Australian Broker Call *Extra* Edition – Aug 19, 2020

This story features 5G NETWORKS LIMITED, and other companies. For more info SHARE ANALYSIS: 5GN

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)

5GN   AFP   AQZ   AVJ   BIN   BWP   CIP   COF   EHL   ELD   ELO (2)   FCL   FMG   GUD   GXY   HRL   IDP   LME   MCP   MZZ   OPY   PNI   PXS   RBL   ST1   TPW (2)   UWL   VMT   VTH   VUK   WZR  

5GN    5G NETWORKS LIMITED

Telecommunication – Overnight Price: $1.87

Wilsons rates ((5GN)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage on 5GN Networks with an Overweight rating and a target price of $2.14.

By combining organic growth with strategic acquisitions, 5GN Networks is creating both scale and breadth of service, the broker highlights. The company is considered well placed to capitalise on the convergence of technologies and capture the increased demand due to covid-19.

In addition, the business is moving away from lower-margin hardware and software segments and towards cloud, network and voice. The broker predicts operating income for FY20 to be more than double FY19's.

This report was published on August 10, 2020.

Target price is $2.14 Current Price is $1.87 Difference: $0.27
If 5GN meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Wilsons forecasts a full year FY20 dividend of 2.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 187.00.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 2.00 cents and EPS of 1.10 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 170.00.

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

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.45

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

AFT Pharmaceuticals develops, licenses and sells pharmaceutical products in New Zealand, Australia, South East Asia and internationally. The company also in-licenses certain other products to supplement its own range.

The portfolio consists mainly of over the counter medicines for common ailments including pain management, eye care, cold and flu as well as supplements.

According to Bell Potter, historically the company's revenues have been derived from Australia and New Zealand. The largest of several revenue generating brands is Maxigesic. However, international expansion is planned for this brand and the ensuing royalties are expected by the broker to drive considerable earnings growth over the next 3-5 years.

The founder owns around 70% of the company, which was listed in 2015.

The analyst notes the most important short-term catalyst is the potential approval of Maxigesic tablets for the US market in November, 2020 and over the next two years there will be multiple earnings catalysts, including entry into major new markets.

Bell Potter initiates coverage with a Buy and a target price of $5.00.

The report was published on August 4, 2020.

Target price is $5.00 Current Price is $4.45 Difference: $0.55
If AFP meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.09.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 7.00 cents and EPS of 23.40 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.02.

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

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics – Overnight Price: $3.51

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

Alliance Aviation enjoyed an "extraordinary" second half with profit (PBT) up 24% led by strong contract and charter activity, comments Wilsons.

The analyst notes the outlook remains strong and is well supported by the recently announced acquisition of additional aircraft. Furthermore, prospects for the conversion of recent charter activity into contracted revenue look good.

Even with an uncertain outlook on wet-lease activity, the alliance looks well placed to deal with demand from here, believes Wilsons.

The broker retains its Market Weight rating with the target price increasing to $3.30 from $3.14.

This report was published on August 7, 2020.

Target price is $3.30 Current Price is $3.51 Difference: minus $0.21 (current price is over target).
If AQZ meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.07, suggesting upside of 15.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 11.90 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of -13.2%.
Current consensus DPS estimate is 11.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 16.00 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.8, implying annual growth of 24.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 15.4.

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

AVJ    AVJENNINGS LIMITED

Housing & Construction – Overnight Price: $0.53

E.L. & C Baillieu rates ((AVJ)) as Downgrade to Hold from Buy (3) –

Baillieu reckons the lockdown in Melbourne will likely have a negative impact on sales for AVJennings although the size of the potential impact remains unknown. The broker awaits a detailed financial update at the company's result.

Noting the stock has had a strong run over the last few weeks and considering the risk to activity levels from tightening of restrictions in Victoria, Baillieu downgrades its rating to Hold from Buy with a target price of $0.46.

The report was published on August 6, 2020.

Target price is $0.46 Current Price is $0.53 Difference: minus $0.07 (current price is over target).
If AVJ meets the E.L. & C Baillieu target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY20:

E.L. & C Baillieu forecasts a full year FY20 dividend of 1.50 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.

Forecast for FY21:

E.L. & C Baillieu forecasts a full year FY21 dividend of 2.50 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.62.

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

BIN    BINGO INDUSTRIES LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.00

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

Goldman Sachs makes negative revisions to earnings estimates for Bingo Industries. This is a result of the general short-term macroeconomic outlook, and in particular, potential downside weakness in construction activity.

The analyst cites recent building approval data for June showing a -4% decline month on month. The broker suggests the next key catalyst will be the FY20 result on August 25.

Goldman Sachs reduces EPS forecasts by -8%, -14% and -24% for FY20, FY21 and FY22, respectively.

The Neutral rating is maintained. The target price is decreased -6% to $2.25.

This report was published on August 6, 2020.

Target price is $2.25 Current Price is $2.00 Difference: $0.25
If BIN meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.44, suggesting upside of 21.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 2.00 cents and EPS of 8.00 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 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of 107.7%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 24.7.

Forecast for FY21:

Goldman Sachs 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 28.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of -16.0%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 29.4.

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

BWP    BWP TRUST

REITs – Overnight Price: $4.08

Moelis rates ((BWP)) as Reinstatement of coverage with Sell (5) –

BWP Trust delivered distributable earnings of $117.4m or 18.29c earnings per unit (EPU). However, Moelis notes the result included one-off income in the form of $2.7m in forfeited deposits, the absence of which would have required a greater capital contribution to meet dividend per unit (DPU) expectations.

The FY20 DPU was 18.29 cents and the FY21 outlook is for flat distribution growth. The broker explains the Trust trades at a 29% premium to NTA, as it is viewed as a safe haven.

However, the weighted average lease expiry (WALE) has consistently declined over recent years and there is an ongoing drag on growth where Bunnings looks to vacate an asset or two every year.

Moelis reinstates coverage with a Sell rating and target price of $3.23.

This report was published on August 6, 2020.

Target price is $3.23 Current Price is $4.08 Difference: minus $0.85 (current price is over target).
If BWP meets the Moelis target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.60, suggesting downside of -11.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 18.30 cents and EPS of 18.30 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 22.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -49.7%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 24.7.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 18.40 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of 6.1%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 23.3.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.16

Moelis rates ((CIP)) as Reinstatement of coverage with Hold (3) –

Centuria Industrial REIT reported FY20 funds from operations (FFO) of $63.5m or 18.9c earnings per unit (EPU) and dividend per unit (DPU) of 18.7 cents. The result was in-line with commentary provided in April, 2020, notes Moelis.

The broker highlights income collection has remained resilient throughout covid-19, with cash collections of around 97% through April-June.

The company also announced the acquisition of three assets for $447.1m, which will be funded with a circa $340.8m entitlement offer and existing debt facilities.

FY21 earnings guidance is for 17.4 cents (EPU) and DPU of 17 cents.

Moelis reinstates coverage with a Hold rating and target price of $3.33.

This report was published on August 6, 2020.

Target price is $3.33 Current Price is $3.16 Difference: $0.17
If CIP meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.28, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 17.00 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.7, implying annual growth of -21.3%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 5.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of -1.1%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 18.1.

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

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $1.91

Moelis rates ((COF)) as Reinstatement of coverage with a Buy (1) –

Centuria Office REIT reported FY20 funds from operations (FFO) of 18.6 cents and an ending occupancy of 98%, with 4.7 year weighted average lease expiry (WALE) and 15% expiry in FY21.

Due to many positive portfolio features, particularly the relatively benign lease expiry profile over the next two years, Moelis believes the Trust’s income performance could exceed negative market expectations.

No FFO guidance was given. The distribution for FY20 was 17.8 cents and FY21 distribution guidance was 16.5 cents. The analyst expects  the combination of a FY21 distribution yield of 8.5% (8% in FY22) and a 22% discount to last NTA, to provide support at current levels.

Moelis reinstates coverage with a Buy rating. The target price is $2.27.

This report was published on August 6, 2020.

Target price is $2.27 Current Price is $1.91 Difference: $0.36
If COF meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $2.31, suggesting upside of 20.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 16.50 cents and EPS of 18.90 cents.
At the last closing share price the estimated dividend yield is 8.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of 260.0%.
Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 8.7%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.50 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 8.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.6, implying annual growth of 3.3%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 9.0%.
Current consensus EPS estimate suggests the PER is 10.3.

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

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $1.04

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

Emeco Holdings reported a strong FY20 result with earnings in line with its guidance, comments the broker. The company also guided towards a better than expected FY21 outlook.

Operating income was up 15% while net profit grew by 23.1%. Bell Potter notes earnings were hit by the soft coal markets driven by less utilisation in the Eastern Region due to the pandemic.

This was partially offset by a better than expected result from Pit N Portal. Western Regions' exposure to gold and iron ore also helped. The broker considers the company's rental business outlook to be better than expected. 

The broker has revised its earnings estimates downwards for FY21 while increasing it for FY22. Bell Potter reiterates its Buy recommendation with the target price increasing to $1.60 from $1.52. 

This report was published on July 28, 2020.

Target price is $1.60 Current Price is $1.04 Difference: $0.56
If EHL meets the Bell Potter target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 10.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.10.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.01.

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: $10.31

Goldman Sachs rates ((ELD)) as No Rating (-1) –

Goldman Sachs initiates coverage of Elders with a Buy rating and a target price of $13.65.

Goldman Sachs notes the company is leveraged to Australian farm production, which has grown at a compounded annual growth rate of 4% over the last 10 years.

The broker also highlights the company has over delivered on its targets since 2014. Some notable attributes liked by the broker are the company's strong track record, growing end markets, stable industry structure; positive earnings surprise potential, plus an attractive valuation.

According to management's plan for FY21-22, the company intends to focus on increasing its gross margin and winning market share.

This report was published on July 28, 2020.

Target price is $13.65 Current Price is $10.31 Difference: $3.34
If ELD meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY20:

Goldman Sachs forecasts a full year FY20 dividend of 21.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 2.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 26.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 2.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

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

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $5.89

Moelis rates ((ELO)) as Hold (3) –

Elmo Software’s FY20 results were in-line with Moelis' expectations. The result saw Elmo achieving mild growth in a difficult operating environment by increasing traction in the lower mid market, adds the broker.

The broker notes the company's FY21 guidance indicates growth but requires heavy product development.

Considering the higher investment into product development, Moelis maintains its Hold rating with the target price decreasing to $6.55 from $6.75.

This report was published on August 7, 2020.

Target price is $6.55 Current Price is $5.89 Difference: $0.66
If ELO meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 28.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.52.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 30.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.38.

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

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

Elmo software achieved its revised FY20 guidance. Wilsons thinks the software firm's FY21 guidance is modest with the annual recurring revenue growth guidance conservative.

The broker is pleased with solid new customer wins across the lower-mid market. The broker expects guidance may be upgraded later in the year if the Australian economy stabilises.

Wilsons maintains its Market Weight rating with the target price reducing to $6.33 from $6.40.

This report was published on August 7, 2020.

Target price is $6.33 Current Price is $5.89 Difference: $0.44
If ELO meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 31.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.52.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 30.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.31.

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

FCL    FINEOS CORPORATION HOLDINGS PLC

Cloud services – Overnight Price: $5.07

Moelis rates ((FCL)) as Hold (3) –

Fineos Corp has announced the acquisition of Limelight Health, a life, accident and health (LA&H) quoting and underwriting platform for -US$75m. The acquisition is funded by around 76% cash and 24% via an equity raise.

The company also pre-announced FY20 results with revenue of EUR87.8m, a high-quality beat says Moelis, given it was entirely from software. Earnings (EBITDA) of EUR15.6m were -EUR2.7m below the Moelis forecast.

FY21 guidance of 20% revenue growth and 30% subscription growth were in-line with the broker's expectations.

The analyst sees the acquisition as significantly strengthening the company's already strong competitive advantage and increasing the likelihood of selling the wider AdminSuite platform. The acquisition also enables the company to immediately scale up its presence in North America.

The rating is upgraded to Buy from Hold and the target price is increased to $5.50 from $4.72.

This report was published on August 13, 2020.

Target price is $5.50 Current Price is $5.07 Difference: $0.43
If FCL meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 316.88.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 181.07.

This company reports in EUR. 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

FMG    FORTESCUE METALS GROUP LTD

Iron Ore – Overnight Price: $18.19

Bell Potter rates ((FMG)) as Sell (5) –

Fortescue Metals Group reported June 2020 quarterly production which was a new quarterly record beating both company guidance and Bell Potter’s estimates.

In the first full year of production of the premium West Pilbara Fines the overall grade and quality of the company’s product suite has been improved, says the analyst.

The broker calculates the current share price implies the iron ore spot price will remain at similar levels for the next three years and concludes the shares are priced for perfection. Accordingly, the analyst moves to a Sell rating from a Hold.

Bell Potter lifts earnings estimates for FY21 and FY22 by 22% and 20%, respectively and increases the target price to $12.50 from $10.71.

This report was published on August 5, 2020.

Target price is $12.50 Current Price is $18.19 Difference: minus $5.69 (current price is over target).
If FMG meets the Bell Potter target it will return approximately minus 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.78, suggesting downside of -18.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY20:

Bell Potter forecasts a full year FY20 dividend of 247.85 cents and EPS of 225.59 cents.
At the last closing share price the estimated dividend yield is 13.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 216.5, implying annual growth of N/A.
Current consensus DPS estimate is 223.4, implying a prospective dividend yield of 12.3%.
Current consensus EPS estimate suggests the PER is 8.4.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 187.00 cents and EPS of 206.29 cents.
At the last closing share price the estimated dividend yield is 10.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 172.0, implying annual growth of -20.6%.
Current consensus DPS estimate is 171.5, implying a prospective dividend yield of 9.4%.
Current consensus EPS estimate suggests the PER is 10.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.83

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

GUD Holdings' result was broadly in-line with Goldman Sachs' forecast given the current challenging macro environment.

The broker expects the company to benefit from an improving demand outlook as new car sales may remain weak. At the same time, the covid-19 related impact could see domestic tourism and personal car travel increase.

Earnings forecast for FY20 has been decreased by -5% while increased by 3% for FY21. Goldman Sachs retains its Buy rating with a target price of $14.20.

This report was published on July 28, 2020.

Target price is $14.20 Current Price is $11.83 Difference: $2.37
If GUD meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $11.65, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 39.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.8, implying annual growth of 20.6%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 53.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of 8.2%.
Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 18.0.

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

GXY    GALAXY RESOURCES LIMITED

New Battery Elements – Overnight Price: $1.23

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

After updating forecasts for second quarter production and a revised lithium price, Bell Potter now estimates larger normalised losses in the period 2020 to 2022 for Galaxy Resources.

The lithium markets have continued to weaken over the quarter with large inventories of spodumene and other lithium products at all parts of the processing chain, notes the broker.

The analyst notes the company’s share price has rallied 38% over the past few weeks. As a result, the rating is lowered to Hold from Buy. The target price is decreased to $1.20 from $1.35

This report was published on August 5, 2020.

Target price is $1.20 Current Price is $1.23 Difference: minus $0.03 (current price is over target).
If GXY meets the Bell Potter target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.85, suggesting downside of -31.0%(ex-dividends)
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 13.36 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -9.8, 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:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 17.81 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -6.0, 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.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HRL    HRL HOLDINGS LTD

Industrial Sector Contractors & Engineers – Overnight Price: $0.11

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

HRL Holdings is better placed than its Australian counterparts in the current environment with 90% plus earnings from New Zealand, argues the broker.

Taylor Collison considers the company well placed for future growth and M&A opportunities with its focus on working capital management and cost control.

The broker is positive on the company given its defensiveness, niche capabilities, and a growing presence in high margin analytical lab testing markets.

Taylor Collision maintains its Outperform rating alongside a target price of $0.15.

The report was published on February 7, 2020.

Target price is $0.15 Current Price is $0.11 Difference: $0.04
If HRL meets the Taylor Collison target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Taylor Collison 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 18.33.

Forecast for FY22:

Taylor Collison forecasts a full year FY22 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 15.71.

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

LME    LIMEADE INC

Cloud services – Overnight Price: $1.42

Moelis rates ((LME)) as Buy (1) –

Limeade, the employee experience software as a service provider, released its 4Q20 activities report and operating update, which reaffirmed the prospectus revenue forecast of $56.1m while the EBITDA loss improved to -$5.5m-$6.5m (from -$10.7m), notes Moelis.

The broker explains the EBITDA upgrade was well anticipated, given the prospectus beat in CY19 and subsequent cost savings following the pandemic, which included slower hiring.

The company reiterated it has not experienced a material increase in churn, with net revenue retention at 98%. The analyst approves, as churn is a key variable which will determine whether the company hits its revenue forecast.

Moelis states management has done a good job in retaining the existing customer base with Net Revenue Retention (NRR) holding up well.

The broker reinitiates coverage with a Buy rating and a target price of $1.72.

The report was published on August 4, 2020.

Target price is $1.72 Current Price is $1.42 Difference: $0.3
If LME meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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

MCP    MCPHERSON'S LIMITED

Health & Nutrition – Overnight Price: $2.83

Shaw and Partners rates ((MCP)) as Hold (3) –

McPherson's FY20 results were released earlier than expected and are broadly ahead of guidance with profit before tax up 20% versus the last year. Shaw and Partners is pleased and applauds management for holding their nerve and guidance through the pandemic.

With volatile grocery and export markets, the broker prefers to err on the side of conservatism and has made minimal changes to its forecasts.

Shaw and Partners retains its Buy rating with a target price of $3.66.

This report was published on July 29, 2020.

Target price is $3.66 Current Price is $2.83 Difference: $0.83
If MCP meets the Shaw and Partners target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 11.90 cents and EPS of 16.80 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 13.80 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.51.

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

MZZ    MATADOR MINING LIMITED

Gold & Silver – Overnight Price: $0.46

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

Matador Mining is a gold exploration company focussed on the Cape Ray Gold Project in Newfoundland, Canada.

The company released a scoping study in 2020 proposing a 1.2Mtpa standalone mining and processing operation. The preliminary economics indicate the project has positive financial metrics over an initial mine life of seven years with capital payback during the first 1.75 years of the Project’s life, comments the broker.

Cape Ray’s current resource stands at 840koz at 2g/t, with 96% of the resource less than 200m from the surface.

Shaw and Partners highlights the shares appear relatively cheap compared to the sector average valuation for ASX listed gold exploration companies.

Shaw and Partners initiates coverage with a Buy rating and a target price of $0.80.

This report was published on August 6, 2020.

Target price is $0.80 Current Price is $0.46 Difference: $0.34
If MZZ meets the Shaw and Partners target it will return approximately 74% (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 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.11.

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 secured an exclusive strategic partnership with sports, leisure and hospitality SaaS technology provider, MSL Solutions ((MSL)), utilising Openpay's BNPL plans as a payment option for member subscription fees.

Shaw and Partners explains the deal is an Australian revenue sharing agreement, but there are multiple other potential opportunities internationally with MSL Solutions.

Momentum continued in 4Q20 and the analyst highlights the month of May was the best month ever (June almost as good) with significant and accelerating growth in the business.

Other milestones of significance that were achieved include a $33.8m capital raise to shore up balance sheet strength and offer flexibility plus a GBP25m UK debt facility. Additionally, there was a soft launch of new industry verticals, Education and Memberships, with some key merchant wins.

Another key takeaway for the broker was the May 12 launch in the UK of JD Sports online, which provided further evidence for the company's differentiated model as compared to its BNPL peers.

The Buy rating is maintained. The target price is $4.25.

This report was published on August 5, 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 34.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.63.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 23.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.57.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $5.82

Wilsons rates ((PNI)) as Downgrade to Market Weight from Overweight (3) –

Pinnacle Investment Management Group reported FY20 profit (NPAT) of $32.2m, in-line with consensus estimates of the broking community, according to Wilsons.

The broker downgrades the financial services provider's rating as market conditions remain volatile and the company's funds under management (FUM) decreased -4.8% in the second half compared to the first.

The analyst upgrades valuation to reflect an improvement in earnings forecasts, driven by minor improvements in inflows and a more attractive cost base. 

Wilsons downgrades to Market Weight from Overweight. The target price is increased to $5.70 from $5.00.

This report was published on August 12, 2020.

Target price is $5.70 Current Price is $5.82 Difference: minus $0.12 (current price is over target).
If PNI meets the Wilsons target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.20, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 15.50 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of -2.1%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 31.5.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 17.80 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.9, implying annual growth of 18.4%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 26.6.

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

PXS    PHARMAXIS LTD

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.11

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

FY20 unaudited revenue was ahead of Bell Potter’s estimate, driven by an R&D tax rebate and higher Bronchitol sales. Cash of $14.8m gives around 12 months runway, estimates the broker.

The analyst notes the approaching key catalysts in the last quarter of the calendar year including a decision by partner Boehringer Ingleheim on further development of BI_1467335 for Diabetic Retinopathy and a partnering deal for LOXL-2 program.

Also, the company will start a Phase 1/2 trial with its new pan LOX-inhibitor in myelofibrosis in December, 2020.

The Buy rating is maintained. There is a modest uplift to the broker’s valuation and the target price is increased to $0.20 from $0.19.

This report was published on August 5, 2020

Target price is $0.20 Current Price is $0.11 Difference: $0.09
If PXS meets the Bell Potter target it will return approximately 82% (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 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.24.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.00.

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

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $3.26

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

Redbubble's topline performance as per trading update proved in-line with Goldman Sach's FY20 revenue forecast. July's performance, led by strong face mask growth, was considerably ahead of the broker's growth assumptions.

With the current tailwind of e-commerce adoption expanding the company's consumer base, the broker has materially raised its FY21-22 revenue forecasts. Moreover, Redbubble is expected to deliver materially strong operating leverage. 

Goldman Sachs retains its Buy rating with the target price increased to $4.05 from $2.35.

This report was published on August 8, 2020.

Target price is $4.05 Current Price is $3.26 Difference: $0.79
If RBL meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
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 0.00 cents.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.22.

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

ST1    SPIRIT TELECOM LIMITED

Telecommunication – Overnight Price: $0.38

Shaw and Partners rates ((ST1)) as Buy (1) –

FY20 was a big year for Spirit Telecom, observes Shaw and Partners, with the company achieving a number of milestones. Moreover, a number of growth measures were put into place. Total revenue in the second half was up 80% and 10% ahead of the broker's estimate.

The broker is positively surprised with the growth seen during covid-19 and expects more uplift into FY21. Against strong operating results, the group is putting together an attractive asset for potential acquirers to drive long term growth.

Spirit Telecom is the broker's top pick within the telco space and is expected to continue to be an active consolidator in the market in the first half of FY21.

Buy rating maintained with a target price of $0.35.

The report was published on July 29, 2020

Target price is $0.35 Current Price is $0.38 Difference: minus $0.03 (current price is over target).
If ST1 meets the Shaw and Partners target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.55.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.14.

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: $7.93

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

Temple & Webster’s FY20 result has been labeled a strong one by Bell Potter with sales up 74% and strong momentum continuing in July. Despite the revenue growth, the group's share remains 1-2% in the B2C segment and even less at 0.5% in B2B.

Cash flow generation was strong for the year, comments the broker. Sales forecasts have been upgraded in view of the group's strong sales momentum and lift in active customers.

The broker has also upgraded its earnings forecasts for FY21-23. Looking at the group's growth prospects and strong balance sheet, Bell Potter retains its Buy rating with the target price increasing to $9.70 from $6.10.

This report was published on July 28, 2020.

Target price is $9.70 Current Price is $7.93 Difference: $1.77
If TPW meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 78.51.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.32.

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

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

Temple and Webster's FY20 results proved mostly in-line with Goldman Sachs' expectations save for higher marketing expenses due to its June pilot advertising campaign. The group also noted strong sales momentum continuing into FY21.

While Temple and Webster is a near term beneficiary of strong e-commerce growth, the broker is also positive about its longer-term prospects. Earnings forecasts have been upgraded for FY21-22.

Goldman Sachs retains its Buy rating with the target price increasing to $9.70 from $8.50.

This report was published on July 28, 2020.

Target price is $9.70 Current Price is $7.93 Difference: $1.77
If TPW meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.09.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.65.

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: $1.61

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

Uniti Group generated record operating cash flow for the June quarter, up 38%. Capex increased during the quarter which included constructing new FTTP connections. Bell Potter considers this positive as these will turn into active customers in the first half of FY21. 

The group's Opticomm acquisition is progression to plan with a vote on the scheme of arrangement to be around September 10th. 

With the next catalyst likely to be an affirmation of the acquisition, Bell Potter retains its Buy rating with a target price of $2.25.

This report was published on July 28, 2020.

Target price is $2.25 Current Price is $1.61 Difference: $0.64
If UWL meets the Bell Potter target it will return approximately 40% (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 29.27.

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 23.00.

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

VMT    VMOTO LIMITED

Automobiles & Components – Overnight Price: $0.59

Euroz rates ((VMT)) as Buy (1) –

Vmoto is a global e-mobility manufacturing and distribution group, specialising in high quality electric powered two-wheel vehicles.

Vmoto's second quarter saw record sales, up 55% quarter on quarter and 105% versus last year. The broker notes the company has a firm international order book as at June 30. 

The company has had a strong start to the FY20 year and the broker expects this to continue into FY21. Moreover, Vmoto looks well placed to benefit from government incentives, changing consumer preference and a growing ride share market.

The broker believes the company's market will grow substantially over the coming period with electric vehicle demand gaining traction.  

Euroz maintains its Buy rating and target price of $0.70.

This report was published on August 3, 2020.

Target price is $0.70 Current Price is $0.59 Difference: $0.11
If VMT meets the Euroz target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY20:

Euroz forecasts a full year FY20 dividend of 0.00 cents and EPS of 1.55 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.06.

Forecast for FY21:

Euroz forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.25 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.22.

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

VTH    VITALHARVEST FREEHOLD TRUST

Real Estate – Overnight Price: $0.78

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

Bell Potter believes compression in earnings and yield post VitalHarvest Freehold Trust's IPO is mostly complete. The trust guided  to a second-half dividend of 1.5c which is more than the broker expected at 1.25c.

Based on improving pricing trends in commodities, the broker upgrades its rating to Buy from Hold with a target price of $0.84.

This report was published on August 7, 2020.

Target price is $0.84 Current Price is $0.78 Difference: $0.06
If VTH meets the Bell Potter target it will return approximately 8% (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 4.80 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.60.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 4.80 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

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: $1.64

Shaw and Partners rates ((VUK)) as Sell (5) –

Virgin Money UK's third-quarter trading update saw an increase in the common equity tier 1 ratio by 30bps.

While income was not disclosed, the company noted the net interest margin, which is its major contributing factor, fell to 147 bps. This was expected by the lender.

Virgin Money UK slowed down expenditure on integration and transformation and paused most of the payment protection insurance processing.

No changes were made to the profit forecast and Shaw and Partners retains its Sell rating with a target price of $1.50.

This report was published on July 29, 2020.

Target price is $1.50 Current Price is $1.64 Difference: minus $0.14 (current price is over target).
If VUK meets the Shaw and Partners target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.70, suggesting upside of 3.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY20:

Shaw and Partners forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, 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 10.2.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 1.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 155.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 21.7%.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 8.4.

This company reports in GBP. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
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: $0.22

Moelis rates ((WZR)) as Hold (3) –

Wisr's June quarter update noted record quarterly originations, up 93% year on year growth. Moelis highlights the company's exposure to covid-19 related loans is only $3.7m, of which 75% have caught up or recommenced payments.

The company's growth and book performance was ahead of the broker's expectation, coupled with strong execution by management. Auto secured loans contributed minimally, reports the broker but are expected to be a key driver over the next few quarters. 

Moelis reinstates coverage on the stock with a Hold rating and a target price of $0.28.

The report was published on July 28, 2020.

Target price is $0.28 Current Price is $0.22 Difference: $0.06
If WZR meets the Moelis target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:

Moelis forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.17.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.33.

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

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