Australian Broker Call *Extra* Edition – Sep 07, 2020

This story features AUDINATE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AD8

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)

AD8 (2)   ADA   ADI   BWX   EGH   EML (2)   FPH   INA   IPH (3)   MND   MSV   MYE   MYX (2)   NEA   NWL   OTW   PGH   PME (2)   PSQ   RBL (2)   RDC   SSM   TGR   TLX   TRS   VOC  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $5.10

Canaccord Genuity rates ((AD8)) as Buy (1) –

Audinate Group reported its FY20 results broadly in-line with Canaccord Genuity’s forecasts and the company’s trading update in July.

However, the broker views the slowdown in the global capex cycle as structural in nature, with the large cost and functionality advantage of network audio likely to advance the inevitable structural shift.

Thus, the analyst views the medium/long-term opportunity as unchanged and the current share price weakness an opportunity for investors with a long-term view.

The Buy rating is unchanged and the target price is increased to $5.70 from $5.50.

This report was published on August 21, 2021.

Target price is $5.70 Current Price is $5.10 Difference: $0.6
If AD8 meets the Canaccord Genuity target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $6.72, suggesting upside of 31.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1275.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.7, 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 FY22:

Canaccord Genuity forecasts a full year FY22 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 510.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.8, 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 283.3.

Market Sentiment: 0.7
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 ((AD8)) as Downgrade to Hold from Buy (3) –

The FY20 result for Audinate Group and soft commentary for July-August year-to-date suggests to Shaw and Partners the covid-19 slowdown is impacting negatively.

The broker urges a note of caution, due to a lack of clarity on earnings and no short-term turnaround.

The analyst acknowledges the company’s many positive attributes and catalysts currently in play, but prefers to see clarity beyond the existing covid-19 landscape.

The rating is downgraded to Hold from Buy and the target price is decreased to $5.75 from $6.75.

This report was published on August 21, 2021.

Target price is $5.75 Current Price is $5.10 Difference: $0.65
If AD8 meets the Shaw and Partners target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $6.72, suggesting upside of 31.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 566.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.7, 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 FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 104.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.8, 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 283.3.

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

ADA    ADACEL TECHNOLOGIES LTD

Software & Services – Overnight Price: $0.74

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

Adacel Technologies' FY20 profit before tax of $4.8m was in-line with its upgraded guidance as well as Bell Potter's forecast. Revenue was somewhat below the broker's estimate. A final dividend of 1.5c was announced (unfranked) and was 50% above what the broker expected.

FY21 guidance is above Bell Potter's forecast with FY21 profit (PBT) between $6.3-6.8m. The company does not expect delays from covid-19 and declared it has almost 80% of forecast FY21 revenues as backlog.

Buy rating maintained. Target price is increased to $0.95 from $0.80.

This report was published on August 18, 2020.

Target price is $0.95 Current Price is $0.74 Difference: $0.21
If ADA meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.50 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 4.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.75.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 4.50 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.28.

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

ADI    APN INDUSTRIA REIT

REITs – Overnight Price: $2.53

Moelis rates ((ADI)) as Buy (1) –

The APN Industria REIT delivered funds from operations (FFO) of 19 cents per security, reflecting growth of 1.6%, notes Moelis.

There was only a marginal impact from covid-19 during the year, with around -$1m of revenue not booked during the period, and around 98% of rent collected, explains the broker.

The analyst highlights gearing of around 28%, which leaves the trust well positioned to capitalise on accretive acquisitions or undertake capital management initiatives.

The trust has guided to flat FFO and DPU growth.

Moelis reinstates coverage with a Buy rating and target price of $2.81.

This report was published on August 20, 2020.

Target price is $2.81 Current Price is $2.53 Difference: $0.28
If ADI meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.30 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.11.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 6.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.98.

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

BWX    BWX LTD

Household & Personal Products – Overnight Price: $4.66

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

BWX's headline numbers were mostly pre-disclosed, the company managed to outperform Canaccord Genuity's net profit expectations and cash flow forecasts.

The broker suggests the result reaffirmed its thesis about the company now being a higher-quality business with good growth prospects.

Management reaffirmed its FY21 guidance of 10% revenue and operating income growth at the very least, translating to an operating income of more than $34m. The broker expects 12% operating income growth.

Canaccord Genuity maintains its Buy rating driven by the higher-quality earnings and long runway of growth. Other factors include Sukin's brand strength and a growing online channel. 

The target price is increased to $4.73 from $4.58.

This report was published on August 24, 2020.

Target price is $4.73 Current Price is $4.66 Difference: $0.07
If BWX meets the Canaccord Genuity target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 5.30 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.85.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.10 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 1.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.07.

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

EGH    EUREKA GROUP HOLDINGS LIMITED

Aged Care & Seniors – Overnight Price: $0.39

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

Canaccord Genuity observes Eureka Group's FY20 result demonstrated strong operational improvement, balance sheet strength and top-line growth acceleration. This. suspects the broker, should translate into momentum for the stock over the next 6-12 months.

Canaccord Genuity remains somewhat cautious with respect to a slowdown in the housing market going ahead but believes the platform is set for Eureka to start delivering strong earnings over the next 2-3 years.

Noting the stock offers good value, Canaccord Genuity retains its Buy rating with target price increased to $0.46 from $0.43.

The report was published on August 24, 2020.

Target price is $0.46 Current Price is $0.39 Difference: $0.07
If EGH meets the Canaccord Genuity target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 1.00 cents and EPS of 3.00 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 13.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.00 cents and EPS of 3.00 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 13.00.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $3.07

Goldman Sachs rates ((EML)) as Buy (1) –

EML Payments' FY20 performance was broadly in-line with Canaccord Genuity estimates.

Management was reluctant to provide FY21 earnings guidance, given the uncertainty around Christmas trading. However, July trading was above the broker's expectations, particularly in its prepaid financial services (PFS) and Gift and Incentive (G&I) divisions.

G&I is the dominant contributor to group gross profit and has been materially impacted by the covid-19 outbreak and shutdown of malls globally, notes the analyst.

The company announced Project Accelerator, with the intent to integrate a number of company-developed and partner technologies into one unified solution. The analyst says this appears to herald a period of reinvestment by the company.

The Buy rating and target price of $4.20 remain unchanged.

This report was published on August 20, 2020.

Target price is $4.20 Current Price is $3.07 Difference: $1.13
If EML meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.11.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.93.

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

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

EML Payments posted a FY20 result mostly in-line with Wilsons forecasts 

The Gift and Incentive (G&I) division only grew modestly as the Gift Card business was impacted by the global slowdown in retail activity. The general purpose reloadable (GPR) growth of over 54% was strong, says the broker, including prepaid financial services (PFS).

The analyst understands why the company refrained from providing guidance due to the current volatility in economic conditions. However, the company noted some positive observations including G&I gross debit volume (GDV) was $72m, up 7% on the previous corresponding period, driven by non mall programs. Additionally, PFS's GPR recorded its highest ever monthly GDV in July, 2020.

Wilsons outlines some other reasons for optimism for FY21 including the announcement of a new growth strategy called Project Accelerator, which will drive organic growth.

The Overweight rating is unchanged and the target price is increased to $4.34 from $4.31.

The report was published on August 20, 2020.

Target price is $4.34 Current Price is $3.07 Difference: $1.27
If EML meets the Wilsons target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 12.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.37.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.47.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $31.50

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

Fisher and Paykel Healthcare lifted its FY21 profit guidance by 12% indicating a prolonged covid-19 related demand with modest margin improvements.

A multi-year upgrade cycle appears to be in the offing beyond FY21, assesses Wilsons. The broker expects consumable utilisation to increase in the emergency departments (ED) in the core markets of the USA and Europe.

The broker notes nasal high flow technology of the company provides a rare, durable advantage in a therapeutic category which is less than 10% penetrated.

Wilsons maintains its Overweight rating with a target price of $36.95.

The report was published on August 19, 2020.

Target price is $36.95 Current Price is $31.50 Difference: $5.45
If FPH meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is N/A
The company's fiscal year ends in March.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 31.14 cents and EPS of 63.21 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.0, implying annual growth of N/A.
Current consensus DPS estimate is 37.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 52.5.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 33.97 cents and EPS of 66.14 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.7, implying annual growth of 1.2%.
Current consensus DPS estimate is 40.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 51.9.

This company reports in NZD. 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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.60

Moelis rates ((INA)) as Hold (3) –

Ingenia Communities Group's FY20 result notes development operating income (EBIT) margin increased to 31.5% with 325 settlements.  No FY21 guidance was given but Moelis estimates operating income will increase by 16%.

The broker considers the second-half performance as proof of the high-quality and defensive nature of the income derived from the group's almost 4034 permanent sites.

In FY21, the broker assumes 350 settlements and circa $144m of capital expenditure related to future acquisitions. Strong forward bookings suggest a solid recovery is in place for the quarters ahead, estimates Moelis.

The group's property portfolio has only about 9% exposure to Victoria. The broker views Ingenia Communities as an attractive exposure to retirement accommodation.

Moelis retains its Hold rating with a target price of $4.97.

This report was published on August 19, 2020.

Target price is $4.97 Current Price is $4.60 Difference: $0.37
If INA meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 10.90 cents and EPS of 21.70 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.20.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 12.40 cents and EPS of 24.60 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.70.

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

IPH    IPH LIMITED

Legal – Overnight Price: $6.75

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

IPH announced underlying FY20 earnings (post-AASB16) in-line with Bell Potter.

One of the key takeaways for the broker was the ANZ business reported revenue and earnings declines. This was primarily due to weakness in Griffith Hack (includes Watermark), which was impacted from covid-19 and integration activities.

Another takeaway was the Asia business achieved like-for-like revenue and earnings growth. This is considered a resilient result.

Additionally, the analyst notes the company continues to evaluate international acquisition opportunities. The Buy rating is unchanged and the target price is decreased to $8.65 from $8.70.

This report was published on August 20, 2020.

Target price is $8.65 Current Price is $6.75 Difference: $1.9
If IPH meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 28.10 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.24.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 30.80 cents and EPS of 40.50 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

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

The FY20 result for IPH was a small beat to Canaccord Genuity’s earnings estimates. A very strong cash conversion in the second half was considered a highlight.

Revenue was behind the broker’s estimate, a lot of which was attributable to the performance of the acquired XIP business.

The final dividend of 15cps was 10% up on last year and the analyst believes this is a vote of confidence by the board in the business.

Canaccord Genuity assesses IPH is a quality business, and attractively priced. The Buy rating is unchanged and the target price is decreased to $9.50 from $10.15.

This report was published on August 21, 2020.

Target price is $9.50 Current Price is $6.75 Difference: $2.75
If IPH meets the Canaccord Genuity target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 29.00 cents and EPS of 36.00 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 18.75.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 32.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.88.

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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Goldman Sachs rates ((IPH)) as Buy (1) –

The IPH result was in-line with Goldman Sachs's expectations. However, covid-19 headwinds were evident in the second half, with a -14% decline in underlying earnings.

This prompts the broker to cut FY21 and FY22 earnings estimates by -7% and -6%, respectively. Key reasons are likely diminished filings due to covid-19 and a likely FX headwind.

The analyst likes the strong cashflow and dividend, overall balance sheet strength and the company’s exposure to high growth south-east Asian and China markets.

The Buy rating is unchanged and the target price is decreased to $8.90 from $9.35.

This report was published on August 20, 2020.

Target price is $8.90 Current Price is $6.75 Difference: $2.15
If IPH meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 29.00 cents and EPS of 37.00 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 18.24.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 31.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.88.

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: $10.93

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

Wilsons notes Monadelphous Group's FY20 results coupled with low expectations and attractive price delivered a strong relief rally. This was despite recent negative news around the company

Management is cautiously positive about the outlook and expects margins to rise from second half lows. The broker notes risks from the impact of the lockdown and confusion about the legal case with Rio Tinto ((RIO)).

Looking at the company's net cash balance sheet and commitment to the dividend, Wilsons decides to retain the Market Weight rating with the target price increasing to $9.85 from $8.40.

This report was published on August 19, 2020.

Target price is $9.85 Current Price is $10.93 Difference: minus $1.08 (current price is over target).
If MND meets the Wilsons target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.93, suggesting upside of 0.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 50.60 cents and EPS of 57.80 cents.
At the last closing share price the estimated dividend yield is 4.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.2, implying annual growth of 40.2%.
Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 20.2.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 67.90 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 6.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.5, implying annual growth of 15.3%.
Current consensus DPS estimate is 44.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.5.

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

MSV    MITCHELL SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $0.51

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

Wilsons comments Mitchell Services delivered yet another solid result, in sync with the outstanding performance over the last 2 years.

The broker considers the result to be high quality in a very tough market, pointing out the company achieved its original guidance despite the impacts of covid-19.

With a focus on production rather than exploration, high-quality mining customers and increasing exposure to the gold market, the company is a better proposition than peers, highlights the broker.

Wilsons feels Mitchell's gold market exposure continues to be overlooked and has the potential to bring strong and profitable growth. Considering FY21 to be shaping up very well, Wilsons reiterates its Overweight rating with a target price of $1.10.

This report was published on August 19, 2020.

Target price is $1.10 Current Price is $0.51 Difference: $0.59
If MSV meets the Wilsons target it will return approximately 116% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.36.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 10.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.90.

Market Sentiment: 1.0
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: $0.97

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

Mastermyne Group delivered an impressive FY20 result, observes Wilsons, despite covid-19 restrictions. A dividend of 4c was declared.

Positives in favour of the company include improvement in the cash cycle and a stable balance sheet. The broker acknowledges the difficulty of finding a business this attractive across mining services or small-cap resources with such a compelling outlook and valuation.

FY21 appears to be a solid year of growth, comments the broker, with the group being a solid play on met coal markets.  Overweight recommendation retained. Target reduces to $1.35 from $1.45.

This report was published on August 19, 2020.

Target price is $1.35 Current Price is $0.97 Difference: $0.38
If MYE meets the Wilsons target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 4.00 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 4.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.10.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 4.00 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 4.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.02.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.34

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

Canaccord Genuity highlights Mayne Pharma Group faced impairments worth circa -$99m (from it generics business) with loss of -$5.3m in FY20. The business may be on the verge of a turnaround with a stable second half versus the first half.

Both operating income and cost reductions were much better than the broker expected.

The year ahead is crucial, points out Canaccord Genuity, with the group hoping to receive three crucial FDA approvals related to its women's health portfolio and the strategic relationship with Belgian-based Mithra.

gNuvaring and Nexstellis are both considered critical for changing the group's earnings trajectory and profile. The broker has upgraded its operating income estimates by 1.2% in FY21 and 2.5% in FY22. 

Canaccord Genuity reaffirms its Buy rating with the target price increased to $0.70 from $0.63.

This report was published on August 24, 2020.

Target price is $0.70 Current Price is $0.34 Difference: $0.36
If MYX meets the Canaccord Genuity target it will return approximately 106% (excluding dividends, fees and charges).
Current consensus price target is $0.38, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, 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 340.0.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 17.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, implying annual growth of 1900.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 17.0.

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 ((MYX)) as Upgrade to Overweight from Market Weight (1) –

Mayne Pharma Group's FY20 earnings were in line with Wilsons' forecasts with the broker making only minor revisions to its FY21- 22 operating income forecasts.

Wilsons notes three potential FDA approvals in women’s health over the next 8 months for Mayne Pharma Group that can change the group's business. Compared with international specialty/generic drug peers, the group screens as ‘cheap’ on an FY22 basis, comments the broker.

Wilsons upgrades its rating to Overweight from Market weight with a target price of $0.45.

This report was published on August 24, 2020.

Target price is $0.45 Current Price is $0.34 Difference: $0.11
If MYX meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $0.38, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, 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 340.0.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, implying annual growth of 1900.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 17.0.

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

NEA    NEARMAP LTD

Software & Services – Overnight Price: $2.91

Goldman Sachs rates ((NEA)) as Buy (1) –

Nearmap delivered a solid FY20 result according to Goldman Sachs, given the significant restructuring and uncertain macroeconomic backdrop.

No specific guidance was provided by management, but it was indicated the first seven weeks of FY21 had similar year-on-year growth.

Goldman Sachs' annualised contract value (ACV) growth assumptions are for a rise of 18% in FY21 and 20% in FY22. This remains  conservative, suggests the broker.

The Buy rating is unchanged and the target price is increased to $2.90 from $2.55.

This report was published on August 19, 2020.

Target price is $2.90 Current Price is $2.91 Difference: minus $0.01 (current price is over target).
If NEA meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.68, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.6, 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 FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 145.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $14.24

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

Netwealth Group's FY20 operating income and net profit were both ahead of Bell Potter's estimates. A final dividend of 7.8c (fully-franked) was declared, slightly below the broker's estimated 8c.

Bell Potter considers Netwealth Group's FY21 guidance strong, noting the platform has provided a roadmap of investment in its business with 30 technology staff to be added in the year ahead.

The broker notes despite the pandemic, Netwealth continues to benefit from the considerable adviser dislocation and the cessation of grandfathered commissions (by end of 2020) which is turning out to be a regulatory tailwind.

Bell Potter maintains its Hold rating with the target price increasing to $13.40 from $9.70.

The report was first published on August 18, 2020.

Target price is $13.40 Current Price is $14.24 Difference: minus $0.84 (current price is over target).
If NWL meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.07, suggesting downside of -29.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 17.00 cents and EPS of 21.20 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.4, implying annual growth of 11.1%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 69.8.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 21.00 cents and EPS of 26.10 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 22.1%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 57.2.

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

OTW    OVER THE WIRE HOLDINGS LIMITED

Cloud services – Overnight Price: $3.99

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

Over The Wire Holdings delivered a robust second half (after a disappointing first half), observes Canaccord Genuity, in line with its guidance with better revenue and earnings. The broker notes non-recurring revenues were higher in the second half an impressive feat given the current environment.

Going by management commentary, the broker expects non-recurring revenues to increase in FY21. Recurring revenues are expected to grow at a faster pace as well.

The broker predicts revenue will comprise 14% year on year organic recurring revenue growth, non-recurring revenues of $14m and contribution from some recent acquisitions worth $15.8m.

Canaccord Genuity maintains its Buy rating with the target price increased to $4.80 from $4.40.

This report was published on August 24, 2020.

Target price is $4.80 Current Price is $3.99 Difference: $0.81
If OTW meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.63.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.76.

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

PGH    PACT GROUP HOLDINGS LTD

Paper & Packaging – Overnight Price: $2.34

Goldman Sachs rates ((PGH)) as Buy (1) –

Pact Group Holdings delivered a broadly solid FY20 result, according to Goldman Sachs. Healthy results in Contract Manufacturing and Materials Handling were offset by softer Packaging & Sustainability sales, notes the broker.

No guidance will be provided until the AGM on November 18. The broker notes the company is recommencing the sale process for the Contract Manufacturing segment.

The second half cash conversion impressed the analyst and allowed the company to declare an unexpected final dividend of 3cps.

The Buy rating is unchanged and the target price is increased to $2.86 from $2.53.

This report was published on August 19, 2020.

Target price is $2.86 Current Price is $2.34 Difference: $0.52
If PGH meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.67, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 10.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of -20.5%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 11.4.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 11.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 7.8%.
Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.6.

Market Sentiment: 0.3
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: $25.39

Bell Potter rates ((PME)) as Upgrade to Buy from Hold (1) –

Pro Medicus released reported profit (NPAT) -7% below the Bell Potter forecast, while the final dividend was in-line with expectation.

Revenue growth was softer than anticipated in the second half, due to the impact of covid-19, explains the broker. Nevertheless, the earnings impact was considered largely offset by savings on expenses and a lower than anticipated tax rate.

The analyst highlights there are no new competitors to the Visage Thin Streaming technology and the company continues to invest $7-$8m in R&D each year to maintain the technology advantage.

Despite downgrading the FY21 EPS estimate by -5%, Bell Potter expects another year of strong growth in revenues and earnings for FY21.

The rating is upgraded to Buy from Hold and the target price is decreased to $28.50 from $30.

This report was published on August 21, 2020.

Target price is $28.50 Current Price is $25.39 Difference: $3.11
If PME meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 14.70 cents and EPS of 29.30 cents.
At the last closing share price the estimated dividend yield is 0.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.66.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 19.40 cents and EPS of 38.80 cents.
At the last closing share price the estimated dividend yield is 0.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.44.

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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Moelis rates ((PME)) as Hold (3) –

Moelis describes the FY20 results from Pro Medicus as "decent". Revenue growth was -5% below consensus as exam volumes were impacted by US hospital shutdowns. However, cost savings meant the profit miss was only -3.8%, explains the broker.

No quantified guidance was provided by management. However, the the company explained the full year contribution of Partners, Duke and first revenues from Northwestern and Ohio should ensure FY21 will be a better year than FY20, notes the analyst.

Certain tailwinds from the pandemic listed by Moelis includes virtual demonstration may become a competitive advantage, given the company’s product was designed for cloud based deployment.

The Hold rating and target price of $27.47 are unchanged.

This report was published on August 20, 2020.

Target price is $27.47 Current Price is $25.39 Difference: $2.08
If PME meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 15.50 cents and EPS of 28.60 cents.
At the last closing share price the estimated dividend yield is 0.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 88.78.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 19.00 cents and EPS of 36.80 cents.
At the last closing share price the estimated dividend yield is 0.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.99.

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

PSQ    PACIFIC SMILES GROUP LIMITED

Healthcare services – Overnight Price: $1.85

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

The FY20 underlying earnings (EBITDA) beat the Wilsons forecast by 3%.

The company is guiding to 15% same-store fee growth and is targeting 10 greenfield centres in FY21, up from 5 in FY20, explains the broker.

The analyst's research from channel checks finds covid-19 backlogs have cleared for other participants, which suggests the Pacific Smiles Group's confidence paints a convincing organic picture.

Wilsons upgrades the FY21 EPS estimate by 14% to reflect stronger same store growth and earnings (EBITDA) guidance.

The Overweight rating and target price of $2 is unchanged.

This report was published on August 21, 2020.

Target price is $2.00 Current Price is $1.85 Difference: $0.15
If PSQ meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 3.90 cents and EPS of 6.00 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 30.83.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 5.10 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.37.

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

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $3.93

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

Canaccord Genuity notes Redbubble delivered a stellar FY20 result, in-line with its pre-released metrics. Group marketplace revenue increased by 36% while gross profit increased 42% with operating income higher than expected.

The company's June quarter financials notes a strong acceleration of line items. Revenue grew by more than 132% in July and the momentum has continued during the first two weeks of August, highlights the broker.

FY21-22 operating leverage is forecast to increase by 5% and 6% with the broker noting further upside potential.

Buy rating is maintained. The target price is increased to $5.20 from $4.20.

This report was published on August 24, 2020.

Target price is $5.20 Current Price is $3.93 Difference: $1.27
If RBL meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.73.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.20.

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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Goldman Sachs rates ((RBL)) as Buy (1) –

Redbubble's FY20 result was ahead of Goldman Sachs's forecasts led by strong customer growth and improved efficiency of acquisition.

FY21 year to date revenue growth is circa 130% and well ahead of the broker's FY21 estimated 51%. The broker acknowledges some of this growth to be driven by face masks and may not persist beyond FY21.

However, what is also true is Redbubble is a leading platform for artists to monetise their talents and excluding-face masks, growth is still circa 70% year on year, the broker assesses.

Goldman Sachs retains its Buy rating with the target price increased to $5.45 from $4.05.

This report was published on August 8, 2020.

Target price is $5.45 Current Price is $3.93 Difference: $1.52
If RBL meets the Goldman Sachs target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.07.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.73.

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

RDC    REDCAPE HOTEL GROUP

Travel, Leisure & Tourism – Overnight Price: $0.82

Moelis rates ((RDC)) as Buy (1) –

Redcape Hotel Group delivered a solid result, as covid-19 forced the closure of circa -10% of the company’s portfolio, notes Moelis.

July has been a strong start to FY21 with earnings greater than the previous corresponding period. However, the broker warns of a number of unknowns. These include how much of July trading was attributable to JobKeeper and early superannuation release. Additionally, will there be an amplified negative impact when the sugar hit wears off?

Moelis reinstates coverage with a Buy rating and target price of $1.09.

This report was published on August 20, 2020

Target price is $1.09 Current Price is $0.82 Difference: $0.27
If RDC meets the Moelis target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 7.60 cents and EPS of 8.50 cents.
At the last closing share price the estimated dividend yield is 9.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.65.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 8.00 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 9.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.32.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.88

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

Service Stream has reported underlying FY20 earnings of $108m, in-line with previous guidance, notes Canaccord Genuity.

The broker sees operations remaining well positioned with regard to future NBN work, given the company has two of the larger NBN agreements.

The Buy rating is maintained and the target price is decreased to $2.55 from $2.60.

The report was published on August 19, 2020.

Target price is $2.55 Current Price is $1.88 Difference: $0.67
If SSM meets the Canaccord Genuity target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 9.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.53.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 10.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.75.

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

TGR    TASSAL GROUP LIMITED

Aquaculture – Overnight Price: $3.64

Goldman Sachs rates ((TGR)) as Buy (1) –

Tassal Group has reported FY20 underlying profit (NPAT) broadly in-line with the Goldman Sachs forecast.

The broker highlights the prawn business performed strongly in the first full year of operations and is set to be the key driver of earnings going forward.

The salmon operations also performed well despite significant covid-19 disruption in the domestic wholesale and export channels. The company is more exposed to the largely contracted domestic retail channel, which represented 59% of salmon volumes in FY20.

The analyst forecasts salmon's share to rise to 65% in FY21, which provides some certainty despite the relative uncertainty in other channels. Goldman Sachs points out the company is benefiting from excellent growing conditions and low mortality.

The Buy rating is unchanged and the target price is decreased to $4.75 from $5.05.

This report was published on August 19, 2020.

Target price is $4.75 Current Price is $3.64 Difference: $1.11
If TGR meets the Goldman Sachs target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 5.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.58.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.81

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

Telix Pharmaceuticals' first-half cash outflow was as expected. Wilsons expects TLX591-CDx (illumet) to be the first FDA approved PSMA-directed imaging agent for prostate cancer. US/EU approvals are expected in the early second quarter of FY21.

Wilsons expects a strategic partner to opt into the company's flagship TLX591 therapeutic program in prostate cancer. In the medium term, renal cancer imaging has been advanced in the broker's forecast by 6 months.

Wilsons retains its Overweight rating with the target price increasing to $2.73 from $2.50.

The report was published on August 23, 2020.

Target price is $2.73 Current Price is $1.81 Difference: $0.92
If TLX meets the Wilsons target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 12.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.03.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 258.57.

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

TRS    THE REJECT SHOP LIMITED

Household & Personal Products – Overnight Price: $6.86

Goldman Sachs rates ((TRS)) as Buy (1) –

The Reject Shop has reported FY20 earnings (EBIT) pre-AASB16 above the Goldman Sachs estimate.

The broker suggests there are many positive signs emerging of a stronger earnings growth outlook than the broker’s prior forecasts had assumed. These include a substantially reduced inventory position and an improving focus on stock turn.

Goldman Sachs increases EPS forecasts for FY21 and FY22 by 47% and 24%, respectively The Buy rating is unchanged and the target price is increased by 83% to $8.70.

This report was published on August 19, 2020.

Target price is $8.70 Current Price is $6.86 Difference: $1.84
If TRS meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 0.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.30.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 16.00 cents and EPS of 32.00 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 21.44.

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

VOC    VOCUS GROUP LIMITED

Telecommunication – Overnight Price: $3.43

Goldman Sachs rates ((VOC)) as Buy (1) –

Vocus Group reported an in-line FY20 operating result and included a strong cash performance and continued de-gearing, notes Goldman Sachs.

Growth for the key Network Services (VNS) division was stronger than the broker expected, driven by around 5% revenue growth and margin improvement.

The company continues to see opportunities for project earnings (none in FY21) and bespoke fibre builds (ie 5G towers), given increasing capital discipline in the industry, notes the broker.

The analyst estimates the company will be able to pay a dividend in the 2H22 of 5cps. The Buy rating is unchanged and the target price is increased to $4.20 from $4.10.

This report was published on August 20, 2020.

Target price is $4.20 Current Price is $3.43 Difference: $0.77
If VOC meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.48, suggesting upside of 1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, 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 21.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 14.0%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 19.2.

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

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