Australian Broker Call *Extra* Edition – Apr 06, 2021

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

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)

AMA   ATU   AVN   BCB   FLT   IAG   KZA   LEG   LOT   NWS   OPY   PBH   PEN   PNV   PWG   QUB   SDV   SHV   SLA   SVM   TIE  

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.58

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

Bell Potter downgrades forecast earnings after assuming a shortage of both staff and parts at present which is negatively impacting both top line revenue and margins, due to a lower number of repairs. The broker forecasts FY21 reported profit (NPAT) around breakeven.

The analyst deduced a shortage after a review of job vacancy ads over the past weeks on sites such as Seek ((SEK)) and Jora. The grounding of the Suez Canal container ship may also cause further disruption in a tight global market for new vehicle parts.

The Buy rating is unchanged and the target lowered to $0.85 from $0.95.

This report was published on March 31, 2021.

Target price is $0.85 Current Price is $0.58 Difference: $0.27
If AMA meets the Bell Potter target it will return approximately 47% (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 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 41.43.

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

ATU    ATRUM COAL LIMITED

Coal – Overnight Price: $0.06

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

Shaw and Partners outlines the company will either need the 1976 Coal Policy repealed (again) or require an exemption, after the Alberta government has re-instated the Policy. This prohibits open-cut mining on its mining leases.

While the news is undoubtedly negative, the broker feels the -70% fall in the share price to just 7.4 cents on the recommencement of trading looks like a major overreaction. Buy rating maintained and target reduces to $0.30 from $1.05.

The analyst says the company will now focus all attention on the consultation process and has halted work on the pre-feasibility study. There was a cash position of $4.9m at 15 March 2021 and management is implementing a range of cost reduction measures.

This report was first published March 29, 2021.

Target price is $0.30 Current Price is $0.06 Difference: $0.24
If ATU meets the Shaw and Partners target it will return approximately 400% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.61.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.50.

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

AVN    AVENTUS GROUP

REITs – Overnight Price: $2.88

Moelis rates ((AVN)) as Downgrade to Sell from Buy (5) –

Moelis believes Aventus Group is well positioned to benefit from cap rate compression and subsequent net tangible assets (NTA) uplift.

Like-for-like growth across the sector has also been unprecedented and tenants have continued to benefit from strong government stimulus and increased consumer spending in the household and lifestyle segments.

However, the analyst views the above positives as being more than priced into the current share price and downgrades the rating to Sell from Buy and maintains the $2.77 target.

This report was released on March 29, 2021.

Target price is $2.77 Current Price is $2.88 Difference: minus $0.11 (current price is over target).
If AVN meets the Moelis target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.92, suggesting upside of 1.5%(ex-dividends)
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 19.10 cents.
At the last closing share price the estimated dividend yield is 6.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 83.5%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.00 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 4.2%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 14.6.

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

BCB    BOWEN COKING COAL LTD

Coal – Overnight Price: $0.06

Euroz Hartleys rates ((BCB)) as Speculative Buy (1) –

Euroz Hartleys highlights Bowen Coking Coal's ongoing drilling campaign at the Broadmeadow East Coking Coal project has recently focused upon extension to the main Leichardt seam beyond the southern extent to the measured resource boundary.

Discussions remain on-going in relation to access to third party infrastructure in order to fast-track development of the project and to minimise initial capital requirements, explains the broker.

This project, acquired in September 2020, is just one of a pipeline of quality projects being developed by the company, according to the analyst. Speculative Buy with a target of $0.18.

This report was published on February 12, 2021.

Target price is $0.18 Current Price is $0.06 Difference: $0.12
If BCB meets the Euroz Hartleys target it will return approximately 200% (excluding dividends, fees and charges).

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

FLT    FLIGHT CENTRE LIMITED

Travel, Leisure & Tourism – Overnight Price: $17.89

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

Bell Potter believes the demand for travel could be about to experience a step-change. This comes after the broker reviews evidence that travel should resume at pre-covid levels. There's also believed to be upside from the vaccine rollout.

Despite an expectation that the corporate travel market will face medium-term structural headwinds, the broker feels the company's strong organic growth profile, driven by a compelling value proposition, will more than offset these headwinds.

Additionally, the leisure business carries significant brand equity and is set to benefit from its covid-19 induced cost reduction program, predicts the analyst. The Buy rating and target of $21.50 are retained and the company remains Bell Potter's top pick in the sector.

This report was published on March 31, 2021.

Target price is $21.50 Current Price is $17.89 Difference: $3.61
If FLT meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $17.57, suggesting downside of -1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 113.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -143.1, implying annual growth of N/A.
Current consensus DPS estimate is 21.3, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 45.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of N/A.
Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 132.5.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $4.79

Goldman Sachs rates ((IAG)) as Neutral (3) –

Goldman Sachs will incorporate earnings changes for Insurance Australia Group following Suncorp Group’s ((SUN)) next update on the east coast flooding event. The former has estimated that its gross cost for the event will be around -$200m.

Insurance Australia Group has also provided a revised FY21 perils cost estimate of -$660-700m (versus an allowance of $658m) based on the March-June period. At the mid-point this represents around -2% downside to the broker's FY21 estimates.

Neutral rating and $5.93 target price.

This report was published on March 28, 2021.

Target price is $5.93 Current Price is $4.79 Difference: $1.14
If IAG meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $5.42, suggesting upside of 13.2%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 21.3, implying annual growth of 11.8%.
Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 22.5.

Forecast for FY22:

Current consensus EPS estimate is 28.0, implying annual growth of 31.5%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 17.1.

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

KZA    KAZIA THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.60

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

Kazia Therapeutics has announced an out license deal for Paxalisib with Simcere Pharmaceuticals Group. Bell Potter explains this was driven by a need for a partner for the large and complex market in China and surrounding territories of Taiwan, Hong Kong and Macau.

The company will receive a US$7m upfront cash payment and issue the equivalent of US$4m in new equity to Simcere. Milestone payments to the company will total US$281m, subject to normal development and commercial milestones, and are in addition to royalties.

The broker expects headline results from the approval study for Paxalisib in mid to late 2022. The data from the same study is also considered likely to meet regulatory requirements in China. Speculative Buy rating retained and the target is increased to $3.60 from $2.76.

This report was published on March 31, 2021.

Target price is $3.60 Current Price is $1.60 Difference: $2
If KZA meets the Bell Potter target it will return approximately 125% (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 0.00 cents and EPS of minus 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.57.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 9.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.33.

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

LEG    LEGEND MINING LIMITED

Nickel – Overnight Price: $0.13

Euroz Hartleys rates ((LEG)) as No Rating (-1) –

Metallurgical testing of RKDD034 which defined 43.1m of massive nickel-copper in two zones, has returned exceptional results, according to Euroz Hartleys.

It's considered the results point to highly saleable bulk (copper and nickel) concentrate of 12% and excellent metallurgical recoveries. 

Drilling for the 2021 season will commence in the March quarter. The speculative Buy and $0.30 target are retained.

This report was published on February 11, 2021.

Target price is $0.30 Current Price is $0.13 Difference: $0.17
If LEG meets the Euroz Hartleys target it will return approximately 131% (excluding dividends, fees and charges).

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

LOT    LOTUS RESOURCES LIMITED

Mining – Overnight Price: $0.14

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

The company has agreed with Kayelekera Resources to exercise its right to acquire an additional 20% in the Kayelekera Uranium project for around 226m Lotus Resources shares. Shaw and Partners considers it a positive to simplify the ownership structure.

The completion will see the company’s interest in Kayelekera increase to 85%, with the balance held by the Government of Malawi. The company is looking to re-start operations of the fully permitted project.

A low upfront capital requirement of circa -US$50m for around 2m lb/yr production is considered appealing by the broker. Neutral rating and $0.16 target.

This report was published on March 30, 2021.

Target price is $0.16 Current Price is $0.14 Difference: $0.02
If LOT meets the Shaw and Partners target it will return approximately 14% (excluding dividends, fees and charges).
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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.67.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.00.

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $30.97

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

Goldman Sachs sees the acquisition of Investor’s Business Daily (IBD) as a complementary asset to the company's key Dow Jones (DJ) business, potentially increasing its digital subscribers, earnings and standalone scale. 

IBD is a financial news and research business, purchased from O’Neil Capital Management for -US$275m. With the transaction close expected in the fourth quarter 2021, Goldman Sachs doesn't yet incorporate it into forecasts and retains a Buy rating and $35.40 target.

This report was published on March 28, 2021.

Target price is $35.40 Current Price is $30.97 Difference: $4.43
If NWS meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $34.17, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 27.76 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.5, implying annual growth of N/A.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 44.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 27.76 cents and EPS of 86.04 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.6, implying annual growth of 24.6%.
Current consensus DPS estimate is 27.6, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 35.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OPY    OPENPAY GROUP LTD

Business & Consumer Credit – Overnight Price: $2.31

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

Shaw and Partners lauds the milestone partnership with a leading e-commerce and payments provider FIS Worldpay, which has a specific focus on the US market.

Both companies will collaborate to offer flexible ‘Buy now Pay smarter’ payment products and other solutions to merchants and customers in territories in which Openpay group operates.

On the back of the recent ezyVet deal, this agreement further demonstrates an ability to integrate into leading global payments providers, enthuses the broker. The Buy rating and $5 target price are retained.

This report was published on March 30, 2021.

Target price is $5.00 Current Price is $2.31 Difference: $2.69
If OPY meets the Shaw and Partners target it will return approximately 116% (excluding dividends, fees and charges).
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 29.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.94.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 23.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.87.

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

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $12.98

JP Morgan rates ((PBH)) as Underweight (5) –

PointsBet has secured iGaming and online sports betting access in Pennsylvania and Mississippi making a total of seven states the company’s ‘Online Gaming Services Framework Agreement’ now covers.

The duration of the market access agreement is for 20 years, and similar to other state agreements, the company will pay Penn National Gaming a portion of its net gaming revenues.

JP Morgans sees the agreement as indicative of the company’s willingness to participate in the tri-state market (Pennsylvania, New Jersey and New York) if and when it is legalised. The Underweight rating and $11.50 target are maintained.

This report was published on March 29, 2021.

Target price is $11.50 Current Price is $12.98 Difference: minus $1.48 (current price is over target).
If PBH meets the JP Morgan target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

PEN    PENINSULA ENERGY LIMITED

Uranium – Overnight Price: $0.12

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

The target price falls to $0.17 from $0.21 as Shaw and Partners incorporates slightly reduced plateau production and minor increased costs, following the company’s MU1A field demonstration trial update. The Buy rating is unchanged.

The company is looking to switch operations from high to low pH in order to increase product yields. The key areas of focus for the trial are pattern design and well spacing, rates of acidification and acid consumption, and the strength of oxidants required.

The broker believes the Lance Projects in Wyoming is Net Present Value (NPV) positive at an average forecast weighted U3O8 price of US$46/lb from US$43/lb. The analyst continues to like operations being in the US and its leverage to a uranium sector up-cycle.

This report was published on March 30, 2021.

Target price is $0.17 Current Price is $0.12 Difference: $0.05
If PEN meets the Shaw and Partners target it will return approximately 42% (excluding dividends, fees and charges).

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.77

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

The company announced the biological temporising matrix (BTM) product has been included into the formulary for Premier, the second largest group purchasing organisation in the US.

While Bell Potter sees this as positive, the company must more importantly continue to invest in ongoing sales and marketing efforts, and in the clinical efforts to procure sufficient data to improve physician confidence and uptake. Hold rating and $2.75 target retained.

The broker notes this comes after the company tempered growth expectations, alluding to the likelihood of lumpiness in near-term sales. The analyst estimates sales growth should recover into the second half as patient volumes recover via vaccine distribution.

This report was published on March 29, 2021

Target price is $2.75 Current Price is $2.77 Difference: minus $0.02 (current price is over target).
If PNV meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 554.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 102.59.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PWG    PRIMEWEST

Real Estate – Overnight Price: $1.42

Euroz Hartleys rates ((PWG)) as Buy (5) –

After reviewing first half results, Euroz Hartleys considers Primewest has had a strong start to FY21, delivering earnings and assets under management (AUM) growth across the board. Operating earnings after tax were up 12% on the pcp and in-line with guidance.

An interim dividend of 2.1 cents was declared. The balance sheet remains well capitalised with $39m in cash and no debt after a $60m placement in February, explains the broker.

The analyst anticipates operating earnings will skew significantly into the second half as transaction activity over the second half of the financial year is traditionally stronger. Buy rating and $1.47 target.

This report was published on February 22, 2021.

Target price is $1.47 Current Price is $1.42 Difference: $0.05
If PWG meets the Euroz Hartleys target it will return approximately 4% (excluding dividends, fees and charges).

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.97

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

Goldman Sachs cautions very strong year-on-year growth in February container volumes was partly driven by an easing in the comparable periods. Nonetheless, total volumes were up 20.8% year-on-year with solid growth in both import and export volumes. 

The broker expects growth to continue through the coming March to May 2021 period as underlying import and export volumes
remain robust. Additionally, prior year comparable period data continues to cycle softness associated with the onset of covid-19 in 2020.

The Buy rating and $3.72 target are retained.

This report was published on March 30, 2021. 

Target price is $3.72 Current Price is $2.97 Difference: $0.75
If QUB meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $3.08, suggesting upside of 3.6%(ex-dividends)
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 8.00 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 37.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of 30.8%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 43.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.00 cents and EPS of 8.00 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 37.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 23.5%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 35.4.

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

SDV    SCIDEV LTD

Industrial Sector Contractors & Engineers – Overnight Price: $0.82

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

Canaccord Genuity assesses the new agreement to acquire Haldon Industries is highly complementary and increases EPS forecasts by 28% and 22% in FY22 and FY23, respectively. The Buy rating is maintained and the target increased to $1.32 from $1.14.

Haldon Industries is an environmental engineering company that provides water treatment services, dewatering, remediation and the treatment of liquid waste.

The broker expects the company to remain in a net cash position and believes the purchase will play a role in solidifying a differentiated product suite. 

This report was published on March 30, 2021.

Target price is $1.32 Current Price is $0.82 Difference: $0.5
If SDV meets the Canaccord Genuity target it will return approximately 61% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 91.11.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.85.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $6.13

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

After a trading update, Wilsons is satisfied the impact from floods appears modest and production costs are broadly consistent with expectations. Management confirmed 50% of its crop has been harvested, with favourable conditions across SA and VIC orchards.

The broker remains attracted to the earnings upside associated with further production growth and a full recovery in the almond price. Wilsons retains its Overweight rating and increases the target price to $6.67 from $6.55.

This report was published on March 30, 2021.

Target price is $6.67 Current Price is $6.13 Difference: $0.54
If SHV meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 5.10 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 66.63.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 17.10 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.77.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $4.64

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

With recent press coverage of  a franchisor/franchisee dispute at Laser Clinics Australia, Wilsons feels Silk Laser Australia has an opportunity to differentiate itself and pursue new corporatised models for the industry.

The genuinely corporatised service models the broker observes across healthcare (e.g. dental, radiology, veterinary) may be an attractive option for the non-surgical aesthetics (NSA) sector. The Market-weight rating and $4.45 target are retained.

As the only pure-play ASX-listed operator in the NSA sector, the company can also demonstrate a focus on franchisee profitability, in addition to its own financial success as a franchisor, notes the analyst.

This report was published on March 29, 2021. 

Target price is $4.45 Current Price is $4.64 Difference: minus $0.19 (current price is over target).
If SLA meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 14.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.68.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.13.

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

SVM    SOVEREIGN METALS LTD

Rare Earth Minerals – Overnight Price: $0.58

Euroz Hartleys rates ((SVM)) as Speculative Buy (1) –

Euroz Hartleys believes the Kasiya project located in Malawi has all the hallmarks of developing into a significant rutile producer in the medium term. The key risks are considered the project's location and obtaining development capital.

Sovereign Metals has released some new high grade drill results at the project, which will be incorporated into the maiden mineral resource estimation (MRE). Speculative Buy and $0.60 target price.

This report was published on February 4, 2021.

Target price is $0.60 Current Price is $0.58 Difference: $0.02
If SVM meets the Euroz Hartleys target it will return approximately 3% (excluding dividends, fees and charges).

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

TIE    TIETTO MINERALS LTD

Gold & Silver – Overnight Price: $0.35

Euroz Hartleys rates ((TIE)) as Speculative Buy (1) –

Tietto Minerals continues with regional and step-out drilling at the Abujar Gold Project in Côte d’Ivoire, Africa, with some high-grade results reported outside of current resources, notes Euroz Hartleys.

The broker explains the aim of the current drill program is to both increase resource confidence and grow resources, which already stand at over 3moz. The analyst maintains a Speculative Buy and $0.70 price target.

This report was published on February 23, 2021.

Target price is $0.70 Current Price is $0.35 Difference: $0.35
If TIE meets the Euroz Hartleys target it will return approximately 100% (excluding dividends, fees and charges).

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms