Australian Broker Call *Extra* Edition – Sep 13, 2022

This story features AI-MEDIA TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: AIM

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

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.

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.

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.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AIM   AVD   B4P   CSS   FZO   GOR   HLA (2)   HMY   HVN   IMR   MCR   MSB   NIC   OPT   OSL   PBH (2)   PPS   PRU   RFF   RMC   SBM   SXE  

AIM    AI-MEDIA TECHNOLOGIES LIMITED

Commercial Services & Supplies – Overnight Price: $0.33

Bell Potter rates ((AIM)) as Buy (1) –

Ai-Media Technologies's FY22 result broadly met guidance and Bell Potter's forecasts. The company was cash flow positive by year- end, and management expects to sustain this through FY23.

Margins grew thanks to the company's SaaS transition and management logged several big customers in FY22, including Google and the UK and NSW Parliaments.

The broker says the company has room for smaller acquisitions, exiting the financial year with net cash of $15.2m.

Buy rating and 70c target price retained.

This report was published on September 1, 2022.

Target price is $0.70 Current Price is $0.33 Difference: $0.37
If AIM meets the Bell Potter target it will return approximately 112% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 66.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AVD    AVADA GROUP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.80

Shaw and Partners rates ((AVD)) as Buy (1) –

Following in-line FY22 results, Shaw and Partners leaves its Buy rating and $1.29 target price for Avada Group unchanged.

Additional funding in response to flooding in NSW and QLD will support FY23 revenues, according to management. The outlook for civil services remains strong, and margins are expected to be actively managed via synergies and rate increases.

The broker anticipates the group will perform strongly on the back of strong infrastructure tailwinds from Projects totaling over $34bn in QLD and NSW over the next four years. Also, $110bn of federally funded infrastructure projects are expected within the next decade.

This report was published on September 1, 2022.

Target price is $1.29 Current Price is $0.80 Difference: $0.49
If AVD meets the Shaw and Partners target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 5.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.00.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 6.60 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 8.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.02.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

B4P    BEFOREPAY GROUP LIMITED

Diversified Financials – Overnight Price: $0.48

Shaw and Partners rates ((B4P)) as Buy (1) –

Following largely in-line FY22 results, Shaw and Partners makes no major changes to its forecasts for Beforepay Group and maintains its Buy rating and $1.50 target price.

There were improving metrics across the board and the analyst notes increasing momentum from the first half to the second. Active users rose by 69% on the previous corresponding period, while Pay Advances increased to $327.3m from $93m.

Very positively, according to the broker, (net) Loan Defaults fell to 1.8% in the 4Q, down from 2.7% in the 1Q of FY22 and 9% in the 1Q of FY21.

This report was published on September 1, 2022.

Target price is $1.50 Current Price is $0.48 Difference: $1.02
If B4P meets the Shaw and Partners target it will return approximately 213% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.00.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CSS    CLEAN SEAS SEAFOOD LIMITED

Aquaculture – Overnight Price: $0.62

Bell Potter rates ((CSS)) as Speculative Buy (1) –

Clean Seas Seafood's FY22 operating result outpaced Bell Potter's forecasts by a decent clip, as the cost of good sold fell -14% from FY21. Strong growth was logged in biomass as harvests rose sharply.

Bell Potter expects strong demand and pricing will continue into FY23 and that improved working capital will further drive down production costs, which should flow through to earnings and operating cash flow.

Speculative Buy rating retained. Target price rises to 85c from 80c.

This report was published on August 31, 2022.

Target price is $0.85 Current Price is $0.62 Difference: $0.23
If CSS meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.33.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FZO    FAMILY ZONE CYBER SAFETY LIMITED

Software & Services – Overnight Price: $0.31

Shaw and Partners rates ((FZO)) as Buy (1) –

Family Zone Cyber Safety delivered FY22 results in line with Shaw and Partners expectations. The $0.66 target price and Buy rating are left unchanged.

The analyst points out annual recurring revenues (ARR)) are accelerating and growing organically at around 40%. This calculation is based on an update by management for pro forma ARR of $80m in August, up from $77m in June.

The broker forecasts the company will achieve cash flow breakeven during the 2H of FY23. Potential for strategic interest is expected over time, particularly from US-based private equity, which is active in the space.

This report was published on September 1, 2022.

Target price is $0.66 Current Price is $0.31 Difference: $0.35
If FZO meets the Shaw and Partners target it will return approximately 113% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.40.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.43

Bell Potter rates ((GOR)) as Buy (1) –

Gold Road Resources' June first-half earnings (EBITDA) outpaced Bell Potter's forecasts by a decent clip and revenue was in line. Costs fell in the middle of guidance.

A fully franked dividend of 1c was declared, which fell short of the broker's forecast 1.5c.The company exited FY23 debt free with $160.3m cash.

Since June 30, the company has raised its stake in De Grey ((DEG)) mining to 19.99%. EPS forecasts lift 19% for 2022; and fall -1% for 2023 and 2024.

Buy rating retained. Target price rises to $1.75 from $1.70.

This report was published on September 1, 2022.

Target price is $1.75 Current Price is $1.43 Difference: $0.32
If GOR meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $1.72, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.00 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of 89.0%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.60 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of 8.9%.
Current consensus DPS estimate is 2.9, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 16.6.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $1.50

Canaccord Genuity rates ((HLA)) as Buy (1) –

Healthia's FY22 earnings (EBITDA) came in at the top end of guidance, and FY23 EBITDA guidance was reiterated, which Canaccord Genuity considers to be highly achievable.

The broker understands August trading was very strong and observes a strong pipeline offering up to $100m in revenue.

Mergers and acquisitions continued apace and the company is likely to deploy more capital in FY23, says the broker.

Buy rating and $2.45 target price retained.

This report was published on September 1, 2022.

Target price is $2.45 Current Price is $1.50 Difference: $0.95
If HLA meets the Canaccord Genuity target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.33.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((HLA)) as Buy (1) –

Jarden assesses solid FY22 results for Healthia with underlying earnings (EBITDA) a slight beat versus the forecasts of the broker and consensus, in spite of covid disruptions.

FY23 guidance for earnings of over $40m is in line with the analyst's and consensus forecasts. It's felt recent organic revenue declines will reverse over FY23, helped by 4% blended fee increases and improved trading for the Back in Motion (physio) business from June.

The broker lifts its revenue estimates for FY23 and FY24 by 5% and 6%, respectively, which allows for the fee increase across the group from mid-August. 

The target rises to $2.43 from $2.24 and the Buy rating is unchanged.

This report was published on September 1, 2022.

Target price is $2.43 Current Price is $1.50 Difference: $0.93
If HLA meets the Jarden target it will return approximately 62% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 11.70 cents and EPS of 12.40 cents.
At the last closing share price the estimated dividend yield is 7.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.10.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 14.00 cents and EPS of 14.70 cents.
At the last closing share price the estimated dividend yield is 9.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.20.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HMY    HARMONEY CORP LIMITED

Diversified Financials – Overnight Price: $0.65

Jarden rates ((HMY)) as Buy (1) –

Following FY22 results in line with guidance, Jarden expects Harmoney to keep increasing its loan book at a favourable net interest margin (NIM), despite the macroeconomic backdrop and higher funding costs.

The average funding rate in FY22 of 4% was a -180bps fall on the previous corresponding period due to the ongoing transition to warehouse funding.

While below the analyst's forecast, the FY23 guidance for a NIM greater than 10% is considered a strong outcome. Significant operating leverage due to scale is expected, along with higher margins from repeat business.

The Buy rating is unchanged, while the target rises to $1.21 from $1.15.

This report was published on September 1, 2022.

Target price is $1.21 Current Price is $0.65 Difference: $0.56
If HMY meets the Jarden target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.74.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 12.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.19.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $4.42

Jarden rates ((HVN)) as Neutral (3) –

FY22 profit for Harvey Norman was 6% ahead of Jarden's forecast, while the quality of the result also exceeded expectations on improved cash flow and inventory levels. Only Ireland missed on forecasts from among the regions.

Management noted a solid start to the new financial year trading though expects some uncertainty into the 2H. The broker is also cautious on the weaker macro backdrop, a normalisation of margins and a return of more fierce competition.

The analyst forecasts a -16% fall in FY23 profit and lowers the target to $4.00 from $4.30. Neutral.

This report was published on September 1, 2022.

Target price is $4.00 Current Price is $4.42 Difference: minus $0.42 (current price is over target).
If HVN meets the Jarden target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.62, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 32.00 cents and EPS of 44.60 cents.
At the last closing share price the estimated dividend yield is 7.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.1, implying annual growth of -40.0%.
Current consensus DPS estimate is 31.5, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 11.3.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 30.00 cents and EPS of 41.80 cents.
At the last closing share price the estimated dividend yield is 6.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.2, implying annual growth of -7.4%.
Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IMR    IMRICOR MEDICAL SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $0.29

Moelis rates ((IMR)) as Buy (1) –

Imricor Medical Systems' June first-half result was broadly in line with Moelis's expectations and no quantified guidance was provided.

The company's net cash position roughly halved year on year to $9.1m and the broker notes the company only has enough capital to take it through to the end of the year.

The broker notes the US equity raising should allow Imricor to complete the VT trial. Moelis predicts another $22m will be needed to propel the company through to breakeven in 2025.

The broker observes a slight uptick in margins. The BT trial is to start this half pending regulatory approval, which could push timings out.

Buy rating retained, the broker appreciating the company's quality and market opportunity. Target is reduced to 89c to reflect in part the equity dilution and funding concerns. This compares with the last entry in the FNArena database in February of $2.26.

This report was published on September 2, 2022.

Target price is $2.26 Current Price is $0.29 Difference: $1.97
If IMR meets the Moelis target it will return approximately 679% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.85.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.68 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.12.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $2.06

Bell Potter rates ((MCR)) as Buy (1) –

Mincor Resources's FY22 result met Bell Potter's forecasts on some metrics but disappointed at the earnings level. The company exited FY22 with cash of $78.6m – a small beat on the broker.

Mincor Resources is entering a production ramp-up phase and the broker expects cost and production guidance will be issued in the September quarter.

EPS forecasts rise 12% in FY23; fall -5% in FY24; and are steady for FY25. Hold rating and $2.10 target price retained.

This report was published on September 1, 2022.

Target price is $2.10 Current Price is $2.06 Difference: $0.04
If MCR meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 12.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.61.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 28.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.15.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MSB    MESOBLAST LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.91

Bell Potter rates ((MSB)) as Speculative Buy (1) –

Mesoblast's FY22 result reveals the company continued to chew through earnings, albeit its loss drew in from -$98.9m in FY21 to -$91.3m in FY22, thanks to a 41% increase in revenue to $10.2m and a 21% improvement in costs, Bell Potter points out.

The company ended the year with $105m in cash, which includes the dilutive placement, which will fund the company for another year, says Bell Potter. Net debt sat at $36.2m and the company holds $40m in undrawn credit.

Much depends on the company's resubmission of its biological licence application for Remestemcel for the treatment of acute steroid refractory graft vs host disease in children, the results of which are expected in the next six to seven months.

Bell Potter says the clinical results are unambiguous and the need is high. Speculative Buy rating retained. Target price eases to $1.65 from $1.70.

This report was published on September 1, 2022.

Target price is $1.65 Current Price is $0.91 Difference: $0.74
If MSB meets the Bell Potter target it will return approximately 81% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 18.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.83.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.07 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.63.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NIC    NICKEL INDUSTRIES LIMITED

Nickel – Overnight Price: $0.96

Bell Potter rates ((NIC)) as Buy (1) –

Nickel Industries' June first-half result appears to have pleased Bell Potter despite disappointing at the earnings level due to strong capital investment, the broker highlighting it is a record financial and production result for the company.

Strong growth was logged across all key metrics says the broker, the only shortfall on forecasts being higher than estimated cost of goods sold and higher withholding tax as production increased.

EPS and the dividend fell short of the broker due to capital expenditure associated with the ramp up of the Angel Nickel and Oracle Nickel Projects. 

Buy rating retained. Target price falls to $1.83 from $1.96 (along with earnings forecasts) to reflect higher withholding tax and cost assumptions.

This report was published on September 1, 2022.

Target price is $1.83 Current Price is $0.96 Difference: $0.87
If NIC meets the Bell Potter target it will return approximately 91% (excluding dividends, fees and charges).
Current consensus price target is $1.40, suggesting upside of 45.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.58 cents and EPS of 13.96 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.88.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 9.77 cents and EPS of 25.27 cents.
At the last closing share price the estimated dividend yield is 10.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.7, implying annual growth of 87.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 5.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OPT    OPTHEA LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.12

Wilsons rates ((OPT)) as Overweight (1) –

Wilsons upgrades its target price to $1.50 a share (last entry in the FNArena database was $1.08 in February) heading into the announcement of Opthea's Stage III trials results for its OPT-302 macular degeneration product.

The broker says the company's recent capital raising and progress on the filing and approval of BLA cuts the fundamental value of the company by -16% to 90cps.

Wilsons also spies value heading into ShORe and COAST trial announcement. Overweight rating retained.

This report was published on September 2, 2022.

Target price is $1.50 Current Price is $1.12 Difference: $0.38
If OPT meets the Wilsons target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 24.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.53.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 21.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.28.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OSL    ONCOSIL MEDICAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.05

Wilsons rates ((OSL)) as Downgrade to Market Weight from Overweight (3) –

Wilsons downgrades OncoSil Medical to Market Weight from Overweight and cuts its target price -66% to 6c, which compares with the last entry in FNArena database in March of 17c.

While the company has worked hard to build short-term sales in Europe, the broker considers them to be investigator-led and highly conditional with only small revenue prospects.

The broker doubts the company will be investable until it received the Humanitarian Device Exemption from the Federal Drug Aministration, which has been hanging for three years. The company will also need more capital opines the broker.

This report was published on September 2, 2022.

Target price is $0.06 Current Price is $0.05 Difference: $0.01
If OSL meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.62.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 15.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.33.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $2.34

Bell Potter rates ((PBH)) as Buy (1) –

PointsBet Holdings' FY22 result outpaced Bell Potter's forecasts despite excluding a $14.5m FX gain, thanks to a lower than forecast earnings (EBITDA) loss in North America. Australia's profit proved a slight disappointment.

No FY23 guidance has been provided but the broker expects losses to rise slightly in FY22 before falling sharply in FY24 and FY25, predicting the company will hit positive EBITDA in FY26.

Buy rating and $5.25 target price retained.

This report was published on September 1, 2022.

Target price is $5.25 Current Price is $2.34 Difference: $2.91
If PBH meets the Bell Potter target it will return approximately 124% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 104.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.24.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 67.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.48.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((PBH)) as Buy (1) –

Due to a higher-than-expected product and technology spend by PointsBet Holdings over FY22, the adjusted loss of -$269.9m was worse than the -$261m expected by consensus and -$214.8m forecast by Jarden.

The broker lowers its target price to $3.62 from $3.89 after revising up D&A estimates over the forecast period. The Buy rating is retained on a profitable Australian business and US optionality.

Net cash of $520m is sufficient to fund quarterly cash burn over the next 24 months, suggests the analyst. While short-term losses are expected, attractive technology and favourable structural tailwinds should help the company prevail.

This report was published on September 1, 2022.

Target price is $3.62 Current Price is $2.34 Difference: $1.28
If PBH meets the Jarden target it will return approximately 55% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 43.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.43.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 20.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.47.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.74

Canaccord Genuity rates ((PPS)) as Buy (1) –

Praemium's FY22 earnings (EBITDA) met February guidance, helped in part by declining costs in the second half after a ramp-up in the first half, on top of growth in funds under management which translated to higher revenue.

The SMA platform achieved a higher platform revenue margin.

Canaccord Genuity believes the company is well funded and well placed to build its presence in the domestic wealth management market.

The company emerged with a net cash position of $70m after divesting its international business for a net $60m, and the company has declared a $25.8m special dividend and a $14m buyback.

Buy rating retained. Target price rises to $1.12 from 97c.

This report was published on September 1, 2022.

Target price is $1.12 Current Price is $0.74 Difference: $0.38
If PPS meets the Canaccord Genuity target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.67.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 1.50 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.67.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PRU    PERSEUS MINING LIMITED

Gold & Silver – Overnight Price: $1.51

Canaccord Genuity rates ((PRU)) as Buy (1) –

FY22 earnings for Perseus Mining were a beat versus Canaccord Genuity and consensus forecasts, while a record profit also beat the consensus expectation. A 1.64c final included a bonus dividend of 0.79c.

Management's outlook commentary supported the broker's forecast for significant quarter-on-quarter increases in production, and provides confidence in achieving the company's 1H production targets.

The Buy rating and $2.30 target price are maintained.

This report was published on September 1, 2022.

Target price is $2.30 Current Price is $1.51 Difference: $0.79
If PRU meets the Canaccord Genuity target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $1.98, suggesting upside of 31.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of 12.9%.
Current consensus DPS estimate is 2.9, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 7.1.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 2.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of -7.1%.
Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 7.7.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $2.58

Bell Potter rates ((RFF)) as Hold (3) –

Rural Funds' FY22 result fell short of Bell Potter's forecasts despite the company logging strong revenue growth (a beat).

Operating cash flow of $37.6m fell well short of the broker's forecast $47m but net debt outpaced.

Management has guided to adjusted funds-from-operations (AFFO) of 10.1c per unit in FY23, again well short of the broker's 13.9c forecast, due to interest costs and assumptions regarding the macadamia properties.

The broker downgrades AFFO forecasts -25% for FY23 and -12% for FY24.

Hold rating and $2.75 target price retained, the broker appreciating the company's track record of value creation. 

This report was published on September 1, 2022.

Target price is $2.75 Current Price is $2.58 Difference: $0.17
If RFF meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.70 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.29.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 12.70 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.50.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RMC    RESIMAC GROUP LIMITED

Banks – Overnight Price: $1.15

Bell Potter rates ((RMC)) as Buy (1) –

Bell Potter says Resimac Group's FY22 result was something of a mixed bag.

The broker spies headwinds to credit growth after a slowing in book growth in the second half, but notes credit quality is strong albeit weakening in the second half, and the company's net interest margin eased.

The loan impairment expense rose $2.14m to reflect an increase in general positions as economic growth slows.

The broker says all of this is to be expected given recent rate rises and shaves FY23 earnings  forecasts -1.1% but increases FY24 earnings forecasts (up 4%).

Hold rating retained, Bell Potter noting the recent fall in the share price to $1.27 already accounts for most of the rate-rise impact. Target price rises to $2.25 from $2.15.

This report was published on September 1, 2022.

Target price is $2.25 Current Price is $1.15 Difference: $1.1
If RMC meets the Bell Potter target it will return approximately 96% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 8.00 cents and EPS of 23.20 cents.
At the last closing share price the estimated dividend yield is 6.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.96.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 8.00 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 6.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.64.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SBM    ST. BARBARA LIMITED

Gold & Silver – Overnight Price: $0.93

Canaccord Genuity rates ((SBM)) as Hold (3) –

Following broadly in-line FY22 results, Canaccord Genuity leaves is Hold rating and $0.95 target unchanged for St. Barbara. While FY23 guidance was maintained, the broker points to near-term grade headwinds at Gwalia.

The company continues to conduct a strategic review of the Simberi operations in Papua New Guinea and the analyst suggests the asset will be sold.

Should a sale occur, Canaccord expects heightened corporate interest will follow, particularly in light of recent progress for permitting at the Atlantic operations in Canada.

This report was published on September 1, 2022.

Target price is $0.85 Current Price is $0.93 Difference: minus $0.08 (current price is over target).
If SBM meets the Canaccord Genuity target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.04, suggesting upside of 11.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 155.0.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.4, implying annual growth of 133.3%.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 66.4.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SXE    SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

Mining Sector Contracting – Overnight Price: $0.74

Moelis rates ((SXE)) as Buy (1) –

Southern Cross Electrical Engineering's earnings (EBITDA) outpaced Moelis's forecasts by 17% and met upgraded August guidance.

Strong cash conversion of 127% proved a highlight, as did the absence of bank debt excluding leases, and the broker says the strong balance sheet provides room for M&A.

FY23 revenue guidance was flat but EBITDA guidance rose. Moelis upgraded FY23 and FY24 EBITDA forecasts by 10%.

Buy rating retained. Target price rises to 99c from 73c.

This report was published on September 1, 2022.

Target price is $0.99 Current Price is $0.74 Difference: $0.25
If SXE meets the Moelis target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.50 cents and EPS of 7.40 cents.
At the last closing share price the estimated dividend yield is 7.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 5.60 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 7.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.49.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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