Australian Broker Call *Extra* Edition – Apr 12, 2021

This story features ATRUM COAL LIMITED, and other companies. For more info SHARE ANALYSIS: ATU

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)

ATU   BCB   BOE   CLX   CSX (2)   CXL   GNG   IMM   JYC   LEG   LYL   MAD   MMI   MYX   MZZ   PBH   STN   SVM   TIE   VMT   WEB   YOJ  

ATU    ATRUM COAL LIMITED

Coal – Overnight Price: $0.07

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

The Alberta government has formed a five-person committee to review the state's coal policy. There will be an online survey open until April 19, which will help the committee design the engagement process and later provide the Minister of Energy with a report.

The broker keeps the Buy recommendation and the recently revised $0.30 price target. It's acknowledged investors have the dilemma of either worthless stock or exposure to one of the best undeveloped coking coal assets in the world. 

This report was published on April 1, 2021.

Target price is $0.30 Current Price is $0.07 Difference: $0.23
If ATU meets the Shaw and Partners target it will return approximately 329% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.04.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 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 2.92.

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

BCB    BOWEN COKING COAL LTD

Coal – Overnight Price: $0.07

Euroz Hartleys rates ((BCB)) as Speculative Buy (2) –

Euroz Hartleys calculates the market is attributing little value to the low capex, early production option at Isaac River or the large “company maker” resource of 177Mt at Cooroorah. 

In addition, the broker believes the expedition of commercialisation via third party infrastructure agreements presents a material near-term catalyst. The Speculative Buy rating is maintained and the target lowered to $0.15 from $0.18.

The analyst explains recent drilling has extended the Broadmeadow East Coking Coal Project Measured Resource (JORC resource estimate of 33m tonnes) beyond the southern boundary.

This report was published on March 21, 2021.

Target price is $0.15 Current Price is $0.07 Difference: $0.08
If BCB meets the Euroz Hartleys target it will return approximately 114% (excluding dividends, fees and charges).

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) –

Shaw and Partners updates Boss Resources' forecasts after binding agreements to purchase 1.25mlbs of uranium on the spot
market at a weighted average price of US$30.15/lb. The acquisition is to be funded by a $60m share placement at 14 cents.

The broker believes the strategic uranium inventory provides benefits including a slightly enhanced financial position to support the planned re-start of the Honeymoon Uranium project and increased flexibility in project funding and offtake negotiations with customers.

In addition, the analyst highlights increased leverage to a potential appreciation of the spot uranium price. The Buy rating and $0.17 target are maintained.

This report was published on April 1, 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 0.30 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

CLX    CTI LOGISTICS LIMITED

Transportation & Logistics – Overnight Price: $0.86

Euroz Hartleys rates ((CLX)) as Initiation of coverage with Speculative Buy (2) –

Euroz Hartleys assesses first half results were robust with $17.8m in underlying earnings (EBITDA) exceeding forecasts largely due to  stronger than expected margins in the Transport and Logistics segments. Speculative Buy recommendation and $0.94 target price.

The company reduced net debt by -$7.9m to $28.7m and declared a 2 cent fully franked dividend for the half.

If the company can deliver on the broker's earnings forecasts, the stock is expected to trade up. However, it's expected margins will normalise in FY22 and beyond, in anticipation of abnormal covid-19 operating conditions easing.

This report was published on March 2, 2021.

Target price is $0.94 Current Price is $0.86 Difference: $0.08
If CLX meets the Euroz Hartleys target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 2.50 cents and EPS of 6.08 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 2.40 cents and EPS of 3.81 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.57.

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

CSX    CLEANSPACE HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $2.01

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

Bell Potter downgrades the target price to $2.28 from $6.75 after the third quarter FY21 trading update significantly missed expectations with revenues of $7m versus the $15m forecast.

The installed base growth of around 5,000 versus the broker's estimate of 10,000 units has current and downstream ramifications for earnings, given ongoing consumables sales components.

The broker now argues there's a high level of uncertainty as to whether the hospital installed base sales will return, and if so, when and to what extent, as resources have been diverted to vaccine rollout programs.

Hold rated and Bell Potter sees limited downside from current levels.

This report was published on April 1, 2021.

Target price is $2.28 Current Price is $2.01 Difference: $0.27
If CSX meets the Bell Potter target it will return approximately 13% (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 14.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.58.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.68.

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

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

Wilsons downgrades the rating to Market Weight from Overweight and slashes the target price down to $2 from $7.50. This comes after a trading update revealed revenue of around $7m for the third quarter which is materially below the broker's forecast of $18m.

While US healthcare market disruption is an explanatory factor, the main issue is that the business is being required to change sooner than anticipated and more publicly than is helpful, explains the analyst.

Independent research shows positive potential demand for the company's HALO in the US though it also reveals certain challenges. These include channel access and long lead times on adoption in the absence of a Joint Commission or other mandated guidelines.

Consistent execution and improved transparency should see this valuation discount unwind, reassures the analyst.

This report was published on April 1, 2021. 

Target price is $2.00 Current Price is $2.01 Difference: minus $0.01 (current price is over target).
If CSX meets the Wilsons target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 16.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.41.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.22.

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: $2.32

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

Calix has achieved a key FY21 milestone, according to Canaccord Genuity, by announcing a heads of agreement with Adbri ((ABC)) for the co-development of a Calix Flash Calciner (CFC) for lime production with CO2 capture.

The broker sees this as a significant step towards commercialisation of the company's technology in the greater than $1bn lime market, as well as materially lifting technology readiness for the larger cement market. Buy rated with the target price increasing to $2.60 from $2.50.

This report was published on April 1, 2021.

Target price is $2.60 Current Price is $2.32 Difference: $0.28
If CXL meets the Canaccord Genuity target it will return approximately 12% (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 773.33.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.48.

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

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $1.26

Euroz Hartleys rates ((GNG)) as Speculative Buy (2) –

First half profit (NPAT) of $8.4m was greater than Euroz Hartleys' expection of $6.9m and the DPS of 5 cents was greater than the 4 cent forecast. Normalised earnings (EBITDA) were similar to the broker's estimate. 

Euroz Hartleys recently increased earnings estimates meaningfully and strong industry tailwinds suggest further upgrades are possible throughout the year. An emerging resources boom in construction, and industry rationalisation are considered positives.

Additionally, there is a potentially significant shortage of engineering, procurement and construction (EPC) capability and an urgency to get projects into production, explains the broker. Speculative Buy rating is maintained with a $1.75 target.

This report was published on March 21, 2021.

Target price is $1.75 Current Price is $1.26 Difference: $0.49
If GNG meets the Euroz Hartleys target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 10.00 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 7.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.25.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 10.50 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 8.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.34.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.46

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

After positive results from a recent Bristol Myers Squibb trial, Bell Potter feels Immutep has received validation for LAG-3. The broker sees LAG-3 emerging as the next big immuno oncology (IO) checkpoint.

The company is the leader in LAG-3 development and the only one exploring its utility as both an immune activator and an antagonist. The analyst expects to see increased investor and partner interest emerging for the stock.

The Buy (Speculative) rating is retained and the target price increases to $0.75 from $0.65. The stock remains Bell Potter's key stock pick for the year.

This report was published on April 1, 2021.

Target price is $0.75 Current Price is $0.46 Difference: $0.29
If IMM meets the Bell Potter target it will return approximately 63% (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 6.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.54.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.20.

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

JYC    JOYCE CORPORATION LTD

Furniture & Renovation – Overnight Price: $2.31

Euroz Hartleys rates ((JYC)) as Speculative Buy (2) –

First half results exceeded Euroz Hartleys' expectations with $3.2m normalised profit (NPAT) versus the $1.8m estimate after Joyce Corp delivered strong earnings growth. Speculative Buy rating with an upgraded $3.15 price target.

Both KWB Group (owners of the Wallspan brand) and Bedshed reported robust operating conditions, delivering strong uplifts in revenue and margins, explains the broker. 

The analyst is cautiously optimistic towards the full year result with strong operating conditions continuing and beyond that sees substantial long-term organic growth potential in the business.

The report was first published on March 3 , 2021.

Target price is $3.15 Current Price is $2.31 Difference: $0.84
If JYC meets the Euroz Hartleys target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 15.00 cents and EPS of 21.50 cents.
At the last closing share price the estimated dividend yield is 6.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.74.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 15.00 cents and EPS of 21.40 cents.
At the last closing share price the estimated dividend yield is 6.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.79.

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

LEG    LEGEND MINING LIMITED

Nickel – Overnight Price: $0.13

Euroz Hartleys rates ((LEG)) as Speculative Buy (2) –

Euroz Hartleys believes the Mawsons story is catalyst rich with a large and growing footprint auguring well for the next major discovery. Early metallurgical testwork is considered to look exceptional with high recoveries.

The analyst believes Mawson has deep plumping architecture and the hallmarks of the great nickeliferous provinces discovered globally. The Speculative Buy rating and $0.30 target are retained.

This report was published on March 21, 2021.

Target price is $0.30 Current Price is $0.13 Difference: $0.17
If LEG meets the Euroz Hartleys target it will return approximately 131% (excluding dividends, fees and charges).

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

LYL    LYCOPODIUM LIMITED

Mining Sector Contracting – Overnight Price: $5.55

Euroz Hartleys rates ((LYL)) as Buy (1) –

Half year results were in-line with Euroz Hartleys' expectations. With the completion of Yaoure in December, margins were considered to remain strong with profit (NPAT) at 8.8%.

The broker sees an emerging engineering, procurement and construction management (EPC/EPCM) boom with the roll-out of covid-19 vaccines globally and expects projects, which were previously delayed, to be greenlit.

This outlook is supported by strong gold prices and record iron ore demand which is expected through to FY22, explains the analyst. Buy rated with a $6.62 target price.

This report was published on March 21, 2021.

Target price is $6.62 Current Price is $5.55 Difference: $1.07
If LYL meets the Euroz Hartleys target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 19.90 cents and EPS of 30.20 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.38.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 24.80 cents and EPS of 38.20 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 14.53.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $0.96

Euroz Hartleys rates ((MAD)) as Speculative Buy (2) –

Mader Group has reported half year results broadly in-line with Euroz Hartleys expectations. In general, margins were a little better than the broker had forecast and the second quarter earnings (EBITDA) margin was 12.6%, up from 10.5% the prior quarter.

The analyst finds no reason to amend the Speculative Buy rating or target of $1.21 despite a robust outlook including continuing growth in Australia and North America. Also, previously pandemic affected regions are positioned to return to previous growth rates.

The analyst highlights Australia has significant levels of unfilled customer demand, there are large addressable markets in the US and the company is targeting re-entry into the rest-of-world markets.

This report was published on March 21, 2021.

Target price is $1.21 Current Price is $0.96 Difference: $0.25
If MAD meets the Euroz Hartleys target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 3.00 cents and EPS of 9.29 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.33.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 3.00 cents and EPS of 10.66 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.01.

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

MMI    METRO MINING LIMITED

Coal – Overnight Price: $0.06

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

After closing operations at Bauxite Hills due to the pandemic in early in September 2020 (it usually closes each year from January-April due to the wet season), mining will restart on April 19, 2021. 

Management announced it is targeting production of 4mt in 2021 versus 2.5mt in 2020. The Buy rating and $0.15 target are unchanged. The analyst believes that once new contracts are announced, the share price is likely to trade towards the target price.

Shaw and Partners understands the company is in discussions with a new alumina refinery in China that could underwrite the already funded expansion to 6mt.

This report was published on April 1, 2021.

Target price is $0.15 Current Price is $0.06 Difference: $0.09
If MMI meets the Shaw and Partners target it will return approximately 150% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.22.

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

MYX    MAYNE PHARMA GROUP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.43

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

Bell Potter upgrades the rating for Mayne Pharma Group to Buy from Hold and raises the target price to $0.56 from $0.33, as earnings are now amended to include Nextstellis revenues. The broker anticipates FDA approval of Nextstellis in coming weeks.

The potential earnings impact from this new generation combined hormonal contraceptive (CHC) is material and first revenues are expected before 30 June 2021, explains the analyst. Most of the value is expected to accrue after FY22, as market penetration increases.

This report was published on April 1, 2021.

Target price is $0.56 Current Price is $0.43 Difference: $0.13
If MYX meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $0.35, suggesting downside of -19.2%(ex-dividends)
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 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.8, 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 FY22:

Bell Potter 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 30.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, 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 86.0.

Market Sentiment: 0.0
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: $0.33

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

Shaw and Partners believes Matador Mining provides very cheap exposure to an exciting new gold exploration province, after the Canadian miner Marathon Gold released an update for its nearby project. The project is on Cape Ray Shear in Newfoundland.

This area is very lightly explored and Matador Mining has identified 33 new gold targets and will drill the 12 highest priority targets in 2021, explains the analyst. The Buy rating and $0.80 target are unchanged.

This report was published on April 1, 2021.

Target price is $0.80 Current Price is $0.33 Difference: $0.47
If MZZ meets the Shaw and Partners target it will return approximately 142% (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 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.68.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.31.

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

PBH    POINTSBET HOLDINGS LTD

Gaming – Overnight Price: $13.95

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

Goldman Sachs initiates coverage on PointsBet Holdings with a Buy rating and a target price of $17.50.

PointsBet Holdings is a sports wagering operator and iGaming provider that offers innovative digital gaming products via its proprietary, scalable cloud-based platform in Australia and the US.

With only 3 years of operations under its belt in Australia, the company has been able to deliver positive operating income while making inroads into the rapidly growing US sports betting market since 2019.

Goldman Sachs considers PointsBet well-placed to carve out a niche for itself in the US sports betting market, which the broker expects to reach US$39bn at maturity.

The broker remains bullish on the US total addressable market opportunity ahead and PointsBet given its exposure to growth opportunities in the US and upside from adjacent/cross selling along with scalability benefits over time.

This report was published on March 30, 2021.

Target price is $17.50 Current Price is $13.95 Difference: $3.55
If PBH meets the Goldman Sachs target it will return approximately 25% (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 minus 76.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.36.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 57.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.47.

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

STN    SATURN METALS LIMITED

Overnight Price: $0.42

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

Recent drill intercepts at the Apollo Hill Gold project are showing significantly higher grades and provide strong encouragement that Apollo Hill will be commercial, assesses Shaw and Partners.

The results suggest to the broker grade control during mining operations may see averaged delivered grade to the mill exceed the initial resource grade. The Buy rating and $0.87 target price are unchanged.

This report was published on April 1, 2021.

Target price is $0.87 Current Price is $0.42 Difference: $0.45
If STN meets the Shaw and Partners target it will return approximately 107% (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 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.11.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.00.

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

SVM    SOVEREIGN METALS LTD

Rare Earth Minerals – Overnight Price: $0.56

Euroz Hartleys rates ((SVM)) as Buy (1) –

Euroz Hartleys expects the maiden resource in April for the Kasiya project located in Malawi. The broker has previously suggested the deposit could be around 200mt at circa 1% rutile.

The analyst's ‘back of the envelope’ estimates envisage margins of greater than US$700/t could be achieved, implying earnings (EBITDA) of greater than US$110m or more than US$150m per year for over 15 years.

This report was published on March 21, 2021.

Target price is $0.60 Current Price is $0.56 Difference: $0.04
If SVM meets the Euroz Hartleys target it will return approximately 7% (excluding dividends, fees and charges).

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

TIE    TIETTO MINERALS LTD

Gold & Silver – Overnight Price: $0.34

Euroz Hartleys rates ((TIE)) as Buy (1) –

According to Euroz Hartleys, Tietto Minerals remains well-funded to complete development studies for its flagship Abujar Gold Project
in Côte d’Ivoire. The imminent pre feasability study (PFS) will provide maiden reserves and the key operating framework for the project.

The broker sees potential for an open pit operation producing on average 149kozpa at an all-in sustaining cost (AISC) of circa US$816/oz over the life of mine (LOM). The analyst maintains a Speculative Buy and $0.70 price target.

This report was published on March 21, 2021.

Target price is $0.70 Current Price is $0.34 Difference: $0.36
If TIE meets the Euroz Hartleys target it will return approximately 106% (excluding dividends, fees and charges).

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

VMT    VMOTO LIMITED

Automobiles & Components – Overnight Price: $0.44

Euroz Hartleys rates ((VMT)) as Buy (1) –

Unaudited preliminary final results exceeded Euroz Hartleys' forecasts and were considered strong across the board. The broker notes the growth in gross profit margins appears to be a reflection of the operating leverages within “Vmoto Soco”.

After the company’s largest B2B order from strategic partner Greenmo Group in early FY21, the broker looks for a step change in unit
sales through FY21. The company is expected to benefit from less lockdowns across Europe and the continued transition to E-vehicles.

The analyst highlights the launch of a range of three new vehicles in late February which should be well received. The Buy rating is retained and the target increased to $0.78 from $0.70.

This report was published on March 3, 2021.

Target price is $0.78 Current Price is $0.44 Difference: $0.34
If VMT meets the Euroz Hartleys target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Euroz Hartleys forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.27 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.38.

Forecast for FY22:

Euroz Hartleys forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29.

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: $5.40

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

Webjet has issued $250m worth of convertible notes with a coupon of 0.75% along with a conversion invitation to the holders of the EUR100m convertible note issued in July last year.

Goldman Sachs notes if the holders choose to exercise this invitation, they will be converting their share and also receive a cash settlement equivalent to 21.6% of the face value of the note.

The broker highlights while the new convertible notes will likely be dilutive to equity shareholders in the future, they are currently out of the money. 

Buy rating with the target dropping to $7 from $7.36.

This report was published on April 5, 2021.

Target price is $7.00 Current Price is $5.40 Difference: $1.6
If WEB meets the Goldman Sachs target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $5.28, suggesting downside of -2.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 26.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.77.

How do these forecasts compare to market consensus projections?

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 -0.1%.
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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 180.00.

How do these forecasts compare to market consensus projections?

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 0.5%.
Current consensus EPS estimate suggests the PER is 55.7.

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

YOJ    YOJEE LIMITED

Software & Services – Overnight Price: $0.13

Euroz Hartleys rates ((YOJ)) as Speculative Buy (2) –

After a recent December quarter update, Euroz Hartleys sees significant transaction volume growth in coming quarters from recent and coming rollouts. Management notes a strong pipeline of additional opportunities to expand existing agreements and sign new ones. 

The broker maintains a Speculative Buy recommendation and $0.50 price target. The quarter finished with a total of 8 signed enterprise clients, 4 of which are live and transacting, details the analyst.

This report was published on March 21, 2021.

Target price is $0.50 Current Price is $0.13 Difference: $0.37
If YOJ meets the Euroz Hartleys target it will return approximately 285% (excluding dividends, fees and charges).

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

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As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

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