Australian Broker Call *Extra* Edition – Apr 24, 2019

This story features AUSTIN ENGINEERING LIMITED, and other companies. For more info SHARE ANALYSIS: ANG

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)

ANG   BYE   COH   CUV   DTS   FPH   HUB   LCK   MSV   NIC (2)   PNV   PPS   PSI   RVS  

ANG    AUSTIN ENGINEERING LIMITED

Mining Sector Contracting – Overnight Price: $0.18

Wilsons rates ((ANG)) as Buy (1) –

Austin Engineering downgraded guidance -17% after several contracts were moved forward by one quarter. The broker also downgrades forecasts to reflect the changes, and expects tax loss benefits to fall further into FY20 as a result.

Wilsons believe the share price sell-off to be overdone, representing a buy opportunity, and says the company is in its best position in five years.

Management recently announced the completion of Chillean assets sales and the Hunter Valley site disposal should be completed by June 30, allowing it to concentrate on the core business. The balance sheet is approaching a net cash position, and the order book for FY19 is nearly fully covered.

The broker says the mining industry's maintenance cycles have been stretched, paving the way for equipment upgrades, and commodity prices and economic data should provide a boost. The broker says based on fundamentals, the stock is cheap. The company has roughly $9m in debt, and may announce an FY19 dividend. Buy rating and 36c target price retained.

This report was published on April 18, 2019.

Target price is $0.36 Current Price is $0.18 Difference: $0.18
If ANG meets the Wilsons target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 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 12.86.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.09.

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

BYE    BYRON ENERGY LIMITED

Crude Oil – Overnight Price: $0.31

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

Bell Potter is full of superlatives for Byron Energy and initiates coverage with a Buy rating, citing its spectacular success using Reverse Time Migration and state-of-the art proprietary Vector Imaging Partition seismic inversion process to identify overlooked targets.

The main trigger for the Buy follows the company's extraction of solid oil and gas output from three wells at its 50% owned and operated SM71 platform in the Gulf of Mexico. Byron is now the dominant player in the South Marsh Island there, positioning it well for both reserves and low-cost output given the shallow water and strong pipeline infrastructure on the nearby shore.

Bell Potter also points to a rebound in the West Texas Intermediate oil price and says the South Marsh Island output is usually sold at a strong cash margin, and a premium to WTI.

Byron Energy plans to build between 10 and 17 wells over the next four years. The broker expects the stock will generate strong returns and steadily increase cash flow from its low-cost production. The 42c target price is based on the broker's net present value forecasts of prospects and assumes a modest equity raising for the drilling program.

This report was published on April 11, 2019.

Target price is $0.42 Current Price is $0.31 Difference: $0.11
If BYE meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

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

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $181.27

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

Cochlear's launch of its Nucleus Profile Plus implant has triggered an upgrade to Buy from Goldman Sachs.

The beauty of the implant lies in its rotating magnet which makes it compatible with 3T MRI platforms, eliminating the need for invasive procedures before and after imaging. Goldman Sachs believes the compatibility issue was responsible for the company's share price retreat over the past eight months and expects it will now regain those losses.

The implant has been approved for sale in Europe (expected to be rolled out before the end of FY19) and is available for sale in Germany immediately. The broker expects US approval in the first half of FY20.

Broker upgrades FY20 and FY21 earnings-per-share forecasts 4% and 5% respectively. Target price rises to $197 from $173. 

This report was published on April 16, 2019.

Target price is $197.00 Current Price is $181.27 Difference: $15.73
If COH meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $168.30, suggesting downside of -7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Goldman Sachs forecasts a full year FY19 dividend of 180.00 cents and EPS of 467.00 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 465.2, implying annual growth of 8.9%.
Current consensus DPS estimate is 323.8, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 39.0.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 200.00 cents and EPS of 529.00 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 34.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 513.3, implying annual growth of 10.3%.
Current consensus DPS estimate is 358.9, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 35.3.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $22.30

Moelis rates ((CUV)) as Initiation of coverage with Hold (3) –

Moelis Australia has initiated coverage on Clinuvel Pharmaceuticals, which has developed a drug called SCENESSE that induces melanin production to treat patients with severe skin disorders.

The product is approved in the EU to treat ultra-orphan disease EPP and is in the final stages of gaining regulatory approval in the US (which represents 40% of the market). 

The product has 10% market penetration in several EU countries and the broker expects further EU nations to join the push for reimbursement on ultra-orphan diseases, for which market exclusivity is granted for seven to 10 years in both Europe and the US.  

After gaining US approval, Moelis expects Clinuvel to target other world markets representing revenue of A$160m. The product is also in trials for Vitilago and may have applications for other diseases.

The broker adopts a Hold rating, expecting the company to reach 35% market penetration in Europe and 20% in the US by 2025, and arrives at a $26.43 target price. It believes a swift ramp-up in the US and expansion into new countries could yield a price of $30.94.

This report was published on April 17, 2019.

Target price is $26.43 Current Price is $22.30 Difference: $4.13
If CUV meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).

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

DTS    DRAGONTAIL SYSTEMS LIMITED

Software & Services – Overnight Price: $0.21

Canaccord Genuity rates ((DTS)) as Speculative Buy (1) –

Canaccord Colts provides research coverage on a select group of early-stage ASX-listed microcap companies that the institutional research team believes have strong development trajectories. Dragon Systems specialises in Algo Dispatching Platform and QT Camera technology for tier one quick service restaurant brands.

Current customers include Pizza Hut, KFC and Domino's Pizza ((DMP)). The analysts believe the recently released 1Q19 result are best viewed as the strongest operational period since inception for Dragon Systems, noting it was driven by the significant improvement in the company's installed base and the increase in cash receipts.

Supporting the company's growth outlook is the analysts' conviction that once customers have been signed up, and QT cameras have been installed, overall churn will be low, leading to strong ARPU growth down the track.

Rating remains Speculative Buy with a 40c valuation.

This report was released on April 18, 2019.

Current Price is $0.21. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.13.

Forecast for FY21:

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $15.08

Wilsons rates ((FPH)) as Hold (3) –

Wilsons remains supportive of the shares medium term, with the company's 'nasal high flow' respiratory support systems expected to continue growing strongly enough to support 20% per annum growth in total group sales, which is what Wilsons believes is what the current share price/PE multiples are implying.

Having said this, on a shorter term horizon there could be trouble around the corner predominantly because competitors such as ResMed ((RMD)) are establishing new sales channels and systems to reach patients pre-hospital, which could impact on Fisher & Paykel Healthcare's future potential, the analysts believe.

Meanwhile, the shares continue trading at a steep premium to medtech peers, Wilsons believes. Hold rating retained, as well as the $13 price target.

This report was released on April 17, 2019.

Target price is $13.00 Current Price is $15.08 Difference: minus $2.08 (current price is over target).
If FPH meets the Wilsons target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is N/A
The company's fiscal year ends in March.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 22.87 cents and EPS of 34.73 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.4, implying annual growth of N/A.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 43.8.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 26.14 cents and EPS of 39.40 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.9, implying annual growth of 21.8%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 36.0.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $14.22

Wilsons rates ((HUB)) as Sell (5) –

As the company continues to report high growth in funds inflows, analysts at Wilsons believe the top line numbers do not provide the full story. They suggest management's guidance for -6% decline half-on-half in revenue margins indicates full earnings potential does not follow immediately upon funds inflows.

Wilsons fully acknowledges the outlook remains strong, including for EPS growth, but it's downward margin pressure that has their full attention, which limits the price target to $10.90. Sell rating retained with the share price trading at a substantially higher level.

This report was released on April 24, 2019.

Target price is $10.90 Current Price is $14.22 Difference: minus $3.32 (current price is over target).
If HUB meets the Wilsons target it will return approximately minus 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $12.80, suggesting downside of -10.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 10.30 cents and EPS of 19.60 cents.
At the last closing share price the estimated dividend yield is 0.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.4, implying annual growth of 9.2%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 106.1.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 17.90 cents and EPS of 29.70 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 81.3%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 58.5.

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

LCK    LEIGH CREEK ENERGY LIMITED

NatGas – Overnight Price: $0.34

Independent Investment Research rates ((LCK)) as No Rating (-1) –

Within the context of higher prices for gas on Australia's East Coast, the analysts see opportunity for an emerging developer as is Leigh Creek Energy, with the company fully concentrating on the 100% owned Leigh Creek Energy Project, located 550 km north of Adelaide in South Australia.

The project involves in-situ coal gasification and on current estimates it contains the largest uncontracted reserves of any energy developer or producer in Eastern Australia, point out the analysts.

The Definitive Feasibility Study is due for completion in 2020, with production targeted for 2023. The commercial opportunity lays with low cost syngas and with urea, being the key nitrogen fertiliser used in Australia, the analysts explain.

Independent Investment Research has a base case risked valuation range of $0.32 to $0.62/share, with the analysts specifically stating their preferred figure is situated at the upper end of the range.

This report was released on April 17, 2019.

Current Price is $0.34. Target price not assessed.

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

MSV    MITCHELL SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $0.06

Wilsons rates ((MSV)) as Initiation of coverage with Buy (1) –

Wilsons initiates coverage of Mitchell Services with a Buy rating and sets a target price of 10c. Mitchell Services is a domestic drilling company specialising in coal and gold. 

The broker believes an expansion of exploration and production should yield higher earnings for the stock, given miners are posting record cash generation and given many competitors have withdrawn from the market.

The broker says the company outperforms peers on several metrics, including rates of return and margins, and expects operating leverage to accelerate thanks to lower depreciation. The company recently declared a special fully franked 1c dividend and is trading at a price-earnings ratio of 9.1x, well below sector multiples.

This report was published on April 3, 2019.

Target price is $0.10 Current Price is $0.06 Difference: $0.04
If MSV meets the Wilsons target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Wilsons forecasts a full year FY19 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.86.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.67.

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

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $0.47

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

Nickel Mines plans to increase its 17% stake in the Ranger Nickel Pig Iron project to 60%, fulfilling the terms of an earn-in Collaboration Agreement with its operating partner Shanghai Decent Investments (the completion deadline is December 31, 2019).

If executed within 60 days of the project's first production, the price will be calculated based on a discounted pro-rata valuation of US$280m (US$121.4m for the extra 43%).

Nickel Mines plans to fund the purchase through US$100m of senior secured debt and a US$40m share placement to Shanghai Decent Investment, and US$20m from other investors.

Bell Potter rates the stock a Speculative Buy and nominates it as one of its top picks. It increases the target price to 95c from 72c, believing the removal of uncertainty around funding clears the company's path to make a good value accretive purchase, and improves market sentiment dampened by concerns of a public raising. The broker notes attributable nickel production from the project has risen 56%, making it competitive with ASX-listed peers.

The broker increases FY20 earnings per share estimates 28% to reflect a price-earnings multiple of 3.7x.

This report was published on April 17, 2019.

Target price is $0.95 Current Price is $0.47 Difference: $0.48
If NIC meets the Bell Potter target it will return approximately 102% (excluding dividends, fees and charges).

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

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

Nickel Mines plans to move to 60% ownership of the Ranger Nickel project, most likely towards the end of the year, prior to the December 31, 2019 deadline set in the Collaboration Agreement with Shanghai Decent Investments.

The deal will be funded through US$100m in senior secured debt (5 years at LIBO$ +7%) and 45 million warrants at a 25% premium to the value-weighted average price – terms comparable to similar recent Australia deals conducted by Sprott Private Resource Lending. The balance would be funded by a US$40m scrip placement to Shanghai Decent Investments, giving the latter a 20% stake in Nickel Mines. Another $20m in equity is expected to be raised from professional investors.

Cannacord Genuity says the acquisition will take Nickel Mines to a comparable scale with other ASX-listed peers such as Western Areas ((WSA)) and Independence Group ((IGO)), and based on nickel price forecasts, believes the stock should comfortably service the debt. It believes the acquisition should be highly cash generative without the technical and capital costs of peers, thanks to the Shanghai Decent earn-in deal.

The broker expects Nickel Mines' March quarter result to reveal a faster-than-expected ramp-up at the Hengiaya mine.

Buy rating retained, as is the 90c target price.

This report was published on April 17, 2019.

Target price is $0.90 Current Price is $0.47 Difference: $0.43
If NIC meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Canaccord Genuity forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 0.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 343.07.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 0.69 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 68.41.

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

PNV    POLYNOVO LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.95

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

Wilsons has revisited the investment case, and valuation, for PolyNovo, developer of synthetic matrix for the repair of wounds, burns and a range of other conditions. The company has a few new initiatives up its sleeves, and the analysts are prepared to increase their expectations in advance.

New initiatives include different shaped products for the mass diabetic ulcer market, plus a new manufacturing facility for breast and hernia products, plus a new app for existing customers allowing them to access a digital file and communicate between medical colleagues, among other things.

Buy rating retained while forecasts have been lowered (on extra spending) but valuation and target have increased on expectations of a successful launch of the hernia product from FY21 onwards. New target of $1.15 compares with 85c previously.

This report was released on April 23, 2019.

Target price is $1.15 Current Price is $0.95 Difference: $0.2
If PNV meets the E.L. & C Baillieu target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

E.L. & C Baillieu forecasts a full year FY19 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 190.00.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 190.00.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.48

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

Bell Potter has decided to upgrade to Buy from Hold, while reducing the price target to $0.62 from $0.67. The broker saw a "solid" March quarter performance amidst tough operational conditions as the company lost its largest SMA platform client, ANZ Wealth Management.

However, the transition of some $2.5-3bn in client funds over to competitor Netwealth ((NWL)) won't happen in full, and it will take some time, the analysts point out. Bell Potter has assumed, ultimately, $2.6bn will finds its way to Netwealth.

The good news is Praemium has added Shaw and Partners and Morgan Stanley Wealth Management in the form of two meaningful contract extensions. Both are worth some $1m per annum each, estimates Bell Potter. As the share has plunged, the analysts have responded by upgrading their recommendation.

This report was released on April 24, 2019.

Target price is $0.62 Current Price is $0.48 Difference: $0.14
If PPS meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.00.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.26.

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

PSI    PSC INSURANCE GROUP LIMITED

Insurance – Overnight Price: $2.50

Bell Potter rates ((PSI)) as Initiation of coverage with Hold (3) –

Bell Potter has initiated coverage of diversified general insurance broker PSC Insurance Group with a Hold recommendation.

PSI was founded in 2006 and has experienced rapid organic and strategic-acquisition growth in the small-to-medium enterprise broking market. It has a portfolio of more than 40 businesses which generated revenue of $101m FY18.

The broker notes some of these businesses are emerging niche-market players, and believes they will foster strong organic growth for the medium term. Given the positive outlook for general insurers, the broker expects PSC Insurance will benefit from firmer premiums. The company has guided to 16.2% growth in FY19.

Bell Potter believes the company can deliver earnings-per-share growth in excess of 10% over the forecast period on a business-as-usual basis and expects a dividend yield of 3.1%. Target price is $2.76, based on a blended discounted-cash-flow sum-of-the-parts and forward price-earning valuation.

This report was published on April 15, 2019.

Target price is $2.76 Current Price is $2.50 Difference: $0.26
If PSI 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 FY19:

Bell Potter forecasts a full year FY19 dividend of 7.80 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 3.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.38.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 8.50 cents and EPS of 14.80 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.89.

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

RVS    REVASUM INC

Hardware & Equipment – Overnight Price: $1.35

Shaw and Partners rates ((RVS)) as Buy High Risk (1) –

Shaw and Partners revises down Revasum's FY19 sales forecasts after the company announced delays to orders related to its 6DZ silicon polisher – primarily from one client because of delays in that client's processes to comissioning/qualifying new silicon.

Revasum has received deposits of 30% on these orders, which are expected to ship in the second half of FY19 and first half of FY20. Target price falls to $2.00 from $2.50. FY20 forecasts are unchanged.

Given the underlying investment thesis remains unchanged, Shaw and Partners retains a Buy, High Risk, rating.

This report was published on April 16, 2019.

Target price is $2.00 Current Price is $1.35 Difference: $0.65
If RVS meets the Shaw and Partners target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY19:

Shaw and Partners forecasts a full year FY19 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.25.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.47.

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

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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.

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