Australian Broker Call *Extra* Edition – Jul 28, 2021

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)   AOF   API   ARX   AUT   BGL   BML   CEL   CGF   CSS   CSX (2)   DEG   DGL   DOC   EVS   FZO   HLS   IEL   IMM   JLG   LRK   MCR   MZZ   NAN   NTO   NWH   NWL   PNI   PNV   SLC   SRG   TIE   TOY   UWL   VEA   WSA   Z1P  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $9.51

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

Canaccord Genuity assesses Audinate Group provided its best trading update/upgrade since its IPO, with the company expecting to report FY21 revenues 5% above the broker's forecast.

The broker points out this represents 23% growth, despite covid headwinds, supplier shut-downs and broader industry chip shortages. The result was considered driven by strong demand from OEM partners, and a general uplift in industry/structural growth rates.

Management's FY22 guidance noted the company “is well placed to return to US$ revenue growth in the historical range”, representing a growth rate between 26% and 31%. This implies FY22 revenue between US$31m-US$32m, points out the analyst.

The Buy rating is unchanged and the target price is increased to $10.50 from $9.

This report was published on July 12, 2021.

Target price is $10.50 Current Price is $9.51 Difference: $0.99
If AD8 meets the Canaccord Genuity target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $10.33, suggesting upside of 8.9%(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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 190.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 237.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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.

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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Shaw and Partners rates ((AD8)) as Buy (1) –

Shaw and Partners assesses Audinate Group's FY21 unaudited sales were ahead of expectations, and FY22 is shaping-up as even stronger, with greater than 30% growth. The broker lifts its price target to $12 from $10 and retains the Buy rating.

The analyst believes the earnings inflection point for the group has likely begun, due to improving sentiment and confidence in the global AV space, with a mooted recovery in 2022. The beginning of the turnaround in the Live sound/events arena is thought to have occurred.

This report was published on July 12, 2021.

Target price is $12.00 Current Price is $9.51 Difference: $2.49
If AD8 meets the Shaw and Partners target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $10.33, suggesting upside of 8.9%(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 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 279.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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 1585.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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.

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

AOF    AUSTRALIAN UNITY OFFICE FUND

REITs – Overnight Price: $2.35

Moelis rates ((AOF)) as Hold (3) –

Australian Unity Office Fund recently announced that its external manager, Australian Unity, intends to pursue the potential merger with the Australian Unity Diversified Property Fund (DPF), currently unlisted.

While proposed merger ratios have yet to be tabled, pending due diligence, DPF unitholders were advised that reference will be made to the respective net tangible assets (NTA) of the two funds.

Moelis notes a combined entity would have a gearing ratio of 35%, which will likely increase given the funding requirements of DPF’s retail developments in Melbourne VIC, and Busselton WA.

The broker believes the proposed merger has the potential to somewhat de-risk Australian Unity Office Fund's medium-term expiry profile and gives the fund scale with potential for index inclusion.

Hold rating retained. Target price of $2.44.

This report was published on July 8, 2021.

Target price is $2.44 Current Price is $2.35 Difference: $0.09
If AOF meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 15.00 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.63.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.00 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.70.

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

API    AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED

Health & Nutrition – Overnight Price: $1.42

Bell Potter rates ((API)) as Downgrade to Hold from Buy (3) –

Wesfarmers ((WES)) has made an unsolicited bid to acquire 100% outstanding share capital of Australian Pharmaceutical Industries at an indicative price of $1.38 per share. 

According to Bell Potter, the offer is fair, representing a 20.5% premium to the company's closing share price as of July 9.  Australian Pharmaceutical Industries' largest shareholder, WH Soul Pattinson ((SOL)), intends to vote in favour of the offer. 

The rating is downgraded to Hold and the target price decreases to $1.38 from $1.50. 

This report was published on July 12, 2021.

Target price is $1.38 Current Price is $1.42 Difference: minus $0.04 (current price is over target).
If API meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.38, suggesting downside of -3.1%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.40 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of N/A.
Current consensus DPS estimate is 4.1, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.10 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.5, implying annual growth of 26.7%.
Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.9.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.20

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

Bell Potter reports Aroa Biosurgery's recent investor update has reiterated the growing body of clinical evidence supporting the company's ECM platform. The broker notes this data will be responsible for driving physician adoption.

The company also provided detail on the Myriad commercial roll out, which remains the key focus. Bell Potter notes detail around a symbiotic relationship with the Tela salesforce and its existing customers is positive. 

The Speculative Buy rating and target price of $2.00 are retained. 

This report was published on July 6, 2021.

Target price is $2.00 Current Price is $1.20 Difference: $0.8
If ARX meets the Bell Potter target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.67.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.29.

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

AUT    AUTECO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.12

Shaw and Partners rates ((AUT)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on Auteco Minerals, a gold exploration company with a focus on the high grade Pickle Crow project in Ontario.

Having already established a 1m ounce resource at 11.3 grams of gold per tonne, Auteco Minerals is one of the highest grade gold explorers on the ASX, the broker highlights.

The company owns 51% of the Pickle Crow gold project and is in the process of acquiring an 80% interest. Drilling results have reported multiple high grade intersections and a resource update is expected in July.

Shaw and Partners initiates with a Buy rating and a target price of $0.18. 

This report was published on July 7, 2021.

Target price is $0.18 Current Price is $0.12 Difference: $0.06
If AUT meets the Shaw and Partners target it will return approximately 50% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 17.14.

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

BGL    BELLEVUE GOLD LIMITED

Gold & Silver – Overnight Price: $0.95

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

Due to extensive drilling programs undertaken at Marceline/Deacon North and Deacon in recent months, Bellevue Gold has achieved double-digit increases in its total resources by 16%, which the company believes has not come at the expense of lower grades.

Canaccord Genuity continues to be impressed by the company growing the resource base while holding the grade constant at circa 10g/t.

With a growing high-grade resource and reserve base, pragmatic mine plan which should continue to improve over time, and a management team of high calibre professionals, the broker continues to see Bellevue Gold as an exciting development proposition.

Buy (speculative) rating is maintained. Target price $1.40.

This report was published on July 8, 2021.

Target price is $1.40 Current Price is $0.95 Difference: $0.45
If BGL meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).

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

BML    BOAB METALS LIMITED

Mining – Overnight Price: $0.41

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

Shaw and Partners believes the early results from Boab Metals' update on its Phase V drilling program at the Sorby Hills Lead-Silver Project are highly encouraging with mineralisation encountered outside the existing resource envelopes and pit shell design.

The broker notes over 3,000m of drilling across 31 holes have now been completed, and 1,100 core samples have been sent to the laboratory in Darwin for assaying, with early indications looking highly encouraging.

The Buy rating and $1.02 target price are maintained.

This report was published on July 9, 2021.

Target price is $1.02 Current Price is $0.41 Difference: $0.61
If BML meets the Shaw and Partners target it will return approximately 149% (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 136.67.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.67.

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

CEL    CHALLENGER EXPLORATION LIMITED

Gold & Silver – Overnight Price: $0.28

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

Challenger Exploration has agreed with project vendors to acquire 100% ownership of the flagship Hualilan Gold Project in Argentina. Under the previous agreement, it was earning up to 75%.

While no set price for the issuance of shares has been mentioned, Canaccord Genuity assumes it could expect this to be at $0.30, which values the total transaction at $40m for 75% of the project.

In Canaccord's view, this appears to be a fantastic deal and also shows that those vendors who are taking stock are clearly aligned with the company and see the same upside that the broker's valuation portrays.

Speculative Buy rating and the price target of $0.60 remain unchanged.

This report was issued July 9, 2021

Target price is $0.60 Current Price is $0.28 Difference: $0.32
If CEL meets the Canaccord Genuity target it will return approximately 114% (excluding dividends, fees and charges).

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $5.69

Jarden rates ((CGF)) as Downgrade to Neutral from Overweight (3) –

With Challenger shares now trading closer to Jarden's $6.25 adjusted net tangible asset (NTA) valuation, the broker believes further value upside from here becomes more reliant on improved growth in longer-duration and higher-margin retirement products, rather than short-duration term annuities and term deposits.

The broker also notes delivering a sustainable return on equity (ROE) comfortably above the company's cost of equity is an outcome that partially hinges on credit spreads widening.

The broker sees limited value upside and lowers the rating to Neutral from Overweight.

Target price of $6.15 is retained.

This report was initially released on July 7, 2021.

Target price is $6.15 Current Price is $5.69 Difference: $0.46
If CGF meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.01, suggesting upside of 5.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 dividend of 19.70 cents and EPS of 35.30 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.8, implying annual growth of N/A.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 22.60 cents and EPS of 40.10 cents.
At the last closing share price the estimated dividend yield is 3.97%.
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 39.3, implying annual growth of -3.7%.
Current consensus DPS estimate is 23.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 14.5.

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

CSS    CLEAN SEAS SEAFOOD LIMITED

Overnight Price: $0.54

Bell Potter rates ((CSS)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage of Clean Seas Seafood with a Buy recommendation and a target price of $0.60.

Clean Seas is a vertically integrated Kingfish producer operating hatcheries, farming, and processing facilities, which had achieved compound growth in sales volumes of 20%-plus annually since FY15.

The broker believes the company provides investors with operating leverage to a re-opening in global foodservice channels resulting in the combination of stronger sales volumes, higher selling prices, and a downdraft in the cost of goods sold.

The report was issued 8 July, 2021.

Target price is $0.60 Current Price is $0.54 Difference: $0.06
If CSS meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).

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

CSX    CLEANSPACE HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $1.39

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

Cleanspace Holdings reported their second half FY21 result, with sales of $10.2m, missing Bell Potter's expectations by 40%, and with fourth-quarter FY21 (revenues of $3.2m) declining -54% versus third quarter FY21.

Bell Potter attributes ongoing weakness to the vaccine roll-out and extended lockdowns as factors impacting purchasing patterns.

Bell Potter views Cleanspace product as differentiated with a high level of clinical utility.

The broker's scenario analyses provide upside to $2.50 with strong salesforce execution and downside to $1.20 per share, dependent on rates of uptake and consumables utilisation.

Hold rating unchanged, and the target price is lowered to $1.70 from $2.28.

This report was published on July 9, 2021.

Target price is $1.70 Current Price is $1.39 Difference: $0.31
If CSX meets the Bell Potter target it will return approximately 22% (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 14.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.52.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 8.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.16.

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

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

CleanSpace expects fourth quarter FY21 revenue of $3.2m which is materially below Wilsons' forecast of $7.3m.

The broker's revised FY22 revenue forecast of $19.2m represents 32% growth versus an annualised first half FY20.

Wilsons gross margin expectations are also reduced by -200bps given adverse shifts in segment mix.

The Market Weight rating is retained and the target price is lowered to $1.75 from $2.00.

This report was published on July 8, 2021. 

Target price is $1.75 Current Price is $1.39 Difference: $0.36
If CSX meets the Wilsons target it will return approximately 26% (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 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.93.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 11.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.88.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.14

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

Bell Potter believes there still remains significant potential for further Resource growth, after De Grey Mining announced the maiden Resource for the Hemi discovery.

The Resource was at the upper-end of the broker's expectations, and more than quadruple the size of the prior Mallina Gold Project Resource. Bell Potter maintains its Buy rating and increases its target price to $1.71 from $1.66.

The analyst notes the Resource is supportive of a potential “Tier 1” gold project (over 300kozpa for more than 10 years). It's considered to potentially offer a long mine life, low costs, operational flexibility and further Resource growth, all set in a top global mining jurisdiction.

This report was published on July 9, 2021.

Target price is $1.71 Current Price is $1.14 Difference: $0.57
If DEG meets the Bell Potter target it will return approximately 50% (excluding dividends, fees and charges).

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

DGL    DGL GROUP LIMITED

Commercial Services & Supplies – Overnight Price: $1.50

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

DGL Group recently purchased Victorian digital label printing business, Labels Connect, for $1.55m, marking its first acquisition as a listed entity.

While conceivably immaterial in size, Bell Potter uses this opportunity to incorporate both the acquisition of Labels Connect and, in the broker's view, the possibility of a series of accretive acquisitions on DGL Group’s near-term horizon.

The broker's forecasts now include $42m of acquisitions in FY22 at a 6x EV/EBITDA take-out multiple, which Bell Potter considers to be conservative.

Buy rating is maintained and the price target increases to $1.65 from $1.50.

This report was issued July 8, 2021.

Target price is $1.65 Current Price is $1.50 Difference: $0.15
If DGL meets the Bell Potter target it will return approximately 10% (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 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.47.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.41.

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

DOC    DOCTOR CARE ANYWHERE GROUP PLC

Healthcare services – Overnight Price: $0.88

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

Given that it could be up to two years before a significant level of herd immunity begins to develop across the UK let alone globally,  Bell Potter concludes that telemedicine is here to stay.

As a result, the broker believes Doctor Care Anywhere Group will continue to experience rapid growth in revenues over the next 2 years and is forecasting revenues to double in FY21.

The Buy rating and the target price of $1.70 are both unchanged.

This report was published on July 9, 2021.

Target price is $1.70 Current Price is $0.88 Difference: $0.82
If DOC meets the Bell Potter target it will return approximately 93% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 9.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.57.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.78 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.22.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.13

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

Envirosuite announced it generated new annual recurring revenue sales of $2.3m in fourth quarter FY21, a new quarterly record for the company but slightly below the stated target of $2.4m.

There is no change in Bell Potter's FY21 forecasts which were last adjusted in early June post the capital raising.

Bell Potter believes the next potential catalyst for the stock is the release of the FY21 result in mid-August when the broker expects the FY21 guidance to be met and an update on the outlook for FY22.

Buy rating and target price of $0.15 are both unchanged.

This report was published on July 9, 2021.

Target price is $0.15 Current Price is $0.13 Difference: $0.02
If EVS meets the Bell Potter target it will return approximately 15% (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 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY22:

Bell Potter 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 13.00.

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

FZO    FAMILY ZONE CYBER SAFETY LIMITED

Software & Services – Overnight Price: $0.60

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

Family Zone Cyber Safety has reported accelerated growth rate in market share, students and annual recurring revenue in the US. The company added US net market share of 1.7% in the fourth quarter. 

The company set a record for group net adds in the fourth quarter, reporting 2.4m contracted students and 3.0m students on the platform. Shaw and Partners forecasts 4.1m contracted students during FY22 and 6.0m for FY23. 

Shaw and Partners also notes the acquisition of US-based NetRef is highly attractive to Family Zone, and the company has flagged potential for further strategic acquisitions. 

The Buy rating is retained and the target price increases to $0.77 from $0.70.

This report was published on July 7, 2021.

Target price is $0.77 Current Price is $0.60 Difference: $0.17
If FZO meets the Shaw and Partners target it will return approximately 28% (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 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.95.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.29.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $4.76

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

Healius has announced the cash-funded acquisition of Queensland-based imaging business Axis Diagnostic Holdings. 

Goldman Sachs reports Axis Diagnostic Holdings generates around $2m in underlying earnings per annum. Healius' current imaging business generated $67m in underlying earnings in FY20, with Goldman Sachs forecasting the division to generate $85m in underlying earnings in FY21.

The Buy rating and target price of $4.40 are retained. 

This report was published on July 12, 2021.

Target price is $4.40 Current Price is $4.76 Difference: minus $0.36 (current price is over target).
If HLS meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.61, suggesting downside of -4.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.0, implying annual growth of N/A.
Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 20.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.3, implying annual growth of -11.2%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 22.8.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $27.80

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

Goldman Sachs is forecasting an earnings contribution of $16.2m/$25.8m from recently acquired BC India within IDP Education's FY22 and FY23.

But having cut fourth-quarter FY21 expectations for IELTS testing volumes in India and FY22 SP volumes for Australia to reflect covid disruptions and border closures, the broker's earnings per share estimates in FY21, FY22, and FY23 are changed -7.1%, -7.5%, and 8.4% respectively.

Goldman Sachs thinks the fundamentals of the business are very strong, with a long runway for growth in a highly fragmented market.

 Buy rating retained. Target price $35.

This report was published on July 7, 2021.

Target price is $35.00 Current Price is $27.80 Difference: $7.2
If IEL meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $31.67, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 12.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 0.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 163.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of -27.7%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 146.0.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 29.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.6, implying annual growth of 114.8%.
Current consensus DPS estimate is 38.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 68.0.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.48

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

Immutep Ltd has announced plans to expand the clinical program for efti funded by a $65m capital raise.

Taylor Collison has revised its risk-adjusted valuation of Immutep, adding the mBC Phase III (risked to 25%), updating the upfront and milestone payments from a potential efti licence deal in light of the GSK/iTeos deal, and increasing modelled royalty rates.

The broker's post cap raise valuation increases to $1,002m.

This report was issued July 6, 2021.

Current Price is $0.48. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.55.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.55.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $5.44

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

Johns Lyng Group has acquired a controlling 60% interest in Unitech Building Services, with Unitech's owners retaining the remaining 40% equity and maintaining ongoing management. Johns Lyng Group will pay initial consideration of -$1.9m. 

Canaccord Genuity notes the move follows the recent acquisition of three strata and building management services which all provide modest near-term earnings accretion. 

The broker has made marginal upgrades to underlying earnings forecasts for FY22 and FY23. 

The Hold rating is retained and the target price increases to $5.10 from $5.05.

This report was published on July 12, 2021.

Target price is $5.10 Current Price is $5.44 Difference: minus $0.34 (current price is over target).
If JLG meets the Canaccord Genuity target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 6.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.40.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 8.00 cents and EPS of 15.00 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 36.27.

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

LRK    LARK DISTILLING CO. LIMITED

Food, Beverages & Tobacco – Overnight Price: $4.74

Moelis rates ((LRK)) as Buy (1) –

Moelis reports Lark Distilling Co is now targeting 1.8m litres of whisky under maturation by end of FY22, a 20% increase on previous targets. The company reported 1.1m litres of whisky under maturation at end of June 2021, which the broker notes is in line with guidance.

Production for FY22 will be supplemented by an externally produced 350,000 litres. The broker notes Lark Distilling Co management is proving its ability to successfully execute on strategic initiatives. 

The Buy rating is maintained and the price target increases to $3.80 from $3.25. 

The report was published on July 7, 2021.

Target price is $3.80 Current Price is $4.74 Difference: minus $0.94 (current price is over target).
If LRK meets the Moelis target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis 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 474.00.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.25.

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

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $1.24

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

Mincor Resources is working towards re-starting nickel production from its Kambalda Nickel business, and delivering its nickel concentrate into BHP Nickel West’s global battery mineral supply chain.

Bell Potter notes potential new discoveries would be delivered into an environment where nickel prices are forecast to rise, as nickel is a component of the global battery mineral supply chain.

Changes to the broker earnings estimates following this update include a -4% decrease for 2022 and a 53% increase for 2023.

Buy rating unchanged and the target price increases to $1.35 from $0.87.

This report was published on July 8, 2021.

Target price is $1.35 Current Price is $1.24 Difference: $0.11
If MCR meets the Bell Potter target it will return approximately 9% (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 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.58.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.31.

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

MZZ    MATADOR MINING LIMITED

Gold & Silver – Overnight Price: $0.41

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

Following a recent $16m placement, Canaccord Genuity believes Matador Mining is fully funded to undertake a large 45,000m program exploring along the Cape Ray Shear.

Canaccord Genuity has updated its model for the recent placement and revised exploration value in light of the substantial increase in landholding.

Canaccord Genuity’s speculative Buy rating is unchanged, and the price target increases to $0.65 from $0.60.

The report was published on July 8, 2021.

Target price is $0.65 Current Price is $0.41 Difference: $0.24
If MZZ meets the Canaccord Genuity target it will return approximately 59% (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 minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $5.24

Goldman Sachs rates ((NAN)) as Downgrade to Sell from Neutral (5) –

Goldman Sachs has downgraded its rating on Nanosonics given that momentum has slowed for the company and the broker can no longer justify the premium valuation. 

Goldman Sachs notes US penetration rates are approaching 70%, making the remaining opportunity smaller and harder, competition potentially threatening capital sales, and a pipeline that has previously disappointed as some drivers of the downgrade.

It is the broker's view that the recent launch of AuditPro has reduced the probability of a successful product launch from Nanosonics. 

The rating is downgraded to Sell and the target price decreases to $4.93. 

This report was published on July 6, 2021.

Target price is $4.93 Current Price is $5.24 Difference: minus $0.31 (current price is over target).
If NAN meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.82, suggesting upside of 14.3%(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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 262.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.0, implying annual growth of -40.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 254.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 104.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.0, implying annual growth of 200.0%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 84.8.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $3.45

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

Shaw and Partners views contract lifecycle management (CLM) as a material adjacent growth opportunity for Nitro Software, which is highly fragmented and still maturing, and a good fit with the company's existing products and customer base.

The broker views CLM as a logical extension for the company given that it addresses the ecosystem both pre and post an eSignature, and has an installed base that is likely to see value in an integrated CLM/document management platform.

The broker also notes Nitro has current products and a user interface that is likely to make implementation and adoption relatively straightforward, plus an established enterprise-focused distribution engine that can be leveraged.

The Buy rating and target price of $3.90 are both retained.

This report was published on July 9, 2021.

Target price is $3.90 Current Price is $3.45 Difference: $0.45
If NTO meets the Shaw and Partners target it will return approximately 13% (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 10.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.36.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.19.

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

NWH    NRW HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.72

Canaccord Genuity rates ((NWH)) as Upgrade to Buy from Hold (1) –

It is Canaccord Genuity's view that investor sentiment towards NRW Holdings' stock may be starting to recover given a strong share price response to a relatively routine trading update.

According to the broker, NRW Holdings has been facing a perception of heightened risk around cash collections, but reported net debt of around -$115m at end of June was roughly in line with Canaccord Genuity's expectations. 

The rating is upgraded to Buy and the target price increases to $2.12 from $1.70. 

This report was published on July 13, 2021.

Target price is $2.12 Current Price is $1.72 Difference: $0.4
If NWH meets the Canaccord Genuity target it will return approximately 23% (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 5.50 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.49.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 7.00 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.45.

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: $16.07

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

Capping off a solid year with inflows of $9.8bn for FY21, Netwealth Group's fourth-quarter FY21 net inflows of $3.1bn were roughly double the $1.5bn achieved in the previous period and well above Goldman Sachs' estimated $2.3bn.

The broker raises earnings per share in FY21-FY23 by 1%, 4%, 4%, largely on account of circa $0.8bn of additional funds under management and administration (FUMA) inflows in the fourth quarter FY21.

The Neutral rating remains and the target price increases to $16.33 from $15.42.

This report was published on July 8, 2021. 

Target price is $16.33 Current Price is $16.07 Difference: $0.26
If NWL meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $17.02, suggesting upside of 8.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 18.60 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 69.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 25.7%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 67.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 21.50 cents and EPS of 26.90 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.1, implying annual growth of 17.3%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 57.7.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $12.54

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

Despite a difficult May, Pinnacle Investment Management Group expects net performance fees to be $8.4m, which Wilsons believes highlights the benefit of a diverse portfolio of affiliates and funds which have greater reliability in performance.

Wilsons downgrades the recommendation to Market Weight from Overweight, and the target price increases 8.2% to $11.90 to reflect upgraded performance fee guidance for the second half FY21 and funds under management (FUM) flows to April 2021. 

However, Wilsons believes the key driver is a step-change in the broker's risk-weighted approach to performance fees in the long term.

Driven by updated FUM (May 2021) and performance fee assumptions, Wilsons net profit forecasts are up 6.4% and 10.5% to $62.1m and $71.2m in FY21 and FY22, respectively.

This report was published on July 7, 2021.

Target price is $11.90 Current Price is $12.54 Difference: minus $0.64 (current price is over target).
If PNI meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $12.21, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 28.90 cents and EPS of 34.40 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.2, implying annual growth of 81.5%.
Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 36.2.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 32.80 cents and EPS of 38.90 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.4, implying annual growth of 18.1%.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 30.6.

Market Sentiment: 1.0
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: $2.24

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

Despite PolyNovo reporting a record June sales run rate of $3.3m, total second half biodegradable temporising matrix (BTM) sales in Australia and Rest of the World markets were a miss on Wilsons' forecasts, down -70% and -24% respectively. 

Wilsons notes strong recovery on the US, as well as sales in Germany, Switzerland and Austria, were strong contributors to group sales results, which beat forecasts for the second half by 5%.

Wilsons' Market Weight rating and target price of $2.80 are under review.

This report was published on July 13, 2021.

Current Price is $2.24. Target price not assessed.
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 minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 248.89.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 140.00.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $0.88

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

Superloop has announced the acquisition of Exetel for -$110m in a deal that was partially funded by a $100m equity raise priced at $0.93 per share.

Canaccord Genuity estimates an organic four-year earnings compound annual growth rate of 27% from FY21-FY25 and believes the acquisition of Exetel complements this.

The broker also believes the balance sheet strengthening should provide Superloop with the optionality to pursue additional organic and inorganic growth opportunities.

Canaccord believes the company has a strong growth profile, a robust balance sheet that provides optionality, and having exited some non-core units, is positioned to be highly cash generative.

The broker maintains its Buy rating with the target price increasing to $1.30 from $1.24.

This report was published on July 8, 2021.

Target price is $1.30 Current Price is $0.88 Difference: $0.42
If SLC meets the Canaccord Genuity target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $1.23, suggesting upside of 39.4%(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 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.4, 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 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

SRG    SRG GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.56

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

SRG Global has updated FY21 guidance, with underlying earnings expected to the in the top end of the $45-47m range.

Shaw and Partners notes cash conversion was a positive surprise, with the company closing out the year with net cash of $12.2m, compared to net debt of -$8.4m at the end of FY20. 

The company also provided an outlook for FY22, guiding to an approximate 15% increase to underlying earnings year-on-year. The broker notes the company is well-positioned to fund the strong growth pipeline.

The Buy rating is retained and the target price increases to $0.75 from $0.70, based on strong cash conversion. 

This report was published on July 7, 2021.

Target price is $0.75 Current Price is $0.56 Difference: $0.19
If SRG meets the Shaw and Partners target it will return approximately 34% (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 2.00 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.50 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.33.

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

TIE    TIETTO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.36

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

Canaccord Genuity considers it impressive that Tietto Minerals has grown the indicated resource for the Abujar Gold Project in Cote d’Ivoire, by 50%. This is considered to further de-risk the project prior to the definitive feasibility study for release later this quarter.

Separately, the broker points out the APG satellite pit continues to deliver.  A maiden Indicated resource has been declared, drilling is ongoing, and the analyst expects more to come from this pit over time.

Cannacord Genuity has a Buy rating and $0.60 target.

This report was published on July 12, 2021.

Target price is $0.60 Current Price is $0.36 Difference: $0.24
If TIE meets the Canaccord Genuity target it will return approximately 67% (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 minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.00.

Forecast for FY22:

Canaccord Genuity 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 18.00.

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

TOY    TOYS 'R' US ANZ LIMITED

Retailing – Overnight Price: $0.16

Canaccord Genuity rates ((TOY)) as Initiation of coverage with Buy (1) –

Canaccord Genuity initiates coverage on Toys''R''Us ANZ with a Buy rating and $0.20 target price. The company, formerly named Funtastic, completed the acquisition of Hobby Warehouse Group in November 2020.

This repositioned the business as an e-commerce retailer, leveraging its exclusive 42-year licence to operate the Toys"R"Us and Babies"R"Us e-commerce platforms in A&NZ.

With the launch of Babies"R"Us in July 2021, increasing fulfillment capacity and a significant pick-up in marketing/customer acquisition, the analyst believes the company is well positioned to strongly accelerate its revenue over the coming years.

This report was published on July 12, 2021.

Target price is $0.20 Current Price is $0.16 Difference: $0.04
If TOY meets the Canaccord Genuity target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY21:

Canaccord Genuity 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 53.33.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 160.00.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $3.40

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

On its own admission, Bell Potter has provided a top-of-the-market forecast for underlying earnings in FY22 of $143.7m for Uniti Group, but notes this is based on an expected run-rate in June of at least $130m. 

The broker awaits further updates from Uniti Group that should confirm June's underlying earnings run rate. 

The rating is upgraded to Buy and the target price increases to $3.60 from $3.20. 

This report was published on July 6, 2021.

Target price is $3.60 Current Price is $3.40 Difference: $0.2
If UWL meets the Bell Potter target it will return approximately 6% (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 6.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.09.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $2.04

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

Viva Energy Group's second quarter was a strong beat versus Goldman Sachs, and is expected to drive upgrades to consensus 2021 earnings. It's thought the share price will be supported by recovering macro conditions, combined with the Federal Subsidy for refining.

The broker also highlights improving returns to equity, including a $100m capital management program. The company remains Goldman Sach's pick of the Australian refiners. The Buy rating is maintained and the price target is raised to $2.70 from $2.40.

The analyst points out a return to ordinary dividends is increasingly probable in the first half, and forecasts 2.9 cents. 

This report was released on July 9, 2021.

Target price is $2.70 Current Price is $2.04 Difference: $0.66
If VEA meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $2.38, suggesting upside of 16.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.20 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.3, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.70 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.7, implying annual growth of 41.0%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.4.

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

WSA    WESTERN AREAS LIMITED

Nickel – Overnight Price: $2.50

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

Western Areas' operational improvements are tracking favourably into FY22, with operational recovery from the first half FY21 nadir continuing with sequential gains for nickel mined and processed of 16% and 8% respectively.

FY22 guidance parameters are expected to be released with FY21 earnings update on 24 August.

Shaw and Partners notes nickel price tailwinds and a sorted balance sheet post the March quarter FY21 equity raise provide a continued confluence of operational delivery that should see the company's fortunes improve into FY22 with a positive and growing income statement.

Buy rating and target price of $2.90 are both retained.

This report was published on July 9, 2021.

Target price is $2.90 Current Price is $2.50 Difference: $0.4
If WSA meets the Shaw and Partners target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.56, suggesting upside of 2.9%(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 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 108.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.5, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.00 cents and EPS of 7.90 cents.
At the last closing share price the estimated dividend yield is 0.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.5, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 38.3.

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

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $6.74

Shaw and Partners rates ((Z1P)) as Buy (1) –

With Klarna reported to have taken a stake on Zip Co’s register, Shaw and Partners questions if this is a prelude to a potential M&A?

Shaw believes the market underrates Zip Co’s growth in the USA, and sees the BNPL company as a target for more than one player strategically (including Klarna), with other companies also potentially interested.

The Buy rating and target price of $16.00 remain unchanged.

This report was published on July 9, 2020.

Target price is $16.00 Current Price is $6.74 Difference: $9.26
If Z1P meets the Shaw and Partners target it will return approximately 137% (excluding dividends, fees and charges).
Current consensus price target is $8.21, suggesting upside of 23.0%(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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6740.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -41.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6740.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

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