Australian Broker Call *Extra* Edition – Jul 29, 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   AD8   AT1   BWX   CAT   CBR   DTC   ELD   HLO   MP1   MSV   OPY   ORA   PYG   QHL   SEK   SKF   VEA   WSP (2)   XRF   Z1P  

360    LIFE360 INC

Software & Services – Overnight Price: $3.31

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

Life360 has upgraded its app in a major way with a range of new features and pricing memberships. Bell Potter observes the company is moving fast to a whole of life family safety app from the simple location sharing family feature.

The market need and opportunity for the company are enhanced by the additional benefit of not needing a large infrastructure setup (since it is software-based).

Bell Potter retains its Buy rating with the target price increasing to $4.80 from $3.60.

This report was published on July 17, 2020.

Target price is $4.80 Current Price is $3.31 Difference: $1.49
If 360 meets the Bell Potter target it will return approximately 45% (excluding dividends, fees and charges).
The company's fiscal year ends in November.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 11.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.79.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.32 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 76.66.

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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $5.25

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

Audinate Group delivered a positive surprise with stronger than expected revenues and profit as compared to Shaw and Partners’ estimates.

The focus is now on the outlook for FY21 and the broker takes a conservative stance due to the pandemic and reduces its FY21 sales estimate. Post-pandemic, the company remains one of the broker’s key small cap picks for the long term.

Shaw and Partners reiterates its Buy rating with a target price of 6.75.

This report was published on July 17, 2020.

Target price is $6.75 Current Price is $5.25 Difference: $1.5
If AD8 meets the Shaw and Partners target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $6.75, suggesting upside of 28.6%(ex-dividends)
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 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 477.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.1, 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 N/A.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 750.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

AT1    ATOMO DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $0.40

Canaccord Genuity rates ((AT1)) as Buy (1) –

Atomo Diagnostics’ maiden quarterly business update after its IPO shows positive momentum and a higher than expected revenue, comments Canaccord Genuity. The cash flow was also in-line.  

Production capacity expansion is on track to double this quarter from pre-IPO levels, points out the broker, and is expected to reach 1m units per month by December.

Getting new customers for the higher production volume along with regulatory approvals for the company's Australian and US markets will decide the future share price momentum, expects the broker.

Canaccord Genuity maintains its Buy recommendation with a target price of $0.65.

This report was published on July 23, 2020.

Target price is $0.65 Current Price is $0.40 Difference: $0.25
If AT1 meets the Canaccord Genuity target it will return approximately 63% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.00.

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

BWX    BWX LTD

Household & Personal Products – Overnight Price: $4.00

Moelis rates ((BWX)) as No Rating (-1) –

BWX Ltd delivered a stronger than expected revenue result for FY20 and earnings that met the Moelis forecast.

The company is expecting ongoing revenue and earnings growth of 'at least 10%' in FY21. This guidance is slightly weaker than the broker was expecting but the analyst believes management is being conservative in the current climate.

The company also announced a $50m equity raise, of which -$33.7m will be deployed to build a new Australian manufacturing facility and the balance of funds can be used for any merger and acquisition opportunities, according to Moelis.

The broker noted a strong performance from Sukin, which in the analysts opinion more than offsets any weakness in the US.

The broker provides neither a rating nor a target price.

This report was published on July 20, 2020.

Current Price is $4.00. Target price not assessed.

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

CAT    CATAPULT GROUP INTERNATIONAL LTD

Medical Equipment & Devices – Overnight Price: $1.69

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

Catapult Group provided unaudited FY20 results generally in line with Bell Potter forecasts. The one exception being the generation of $9m of positive free cash flow, which was around $9m ahead of the broker forecast.

The company stated it had continued to win new customers and retain existing customers during recent lockdowns, but the disruption caused by covid-19 has pushed out the company's sales cycle by three to six months.

The Hold rating is maintained. The target price increased to $1.50 from $1.35.

This report was published on July 20, 2020.

Target price is $1.50 Current Price is $1.69 Difference: minus $0.19 (current price is over target).
If CAT meets the Bell Potter 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:

Bell Potter forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.30.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 88.95.

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

CBR    CARBON REVOLUTION LIMITED

Automobiles & Components – Overnight Price: $1.67

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

Carbon Revolution's quarterly update was positive with better than expected wheel sales. The company also disclosed two new vehicle programs that provide clarity on the FY21 second half growth.

The company continues to attract new original equipment manufacturers (six currently), notes Bell potter.

The broker expects the company to introduce the new 'fascia' technology in the first quarter of FY21.

Earnings forecasts upgraded for FY20, FY21 and FY23 and the broker believes the company has long-term growth potential.

Bell Potter retains its Speculative Buy recommendation with the valuation increasing to $2.30 from $2.

This report was published on July 23, 2020.

Target price is $2.30 Current Price is $1.67 Difference: $0.63
If CBR meets the Bell Potter target it will return approximately 38% (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 minus 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.19.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 17.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.54.

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: $1.72

Moelis rates ((DTC)) as Downgrade to Hold (3) –

Damstra Holdings released its June quarter business update. Moelis notes international momentum continued during the quarter, particularly in North America, Hong Kong and the Philippines. 

Agreements were signed with two new channel partners – Zivaro and Government Acquisitions, Inc. 

The broker has increased its FY22 revenue estimates by 2% and thinks the company will carry the strong momentum into the first half of FY21.

Since the share price is near the broker's fair value, Moelis downgrades its rating to Hold with the target price increasing to $2.04 from $1.74.  

This report was published on July 24, 2020.

Target price is $2.04 Current Price is $1.72 Difference: $0.32
If DTC meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 245.71.

Forecast for FY21:

Moelis forecasts a full year FY21 EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1720.00.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $10.52

Wilsons rates ((ELD)) as Underweight (5) –

Wilsons considers trading conditions are favourable for Elders and expects the company to post material earnings growth in FY20 driven by its acquisition of AIRR Holdings and crop input activity.

FY20 crop inputs earnings are estimated to be about 15% above normal levels. Livestock and wool gross profit is expected to decline in the second half.

Wilsons reiterates its Underweight rating with a target price of $7.73.

This report was published on July 24, 2020.

Target price is $7.73 Current Price is $10.52 Difference: minus $2.79 (current price is over target).
If ELD meets the Wilsons target it will return approximately minus 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in September.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 20.00 cents and EPS of 69.90 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.05.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 26.00 cents and EPS of 70.70 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.88.

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

HLO    HELLOWORLD LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.67

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

Induced by covid-19, Helloworld Travel has raised capital worth $50m. Post-raise and after accounting for debt etc, Bell Potter puts the company’s net cash at circa $25m.

Total transaction value or bookings remain at 10% of the pre-covid levels. The broker expects this to continue until September and increase as borders (state and international) open.

Revenue forecasts for FY21-22 have been reduced driven by slow return to international travel. The company represents diversified exposure to a rebound in travel bookings through its leisure and corporate travel businesses.

Bell Potter downgrades its rating to Hold from Buy with a target price of $2.

Target price is $2.00 Current Price is $1.67 Difference: $0.33
If HLO meets the Bell Potter target it will return approximately 20% (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 9.00 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 5.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.90.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 14.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.36.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $13.05

Goldman Sachs rates ((MP1)) as Neutral (3) –

Megaport released its June quarter trading update. Goldman Sachs reports revenues and services adopted per customer trended favourably. New customers, ports and services volumes declined on a quarterly basis.

The impact of covid-19 has been weaker than expected, highlights the broker. This was likely due to raising capital of over $100m in the last six months,

The company provides services that are expected to be in demand, especially looking at corporate migration to cloud-based infrastructure. 

The broker thinks the company is expensive compared to its peer group and needs to see more customer growth in FY21 to justify its premium rating.

Goldman Sachs retains its Neutral rating with a target price of $12.45.

This report was published on July 23, 2020.

Target price is $12.45 Current Price is $13.05 Difference: minus $0.6 (current price is over target).
If MP1 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 $13.63, suggesting upside of 4.4%(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 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -25.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 118.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -16.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.0
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: $0.55

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

The company attained the mid-point of FY20 guidance for revenue and earnings. This was above Wilsons estimates and the broker describes it as a quality result and highlights the strong leverage in the business. 

The broker wonders just how good the result would have been in normalised trading and believes the company stands apart from its peers, with a production focus (not exploration), high quality customers and increasing exposure to the gold market (now 34% of revenues).

Wilsons believes investors are presented with a compelling opportunity and rate the company Overweight with a target price of $1.10.

This report was published on July 17, 2020.

Target price is $1.10 Current Price is $0.55 Difference: $0.55
If MSV meets the Wilsons target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 1.10 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.58.

Forecast for FY21:

Wilsons forecasts a full year FY21 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 7.75.

Market Sentiment: 1.0
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: $3.69

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

Openpay Group’s momentum continues to accelerate with some important milestones being achieved in the June quarter.

These include a material rise in customer and merchant growth, capital raising and the launch of new industry verticals (online education and memberships), highlights the broker.

The broker notes the company is doing everything right and expects it to keep growing.

Shaw and Partners reiterates its Buy rating with a target price of 4.25.

This report was published on July 17, 2020.

Target price is $4.25 Current Price is $3.69 Difference: $0.56
If OPY 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 0.00 cents and EPS of minus 39.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.37.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.04.

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

ORA    ORORA LIMITED

Paper & Packaging – Overnight Price: $2.37

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

Goldman Sachs updates the valuation of Orora to incorporate capital management in its modeling, including the capital return of $600m and share consolidation.

Subject to a strategic review, the company still retains $600m of the $1.2bn it indicated it would return.

The broker believes once this payment is made, the focus will move to the increasingly uncertain outlook for the underlying business.

The Neutral rating is maintained. The target price is decreased to $2.64 from $3.30.

This report was published on July16, 2020.

Target price is $2.64 Current Price is $2.37 Difference: $0.27
If ORA meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.78, suggesting upside of 17.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.9, implying annual growth of -3.7%.
Current consensus DPS estimate is 50.1, implying a prospective dividend yield of 21.1%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of 16.3%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.8.

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

PYG    PAYGROUP LIMITED

Cloud services – Overnight Price: $0.72

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

PayGroup has acquired TalentOz, a small cloud-based human capital management (HCM) and payroll software business servicing clients largely in Malaysia and India. The cost of acquisition was -$1.2m in a primarily scrip-based deal.

TalentOz is complementary technology that builds out the HCM side of PayGroup's offering, according to Canaccord Genuity.

Broadening the services the company can provide across HCM and payroll enhances the company's ability to provide a viable, cost-effective solution for SME's and mid-size multinational corporations across Asia, and should drive some upsell, states the analyst.

The Buy rating is maintained. The target price is increased to $1.08 from $1.05.

This report was published on July 15, 2020.

Target price is $1.08 Current Price is $0.72 Difference: $0.36
If PYG meets the Canaccord Genuity target it will return approximately 50% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

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

QHL    QUICKSTEP HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $0.09

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

Quickstep Holdings manufactures advanced composites for the aerospace, defence, automotive, rail and other manufacturing sectors in Australia and globally.

The company reported a solid 4Q20 result amid covid-19 and supply chain disruptions, according to Canaccord Genuity.

The broker expects some modest margin expansion and capital expenditure is largely spent in advance, meaning the company is at a free cash flow inflection point. The analyst suggests this may be underappreciated by the market.

However, the analyst also acknowledges the most tangible catalyst for a re-rating has been lost after the company was unsuccessful in winning a key near-term contract.

The Buy rating is maintained. The target price is $0.14

This report was published on July 17, 2020.

Target price is $0.14 Current Price is $0.09 Difference: $0.05
If QHL meets the Canaccord Genuity target it will return approximately 56% (excluding dividends, fees and charges).

Forecast for FY20:

Canaccord Genuity forecasts a full year FY20 dividend of -0.70 cents and EPS of 0.50 cents.
At the last closing share price the estimated dividend yield is – 7.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.70 cents and EPS of 0.80 cents.
At the last closing share price the estimated dividend yield is 7.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.25.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $22.32

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

Seek’s ANZ businesses’ operating income is expected to grow 16% in FY21.

Goldman Sachs highlights while the covid-19 related lockdown in Melbourne is likely to negatively impact the FY21 listings recovery, it will also act as a tailwind for the company’s online education services.

The broker is pleased with management’s focus on achieving operational efficiencies for its Asia Pacific & Americas business.

Goldman Sachs retains its Neutral rating with a target price of $20.20.

This report was published on July 17, 2020.

Target price is $20.20 Current Price is $22.32 Difference: minus $2.12 (current price is over target).
If SEK meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $21.63, suggesting downside of -3.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of -71.70 cents and EPS of minus 48.30 cents.
At the last closing share price the estimated dividend yield is – 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.2, implying annual growth of -43.1%.
Current consensus DPS estimate is 14.2, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 76.4.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 76.90 cents and EPS of 24.50 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 91.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.6, implying annual growth of 18.5%.
Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 64.5.

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

SKF    SKYFII LTD

Software & Services – Overnight Price: $0.13

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

Skyfii reported its June quarter and FY20 result, showing an operating income of $2m. This was higher than Canaccord Genuity’s estimate, despite a volatile economic environment.

The company announced its pipeline has been regaining momentum and is near pre-covid-19 levels. Management expects a strong year with double digit growth.

Canaccord Genuity keeps the rating unchanged at Buy with a target price of $0.30.

This report was published on July 22, 2020

Target price is $0.30 Current Price is $0.13 Difference: $0.17
If SKF meets the Canaccord Genuity target it will return approximately 131% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.33.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 130.00.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $1.71

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

Goldman Sachs believes continued strong retail margins are offsetting a weak start to 2H20 refining margins.

The broker foresees upside risk to the consensus view due to the remainder, around $32m, of the initial on-market share buyback and success in delivery of the Geelong energy hub and medium-term refinery closures in Australia.

Buy rating is maintained. Target price is $2.15

This report was released on July 20, 2020.

Target price is $2.15 Current Price is $1.71 Difference: $0.44
If VEA meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $2.08, suggesting upside of 21.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, implying annual growth of -48.3%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 57.0.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 183.3%.
Current consensus DPS estimate is 5.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.1.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $4.71

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

Whispir is a fast-growing, cloud-based communications platform. Its product suite is used by organisations and government agencies to create engaging, timely and relevant communications to a variety of industry verticals including crisis management, external customer engagement and internal business communications.

The company generates revenue via monthly subscription fees and messaging interaction charges and has greater than 600 enterprise customers in Australia/New Zealand (80% of revenue), Asia (15%) and more recently North America (5%).

Canaccord Genuity believes the company has high-usability, low/no code functionality that provides valuable data-driven insights and reporting functionality. Additionally, the economic cycle has accelerated digitisation for companies and governments.

Initiation of coverage with a Buy. Price target is $4.00

This report was published on July 17, 2020.

Target price is $4.00 Current Price is $4.71 Difference: minus $0.71 (current price is over target).
If WSP meets the Canaccord Genuity target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 9.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 49.06.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 64.52.

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

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

Whispir not only delivered a very strong 4Q20 market update but also the company was confident about the outlook into FY21, according to Wilsons.

The broker believes the company is well positioned for continued growth in FY21 driven by increased customer penetration, the annualisation of its 121 new customer wins in 2H20, international expansion and ongoing product releases.

The Overweight rating is maintained. The target price is increased to $4.41 from $2.80.

This report was published on July 21,2020.

Target price is $4.41 Current Price is $4.71 Difference: minus $0.3 (current price is over target).
If WSP meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 10.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.73.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 94.20.

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

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting – Overnight Price: $0.29

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

XRF Scientific manufactures and markets equipment, chemicals and instruments within the x-ray fluorescence testing supply chain. This is helpful in determining the chemical composition of minerals.

CCZ Equities forecasts strong profit growth in FY20 due to rising demand for the company's flux and precious metals products.

The broker expects the company to benefit from higher demand for testing services and notes its short-term earnings are protected from the effects of the pandemic. The stock provides long term growth potential and is also attractively valued.

CCZ Equities initiates coverage on XRF Scientific with a Buy rating and a target price of $0.31.

This report was published on July 21, 2020.

Target price is $0.31 Current Price is $0.29 Difference: $0.02
If XRF meets the CCZ Equities target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

CCZ Equities forecasts a full year FY20 EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.18.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 EPS of 2.45 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.84.

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

Z1P    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $6.13

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

Zip Co announced June quarter results earlier than expected. The company notes FY20 was a massive year with Zip Co acquiring the US’s QuadPay and PartPay and entering into new geographies.

The company also grew every month since covid-19 began, highlights Shaw and Partners. In FY21, the broker expects Quad to accelerate and end the year with 3.4m customers delivering $1.9bn in volumes.

Shaw and Partners maintains its Buy rating with the target price increasing to $7.03 from $6.25.

This report was published on July 17, 2020.

Target price is $7.03 Current Price is $6.13 Difference: $0.9
If Z1P meets the Shaw and Partners target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $6.45, suggesting upside of 5.2%(ex-dividends)
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 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 85.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.75.

How do these forecasts compare to market consensus projections?

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

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

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