Australian Broker Call *Extra* Edition – Oct 21, 2021

This story features ADACEL TECHNOLOGIES LIMITED, and other companies. For more info SHARE ANALYSIS: ADA

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)

ADA   GUD   MND   NWC   NWS   PDN   PLT   PMV (2)   SFR   TLX (2)   VEE   WBC   WZR  

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $1.28

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

With a $1.50 target price exceeding the prevailing share price by more than 15%, Bell Potter upgrades its rating to Buy from Hold. The announcement of a share buy-back program and a positive update at the AGM in November are considered potential share price catalysts.

Elsewhere, management announced the extension of the company's largest services contract for another 12 years.

This report was published on September 24, 2021.

Target price is $1.50 Current Price is $1.28 Difference: $0.22
If ADA meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.00 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.55.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 6.50 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.07.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.26

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

Wilsons upgrades its rating to Overweight from Market Weight and slightly eases its target price to $11.80 from $11.85. It's thought the recent share price fall, due to the potential impact of cost pressure across raw materials and freight, is overdone.

The analyst believes the company will raise prices in the second half, in a supportive environment for doing so. Wilsons forecasts earnings (EBIT) will fall -6% in FY23 and FY24, and assumes a FY22 price increase, offset by elevated raw material and freight costs.

This report was published on September 24, 2021.

Target price is $11.80 Current Price is $11.26 Difference: $0.54
If GUD meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $12.81, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 59.00 cents and EPS of 73.60 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.7, implying annual growth of 12.9%.
Current consensus DPS estimate is 59.4, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 65.00 cents and EPS of 80.70 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.1, implying annual growth of 9.8%.
Current consensus DPS estimate is 61.1, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 13.6.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $10.08

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

Monadelphous Group has highlighted its FY21 has been defined by a less-productive labour force. Despite the company expanding its workforce by 2,102 workers in the year, per-head productivity was down as access to skilled or specialised labour outside WA was cut off. 

Despite utilising cheaper labour, Jarden noted during the second half of the year the company's revenue per employee decreased but costs were not significantly impacted as more time was required to complete projects, causing noticeable margin headwinds. 

The broker expects this impact will continue into the first half of FY22, but notes margin headwinds persisting beyond the first half is a key risk to investment. 

The Overweight rating and target price of $11.80 are retained. 

This report was published on September 23, 2021.

Target price is $11.80 Current Price is $10.08 Difference: $1.72
If MND meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $10.97, suggesting upside of 5.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 54.90 cents and EPS of 63.70 cents.
At the last closing share price the estimated dividend yield is 5.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.6, implying annual growth of -4.2%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 63.40 cents and EPS of 73.20 cents.
At the last closing share price the estimated dividend yield is 6.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.5, implying annual growth of 29.2%.
Current consensus DPS estimate is 52.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 16.8.

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

NWC    NEW WORLD RESOURCES LIMITED

Mining – Overnight Price: $0.09

Canaccord Genuity rates ((NWC)) as Spec Buy (1) –

Canaccord Genuity believes the recent drilling reports from New World Resources regarding the Antler Copper project in Arizona are high grade. The analyst expects a maiden JORC resource next month.

The Speculative Buy rating and $0.30 price target are maintained.

This report was published on September 22, 2021.

Target price is $0.30 Current Price is $0.09 Difference: $0.21
If NWC meets the Canaccord Genuity target it will return approximately 233% (excluding dividends, fees and charges).

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $32.42

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

News Corporation has announced a $1bn buyback, to commence in early November following first quarter results. Goldman Sachs notes the program includes A and B shares, unlike the previous US$500m program which included only A shares. 

The broker reports additional commentary at the annual conference highlighted that following the company's best year post-separation, momentum remains strong heading into FY22. 

Looking ahead, mergers and acquisitions continue to play a part in News Corp's story, with the company prioritising growth in its Dow Jones, Book Publishing and Digital Real Estate portfolios. 

The Buy rating is retained and the target price increases to $44.50 from $44.30.

This report was published on September 23, 2021.

Target price is $44.50 Current Price is $32.42 Difference: $12.08
If NWS meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $40.00, suggesting upside of 25.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 88.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.1, implying annual growth of N/A.
Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 35.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 102.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 110.4, implying annual growth of 21.2%.
Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 28.9.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $0.93

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

Canaccord Genuity has upgraded its long-term uranium price to US$65/lb. It also increases its Mt Isa valuation to $610m, on a hunch the current ban on uranium mining in Australia will eventually be lifted. The valuation for Michelin in Labrador, Queensland, is also raised.

The analyst believes the company provides the easiest and most liquid way for Australian investors to gain uranium exposure. The target price rises to $1.02 from $0.60 and the Buy rating is maintained.

The report was published on September 22, 2021.

Target price is $1.02 Current Price is $0.93 Difference: $0.09
If PDN meets the Canaccord Genuity target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 87.57.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 699.25.

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

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.35

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

Moelis initiates coverage on Plenti Group, the ASX-listed fintech lender with the largest loan book and highest credit score. The broker expects Plenti Group to re-rate in the next six to nine months as it reaches inflection points, including a $1bn loan book. 

The broker noted medium-term upside to Plenti's valuation given a decline in funding costs to around 3.0% by FY24 is driving improved cash profitability margins, and a diversified product mix well-placed to benefit from post-lockdown demand. 

Additionally the company's lending model is validated by an asset-backed validation deal. The broker noted growth opportunities included ramping up a commercial auto book, which could have a total addressable market of around $15bn. 

The broker initiates with a Buy rating and a target price of $1.93. 

This report was published on September 23, 2021.

Target price is $1.93 Current Price is $1.35 Difference: $0.58
If PLT meets the Moelis target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Moelis forecasts a full year FY22 EPS of minus 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.09.

Forecast for FY23:

Moelis forecasts a full year FY23 EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.29.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $30.94

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

While there are no material changes to Bell Potter's forecasts after FY21 results, risk parameters have improved on a brighter outlook for Smiggle and continued strength in other brands. Thus, the target rises to $31.25 from $26.10 and the rating rises to Buy from Hold.

For the first seven weeks of FY22, total global sales were down -9.5% year-on-year, after lockdown store closures were partially offset by strong online sales and a strong Smiggle Europe, explains the analyst.

This report was published on September 24, 2021.

Target price is $31.25 Current Price is $30.94 Difference: $0.31
If PMV meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $30.20, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 79.90 cents and EPS of 133.50 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 131.2, implying annual growth of -23.3%.
Current consensus DPS estimate is 88.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 23.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 84.10 cents and EPS of 142.30 cents.
At the last closing share price the estimated dividend yield is 2.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.5, implying annual growth of 7.9%.
Current consensus DPS estimate is 101.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.6.

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

---

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

Premier Investments have reported strong FY21 results according to Jarden, with retail earnings before tax of $351.9m an 88% year-on-year increase. 

The broker also noted the company has a long runway for growth and is of the view that the market continues to underestimate the benefit Premier Investments receives from reopening.

Jarden predicts labour costs to rise to 24% of sales, but notes this could be conservative giving continuing online trends.

The Overweight rating and target price of $31.80 are retained. 

This report was published on September 24, 2021.

Target price is $31.80 Current Price is $30.94 Difference: $0.86
If PMV meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $30.20, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 79.00 cents and EPS of 131.80 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 131.2, implying annual growth of -23.3%.
Current consensus DPS estimate is 88.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 23.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 85.00 cents and EPS of 141.30 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.5, implying annual growth of 7.9%.
Current consensus DPS estimate is 101.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.6.

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

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $5.71

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

Following an update on the Motheo copper project, Canaccord Genuity feels exploration results justify either a lift in overall grades or an extension to the mine life beyond 2030. A maiden A4 ore reserve and pre feasability study (PFS) were released.

The PFS confirms the analyst original thoughts that a 5.2Mtpa plant will result in a better long-term outcome with production peaking at 60ktpa.

After the broker makes adjustments to valuation for Motheo and DeGrussa, and allows for suitable capital expenditure, the target price falls to $8.75 from $9.50. The Buy rating is maintained.

This report was published on September 22, 2021.

Target price is $8.75 Current Price is $5.71 Difference: $3.04
If SFR meets the Canaccord Genuity target it will return approximately 53% (excluding dividends, fees and charges).
Current consensus price target is $6.62, suggesting upside of 15.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.10 cents and EPS of minus 5.00 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 114.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.3, implying annual growth of -10.7%.
Current consensus DPS estimate is 25.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 7.2.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.10 cents and EPS of minus 7.00 cents.
At the last closing share price the estimated dividend yield is 0.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 81.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of -61.4%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 18.5.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $5.78

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

Bell Potter is disappointed the review period for the granting of marketing approval for the new drug application (NDA) for Illucix has been extended by 90 days. However, it's noted this is not uncommon in the current environment of covid-induced delays.

While the broker downgrades FY21 and FY22 revenues by -57% and -18%, the long-term impact is thought modest and the price target for Telix Pharmaceuticals remains unchanged at $8. The Hold rating is also maintained.

This report was published on September 24, 2021.

Target price is $8.00 Current Price is $5.78 Difference: $2.22
If TLX meets the Bell Potter target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 18.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.74.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.23.

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

---

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

Wilsons retrains its Overweight rating and target price of $6.75 following a three-month extension from the FDA on their new drug application (NDA) review of Illuccix, Telix Pharmaceuticals' prostate cancer imaging product.

The analyst believes there are no earnings implications. There's not considered to be any variation in Telix Pharmaceuticals' plan to prosecute for Centres for Medicare and Medicaid Services (CMS) reimbursement, commencing in the first quarter of 2022.

This report was first published on September 14, 2021.

Target price is $6.75 Current Price is $5.78 Difference: $0.97
If TLX meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).

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

VEE    VEEM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.11

CCZ Equities rates ((VEE)) as No Rating (-1) –

Veem is raising $8m of capital via a $6m institutional placement and SPP of up to $2m at an offer price of $1.18 per share. The funds will largely be allocated to research and development of gyros (compass) and sales and marketing to drive gyro sales growth.

CCZ Equities expects growth in the gryo segment and increases its FY24 and FY25 revenue forecast by 6% and 10% and increases its valuation range to $1.83-$2.27 from $1.64-$2.06 per share.

The analyst likes the longer-term growth pipeline, especially as the Australian government, under the AUKUS agreement, is pursuing nuclear-powered submarines. This also increases the chances for near-medium term Collins Class fleet upgrades.

This report was published on September 21, 2021.

Current Price is $1.11. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY21:

CCZ Equities forecasts a full year FY21 dividend of 0.68 cents and EPS of 2.26 cents.
At the last closing share price the estimated dividend yield is 0.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.12.

Forecast for FY22:

CCZ Equities forecasts a full year FY22 dividend of 1.14 cents and EPS of 3.81 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.13.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $25.68

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

Bell Potter makes no changes to forecasts and retains its $27.50 target price and Hold rating, after Westpac Bank outlined  its 2021 Environmental, Social and Governance (ESG) measures.

A Customer Outcomes and Risk Excellence (CORE) program has been designed to manage risk on an end-to-end basis, explains the analyst.

This report was published on September 22, 2021.

Target price is $27.50 Current Price is $25.68 Difference: $1.82
If WBC meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $28.37, suggesting upside of 10.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 112.00 cents and EPS of 178.00 cents.
At the last closing share price the estimated dividend yield is 4.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 151.5, implying annual growth of 137.7%.
Current consensus DPS estimate is 108.3, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 17.0.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 124.00 cents and EPS of 184.00 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 183.0, implying annual growth of 20.8%.
Current consensus DPS estimate is 127.2, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.0.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.28

Moelis rates ((WZR)) as Buy (1) –

Moelis reinitiates coverage on Wisr, the fastest growing consumer finance fintech on the ASX. Factors contributing to upside risk include lower funding costs and strong operating margins and a strong lending model guaranteed by an asset-backed securitisation deal. 

Further, Moelis notes a current $432m loan book equates to just a 0.5% share of a more than $90bn consumer finance market, leaving a long runway for growth for Wisr.

The broker reinstates coverage on Wisr with a Buy rating and a target price of $0.43.

This report was published on September 23, 2021.

Target price is $0.43 Current Price is $0.28 Difference: $0.15
If WZR meets the Moelis target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 140.00.

Forecast for FY23:

Moelis forecasts a full year FY23 EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

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.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms