021.<\/p>\n

Target price is $0.14<\/strong> Current Price is $0.09 <\/strong> Difference: $0.05<\/strong>
If PXS<\/strong> meets the Bell Potter 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

Bell Potter forecasts a full year FY21<\/strong> dividend of 0.00<\/strong> cents and EPS of minus 1.10<\/strong> cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.18<\/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 2.70<\/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

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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