Australian Broker Call *Extra* Edition – Mar 22, 2021

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   ACF   AD8   ALX   ANP   APC   API   BOE   CHN   CIP   CSL   CXL   DSE   ELD   EOS   EVN   GOR   GTN   IGO   IMD   INA   MTS (2)   PAR   PBH   QAN   RMY   SGH   SRG   VTG   VTH   WEB   WSP  

5GN    5G NETWORKS LIMITED

Telecommunication – Overnight Price: $1.32

Wilsons rates ((5GN)) as Overweight (1) –

Wilsons expects 5G Network’s acquisition of Intergrid, a leading dedicated Cloud provider for a total consideration of $3m, payable in cash ($2.5m) and scrip ($0.5m) to generate revenue of $2.5m, normalised earnings (EBITDA) of $0.8m and synergies of $0.5m p.a. over the first 12 months of ownership.

Intergrid operates a large cloud network of dedicated servers, with extremely low latency connectivity to all major ISPs and Internet exchange providers, and its online sales and support portal will be further enhanced to enable service provisioning with a ‘single click’.

Wilsons revenue estimates increase by around 2% and earnings (EBITDA) of circa 7%, based on 5G Network gaining an incremental $2.5m in annual revenue, organic growth in Intergrid, and eek out over $1.4m in earnings (EBITDA) from ongoing consolidation and synergy gains.

The overweight recommendation is retained, and the target price increases to $1.96 from $1.90.

This report was published on March 18, 2021.

Target price is $1.96 Current Price is $1.32 Difference: $0.64
If 5GN meets the Wilsons target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 1.00 cents and EPS of 1.60 cents.
At the last closing share price the estimated dividend yield is 0.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 82.50.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 1.00 cents and EPS of 2.60 cents.
At the last closing share price the estimated dividend yield is 0.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.77.

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

ACF    ACROW FORMWORK AND CONSTRUCTION SERVICES LIMITED

Building Products & Services – Overnight Price: $0.37

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

Management has upgraded guidance due to $3.7m of major new product sales/hire contract wins across four key projects and also due to hire contract wins being up 28% in the two months to February. 

Bell Potter feels these wins show an ability to expand existing relationships and create new growth opportunities. Management have suggested the final quarter is set to be the most profitable in the company's history.

The analyst upgrades EPS forecasts for FY21-23 by 12.7%, 10.75% and 9.9%, respectively, and lifts the target to $0.44 from $0.42. The Buy rating is unchanged.

This report was published on March 12, 2021.

Target price is $0.44 Current Price is $0.37 Difference: $0.07
If ACF meets the Bell Potter target it will return approximately 19% (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 1.80 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 4.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.81.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.00 cents and EPS of 5.10 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.25.

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: $7.23

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

Another positive indicator of ongoing momentum in the global pro AV market was shown by recent results from Nasdaq-listed peer Avid Technology, explains Shaw and Partners. This is consistent with recent channel checks by the broker.

The analyst highlights compelling attractions of the company including a clear earnings runaway, a default global standard technology and commercial validation. The Buy rating and $10 target are retained.

This report was published on March 12, 2021.

Target price is $10.00 Current Price is $7.23 Difference: $2.77
If AD8 meets the Shaw and Partners target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $9.93, suggesting upside of 37.4%(ex-dividends)
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 minus 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 190.26.

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.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3615.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.9, 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: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ALX    ATLAS ARTERIA

Infrastructure & Utilities – Overnight Price: $5.77

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

As expected by Goldman Sachs, recent traffic figures for the French toll roads were weak though there was improvement in traffic volumes on both a year-on-year and pre-covid basis.

Looking forward, the broker expects ongoing improvement in traffic volumes given infection rates are naturally slowing post winter and the inoculation program is making process. The Buy rating and $7.29 target are unchanged.

This report was published on March 15, 2021.

Target price is $7.29 Current Price is $5.77 Difference: $1.52
If ALX meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $6.26, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 28.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.6, implying annual growth of N/A.
Current consensus DPS estimate is 27.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 37.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 6.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.2, implying annual growth of 45.7%.
Current consensus DPS estimate is 37.3, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 14.4.

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

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.21

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

In light of recent Duchenne Muscular Dystrophy drug (DMD) program updates, Wilsons continue to view clinical stage biopharmaceutical company, Antisense Therapeutics as well positioned in the DMD R&D landscape, when viewed through a lens of safety, tolerability, and the market opportunity gap for therapies such as ATL1102.

Antisense has submitted its Paediatric Investigational Plan (PIP) to the EMA for review and feedback regarding the ATL1102 Phase IIb trial design, with plans to initiate the trial in 2H 2021.

The company also awaits its first FDA engagement on ATL1102 for DMD with a meeting set for April 19th.

The Overweight rating and $0.57 target are maintained.

This report was published on March 18, 2021.

Target price is $0.57 Current Price is $0.21 Difference: $0.36
If ANP meets the Wilsons target it will return approximately 171% (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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.40.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.50.

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

APC    AUSTRALIAN POTASH LIMITED

Agriculture – Overnight Price: $0.17

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

Canaccord Genuity initiates coverage of Australian Potash with a Speculative Buy rating and target price of $0.30. The company is a sulphate of potash (SOP) developer focused on advancing its 100% owned, 150ktpa, Lake Wells SOP Project in WA.

A final investment decision (FID) is due in late March and the broker likes the sector tailwinds, compelling thematic and the confirmed Northern Australia Infrastructure Facility (NAIF) support. Also, front-end-engineering-design (FEED) is expected to be completed soon. 

The analyst expects the project to generate operating earnings (EBITDA) of around $70m, an IRR of 21% and payback period of circa five years. The company has indicated that the breakeven is US$280/t.

Canaccord Genuity notes agriculture fundamentals have continued to strengthen over the last six months, with the likes of corn up 40% and soybeans rising 33%, which has created upwards pressure on fertiliser prices.

This report was published on March 15, 2021.

Target price is $0.30 Current Price is $0.17 Difference: $0.13
If APC meets the Canaccord Genuity target it will return approximately 76% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 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 56.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 56.67.

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

API    AUSTRALIAN PHARMACEUTICAL INDUSTRIES

Health & Nutrition – Overnight Price: $1.23

Bell Potter rates ((API)) as Upgrade to Buy from Sell (1) –

Bell Potter believes Australian Pharmaceutical Industries represents an interesting opportunity for value investors.

After enduring a difficult 2020 because of the lockdowns that severely hit retail trade, Bell Potter expects a strong rebound in revenues and earnings in the second half of the financial year.

Pent up demand for beauty therapy services will likely drive record revenues in Clearskin Care business. elaborates the broker.

Even so, the upcoming half-year result is expected to be softer which is not unexpected since covid led related closures persisted well into November 2020.

The broker expects the first-half operating income will fall by -20% to circa $28m before rebounding to circa $77m for the full year

Bell Potter upgrades to Buy from Hold with the target price rising to $1.47 from $1.10.

This report was published on March 18, 2021.

Target price is $1.47 Current Price is $1.23 Difference: $0.24
If API meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.29, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 5.50 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.40 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 5.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of 6.5%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.4.

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

BOE    BOSS RESOURCES LIMITED

Uranium – Overnight Price: $0.17

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

Management expects completion of the Honeymoon Enhanced Feasibility Study (EFS) in the June quarter and anticipates improvements in the project's economics, building on the January 2020 Feasibility Study (FS).

Shaw and Partners believes Boss Resources has the potential to be one of the lowest cost uranium producers in the Western World. The target price is increased to $0.17 from $0.14 and the Buy rating is retained.

While the uranium market has been depressed for the past decade, stockpiles are depleting, supply has been curtailed and the market is showing signs of life, explains the broker.

This report was published on March 15, 2021.

Target price is $0.17 Current Price is $0.17 Difference: $0
If BOE meets the Shaw and Partners target it will return approximately 0% (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 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.50.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.50.

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

CHN    CHALICE GOLD MINES LIMITED

Industrial Metals – Overnight Price: $4.77

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

Following Chalice Mining's latest positive metallurgical test work results from the ongoing Phase 2 metallurgical test work program at the company's 100%-owned Julimar project in WA, Bell Potter has updated valuations to reflect the de-risking of the development, and lowering the broker’s risk discount from 75% to 70%.

In Bell Potter’s view, these results are very positive and demonstrate the potential to produce commercial concentrates in-line with typical market specifications – a key step in de-risking the development of the Julimar project.

The broker estimates a recovered ore value of US$380/t – equivalent to 6.8g/t gold or 4.2% copper, and notes a notional mill throughput rate of 3Mtpa, palladium production alone would be ~300kozpa, assuming the test work grades and recoveries.

Buy recommendation remains, and target price increases 13% to $6.35.

This report was published on March 19, 2021.

Target price is $6.35 Current Price is $4.77 Difference: $1.58
If CHN meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.11

Moelis rates ((CIP)) as Buy (1) –

Moelis considers Centuria Industrial REIT a high conviction buying opportunity. This view has been reinforced by the broker's valuation comparison to recent elevated bidding for the logistics portfolio of the Milestone Logistics Group.

The analyst considers the outcome has the potential to provide meaningful valuation support to the REIT even though the portfolios are not directly comparable. The Buy rating is maintained with a target of $3.36.

This report was published on March 15, 2021.

Target price is $3.36 Current Price is $3.11 Difference: $0.25
If CIP meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.49, suggesting upside of 12.1%(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 17.60 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of -20.9%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 17.50 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of 1.1%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 17.3.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $253.95

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

While covid disruptions to plasma collection will suppress CSL’s earnings per share growth over FY21-22, Wilsons believes they do nothing to impair the value of the global plasma collection, fractionation and purification infrastructure.

Collection costs may stay elevated in the medium term, but ultimately the broker expects them to be offset by demand growth, scale benefits and market share gains.

Wilsons uses a terminal growth assumption of 3.5% to reflect the view that CSL is likely to maintain its structural advantages in the global market for plasma-derived therapeutic proteins.

Absent those assumptions (ex-R&D and adopting the ‘industry’ terminal growth of around 2%), and Wilsons core CSL valuation represents 21.3x earnings (EV/EBITDA) and 30.6x price to earnings.

Overweight rating and $320 price target maintained.

This report was issued March 18, 2021

Target price is $320.00 Current Price is $253.95 Difference: $66.05
If CSL meets the Wilsons target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $298.01, suggesting upside of 17.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 313.86 cents and EPS of 691.19 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 651.2, implying annual growth of N/A.
Current consensus DPS estimate is 264.1, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 39.0.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 329.41 cents and EPS of 732.66 cents.
At the last closing share price the estimated dividend yield is 1.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 645.2, implying annual growth of -0.9%.
Current consensus DPS estimate is 294.8, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 39.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CXL    CALIX LIMITED

Mining Sector Contracting – Overnight Price: $2.20

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

Shaw and Partners raises the target to $3 from $1.20 after recent positive announcements and tailwinds from increasing industry and market focus on CO2 emissions, ESG investing and investment towards cleaner and more energy efficient energy/manufacturing processes.

The broker highlights first half results that showed strong growth in sales and margins and the successful integration of the US acquisition.

Given the large number of near-term value drivers, the analyst maintains the Buy rating.

This report was published on March 15, 2021.

Target price is $3.00 Current Price is $2.20 Difference: $0.8
If CXL meets the Shaw and Partners target it will return approximately 36% (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 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 88.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 2200.00.

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

DSE    DROPSUITE LIMITED

Cloud services – Overnight Price: $0.19

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

Shaw and Partners initiates coverage of cloud-based solutions provider, Dropsuite with a Buy recommendation and a target price of $0.28.

Dropsuite operates in the Backup-as-a-Service (BaaS) market and distributes via its 300-plus Channel Partners to over 430,000 users across North America, Europe and APAC. The company delivered $8.5m in annual recurring revenue (ARR) at December 2020 (up 62.5% YoY or +77.8% YoY constant currency) and plans to propel growth further through extending product functionality and entering new horizontals.

The broker is impressed by Dropsuite’s growth across its suite of key metrics, and notes favourable industry dynamics and product expansion opportunities.

Dropsuite is trading at a historical EV/ARR multiple of 11.7x, which represents a -26.9% discount to the peer group’s latest average historical EV/ARR multiple of 16.0x. However, the broker notes Dropsuite is at an earlier stage of revenue generation and sales cycle conversion than the selected peers.

Shaw and Partners expects Dropsuite to continue investing and reaching profitability by FY22 across an accelerated growth profile.

This report was issue on March 19, 2021

Target price is $0.28 Current Price is $0.19 Difference: $0.09
If DSE meets the Shaw and Partners target it will return approximately 47% (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 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 190.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 95.00.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $12.36

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

Goldman Sachs observes better market conditions across Australian agricultural markets in the last 3 months driven by a bumper winter crop harvest and strong cattle prices.

According to the broker, higher optimism and strong balance sheets are expected to support strong demand for Elders' agribusiness products and services. Earnings forecasts for FY21-FY23 have been upgraded by 0.3-0.9%.

Buy rating is maintained with the target rising to $15 from $13.65.

This report was published on March 16, 2021.

Target price is $15.00 Current Price is $12.36 Difference: $2.64
If ELD meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $12.89, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 28.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.5, implying annual growth of 2.1%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 30.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 2.43%.
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 87.9, implying annual growth of 7.9%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 14.1.

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

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $5.33

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

Canaccord Genuity considers the company as one of the fastest growing global defence contractors that appears to be on the cusp of commercialising new/existing technologies.

The company's core IP stems from its laser technology and accompanying software that is utilised across all divisional segments.

Management reports a tender pipeline of circa $14bn, with around $7bn expected to come up for tender in 2021 and the broker lists numerous potential catalysts in a potentially transformative year. The Buy rating and $8.20 target are unchanged.

This report was published on March 15, 2021.

Target price is $8.20 Current Price is $5.33 Difference: $2.87
If EOS meets the Canaccord Genuity target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 25.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.32.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 35.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.23.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $4.15

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

Evolution Mining will acquire all outstanding shares of Battle North for a total consideration of approximately C$343m or $354m. The company expects the transaction to close in the second quarter subject to some conditions including shareholder approval.

In Goldman Sachs's view, the key driver to the proposed transaction is the milling infrastructure that is central to the production growth plans for Red Lake. The broker has forecast -$250m of growth capex over FY23-24 to expand Red Lake’s total milling capacity to 2mtpa.

Red Lake's production is expected to grow to circa 425kozpa by FY26, led by expanded processing capacity combined with the Upper Campbell decline.

Neutral rating with a target price of $4.50.

This report was published on March 16, 2021.

Target price is $4.50 Current Price is $4.15 Difference: $0.35
If EVN meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $4.66, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 16.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 3.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 40.6%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 18.00 cents and EPS of 32.00 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of -0.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 16.7.

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

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.21

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

The gold development and exploration company released 2020 results in-line with Canaccord Genuity's expectations and declared a maiden fully franked dividend of 1.5c. The company repaid -$130m of its loan facility during 2020 and is now debt-free.

Management reiterated 2021 guidance of 130-150koz at an AISC of $1,225-1,350/oz. The broker highlights the strong organic growth outlook, transparent free cash flow generation and dividend yield, which underpins the Buy rating and target of $2.30.

This report was published on March 12, 2021.

Target price is $2.30 Current Price is $1.21 Difference: $1.09
If GOR meets the Canaccord Genuity target it will return approximately 90% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 2.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.13.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 3.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.

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

GTN    GTN LIMITED

Print, Radio & TV – Overnight Price: $0.47

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

Canaccord Genuity makes only minor changes to forecasts after first half results were in-line with expectations though the outlook cast a downbeat short-term pall, based on the impact of lockdowns.

The broker is optimistic of a return to a positive growth path and notes there were signs in the two quarters preceding the onset of covid-19 disruptions that the business was regaining momentum.

Given a high level of fixed costs, the analyst estimates a mid-single-digit uplift in revenues will translate into double-digit earnings growth and should see the stock regain the former momentum. The Speculative Buy and $0.58 target are unchanged.

This report was published on March 15, 2021.

Target price is $0.58 Current Price is $0.47 Difference: $0.11
If GTN meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.50.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 1.70 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.83.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $6.36

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

Canaccord Genuity states the current share price discount is an opportunity to acquire a cash-generative business with potential exposure to a world-class lithium asset, and strong near-term potential catalysts with the closure of the lithium transaction and sale of Tropicana.

Buy rating remains intact. The unchanged $8.50 target assumes the lithium deal with Tianqi closes.

This report was published on March 15, 2021.

Target price is $8.50 Current Price is $6.36 Difference: $2.14
If IGO meets the Canaccord Genuity target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $6.25, suggesting downside of -1.7%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 21.5, implying annual growth of -18.1%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 29.6.

Forecast for FY22:

Current consensus EPS estimate is 23.3, implying annual growth of 8.4%.
Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 27.3.

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

IMD    IMDEX LIMITED

Mining Sector Contracting – Overnight Price: $1.65

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

Bell Potter deduces a very supportive macro backdrop from a range of indicators that solidify the positive outlook for Imdex’s forward revenues. The Buy rating and $2.20 target are retained.

Noting the company was able to grow margins and earnings despite a benign exploration environment in the first half, the broker suggests operating leverage should be material on the return of revenue growth, given the permanent reductions in operating costs.

This report was published on March 12, 2021.

Target price is $2.20 Current Price is $1.65 Difference: $0.55
If IMD meets the Bell Potter target it will return approximately 33% (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 2.50 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.78.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.70 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.93.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.96

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

Goldman Sachs updates forecasts to include the details of two newly announced acquisitions for $65.9m and lowers FY22 development margins, reflecting the roll-off of higher margin projects. The broker retains the Buy rating and target of $5.80.

The analyst sees the company as well-placed to capitalise on the strong positive structural trends of an ageing population seeking to free up equity for a more comfortable retirement, demand for affordable housing and an increasing propensity to travel domestically.

This report was published on March 12, 2021.

Target price is $5.80 Current Price is $4.96 Difference: $0.84
If INA meets the Goldman Sachs target it will return approximately 17% (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 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.62.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 11.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.57.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.47

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

Metcash's latest update highlights a shift in the company’s strategy to a growth footing. The company also increased its guidance for the dividend payout ratio.

Goldman Sachs puts the spotlight on some positives from the update including management's confidence in the earnings stability of the divisions and the Total Tools acquisition that is being positioned to take advantage of the strong demand profile from the housing cycle.

The Buy rating is unchanged with the target price rising to $4.03 from $3.92.

This report was published on March 17, 2021.

Target price is $4.03 Current Price is $3.47 Difference: $0.56
If MTS meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 12.5%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 19.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.5, implying annual growth of N/A.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 18.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 5.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of -8.2%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 14.8.

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

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Jarden rates ((MTS)) as Overweight (2) –

Jarden notes Metcash's latest update was slightly ahead with hardware and food stronger versus consensus although with higher corporate costs. The broker expects consensus upgrades and is about 4% ahead of consensus estimates.

Metcash's new platform is expected to launch by the end of FY21 and into circa 800 stores by FY25. Also, with -$95m of growth capex over FY22-24 via 8-10 new stores per annum, website enhancement and upgrades, Jarden believes there is a long runway for growth.

No quantitative guidance was given. Overweight rating with a target of $3.70.

This report was published on March 16, 2021.

Target price is $3.70 Current Price is $3.47 Difference: $0.23
If MTS meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 12.5%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY21:

Jarden forecasts a full year FY21 EPS of 26.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.5, implying annual growth of N/A.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 26.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of -8.2%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 14.8.

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

PAR    PARADIGM BIOPHARMACEUTICAL

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.54

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

In an overview for 2021, Bell Potter awaits the submission within the next few weeks of the Investigate New Drug application (IND) for the US clinical program.

Not long after, the company will commence recruitment for two clinical programs. One is in Australia (PAR008) and the second is the phase 3 approval study in the US (PAR002).

The Buy rating is maintained. The target is reduced to $3.15 from $3.36 as forecast milestone income and royalties slated for FY23 have now been pushed out to FY24. 

This report was published on March 12, 2021.

Target price is $3.15 Current Price is $2.54 Difference: $0.61
If PAR meets the Bell Potter target it will return approximately 24% (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 minus 17.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.27.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 18.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.80.

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

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $13.98

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

With in-play betting by US customers expected to increase to 75% from 50% of turnover over the next 3 years, Bell Potter expects the binding agreement to acquire Banach Technology to accelerate and strengthen Pointsbet Holdings’ technology and product roadmap.

Bell Potter highlights the company's key competitive advantage is the breadth and depth of markets offered on sporting events. In the broker's view, the acquisition highlights the importance of customer acquisition and retention with the ability to drive increased in-play betting turnover. 

The broker sees continued momentum for Pointsbet Holdings from more launches in North America driven by the NBC partnership, where strengthening the technology platform and product offering should also enhance customer retention.

Buy rating is maintained with a target price of $20.55.

This report was published on March 17, 2021.

Target price is $20.55 Current Price is $13.98 Difference: $6.57
If PBH meets the Bell Potter target it will return approximately 47% (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 minus 55.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.37.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 43.96.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $5.35

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

Goldman Sachs believes the $1.2bn Australian government package to stimulate domestic tourism demand underpins expectations of a tourism/leisure led recovery in the Australian domestic market.

Historically, flash sales have generated significant peripheral demand for full-fare ticket sales, explains the analyst. The Buy rating and $6.38 target are retained.

This report was published on March 12, 2021.

Target price is $6.38 Current Price is $5.35 Difference: $1.03
If QAN meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $5.79, suggesting upside of 8.2%(ex-dividends)
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 minus 50.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -68.5, 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 FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.2, implying annual growth of N/A.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 17.7.

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

RMY    RMA GLOBAL LIMITED

Real Estate – Overnight Price: $0.29

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

Post a recent pullback in the share price, Bell Potter sees RMA Global trading at a more attractive entry point.

Over the next 12 months, the company will focus on integrating with multiple listing services and large brokerage agreements as a pathway to achieving circa 200,000 US Agents on the platform by the end of 2021.

In the broker's view, this presents an important step in driving organic subscription growth as US Agency groups and RateMyAgent platform form a significant proportion of the overall US agent market and are typically where decision making on expenditure occurs.

Bell Potter upgrades to Buy from Hold with a target price of $0.38.

This report was published on March 18, 2021.

Target price is $0.38 Current Price is $0.29 Difference: $0.09
If RMY meets the Bell Potter target it will return approximately 31% (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 minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.11.

Forecast for FY22:

Bell Potter forecasts a full year FY22 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 24.17.

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

SGH    SLATER & GORDON LIMITED

Legal – Overnight Price: $0.80

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

Moelis initiates coverage on Slater and Gordon with a Buy rating and a target price of $1.02.

Slater and Gordon is an Australian trade union and labour movement law firm that was listed on the ASX in 2007. Moelis notes Slater and Gordon is number one in personal injury legal services with a well-established brand to drive inbound case enquiries.

Also, the company holds the number two position in class actions and has a strong track record and broad expertise with litigation funders. The broker expects this will underpin the future pipeline. Moelis believe these factors will enable the firm to increase market share in both segments over time.

This report was published on March 16, 2021.

Target price is $1.02 Current Price is $0.80 Difference: $0.22
If SGH meets the Moelis target it will return approximately 27% (excluding dividends, fees and charges).

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

SRG    SRG GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.47

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

Even after a good half-year result, Shaw and Partners' valuation for SRG Global has been held back because of weakness in some peer group companies. The broker believes this peer-group weakness is unwarranted given the positive outlook on both mining and asset services in Australia.

Further, the broker highlights SRG’s recovering operational performance with the company continuing to win contracts at record levels. The broker expects the macro outlook to remain strong going ahead across infrastructure, asset services, mining and construction.

Buy Recommendation with the target rising to $0.70 from $0.60.

This report was published on March 17, 2021.

Target price is $0.70 Current Price is $0.47 Difference: $0.23
If SRG meets the Shaw and Partners target it will return approximately 49% (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 2.00 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.16.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 2.50 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.75.

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

VTG    VITA GROUP LIMITED

Telecommunication – Overnight Price: $0.95

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

Cannacord Genuity bemoans the fact that limited insight was provided during the first half results regarding timing for the transition of Vita Group’s Telstra store network to Telstra ((TLS)). Thus, the rating falls to Speculative Buy from Buy and the target to $1.20 from $1.50.

After the transition of the ICT division (housing the Telstra stores) back to Telstra for an expected cash consideration, the broker sees potential for a special distribution. This is considered even more likely given a balance of around $70m in franking credits as at 30 June 2020.

This report was published on March 12, 2021.

Target price is $1.20 Current Price is $0.95 Difference: $0.25
If VTG meets the Canaccord Genuity target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 9.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 9.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.94.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 9.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 9.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.59.

Market Sentiment: 1.0
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: $1.13

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

Vitalharvest Freehold Trust's first half adjusted funds from operations were up 45% year on year to $9.7m. Bell Potter believes the uplift reflected a stronger rent contribution and was achieved despite an additional -$1.2m in professional services expenses.

No formal earnings guidance was provided but the company is positive and expects to be the beneficiary of the on-year citrus season and year to date a continuation of stronger blueberry pricing trends.

Hold rating with the target lifting to $1.08 from $1.

This report was published on March 16, 2021.

Target price is $1.08 Current Price is $1.13 Difference: minus $0.05 (current price is over target).
If VTH meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 2.50 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.82.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.78.

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

WEB    WEBJET LIMITED

Travel, Leisure & Tourism – Overnight Price: $6.07

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

Following an investor presentation focussing on Webjet's Bed banks business, Goldman Sachs notes management’s post-covid expectation of delivering 5% earning (EBITDA) margin (against total travel value), around 100bps ahead of the pre-covid target of 4% of TTV or 50% of revenue.

Webjet is also expected to achieve cost efficiency through systems simplification, the implementation of new ERP and leveraging blockchain technology.

Goldman Sachs' longer term forecasts currently imply only TTV of $3.9bn for the Webbeds business, offering significant upside to the broker’s outlook if the group starts delivering to its aspirational targets.

Regardless, the broker won’t make any changes to earnings forecasts until there’s evidence of a recovery taking shape.

Buy rating, and target price of $7.36.

This report was published on March 18, 2021.

Target price is $7.36 Current Price is $6.07 Difference: $1.29
If WEB meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $5.28, suggesting downside of -12.9%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is -25.9, implying annual growth of N/A.
Current consensus DPS estimate is -0.3, implying a prospective dividend yield of -0.0%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Current consensus EPS estimate is 9.7, implying annual growth of N/A.
Current consensus DPS estimate is 2.6, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 62.6.

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: $3.69

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

Shaw and Partners reiterates a Buy rating and lifts the target price to $5.20 from $5 on confidence the company can deliver on its target of 25-30% of annual recurring revenue (ARR) from North America by FY23. The Buy rating is retained.

The company has completed a $45m capital raise at $3.75 per share to accelerate customer growth and delivery of its product roadmap. The broker now expects earnings (EBITDA) break-even on a run-rate basis in FY23 versus FY22 previously.

Management has affirmed recently upgraded FY21 guidance of annual recurring revenue (ARR) of $53-55.3m, revenue of $49-51m and an earnings loss of -$3.0-$4.5m.

This report was published on March 15, 2021.

Target price is $5.20 Current Price is $3.69 Difference: $1.51
If WSP meets the Shaw and Partners target it will return approximately 41% (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 0.00 cents and EPS of minus 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.77.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.54.

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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