Australian Broker Call *Extra* Edition – Jan 29, 2020

This story features AUSTRALIAN POTASH LIMITED, and other companies. For more info SHARE ANALYSIS: APC

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)

AMG   APC   APT   BSA   BTH   CAJ   CVL   EGH   EGN   IMA   JYC   LME   LNK   PBP   PPS   PVS (2)   WZR  

AMG    AUSMEX MINING GROUP LIMITED

Industrial Metals – Overnight Price: $0.07

State One Stockbroking rates ((AMG)) as Hold (3) –

The mineral exploration company has exposure to projects in two Australian mineral provinces- the Cloncurry Project in Queensland and the Burra Project in South Australia. 

State One Stockbroking values the Cloncurry Gold Exploration Target at $20m, the Canteen IOCG Prospect at a discounted value of $15m while the value of the Burra Project is considered to be $30m. In total, Ausmex Mining has been assigned an Enterprise Value (EV) of 65m.

Even at an estimated 75% upside from the current price levels, State One Stockbroking considers Ausmex Mining a risky pick and recommends a Hold on the stock. The target price is $0.11.

The report was published on December 23, 2019.

Target price is $0.11 Current Price is $0.07 Difference: $0.04
If AMG meets the State One Stockbroking target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

State One Stockbroking forecasts a full year FY20 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 7.00.

Forecast for FY21:

State One Stockbroking 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 7.00.

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

APC    AUSTRALIAN POTASH LIMITED

Agriculture – Overnight Price: $0.11

Patersons rates ((APC)) as Initiation of coverage with Speculative Buy (1) –

The ASX-listed minerals company fully owns the Lake Wells Sulphate of Potash (LWSOP) project located North-East of Kalgoorlie. Patersons believes this is one of the best locations for SOP production and highlights the presence of 18.1mt drainable SOP.

A recent Definitive Feasibility Study by the company confirms a long-life project of 30 years with the icing on the cake being the global demand for SOP growing at a CAGR (Compounded Annual Growth Rate) of 1.3% to 2040, affirms the broker.

The study also estimates a pre-tax NPV (Net Present Value) of $665m along with an Internal Rate of Return (IRR) of 25%. Patersons has initiated coverage with a Buy (Speculative) rating on the back of an experienced management team and anticipation of strong margins of up to 50%. The target price is $0.23.

The report was first published on October 8, 2019.

Target price is $0.23 Current Price is $0.11 Difference: $0.12
If APC meets the Patersons target it will return approximately 109% (excluding dividends, fees and charges).

Forecast for FY20:

Patersons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.33.

Forecast for FY21:

Patersons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.14.

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

APT    AFTERPAY LIMITED

Business & Consumer Credit – Overnight Price: $36.70

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

Goldman Sachs has updated for Afterpay’s performance in H120 and opines the buy now, pay later player's customer base may have reached 7.2m globally by December 31, 2019.

Afterpay was on a roll with its Gross Merchandise Value (GMV) adding up to $3.7bn till December 2019. It is likely, suggests the broker, for Afterpay to not only achieve its GMV forecast of $4.3bn for 1H20 but exceed it by up to $0.50bn.

Even so, the estimates for FY20 have not been changed as Goldman Sachs suspects the growth is seasonal and wants to observe trends further. Goldman Sachs is positive about the company's prospects as the combined potential market opportunity for its payment service in ANZ, US and UK is estimated to be worth $1tn.

Buy rating retained with a target price of $42.90.

The report was published on January 14, 2020.

Target price is $42.90 Current Price is $36.70 Difference: $6.2
If APT meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $33.84, suggesting downside of -7.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 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 1835.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 719.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 30.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 122.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.1, implying annual growth of 333.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 166.1.

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

BSA    BSA LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.40

PhillipCapital rates ((BSA)) as Initiation of coverage with Buy (1) –

The communications and technical services company has three main segments and a substantial chunk of its earnings is recurring, opines Phillip Capital. The results for BSA for FY18 and FY19 were impacted by abnormal items but the storm has passed and the outlook for FY20 remains strong, according to the broker.

Even though BSA exited its HVAC – Major projects business in September 2019 due to considerable losses on its Royal Adelaide Hospital contract, the broker remains optimistic.

This is due to a string of positive factors like BSA Connect’s extension of the NBN contract, getting new customers onboard (BSA Maintain), getting a contract for the WestConnex tunnels fire suppression system (BSA Build).

The broker also reckons the company can think of acquisitions now, owing to a comfortable cash position. Phillip Capital initiates coverage on BSA with a Buy recommendation and a target price of $0.49.

The report was published on December 30, 2019.

Target price is $0.49 Current Price is $0.40 Difference: $0.09
If BSA meets the PhillipCapital target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

PhillipCapital forecasts a full year FY20 dividend of 1.00 cents and EPS of 3.50 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 1.30 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.52.

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

BTH    BIGTINCAN HOLDINGS LIMITED

Cloud services – Overnight Price: $0.88

PhillipCapital rates ((BTH)) as Initiation of coverage with Buy (1) –

A global leader recognised for its 'Bigtincan Hub software', Bigtincan uses machine learning to increase the effectiveness of sales and customer service reps. 

Even though the firm incurred operating losses in FY19, it has made a significant move towards profitability with revenues up by 51% in the same period, declares Phillip Capital. The broker expects strong profitability with guidance for 30-40% organic revenue growth in Q1 FY20.

Scrutinizing growth, Phillip Capital comments it is driven by a switch to Cloud, SaaS and mobility. The software company is focusing on achieving growth rather than becoming profitable currently, an observation by the broker made on account of Bigtincan having made five acquisitions to bolster its position in the market.  

The broker expects one more year of losses and negative cash flows, before turning "modestly profitable" in FY21. Additionally, the company is looked upon as a SaaS business with "significant global expansion potential".

For all these reasons, the broker has initiated coverage on this stock with a Buy rating and a target price of $0.78.

The report was first published on December 20, 2019.

Target price is $0.78 Current Price is $0.88 Difference: minus $0.1 (current price is over target).
If BTH meets the PhillipCapital target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

PhillipCapital forecasts a full year FY20 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 67.69.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 293.33.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.26

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

Capitol Health has made a foray into the South Australian market by acquiring Fowler Simmons Radiology. This acquisition is important as it also highlights the firm's strategy of diversifying across geography and clinical specialty, comments Shaw and Partners.

The broker is keen on this stock as the diagnostic imaging services provider is trading at below-market multiples and is seen as an attractive investment with a “conservatively geared” balance sheet.

There is also an anticipation of a bounce-back in earnings with the broker increasing EPS estimates by 1.1%, 3.8% and 4.5% over FY20-22. However, a continuously subdued macro-environment tempers the optimism somewhat and this caution has been incorporated in the broker's FY20 estimates.

Buy rating retained with the target price increasing marginally to $0.30 from $0.29.

The report was published on January 23, 2020.

Target price is $0.30 Current Price is $0.26 Difference: $0.04
If CAJ meets the Shaw and Partners target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 1.00 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.33.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 1.30 cents and EPS of 1.90 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.68.

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

CVL    CIVMEC LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.40

Euroz rates ((CVL)) as Initiation of coverage with Speculative Buy (1) –

Civmec has secured a long term contract for block construction and consolidation of vessels for the Australian Navy’s offshore patrol vessel program. This, believes Euroz, is an avenue for long term revenue.

The construction and engineering player has a wide scope of offering and provides value-add fabrication capability to large scale resources and infrastructure projects. 

The broker is cognisant of the issues faced by Civmec but is confident due to an $819m order book. The broker notes a decrease in margins for 2019 but envisages an improvement in 2020 supported by a strong first quarter and a plethora of large projects.

The broker initiates coverage with a Speculative Buy recommendation and a target price of $0.54.

The report was first published on December 20, 2019.

Target price is $0.54 Current Price is $0.40 Difference: $0.14
If CVL meets the Euroz target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Euroz forecasts a full year FY20 dividend of 0.90 cents and EPS of 3.41 cents.
At the last closing share price the estimated dividend yield is 2.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.73.

Forecast for FY21:

Euroz forecasts a full year FY21 dividend of 1.00 cents and EPS of 3.96 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.10.

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

EGH    EUREKA GROUP HOLDINGS LIMITED

Aged Care & Seniors – Overnight Price: $0.39

Taylor Collison rates ((EGH)) as Initiation of coverage with Hold (3) –

Taylor Collision sees “little market risk” to the Eureka Group’s business model although it does admit organic earnings will “infrequently exceed high-single digits”.

The critical factor in favour of the accommodation builder is that the number of Australians aged 65+ years is predicted to reach 8.8m or 22% of the population by 2057.

With Eureka Group’s strategy to significantly ramp up the owned units, the broker believes the acquisition pipeline looks attractive, which would help the builder save on costs and achieve economies of scale.

The broker feels the firm is fairly priced and initiates coverage on it by setting a Hold recommendation. The target price is $0.37.

The report was published on December 31, 2019.

Target price is $0.37 Current Price is $0.39 Difference: minus $0.02 (current price is over target).
If EGH meets the Taylor Collison target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.60.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.93.

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

EGN    ENGENCO LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.66

PhillipCapital rates ((EGN)) as Initiation of coverage with Hold (3) –

The engineering company, following a turnaround process, is debt-free and has been profitable for four years.

Engenco’s FY19 results reported an uptick in revenues by 11% and Phillip Capital believes the company is currently trading at a 12% premium to its peers on FY20 earnings basis. The broker is positive about FY20 on account of strong customer demand and avenues for organic growth.

Even though Phillip Capital considers Engenco’s shares to be fully valued, it reckons the company is ready to begin a new chapter. The broker also notes the investors’ willingness to back the “owner-driver” business model is an additional feather in Engenco’s cap.

Phillip Capital initiates coverage giving a recommendation of Hold and target price of $0.51.

The report was first published on December 20, 2019.

Target price is $0.51 Current Price is $0.66 Difference: minus $0.15 (current price is over target).
If EGN meets the PhillipCapital target it will return approximately minus 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

PhillipCapital forecasts a full year FY20 dividend of 2.00 cents and EPS of 3.41 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.35.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 2.50 cents and EPS of 4.10 cents.
At the last closing share price the estimated dividend yield is 3.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.10.

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

IMA    IMAGE RESOURCES NL

Mineral Sands – Overnight Price: $0.23

Hartleys rates ((IMA)) as Accumulate (2) –

The mineral sands producer operates the Boonanarring zircon mineral sand project and began production in December 2018. It updated its Boonanarring ore reserves to 10.7mt from 19.9mt although it did increase the HM grade and zircon grade estimates. 

The decrease in the ore reserve is mostly due to exclusion of low-value material and has led to the mine life being about three years.

On the back of changes to the ore reserves and mine life, the broker tempers its recommendation from Buy to Accumulate with the target price decreasing to $0.31 from $0.38.

The report was published on December 23, 2019.

Target price is $0.31 Current Price is $0.23 Difference: $0.08
If IMA meets the Hartleys target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Hartleys forecasts a full year FY19 dividend of 0.00 cents and EPS of 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.97.

Forecast for FY20:

Hartleys forecasts a full year FY20 dividend of 0.00 cents and EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.24.

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

JYC    JOYCE CORPORATION LTD

Furniture & Renovation – Overnight Price: $1.50

Euroz rates ((JYC)) as Initiation of coverage with Buy (3) –

Joyce Corporation partners with quality fast growing small to medium sized businesses and provides them with funding to grow operations, notes Euroz. The company also operates three brands, all of which are expected to expand geographically.

Euroz is positive about Joyce and forecasts strong earnings from the core businesses.This, clarifies Euroz, is in addition to new opportunities arising in the future. 

The broker initiates coverage of the stock with a Buy rating and target price of $2.20.

The report was first published on December 20, 2019.

Target price is $2.20 Current Price is $1.50 Difference: $0.7
If JYC meets the Euroz target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Euroz forecasts a full year FY20 dividend of 12.30 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 8.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.95.

Forecast for FY21:

Euroz forecasts a full year FY21 dividend of 12.70 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 8.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.74.

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

LME    LIMEADE INC

Cloud services – Overnight Price: $1.82

Moelis rates ((LME)) as Initiation of coverage with Buy (1) –

The company helps enterprises improve their culture and employee engagement via its software platform, explains Moelis. The broker further notes Limeade completed a $100m Initial Public Offering (IPO) to list on the ASX in December 2019.

Moelis views the company positively and believes Limeade can leverage its competitive leadership in areas like employee well-being to grow further.  Moelis anticipates an increase in sales momentum. The broker initiates coverage on this stock with a Buy and target price of $2.27.

The report was first published on January 12, 2020.

Target price is $2.27 Current Price is $1.82 Difference: $0.45
If LME meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).

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

LNK    LINK ADMINISTRATION HOLDINGS LIMITED

Wealth Management & Investments – Overnight Price: $6.26

Goldman Sachs rates ((LNK)) as Initiation of coverage with Neutral (3) –

The superannuation funds administrator faced headwinds in the form of regulatory risk, Brexit and increasing competition in 2019. Consequently, Link Group underperformed the ASX200 to the tune of -30%, notes Goldman Sachs.

PEXA remains the proverbial ace in the Group’s sleeve and with entry to barriers like a lack of interoperability within the industry, the broker reckons PEXA would entrench its position as market leader.

Goldman Sachs assumes a stance slightly below guidance, although still expecting earnings growth in double digits in FY21/FY22.

The broker states the possibility for re-rating to be contingent on guidance for H2, regulatory clarifications and how the group deals with competition.

Coverage initiated on the stock with a Neutral rating and a target price of $6.65.

The report was first published on January 22, 2020.

Target price is $6.65 Current Price is $6.26 Difference: $0.39
If LNK meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $6.76, suggesting upside of 8.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 15.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of -48.3%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 20.2.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 18.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.7, implying annual growth of 15.2%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 17.5.

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

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.18

Taylor Collison rates ((PBP)) as Initiation of coverage with Hold (3) –

Probiotec has issued guidance for FY20 and Taylor Collison notes the company expects revenues to cross $100m and operating profits to be close to $17m respectively for the period.

The industry remains competitive with knowledgeable customers putting pressure on manufacturing margins, observes the broker.

The consumer health manufacturer has expanded via bolt-on acquisitions and the broker considers growth prospects to be good, with the effect of EPS (earnings per share) accretive acquisitions starting to kick in.  

Having said that, Taylor Collison believes this has already been factored in the share price and that the company needs some time to integrate the recent acquisitions.

Taylor Collison initiates coverage of Probiotec with a Hold recommendation. The target price is $1.95.

Target price is $1.95 Current Price is $2.18 Difference: minus $0.23 (current price is over target).
If PBP meets the Taylor Collison target it will return approximately minus 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Taylor Collison forecasts a full year FY20 dividend of 4.00 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 5.00 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 2.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.32.

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: $0.50

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

The investment platform recently crossed $3bn in Funds Under Administration (FUA) and delivered record inflows of $228m for the December quarter. The international business net-flows are also up 90% to $776m in 2019. The broker considers the firm is well on its way to achieving breakeven point in the coming months.

With outflows from the ANZ Private transition factored in, the broker notes the new reporting features and new asset categories added to the platform. After considering the December quarter update, Bell Potter has upgraded the EPS estimates by 2%, 3.5% and 2.7% for FY20, FY21 and FY22 respectively.

Buy recommendation retained with the target price increased to $0.75 from $0.73.

The report was published on January 22, 2020.

Target price is $0.75 Current Price is $0.50 Difference: $0.25
If PPS meets the Bell Potter target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.73.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 1.20 cents and EPS of 2.40 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.83.

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

PVS    PIVOTAL SYSTEMS CORPORATION

Hardware & Equipment – Overnight Price: $1.60

Moelis rates ((PVS)) as Buy (1) –

Pivotal Systems Corporation has pre-reported Q4 FY19 revenue of US$6.4m, bringing the total 2H19 revenue to US$7.3m. This is against the guidance of a stronger second half due to delay in shipment and increased production lead times, observes Moelis.

The company is expected to increase its sales with the memory semiconductor cycle turning favourable and an uptick in new bookings for FY20. Currently valued bottom of the cycle at 11.6x EV/2021e EBITDA, the gas flow monitoring company nevertheless offers a strong market share expansion story, suggests the broker.

The broker is very optimistic and expects a future re-rating of the stock. For now, Buy rating retained and the target price moves down marginally to $2.23 from $2.26.

The report was first published on January 21, 2020.

Target price is $2.23 Current Price is $1.60 Difference: $0.63
If PVS meets the Moelis target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Moelis forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 10.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.85.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.74 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.42.

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 ((PVS)) as Buy (1) –

Pivotal Systems is a manufacturer and supplier of gas flow controllers. The company recently announced its fourth-quarter results for FY19, notes Shaw and Partners. with the unaudited fourth-quarter revenues being US$6.4m

The broker is optimistic even though the company’s revenues were hit due to shipment delays and an increase in lead time. This is due to an increase in new orders along with an upturn in semiconductor equipment sales, the broker explains. Shaw and Partners expects this to continue in FY20.

The broker is positive and rates this stock a Buy with target price of $1.7.

The report was first published on January 21, 2020.

Target price is $1.70 Current Price is $1.60 Difference: $0.1
If PVS meets the Shaw and Partners target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Shaw and Partners forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 9.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.32.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of 3.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.27.

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

WZR    WISR LIMITED

Hardware & Equipment – Overnight Price: $0.00

Moelis rates ((WZR)) as Buy (1) –

Wisr has hit a home run in the December quarter, originating new loans worth $31.6m. This is a mere six weeks after its last update in November 2019 and the broker reckons the party will continue for now.

Terming the increase in the volume a "step change", Moelis has lifted its original revenue estimates by 7.8% to $8.9m in FY20 and by 8% to $30.5m respectively.

Initiatives like the transition to a better loan funding model and commercialisation of the auto-secured personal loan product are expected to bear fruits in 2H20.

The company is an attractive investment prospect in the broker’s opinion and hence, Moelis rates this stock a Buy with target price of $0.28.

The report was last published on January 13, 2020.

Target price is $0.28
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 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 0.00.

Forecast for FY21:

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

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