Australian Broker Call *Extra* Edition – Mar 02, 2020

This story features ABACUS PROPERTY GROUP, and other companies. For more info SHARE ANALYSIS: ABP

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)

ABP   ARB (2)   BEN   CGF   CL1   COL   ENN   GWA   HRL   INA   KGN   LIC   MAI   MND   MNY (2)   MYE   ONT   OZL   PME   RHP   SLC   SOM   WSP  

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $3.72

Shaw and Partners rates ((ABP)) as Hold (3) –

Abacus Property Group's FY20 first-half result outpaced Shaw and Partners' expectations and the company reaffirmed dividend guidance, thanks to strength in the property development division and the divestment of Lane Cove.

Self-storage recorded strong growth and both metrics and occupancy rates improved. The Office Portfolio was solid and the company forged ahead on its Residential Portfolio, cutting it by -25%.

Price target rises 4% to $4.07, the broker upgrading its self-storage valuation. Hold rating retained.

This report was published on February 19, 2020.

Target price is $4.07 Current Price is $3.72 Difference: $0.35
If ABP meets the Shaw and Partners target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $3.95, suggesting upside of 6.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 19.00 cents and EPS of 20.60 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of -39.9%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 19.70 cents and EPS of 21.50 cents.
At the last closing share price the estimated dividend yield is 5.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.8, implying annual growth of 3.8%.
Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.1.

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

ARB    ARB CORPORATION LIMITED

Automobiles & Components – Overnight Price: $17.15

E.L. & C Baillieu rates ((ARB)) as Buy (1) –

ARB Corp's FY20 first-half result pleased stockbroker Baillieu, the company reporting in line with its February trading update. Sales and aftermarket sales posted solid growth, export sales jumped 21.9% and Original Equipment Manufacture sales fell.

Cash flow from operations jumped 72% and net cash settled at $6.6m. Pressure surfaced on operating margins – down to 15.1% from 17.3%, due to adverse foreign exchange movements, but the broker expects this to stabilise later in the year in line with the currency.

For the short-term, however, the broker assumes no recovery in new vehicle sales over the next six months and currency headwinds to persist. EPS forecasts fall -4%, -3% and -7% across FY20, FY21 and FY22.

The broker is upbeat for the longer term, anticipating expansion of the store network and penetration into offshore markets. Buy rating retained. Target price rises to $21.20 from $19.60.

This report was published on February 18, 2020.

Target price is $21.20 Current Price is $17.15 Difference: $4.05
If ARB meets the E.L. & C Baillieu target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $18.70, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 40.00 cents and EPS of 68.60 cents.
At the last closing share price the estimated dividend yield is 2.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.1, implying annual growth of -8.1%.
Current consensus DPS estimate is 38.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 42.00 cents and EPS of 77.50 cents.
At the last closing share price the estimated dividend yield is 2.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.9, implying annual growth of 11.8%.
Current consensus DPS estimate is 44.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.2.

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

ARB Corp's FY20 first-half result outpaced Wilsons' forecasts despite challenges from foreign exchange and negative operating leverage. Management guided to a similarly challenged result in the second half. EPS forecasts fall -4% to -6% to reflect higher employee costs and depreciation.

Wilsons forecasts a recovery in new vehicle sales in the first half of FY21, and otherwise, ARB's performance in most markets was strong, the broker understanding ARB's domestic order book to be at a record level.

Wilsons recommends an Overweight rating. Target price $21.50.

This report was published on February 19, 2020.

Target price is $21.50 Current Price is $17.15 Difference: $4.35
If ARB meets the Wilsons target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $18.70, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 39.50 cents and EPS of 67.80 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.1, implying annual growth of -8.1%.
Current consensus DPS estimate is 38.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 44.50 cents and EPS of 77.40 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.9, implying annual growth of 11.8%.
Current consensus DPS estimate is 44.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.2.

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

BEN    BENDIGO AND ADELAIDE BANK LIMITED

Banks – Overnight Price: $9.19

Goldman Sachs rates ((BEN)) as Upgrade to Neutral from Sell (3) –

The regional bank is in a more sustainable position on the capital front due to a dividend cut and decision to raise capital announced recently, feels Goldman Sachs. The broker in particular likes the fact that banking has grown in terms of loan disbursement without compromising on the net interest income.

This upturn in revenues is further consolidated by an increase in investment spending, notes the broker.

The valuations are supportive and the stock is trading broadly in line with the broker’s expectations. The first half result was positive overall and the broker upgrades the stock to Neutral from Sell with the target price at $10.43.

The report was published on February 18, 2020.

Target price is $10.43 Current Price is $9.19 Difference: $1.24
If BEN meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $9.09, suggesting downside of -1.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 62.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.1, implying annual growth of -16.4%.
Current consensus DPS estimate is 61.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 62.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.3, implying annual growth of -9.6%.
Current consensus DPS estimate is 57.0, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.3.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $9.09

Shaw and Partners rates ((CGF)) as Sell (5) –

Challenger released first-half results and Shaw and Partners notes a decline in the company’s cash operating earnings margin to 3.53% from 3.67% during the half. The broker considers low returns on shareholders’ funds as well as low capital growth to be the reason behind the decline.

Shaw and Partners suggests the company’s spread of investment yield over the cost of funds is likely to decline. Added to this is a reduction of -$8m in investment income in the second half, further reducing the investment yield.

With domestic annuity sales down -24% along with an increase in maturities and repayments by 13% in the half, the broker anticipates a net annuity flow decline of -81% for the period. The broker retains a Sell rating on the stock with a target price of $6.00.

The report was published on February 12, 2020.

Target price is $6.00 Current Price is $9.09 Difference: minus $3.09 (current price is over target).
If CGF meets the Shaw and Partners target it will return approximately minus 34% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.10, suggesting upside of 0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 36.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 3.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.7, implying annual growth of 11.4%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 36.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 3.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.7, implying annual growth of 5.3%.
Current consensus DPS estimate is 35.9, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.2.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CL1    CLASS LIMITED

Wealth Management & Investments – Overnight Price: $1.56

Wilsons rates ((CL1)) as Overweight (1) –

Class has reported a FY20 full-year result in line with Wilsons' forecasts, but the broker says the outlook statement was opaque and may imply the core SMSF business is pressured.

Revenue is forecast to rise 14%, inclusive of mergers and inquisitions, which suggests a downgrade to the core business.

The broker tinkers with downgrades for FY20 to FY21 but believes the base case is unchanged, the company being well positioned to improve both the core SMSF and inorganic growth. 

The broker retains an Overweight recommendation, citing an attractive valuation. Target price shaved to $2.57 from $2.59.

This report was published on February 18, 2020.

Target price is $2.57 Current Price is $1.56 Difference: $1.01
If CL1 meets the Wilsons target it will return approximately 65% (excluding dividends, fees and charges).
Current consensus price target is $1.91, suggesting upside of 22.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 5.10 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.3, implying annual growth of -30.8%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 29.4.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 5.20 cents and EPS of 6.30 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 24.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.9, implying annual growth of 11.3%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 26.4.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $14.21

Shaw and Partners rates ((COL)) as Hold (3) –

Coles Group's FY20 first-half met a pre-released trading update. Supermarkets managed to get into the swing, but liquor dragged on the result, and fell well behind rival Woolworths. Fuel sales also rose, as did margins.

Shaw and Partners notes the strong balance sheet, which leaves the company with plenty of options. The broker expects a continuation of first-half trends and retains a Hold rating. Target $17.

This report was published on February 18, 2020.

Target price is $17.00 Current Price is $14.21 Difference: $2.79
If COL meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $15.83, suggesting upside of 11.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 63.00 cents and EPS of 73.60 cents.
At the last closing share price the estimated dividend yield is 4.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.5, implying annual growth of -16.5%.
Current consensus DPS estimate is 57.7, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 64.00 cents and EPS of 74.80 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.2, implying annual growth of 4.0%.
Current consensus DPS estimate is 60.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 20.2.

Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ENN    ELANOR INVESTORS GROUP

Wealth Management & Investments – Overnight Price: $2.03

Moelis rates ((ENN)) as Buy (1) –

Elanor Investors Group delivered a strong first half result with core earnings up 85% to $12.4m. The annualised recurring fund management run rate was $13.8m, up 37% since June 2019, notes Moelis. The group added $0.3bn in Funds Under Management (FUM).

Elanor listed ECF on the ASX post which ECF acquired Garema Court in Canberra for $71.5m. The group launched a healthcare real estate fund with $123m in assets that would settle in the second half of FY20, and it acquired Mogo Zoo.

The broker considers the group to be well-positioned for growth, offering a lucrative dividend yield of circa 7.6%. The company is seen as an attractive investment opportunity and Moelis maintains the rating at Buy. The target price is $2.43.

The report was published on February 18, 2020.

Target price is $2.43 Current Price is $2.03 Difference: $0.4
If ENN meets the Moelis target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 16.50 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 8.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.15.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 16.70 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 8.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.47.

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

GWA    GWA GROUP LIMITED

Furniture & Renovation – Overnight Price: $3.27

Wilsons rates ((GWA)) as Market Weight (3) –

GWA Group's FY20 first-half result met Wilsons' forecasts, a fact the broker found encouraging in a tough market.

Wilsons upgrades the valuation by 25% to $3.63 a share to reflect expected synergies from the consolidation of segments (synergies in the first half were $5m ahead of guidance).

Methven's performance outpaced the broker at the earnings level and Bathroom and Kitchens revenue fell, thanks to destocking.

A restocking is expected in the second half, but any failure would result in earnings downgrades. Broker is keeping a keen eye to results in the building sector. Market Weight is recommended for now. Target price is $3.63.

This report was published on February 19, 2020.

Target price is $3.63 Current Price is $3.27 Difference: $0.36
If GWA meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $3.81, suggesting upside of 16.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 16.80 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 5.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of -45.3%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 17.80 cents and EPS of 20.80 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of 6.6%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 15.6.

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

HRL    HRL HOLDINGS LTD

Industrial Sector Contractors & Engineers – Overnight Price: $0.14

Taylor Collison rates ((HRL)) as Outperform (2) –

HRL Holdings delivered a good first half with operating profits of $2.6m, meeting the company’s guidance and exceeding Taylor Collison's. The result puts the firm on track to achieving operating profits in FY20 of $7m, higher than the broker’s revised forecasts of $6.8m.

What the company lost in the high margin methamphetamine segment, it made up by innovating new revenue streams and diversifying the analytical testing business, explain the analysts. The broker opines the company’s priority should be to focus on delivering the FY20 guidance and using any excess cash to reduce the net debt.

Even though the company is susceptible to regulatory and customer concentration risks in the analytical lab segment, Taylor Collison believes its responsive customer service and niche offering provides HRL with the opportunity to grow.

Taylor Collison rates the stock as Outperform with the target price at $0.17.

The report was published on February 7, 2020.

Target price is $0.17 Current Price is $0.14 Difference: $0.03
If HRL meets the Taylor Collison target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.33.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.99

Moelis rates ((INA)) as Hold (3) –

Ingenia Group's FY20 first-half result met the broker on some estimates and outpaced on others, as a lower effective tax rate flowed through to underlying earnings.

Lifestyle Development was the highlight, settlements jumping 22% and prices rising 16%, logging strong margin expansions, reflecting strong marketing and greenfield strategies.

Yields within the lifestyle division increased to 7.44%. The balance sheet improved, the loan-to-value ratio falling to 24.9% from 29.8% as at June 19. Management reaffirmed guidance at the lower end of former guidance and Moelis retains its forecasts.

Target price rises to $5.07 from $4.62, the broker believing the company is well positioned within an immature sector, on top of a huge development pipeline and a strong market position in a market constrained by supply. Hold rating retained.

This report was published on February 19, 2020.

Target price is $5.07 Current Price is $4.99 Difference: $0.08
If INA meets the Moelis target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 12.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.68.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 12.90 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.12.

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

KGN    KOGAN.COM LTD

Retailing – Overnight Price: $4.46

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

Kogan's FY20 first-half result met consensus and the broker (operational figures were pre-released), thanks to strong Marketplace growth, and management provided a positive January trading update. Cannacord Genuity says the result confirms Kogan as one of the most efficient retailers in the country.

Private label margin performance and the product mix, augured continued margin headwinds, as did potential supply chain issues. Partner Brands also outpaced while Kogan Mobile growth slowed.

The broker tinkers with FY20, FY21 and FY22 forecasts and retains a Buy rating, believing the company will continue to benefit from the structural tailwind of the shift to online. $7.70 target price is unchanged.

This report was published on February 18, 2020.

Target price is $7.70 Current Price is $4.46 Difference: $3.24
If KGN meets the Canaccord Genuity target it will return approximately 73% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 16.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.27.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 19.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.52.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Overnight Price: $8.11

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

Lifestyle Communities' FY20 first-half result met Cannacord Genuity's forecast, despite lower settlements resulting in a 27% fall in revenue.

An increase in community cash flow and margins pleased the broker, and sales also ticked up. Guidance was retained. Management was cautious around timing, but the broker is not concerned if there is slippage into FY21.

The target rises sharply to $8.59 from $5.85 given the broker has been lagging the market with its new-developments model.

Given company consistency and assuming two new 170-home developments a year over the next decade, plus changes to assumptions around new home and resale settlement rates, the broker is joining the pack. Hold rating retained given recent share price strength.

This report was published on February 18, 2020.

Target price is $8.59 Current Price is $8.11 Difference: $0.48
If LIC meets the Canaccord Genuity target it will return approximately 6% (excluding dividends, fees and charges).

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 7.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 0.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.34.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 7.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 0.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.52.

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

MAI    MAINSTREAM GROUP HOLDINGS LTD

Diversified Financials – Overnight Price: $0.48

E.L. & C Baillieu rates ((MAI)) as Buy (1) –

Mainstream Group's FY20 first-half result missed Baillieu's forecasts, as higher one-off costs and investment took their toll. The company failed to declare a dividend. Earnings guidance was downgraded while revenue guidance was maintained.

On the upside, revenue outpaced by 7%, with growth registered in the Asia-Pacific and the Americas, the latter benefiting from a 22% jump in funds under administration. European revenue declined, reflecting client rationalisation and delayed fund launches.

EPS forecasts are cut -10% to -15%. Target price and valuation are steady at 70c. Buy rating retained, given the investment spend was to fund growth, which is evident on certain fronts, and the broker spies good opportunities in the medium term, given the company is well capitalised and revenue is strong.

This report was published on February 18, 2020.

Target price is $0.70 Current Price is $0.48 Difference: $0.22
If MAI meets the E.L. & C Baillieu target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 0.90 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.29.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 1.30 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.46.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $14.42

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

Monadelphous Group's half-year result beat Wilsons' forecasts by a nose, with weak margins outpacing expectations. The broker believes tendering momentum should gain pace, noting the growing pipeline and the return of large-scale iron ore projects in Western Australia.

The company is Wilsons' preferred stock for the sector with the best exposure to a recovery, given its record for delivery, skilled labour force, net cash position and dividend commitments. Overweight rating retained, despite the company trading at a premium to its historic multiple.

Target price eases to $18.60 from $19.00, to place the broker with consensus.

This report was published on February 19, 2020.

Target price is $18.60 Current Price is $14.42 Difference: $4.18
If MND meets the Wilsons target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $16.55, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 58.20 cents and EPS of 74.30 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.4, implying annual growth of 23.6%.
Current consensus DPS estimate is 51.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 21.7.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 71.60 cents and EPS of 85.80 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.2, implying annual growth of 20.8%.
Current consensus DPS estimate is 62.1, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 18.0.

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

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $2.80

E.L. & C Baillieu rates ((MNY)) as Buy (1) –

Money3 Corp released first-half results with net profit after taxes worth $15.7m versus Baillieu’s forecasted $16m and operating profits of $30.5m, close to $30.7m forecasted by the broker.

Broker Baillieu notes a strong loan book growth in the first half along with traction in the new products launched in August 2019. The analysts anticipate the FY20 net profit after taxes to be $30m and gross loan book to be in excess of $475m for the same period.

The tailwinds currently enjoyed by Money3 can be seen in the current growth trajectory, enhanced further by new products and market segments, suggests the report.

The broker maintains its Buy rating with the target price revised to $3.40 from $2.75.

The report was published on February 17, 2020.

Target price is $3.40 Current Price is $2.80 Difference: $0.6
If MNY meets the E.L. & C Baillieu target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 10.00 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.22.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 12.00 cents and EPS of 22.10 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

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

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

Money3 Corp delivered a strong result that was above expectations across all lines of business in terms of earnings, cash flows and credit quality.

Revenues went up 55% to $62.7m with the net profit after taxes at $15.7m, up 56%. Shaw and Partners considers the sector fragmented and attractive with Money3 having the mandate to acquire and consolidate. With the acquisition of Go Car Finance, Money3 retained management and delivered book growth of 60%.

The broker is positive about the company, noting Money3 has capital discipline, a conservative balance sheet and competitive advantage. Shaw and Partners has upgraded the operating profits estimates by about 5-8% for the near term.

The broker retains the Buy rating with the target price at $3.15.

The report was published on February 18, 2020.

Target price is $3.15 Current Price is $2.80 Difference: $0.35
If MNY meets the Shaw and Partners target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 10.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 12.50 cents and EPS of 20.80 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.46.

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

MYE    MASTERMYNE GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.84

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

Mastermyne Group's FY20 first-half result fell just shy of Wilsons' forecasts, and the broker was pleased, citing strong top-line growth, margin expansion and excellent cash generation.

Guidance is steady and the broker retains its commitment to the company, believing it to be a stand-out, leading contractor in the sector, and guiding to revenue growth of 30%-40%.

The broker notes a strong tender pipeline ($1.9bn), a record book of $770m and staff count. Target price rises to $1.60 from $1.35. Overweight rating maintained.

This report was published on February 19, 2020.

Target price is $1.60 Current Price is $0.84 Difference: $0.76
If MYE meets the Wilsons target it will return approximately 90% (excluding dividends, fees and charges).

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 4.00 cents and EPS of 12.60 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.67.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 3.90 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.06.

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

ONT    1300 SMILES LIMITED

Healthcare services – Overnight Price: $6.00

E.L. & C Baillieu rates ((ONT)) as Buy (1) –

1300 Smiles' FY20 first-half result missed Baillieu's forecasts, but margins were strong, note the analysts.

Same store sales growth improved and double-digit group sales growth was achieved through full-period inclusion from the Noosa practice plus new acquisitions at Springfield, Maroochydore and Strathpine.

No specific guidance was provided, but management reported revenue momentum in the early months of the second half. EPS forecasts fall -4%. Buy retained. Target price falls to $7.27 from $7.45.

This report was published on February 18, 2020.

Target price is $7.27 Current Price is $6.00 Difference: $1.27
If ONT meets the E.L. & C Baillieu target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 25.80 cents and EPS of 41.30 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.53.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 20.10 cents and EPS of 49.60 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.10.

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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $9.00

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

Oz Minerals reported a mixed full-year result, Shaw and Partners noting that overall 2019 had proved a strong year.

The broker points to a strong pipeline for growth, and expects funding for projects will be a priority now that the company has a handle on capital expenditure requirements. 

On the balance sheet front, the board has endorsed a "comfortable" gearing policy of 1x earnings before interest, tax, depreciation and amortisation.

The broker notes global uncertainties, including coronavirus and its effects on global growth, continue to drag on the sector, which offers point-value opportunities. Buy rating retained. Target price is $11.50.

This report was published on February 18, 2020.

Target price is $11.50 Current Price is $9.00 Difference: $2.5
If OZL meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $10.65, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 23.00 cents and EPS of 69.10 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.5, implying annual growth of -51.7%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 36.7.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 19.00 cents and EPS of 97.00 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.5, implying annual growth of 228.6%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 11.2.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $20.16

Moelis rates ((PME)) as Hold (3) –

Pro Medius’ first-half result showed the net profit after taxes to be $12.1m, 3% ahead of Moelis’s estimates. The growth was driven by stronger than expected organic growth in the US. Moelis notes improvement of operating profit margins to 50.5% and a strong balance sheet with $38.8m cash.

Moelis anticipates the company to win more contracts along with expecting the company to expand into cardiology and ophthalmology in the medium-term. The industry’s transition towards cloud-based delivery is a plus for Pro Medicus with Visage 7’s streaming technology.

The broker leaves the FY20-22 EPS estimates unchanged, considering all important factors already captured in the pricing. Thus, the broker retains its Hold rating with the target price at $27.65.

The report was published on February 14, 2020.

Target price is $27.65 Current Price is $20.16 Difference: $7.49
If PME meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 14.00 cents and EPS of 22.90 cents.
At the last closing share price the estimated dividend yield is 0.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 88.03.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.00 cents and EPS of 31.50 cents.
At the last closing share price the estimated dividend yield is 0.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.00.

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

RHP    RHIPE LIMITED

Cloud services – Overnight Price: $1.73

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

Rhipe's FY20 first-half result broadly outpaced the broker, as did upgraded guidance, although sales margins tightened on a higher dollar contribution. 

Shaw and Partners notes the company delivered one of the fastest recurring profit growth trajectories on the ASX, and says investors need to focus on the nominal dollar contribution as this is the key driver.

The broker points out the company is placing three big bets: investing into big new markets such as Japan and Korea; investing in the solutions segment to differentiate product; and investing in IP backed solutions as a margin generator. This has dragged on the overall result, which would otherwise probably have earned an upgrade.

The broker backs company management and tips FY21 growth of 40%. Target price eases -2% to $3.22 to reflect the revised cash balance. Buy rating retained.

This report was published on February 18, 2020.

Target price is $3.22 Current Price is $1.73 Difference: $1.49
If RHP meets the Shaw and Partners target it will return approximately 86% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 2.90 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.32.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 4.00 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.66.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $0.77

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

Superloop's FY20 first-half result disappointed Cannacord Genuity, thanks to weak revenue and earnings, particularly from the Australian fibre business, where margins and revenue fell well shy.

Net debt fell and the broker expects leverage ratios should fall sharply as earnings strengthen from the second half onwards. Operating cash flow was good and capital expenditure was on track (expected to fall in the second half).

Management lowered guidance -10% and the broker cuts earnings forecasts -33% in FY20 and -8% in FY21. Buy rating retained, the broker noting the company already has base-case earnings for FY20 EBITDA of $13m with the run rate at $10.1m at the end of H1, with a further $3m already secured for H2.

This report was published on February 18, 2020.

Target price is $1.04 Current Price is $0.77 Difference: $0.27
If SLC meets the Canaccord Genuity target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $1.02, suggesting upside of 32.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $3.00

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

SomnoMed's FY20 first-half result outpaced Wilsons' forecasts, thanks to double-digit revenue growth across all major jurisdictions and strong marging improvement. The broker increases revenue estimates to include higher US revenue growth.

Wilsons notes the potential for about 200bps of US margin improvement by FY22. Overweight rating retained with a target price of $3.76.

This report was published on February 19, 2020.

Target price is $3.76 Current Price is $3.00 Difference: $0.76
If SOM meets the Wilsons target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.55.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.47.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $1.28

Wilsons rates ((WSP)) as Buy (1) –

Whispir's FY20 first-half result outpaced prospectus forecasts, thanks to strong recurring revenues (RR) and earnings. Wilsons believes the company is on track to beat prospectus estimates for FY20, having already passed the halfway point on RR.

Average revenue per client positively surprised and cost management was strong, although the broker expects an increase in the second half as recruitment accelerates. Customer growth was very weak but management guided to marketing initiatives in the second half, as well as recent wins.

Overweight weighting retained, the broker noting the company is trading on a very undemanding multiple of revenue versus cloud peers and spies potential for a re-rate. Target price is $2.24.

This report was published on February 18, 2020.

Target price is $2.24 Current Price is $1.28 Difference: $0.96
If WSP meets the Wilsons target it will return approximately 75% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 12.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.58.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 27.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.67.

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

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