Australian Broker Call *Extra* Edition – Feb 04, 2020

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   AMN   BID   CL1   CMP   EXP   JLG (2)   MQG   MSV   NXS   RRL   SOM   VHT   VUK  

360    LIFE360 INC

Software & Services – Overnight Price: $3.17

Bell Potter rates ((360)) as Buy (1) –

On the broker's assessment, 360 reported a good December quarter, with the addition of about 27,500 new monthly active ssers every day, bringing the total active users to over 27.2m. The company confirmed revenues of US$34.4m in the second half of 2019.

Bell Potter expects the growth to continue with cash burn to be reduced by US$6.7 from US$7.1m during the quarter. The broker also notes the company is set to launch some new features, a detailed version of which would be released on February 27.

360’s underlying EPS has been upgraded by 1.1%, 1.6% and 4.8% for FY19, FY20 and FY21 respectively, driven by higher monthly active users and lower costs. The broker retains the Buy recommendation with the target price of $6.75.

The report was published on January 29, 2020.

Target price is $6.75 Current Price is $3.17 Difference: $3.58
If 360 meets the Bell Potter target it will return approximately 113% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Bell Potter forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 26.57 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.93.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 18.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.43.

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

AMN    AGRIMIN LIMITED

Agriculture – Overnight Price: $0.45

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

Agrimin is a company in the minerals sector focused on the potash Industry. The company has 100% ownership of the Lake Mackay sulphate of potash project in Western Australia. Canaccord Genuity highlights this lake has one of the largest drainable sulphate of potash (SOP) resources in Australia at 123mt.

The broker estimates the lake to have a resource life of about 25 years. In line with prior guidance, Agrimin has booked 3.9mt of measured and 3.3mt of indicated grade respectively with the average grade being 7.9kg/m3 for the "3.0m below surface" zone.

The mineral exploration company is expected to book a reserve greater than 10mt of SOP in the coming months but the upfront capex of about -$545m is an issue, notes the broker, which can be sorted via NAIF support.

Canaccord Genuity is very optimistic about the company’s prospects and retains the Speculative Buy rating with a target price of $1.37.

The report was first published on January 19, 2020.

Target price is $1.37 Current Price is $0.45 Difference: $0.92
If AMN meets the Canaccord Genuity target it will return approximately 204% (excluding dividends, fees and charges).
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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.14.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.00.

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

BID    BIDENERGY LIMITED

Cloud services – Overnight Price: $1.05

PhillipCapital rates ((BID)) as Buy (1) –

The SaaS company is mostly involved in providing cloud-based "energy spend management" and energy procurement platform for electricity, gas and water for multi-site organisations in New Zealand, Australia, US and the UK.

The technology firm recently released its December quarterly report, painting a rosy picture showing improvement in Q2, states Phillip Capital. The broker notes the unaudited revenue for the quarter is $2.3m, up by 14% from Q1. Further, the company added 16 new customers, taking the tally of total customers to 111 in four nations. Phillip Capital tempers this view by stating that the costs also went up significantly with Q2 expenses at $3.8m, up by 3.6%.

The company also raised new equity at $0.58 per share to increase expansion. It is for this reason Phillip Capital has reduced EPS forecasts by -2%, -6% and -5% to cater to the new share count calculations. There is, however, no change in revenue or profit forecasts, points out the broker.

Buy recommendation retained with a target price of $1.45.

The report was published on January 23, 2020.

Target price is $1.45 Current Price is $1.05 Difference: $0.4
If BID meets the PhillipCapital target it will return approximately 38% (excluding dividends, fees and charges).
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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

Forecast for FY21:

PhillipCapital forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.89.

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

CL1    CLASS LIMITED

Wealth Management & Investments – Overnight Price: $2.05

Wilsons rates ((CL1)) as Overweight (1) –

The company released its Q2 trading update recently and Wilsons is of the view the SMSF market may have bottomed out in the fourth quarter of FY19, with SMSF net additions increasing in the last quarter.

The cloud-based software platform NowInfinity’s acquisition is another positive point expected to provide synergies and lead to incremental revenues of close to $7m. Further. the company expects to become EPS accretive in FY21, comments the broker.

Wilsons considers Class to be undervalued compared to peers even after strong growth rates and profitability. Having said that, the broker remains wary of competitive pressures, although Class added about 2200 accounts in the December quarter. 

The broker maintains the Overweight recommendation with a target price of $2.59.

The report was first published on January 29, 2020.

Target price is $2.59 Current Price is $2.05 Difference: $0.54
If CL1 meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $1.97, suggesting downside of -4.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 4.00 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 1.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of -28.2%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 37.3.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 4.70 cents and EPS of 6.70 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 30.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 12.7%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 33.1.

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

CMP    COMPUMEDICS LIMITED

Medical Equipment & Devices – Overnight Price: $0.64

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

Compumedics released a business update announcing delays to its US orders, pushing them into the second half. The result has been a shift of sales to the tune of -$1-2m away from the first quarter and into the second one even though there is no change in the full-year guidance, observes Taylor Collision.

Taylor Collison has made revisions to EPS and also reduced the sales forecast to $44.5m from $46.2m. Further, Compumedics has received new orders from its new distribution partner – Fukuda Denshi – in Japan. 

Business in Asia and the Middle East is expected to grow, notes the broker, along with the expectations of MEG-FDA getting approved soon.

The broker suggests Compumedics is trading at a discount and therefore the risk/reward is seen as favourable. It further says valuation as per DCF falls to 96c per share and as per the EV/EBITDA methodology comes to be 97c per share.

For all the reasons above, Taylor Collison gives this stock an Outperform recommendation.

The report was first published on January 21, 2020.

Current Price is $0.64. Target price not assessed.
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 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.86.

Forecast for FY21:

Taylor Collison forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.82.

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

EXP    EXPERIENCE CO LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.21

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

Wilsons anticipated minimal impact on earnings due to bushfires but does fear inbound tourism to be impacted in the near future. Consequently, the broker has decreased the skydiving volume estimates for FY20. Further, Wilsons reduces the valuation to $0.21, reflecting a PE of 12.9x for FY21.

FY20 is expected to be a transition year as the adventure tourism company divests non-core assets and removes costs. The broker expects the results for the first half of FY20 to be announced on February 20, with operating profits expected to be $9.2m and after-tax profits to be $2m.

Wilsons anticipates margin improvement in the first half of FY21 and gives a Market weight recommendation with a target price of $0.21.

The report was first published on January 24, 2020.

Target price is $0.21 Current Price is $0.21 Difference: $0
If EXP meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.25.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.

Market Sentiment: 1.0
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: $2.47

CCZ Equities rates ((JLG)) as Initiation of coverage with Buy (1) –

With a focus on flood and fire, the John Lyng Group has become a market leader and the “only provider with a truly national presence” in insurance building and restoration, getting listed on the ASX in 2017.

The acquisition of 51% of Bright & Duggan would bolster the group's growth as it would provide opportunities for it to make use of the B&D business to cross-sell its core products, notes CCZ Equities.

The broker further observes that the group is hopeful of landing contracts with insurance companies which would create an opportunity for organic growth. Also, with extreme weather events becoming common, the building services company’s potential market size is also expected to go up.

The broker initiates coverage on the stock with a Buy recommendation and a target price of $2.18.

The report was first published on January 20, 2020.

Target price is $2.18 Current Price is $2.47 Difference: minus $0.29 (current price is over target).
If JLG meets the CCZ Equities target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 dividend of 3.50 cents and EPS of 7.02 cents.
At the last closing share price the estimated dividend yield is 1.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.19.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 4.60 cents and EPS of 9.12 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.08.

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

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Moelis rates ((JLG)) as Downgrade to Hold from Buy (3) –

The company is a long-standing market leader in insurance building and restoration services. It recently provided a trading update with an upward revision to its revenue guidance by close to 5%, to $420m for FY20 and with operating profits up by about 11% to $32m.

Moelis observes the group witnessed a strong uptick in operational performance from its core businesses, driven by an increase in job registrations along with the ongoing catastrophe work from the Townsville floods of 2019. Furthermore, management anticipates more work due to recent events like the bushfires and hailstorm, their impact not fully quantified yet.

Moelis has revised its estimates post-update with the FY20 operating profits close to 6.8% above company guidance along with an increase in the group’s EV/EBITDA to 12.5x from 11.0x. Moelis increases the target price to $2.64 from $1.77 and moves to a Hold rating, down from Buy.

The report was published on January 24, 2020.

Target price is $2.64 Current Price is $2.47 Difference: $0.17
If JLG meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 3.80 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.93.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 4.40 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.07.

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

MQG    MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $141.85

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

Bell Potter hopes for a slightly better-than-expected result in FY20 on account of factors like positive US peer group trends and favourable FX movements (AUD/USD) for the group.

This does not take into consideration any swing factors such as material base and performance fee upside, revenue upside from higher lending or increase in deposit volumes, etc, cautions the broker.

Macquarie Group, feels Bell Potter, has a lot of top-line growth potential in the annuity-style and markets-facing components, bolstering the positive expectations from the group.

The broker downgrades to Hold from Buy with the target price unchanged at $150.

The report was published on January 28, 2020.

Target price is $150.00 Current Price is $141.85 Difference: $8.15
If MQG meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $136.82, suggesting downside of -3.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 601.00 cents and EPS of 879.00 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 856.0, implying annual growth of -3.1%.
Current consensus DPS estimate is 587.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 637.00 cents and EPS of 925.00 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 864.9, implying annual growth of 1.0%.
Current consensus DPS estimate is 600.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.4.

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

MSV    MITCHELL SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $0.06

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

The second quarter release by the company has highlighted a very good performance, comment the analysts, especially in the core business, due to factors like good operating conditions, better pricing and an improvement in cycle.

Wilsons is optimistic and expects an upgrade in the company’s FY20 guidance, forecasting revenue of $168m and operating profits of $33m for FY20.

Even with the net impact of the new acquisition – Deepcore- being nil after netting off the fees, the company is performing ahead of forecasts. Wilsons retains its Overweight rating with a target price of $0.11

This report was published on January 28, 2020.

Target price is $0.11 Current Price is $0.06 Difference: $0.05
If MSV meets the Wilsons target it will return approximately 83% (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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.55

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

Canaccord Genuity notes Next Science had a “worse-than-expected” second half in terms of revenue with sales of US$1.7m. The broker further notes that two of the five products witnessed less growth than expected. 

On the positive front, Next Science’s products are being used more and more, providing the strong foundation needed right now, opines the broker. Further, another major product awaiting approval is the Surgical Rinse expected by 2020.

The broker expects an improvement in cash receipts in the March quarter. The company is expected to halve its losses in 2020 and become profitable in 2021.

Canaccord Genuity has revised its projections, lowering the 2019 revenues as per the reported sales of US$4.1m while leaving 2021 unchanged. The broker maintains its Buy recommendation and the target price is $3.04.

The report was published on January 29, 2020.

Target price is $3.04 Current Price is $2.55 Difference: $0.49
If NXS meets the Canaccord Genuity target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY19:

Canaccord Genuity forecasts a full year FY19 dividend of 0.00 cents and EPS of minus 13.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.30.

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 6.18 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.26.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $4.50

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

The performance of Regis Resources has been better than Bell Potter anticipated. The gold producer has delivered a good December quarter with other factors in favour being low costs, healthy cash flows and a debt-free balance sheet, notes the broker.

There are also many emerging underground opportunities and Regis Resources seems ‘well placed’ to exploit them, comments Bell Potter, citing the development of Rosemont gaining momentum as an example.

Factors like higher gold price and higher volume of production compel the broker to increase its FY20 earnings forecasts by 28% to $214m. Bell Potter is optimistic about the stock’s prospects and rates it a Buy with a target price of $5.61.

The report was published on January 28, 2020.

Target price is $5.61 Current Price is $4.50 Difference: $1.11
If RRL meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $4.84, suggesting upside of 7.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 21.00 cents and EPS of 42.50 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.6, implying annual growth of 32.4%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 19.00 cents and EPS of 36.30 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.3, implying annual growth of 6.3%.
Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 9.9.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $3.23

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

Healthcare company SomnoMed manufactures and sells oral appliance devices for the treatment of obstructive sleep apnoea with the majority of sales stemming from the US and Europe.

Q2 saw huge growth in revenues, with the core revenue of $33.3m in the first half beating the broker's forecast of $32.4m.

The new Avant product is generating demand in the US while France and Germany remain strong drivers in Europe. The company is also targeting sleep physicians to drive referrals in the US along with their core dental customers, notes the broker.

Wilsons notes the potential for about 200bps of US margin improvement by FY22. Overweight rating retained with a target price of  $3.26.

The report was first published on January 29, 2020.

Target price is $3.26 Current Price is $3.23 Difference: $0.03
If SOM meets the Wilsons target it will return approximately 1% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.73.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.65.

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

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices – Overnight Price: $1.79

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

Volpara Health Technology recently released its update for the December quarter and Bell Potter expects an increase in the adoption rate for the company’s products, Volpara Density being an example.

The medical technology company’s market share in the US is increasing with the products reaching 26.2% of the market, notes the broker. Further, states Bell Potter, the average revenue per woman is expected to increase by 11% during the quarter.

Volpara Health raised its guidance figures for annual recurring revenue to NZ$17.8m, a little below Bell Potter’s expected range of NZ$18 – $19m.

Even so, the broker considers the business to be well established and states no changes to its earnings forecast. Bell Potter expects the company to continue being profitable and maintains a Buy rating. The target price is $2.32.

The report was first published on January 28, 2020.

Target price is $2.32 Current Price is $1.79 Difference: $0.53
If VHT meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.88 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.42.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.37.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

VUK    VIRGIN MONEY UK PLC

Banks – Overnight Price: $3.29

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

Virgin Money UK recently released a limited first-quarter update wherein Bell Potter noted the performance was broadly in line despite competition and uncertainty over Brexit.

The broker further notes the company has reaffirmed its FY20 guidance due to growth in business and personal lending categories respectively and stability in parameters like the net interest margin, asset quality, etc.

The broker lowers the profit after tax estimates by -7% and -5% for FY20 and FY21 respectively post-adjusting for a 3bps higher loan impairment charge. Longer-term estimates are also reduced by around -1% for residual increases, states the broker.

Bell Potter maintains its Buy rating but reduces the target price to $3.65 from $3.75.

The report was published on January 28, 2019.

Target price is $3.65 Current Price is $3.29 Difference: $0.36
If VUK meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.12, suggesting upside of 25.1%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 14.20 cents and EPS of 40.58 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of N/A.
Current consensus DPS estimate is 2.9, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 29.33 cents and EPS of 49.81 cents.
At the last closing share price the estimated dividend yield is 8.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.9, implying annual growth of 112.3%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 10.0.

This company reports in GBP. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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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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