Australian Broker Call *Extra* Edition – July 1, 2020

This story features ALLIANCE AVIATION SERVICES LIMITED, and other companies. For more info SHARE ANALYSIS: AQZ

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)

AQZ   BET   CCX   CDA   CGC   DEG   DTC   EVS   EXL   GEM   HLS   IDX   IPH   JLG   MAQ   MGV   NHC   OKU   OPY   SSG   SUL   SVW   TPW   UWL   WHC   WZR  

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics – Overnight Price: $3.00

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

Alliance Aviation recently raised $92m and will be supplementing this by a share purchase plan worth $30m. The funds will primarily be used for acquiring aircraft and funding growth.

Wilsons highlights the possibility the company may convert some of the increased charter activity into contracted revenue and also notes it is well-positioned to service regional flight routes.

FY21 operating income is estimated to increase between 4-33% mostly with the fleet expansion being weighed down by new fleet costs. This will improve with operating leverage benefits kicking in from FY22 onwards.

Earnings have been downgraded for FY21-22 due to equity issuance and aircraft acquisition, while upgraded for FY23 by 10%.

Wilsons retains its Market Weight rating with a target price of $3.14.

This report was published on June 16, 2020.

Target price is $3.14 Current Price is $3.00 Difference: $0.14
If AQZ meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 3.00 cents and EPS of 22.30 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.45.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 8.80 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

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

BET    BETMAKERS TECHNOLOGY GROUP LTD

Gaming – Overnight Price: $0.41

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

Betmakers Technology Group develops analytic and data products for the wagering market. The company also produces and distributes racing content.

The group recently announced securing rights for on-course fixed odds in New Jersey which includes establishing fixed-odds betting terminals in Monmouth Park, as well as managing the race wagering book relating to fixed odd bets taken at the track.

The latter is a development that was not considered by Canaccord Genuity before and represents a cash stream. The broker notes a strong performance in the online gaming sector which is expected to continue.

Canaccord Genuity retains its Buy recommendation with the target price increased to $0.50 from $0.40.

This report was published on June 11, 2020.

Target price is $0.50 Current Price is $0.41 Difference: $0.09
If BET meets the Canaccord Genuity target it will return approximately 22% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 102.50.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.33.

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

CCX    CITY CHIC COLLECTIVE LTD

Apparel & Footwear – Overnight Price: $2.80

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

City Chic Collective has finalised rent negotiation deals which will lead to lower rental costs and expansion of margins as per Wilsons. The company has also closed 14 stores due to underperformance with the broker pegging revenue loss from this at -$9.7m.

Online sales grew by 57% in the second half (year to date till May 26^th) and Wilsons estimates about 50% of the lost revenue from store closures will be diverted to online in FY21.

The broker upgrades FY21 operating income to $47.8m due to the lower cost of doing business and notes its forecasts are 21.5% above consensus. Online sales are estimated to grow by 31% in FY21 from 25% earlier.

In a seperate report, Wilsons takes into account high profile bankruptcies in the North American retail sector and the resulting revenue volatility. The broker reckons this is likely to present opportunities for the right companies to capitalise on.

The broker points out City Chic Collective has been active in this area, having acquired Avenue and Hips & Curves and considers Lane Byrant to be a potential opportunity for the company.

On the financial front, the broker notes the retailer has a lot of room for an acquisition. The broker forecasts operating income of $28.4m and $47.1m in FY20 and FY21.

Wilsons maintains its Overweight rating with the target price unchanged at $3.17.

This report was published on June 19, 2020.

Target price is $3.17 Current Price is $2.80 Difference: $0.37
If CCX meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.91, suggesting upside of 0.3%(ex-dividends)
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 7.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of -1.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 35.4.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.6, implying annual growth of 29.3%.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 27.4.

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

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $7.04

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

Codan has guided to a net profit of $63m for FY20 despite the pandemic-led manufacturing slowdown in Malaysia. The guidance points towards a stronger second half and quick recovery, remarks Canaccord Genuity. Current cash on hand is $85m.

The broker has more or less gone back to its pre-covid-19 estimates and expects FY20 earnings of $0.352.

Codan’s guidance shows momentum returning to the metal detection business and growth expected in the communication and tracking solutions segment in FY21, point out the analysts.

Canaccord Genuity retains its Buy rating with the target price increased to $8.44 from $7.25.

This report was published on June 16, 2020.

Target price is $8.44 Current Price is $7.04 Difference: $1.4
If CDA meets the Canaccord Genuity target it will return approximately 20% (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 18.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.11.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 20.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.05.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $2.76

Wilsons rates ((CGC)) as Upgrade to Overweight (1) –

Costa Group provided an update that shows strong domestic demand and pricing. The group expects earnings for citrus to be supported by strong export demand and favourable pricing. Company management also points to better trading in mushrooms.

Wilsons notes strong retail demand and a favourable sales mix with wholesale prices recovering implies a material increase in earnings.

On the flip side, long term growth is constrained by factors in berries, citrus and avocados.

The broker makes no changes to its forecasts with 2020 operating income estimated at $136m, increasing to $176m in 2021.

Wilsons upgrades to Overweight with a target price of $3.35.

This report was published on June 19, 2020.

Target price is $3.35 Current Price is $2.76 Difference: $0.59
If CGC meets the Wilsons target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.32, suggesting upside of 12.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 7.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.5, implying annual growth of N/A.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 23.6.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 10.50 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.6, implying annual growth of 32.8%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 17.8.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $0.87

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

De Grey Mining is an exploration and development company with activities on the Mallina Gold Project in Western Australia.

Bell Potter notes the last four years have seen the company implementing a strategy of resource growth and building a regional position over an emerging belt hosting world-class goldfields.

Most of the factors like scalability, mining costs, timeframe, funding etc are in the company’s favour. The broker sees potential for production of more than 200kozpa.

Bell Potter initiates coverage on De Grey Mining with a Buy (Speculative) rating and a valuation of $0.69.

This report was published on June 10, 2020.

Target price is $0.69 Current Price is $0.87 Difference: minus $0.18 (current price is over target).
If DEG meets the Bell Potter target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $1.30

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

Damstra Holdings provides cloud-based technology solutions across a range of workplace and employee management products. The company’s annual recurring revenues are to the north of $20m with high gross margins and growing more than 25% per annum.

Shaw and Partners highlights most of the company’s revenues are recurring with contracts ranging between 3-5 years. A prominent channel partner is TechnologyOne ((TNE)). Net cash is circa $20m.

The market within which Damstra operates, global workplace management solutions, is valued at US$16bn and is growing 6% per annum while the Australian market has a total addressable market estimated at US$0.6bn a year.

The broker considers the company to be a dynamic product for small and large enterprises and the US/international opportunity is key with the US’s market fragmented.

Most importantly, the broker expects Damstra Holdings to benefit from the pandemic as employee health and safety becomes of utmost importance. Thermal camera, tracking, site management, sign in, breath testing and asset management are offered by the company.

Shaw and Partners initiates coverage on Damstra Holdings with a target price of $1.55.

This report was published on June 18, 2020.

Target price is $1.55 Current Price is $1.30 Difference: $0.25
If DTC meets the Shaw and Partners target it will return approximately 19% (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 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 325.00.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.00.

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

EXL    ELIXINOL GLOBAL LIMITED

Health & Nutrition – Overnight Price: $0.16

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

The pandemic has not been kind to Elixinol Global which saw most of its Board and CEO leaving along with senior staff in the US. This was driven by poor revenues post December 2019.

Bell Potter points the company has had to raise capital at a heavily discounted price, which has led to considerable dilution and the company has started to reduce employees.

Elixinol has appointed Oliver Horn as CEO with experience in growing nutraceuticals across Australia and the US. The pandemic isn’t helping with the broker expecting revenues got hit materially in the June quarter.

The broker highlights the company has adequate capital for trading purposes, but is reliant on a recovery in US revenues in the near term. The company might need to go in for more capital raising if its costs are not reduced, thinks the broker.

Bell Potter maintains its Hold rating with a target price of $0.185.

This report was published on June 19, 2020.

Target price is $0.19 Current Price is $0.16 Difference: $0.025
If EXL meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 9.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.72.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.03.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $0.88

Wilsons rates ((GEM)) as Upgrade to Overweight from Market Weight (1) –

G8 Education’s update notes physical occupancy of 53%, considered an encouraging sign by Wilsons. The key catalysts will be the end of free childcare from July 2020 and the end of JobKeeper from September 2020, reminds the broker.

FY20-21 forecasts for operating income have been increased by the broker who expects the second half occupancy to be 54.7% with the third quarter operating income estimated at $6m, driven by occupancy in July and government funding.

The broker expects the end of free childcare will lead to occupancy declining to 50% in August. A significant part of the underperforming centres portfolio may be sold in the near term, expects the broker.

Wilsons upgrades its rating to Overweight from Market Weight with a target price of $1.44.

This report was published on June 18, 2020.

Target price is $1.44 Current Price is $0.88 Difference: $0.56
If GEM meets the Wilsons target it will return approximately 64% (excluding dividends, fees and charges).
Current consensus price target is $1.24, suggesting upside of 39.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 3.50 cents and EPS of minus 0.50 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 176.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.7, implying annual growth of -72.9%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 3.30 cents and EPS of 4.80 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 97.3%.
Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 12.2.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $3.10

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

Healius has announced the sale of its medical centres to a private equity group – BGH Capital for $470m (cash). The transaction includes the GP business, Health & Co division practices and the dental segment.

Healius will be retaining pathology, diagnostic imaging, IVF and day hospitals. These form about 76% of Goldman Sachs’ FY21 operating income estimate.

The broker comments this transaction will simplify the group, allowing it to focus on pathology and imaging. This will also ensure the group is better capitalised and be able to focus on its day hospital segment which offers a lucrative opportunity, assesses the broker.

Goldman Sachs rates the stock as Neutral with a target price of $2.95.

This report was published on June 16, 2020.

Target price is $2.95 Current Price is $3.10 Difference: minus $0.15 (current price is over target).
If HLS meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.28, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 5.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.4, implying annual growth of 23.9%.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 26.9.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 28.9%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 20.9.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $3.91

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

Integral Diagnostics has acquired Ascot which is an Auckland-based radiology group operating in oncology, breast, chest and musculoskeletal imaging.

The company has agreed to pay -NZ$50m in cash and stock and Wilsons expects the business to contribute NZ$5.6-NZ$6.4m as operating income in FY21.  

Wilsons retains its Overweight recommendation with a target price of $4.65.

This report was published on June 11, 2020.

Target price is $4.65 Current Price is $3.91 Difference: $0.74
If IDX meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $4.68, suggesting upside of 19.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 11.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 2.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of 10.8%.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 26.4.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 13.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 25.0%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.1.

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

IPH    IPH LIMITED

Legal – Overnight Price: $7.36

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

IPH Ltd has announced AJ Park will acquire the New Zealand based IP firm Baldwins Intellectual Property for a consideration of circa -NZ$7.9m.

Bell Potter notes completion of the acquisition is subject to obtaining clearance from the New Zealand Commerce Commission.

The broker assumes approval will be granted and has increased earnings estimates for FY21-22.

Bell Potter retains its Buy rating with the target price increasing to $8.70 from $8.50.

This report was published on June 11, 2020.

Target price is $8.70 Current Price is $7.36 Difference: $1.34
If IPH meets the Bell Potter target it will return approximately 18% (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 27.50 cents and EPS of 36.10 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.39.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 29.20 cents and EPS of 38.80 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.97.

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: $2.28

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

Johns Lyng Group continues to note record levels of job registrations pertaining to its core division, Insurance Building & Restoration Services (IB&RS), during the second half. The group saw year on year growth in jobs of 78.7% in May.

The group has upgraded its FY20 revenue guidance by 10% to $470m with operating income estimated at $39m. The majority of this upgrade is driven by an uplift in earnings from the recent catastrophic events and growth in the group’s IB&RS division.

The broker remains confident that the group is on a strong footing as it enters FY21 due to the record job registrations.

Bell Potter rates the stock as Buy with the target price increasing to $2.90 from $2.70.

This report was published on June 11, 2020.

Target price is $2.90 Current Price is $2.28 Difference: $0.62
If JLG meets the Bell Potter target it will return approximately 27% (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 3.40 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.57.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 3.50 cents and EPS of 7.80 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 29.23.

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

MAQ    MACQUARIE TELECOM GROUP LIMITED

Telecommunication – Overnight Price: $43.00

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

Macquarie Telecom Group’s update reiterated its FY20 earnings guidance and also announced the new IC3 facility will have extra capacity of 4MW which Canaccord Genuity takes as proof of inbound interest.

The group also announced the expansion of its Canberra operations, seen as reflective of the effort and investments made in the market over the last few years.

The broker has left its operating income forecast unchanged, although it has tweaked up the share of earnings from its hosting segment and reduced the telecom segment earnings.

Canaccord Genuity retains its Buy rating with the target price increased to $43.80 from $33.

This report was published on June 18, 2020.

Target price is $43.80 Current Price is $43.00 Difference: $0.8
If MAQ meets the Canaccord Genuity target it will return approximately 2% (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 66.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.15.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 59.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.88.

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

NHC    NEW HOPE CORPORATION LIMITED

Coal – Overnight Price: $1.36

Goldman Sachs rates ((NHC)) as Initiation of coverage with Buy (1) –

New Hope Corp operates two thermal coal mines – the Bengalla mine (Hunter Valley, NSW) and the New Acland mine (Oakey, Queensland).

The Bengalla mine is one of the lowest-cost producers globally with a long life (2039) and Goldman Sachs notes the company has a strong free cash flow yield.

The company is looking to ramp up group production by 35% to 15mtpa and, as per the broker’s valuation, is considered undervalued, even if New Acland would have to close.

Goldman Sachs initiates coverage on New Hope Corp with a Buy rating and target price of $2.

This report was published on June 12, 2020.

Target price is $2.00 Current Price is $1.36 Difference: $0.64
If NHC meets the Goldman Sachs target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $1.50, suggesting upside of 10.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 11.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 8.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of -39.5%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.2, implying annual growth of -39.9%.
Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.8.

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

OKU    OKLO RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.30

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

Oklo Resources is a gold exploration company with exploration properties in Western and Southern Mali as its main assets. Canaccord Genuity considers the company’s best opportunity stems from its 100% owned Dandoko project (Western Mali).

The broker notes factors in favour of the company include an experienced management team with a track record in West Africa and the location of the Dandoko project in an area hosting large gold deposits.

Canaccord Genuity estimates a resource size of more than 1moz with further potential and also highlights M&A opportunities. Resolute Mining ((RSG)) owns 8% of the company's equity, points out the broker.

Canaccord Genuity initiates coverage on Oklo Resources with a Speculative Buy rating and a target price of $0.50.

This report was published on June 15, 2020.

Target price is $0.50 Current Price is $0.30 Difference: $0.2
If OKU meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

OPY    OPENPAY GROUP LTD

Business & Consumer Credit – Overnight Price: $2.14

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

Openpay is a player in the buy now pay later (BNPL) category but unlike Afterpay, which targets the retail sector, Openpay is mainly focused on healthcare, automotive and home improvement.

Outside of Australia and New Zealand, the company has forayed into the UK. Recently, the company secured debt funding of $25m from the UK.

Shaw and Partners highlights Openpay recently secured funding from its UK facility, raising $33.8m capital to strengthen its balance sheet. The company also enjoyed a stellar month (May) with active customers up 131% from May 2019 to more than 293,000.

Shaw and Partners points out Openpay’s differentiated model ensures it is well placed for long term growth even though it may not be grabbing headlines like Afterpay. The current valuation is also attractive with the stock trading at quite a discount to its peers.

Shaw and Partners maintains its Buy rating with the target price increasing to $3.25 from $2.25.

This report was published on June 16, 2020.

Target price is $3.25 Current Price is $2.14 Difference: $1.11
If OPY meets the Shaw and Partners target it will return approximately 52% (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 0.00 cents and EPS of minus 37.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.65.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 25.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.56.

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

SSG    SHAVER SHOP GROUP LIMITED

Household & Personal Products – Overnight Price: $0.69

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

Shaver Shop posted a stronger than expected FY20 earnings update. Shaw and Partners also notes the group has been consistent in the last eighteen months with three consectutive strong results in a row.

The group expects stronger sales and operating income in FY20. The shift to online delivered sales growth of 164% in the second half (year to date till June 14).

The customer database also doubled to 340,000 in the first half. The broker expects this to increase with the group reaching new customers via search engines etc.

The broker has increased FY20 earnings estimates by 19% but remains cautious about FY21, unsure if this pandemic led demand will continue.

The broker notes the group is back on the right track and has been for more than 18 months with improving sales and earnings, growing margins, stronger balance sheet and better cashflow.

The group has declared a special dividend of $0.021 and also reinstated the second half dividend.

Shaw and Partners rates the stock as Buy with a target price of $0.90.

This report was published on June 19, 2020.

Target price is $0.90 Current Price is $0.69 Difference: $0.21
If SSG meets the Shaw and Partners target it will return approximately 30% (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 6.70 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 9.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 5.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 7.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.20.

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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $7.87

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

Super Retail Group’s like-for-like sales grew 1.2% year to date (till May 23) while online sales saw a boost of 126.2% over April and May.

Margins were impacted on account of a shift to lower margin items and Goldman Sachs forecasts the FY20 operating margin to be lower than FY19. However, the outcome is better than expected, remarks the broker.

The group will be raising $203m which will be used to pay off debt, simplify its business model and invest in supply chain management. The broker revises operating income forecasts upwards for FY20 and FY21.

Goldman Sachs retains its Buy rating with a target price of $10.30.

This report was published on June 15, 2020.

Target price is $10.30 Current Price is $7.87 Difference: $2.43
If SUL meets the Goldman Sachs target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $9.26, suggesting upside of 15.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 24.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.8, implying annual growth of -9.6%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 40.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.5, implying annual growth of -0.5%.
Current consensus DPS estimate is 36.3, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 12.7.

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

SVW    SEVEN GROUP HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $16.84

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

It is the broker's view that Seven Group Holdings provides an attractive combination of resilient near-term earnings and long term cyclical growth.

Goldman Sachs notes the company continues to benefit from healthy mining activity and a less than expected impact on construction.

There seems to be a solid earnings base with earnings estimates ramped up for FY21-22 due to WesTrac announcing fleet awards for Eliwana/Iron Bridge.

Operating income estimates for FY20-22  have been upgraded. The group remains one of Goldman Sachs' top picks in E&C and the broker reiterates its Buy rating with a target price of $21.

This report was published on June 12, 2020.

Target price is $21.00 Current Price is $16.84 Difference: $4.16
If SVW meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $18.66, suggesting upside of 8.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 31.00 cents and EPS of 126.00 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 128.4, implying annual growth of 97.5%.
Current consensus DPS estimate is 40.8, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 42.00 cents and EPS of 140.00 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 127.2, implying annual growth of -0.9%.
Current consensus DPS estimate is 40.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 13.5.

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

TPW    TEMPLE & WEBSTER GROUP

Furniture & Renovation – Overnight Price: $6.18

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

Temple & Webster’s trading update highlights a material lift of 90% in revenue (year on year) in the second-half to date period.

The company is the leader in online furniture and homeware, a category that saw a significant shift towards online due to the pandemic.

Bell Potter expects this shift in consumer behaviour to be somewhat enduring and highlights the group is well-positioned to benefit from this. The broker has increased its sales and margin forecasts, leading to an increase in earnings estimates for FY20-22.

Bell Potter believes the company has significant growth prospects led by the shift towards online along with several growth initiatives in the pipeline. The broker retains its Buy rating with the target price increasing to $6.10 from $4.35.

This report was published on June 19, 2020.

Target price is $6.10 Current Price is $6.18 Difference: minus $0.08 (current price is over target).
If TPW meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 98.10.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.71.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $1.45

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

Uniti Group provides telecom services with a focus on fixed-wireless, fibre and telco services. The group is set to acquire Opticomm ((OPC)) and has flagged $10m in synergies. Bell Potter assumes the acquisition takes place in FY21.

The broker upgrades its earnings forecasts for FY20 and FY22 while reducing its estimate by -2% for FY21. The broker does not expect full realisation of synergies in FY21.

Bell Potter expects the company to continue to make earnings accretive acquisitions and retains its Buy rating with a target price of $2.25.

This report was published on June 17, 2020.

Target price is $2.25 Current Price is $1.45 Difference: $0.8
If UWL meets the Bell Potter target it will return approximately 55% (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 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.36.

Forecast for FY21:

Bell Potter forecasts a full year FY21 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 20.71.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $1.40

Wilsons rates ((WHC)) as Buy (1) –

Thermal prices remain subdued and Wilsons suggests the strategy at this point should be to reduce costs and preserve cash. The broker has reduced its sales forecast to 17.5mt which is at the lower end of the company's guidance.

On a positive note, the broker is keen on FY21 with production and trading numbers expected to improve.

The decision on Vickery is due in August and management has deferred its final investment decision (FID) to early 2021. Wilsons expects this to proceed unless constrained by a capital crunch. The broker has reduced its earnings forecast for FY20.

Wilsons maintains its Overweight rating with a target price of $4.75.

This report was published on June 17, 2020.

Target price is $4.75 Current Price is $1.40 Difference: $3.35
If WHC meets the Wilsons target it will return approximately 239% (excluding dividends, fees and charges).
Current consensus price target is $2.46, suggesting upside of 76.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 2.50 cents and EPS of 4.70 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of -87.5%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 3.70 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.1, implying annual growth of 95.5%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 10.7.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.21

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

Wisr’s fourth-quarter trading to date (April/May) saw loan originations of $23.1m. Shaw and Partners notes the time to generate $50m has decreased from 45 months to less than four months.

The broker highlights continuous growth in originations, supporting the company’s personal loan originations along with strong financial capacity to support growth and scale across the company's core lending business.

The analysts highlight the company follows prudent risk management practices and is currently reducing exposure to those employed in retail, travel, hospitality sectors.

The broker considers this to be a validation of the company’s resiliency and nimble business model.

Shaw and Partners maintains its Buy rating with a target price of $0.35.

This report was published on June 17, 2020.

Target price is $0.35 Current Price is $0.21 Difference: $0.14
If WZR meets the Shaw and Partners target it will return approximately 67% (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 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 16.15.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.33.

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

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