Australian Broker Call *Extra* Edition – Mar 04, 2022

This story features ATLAS ARTERIA, and other companies. For more info SHARE ANALYSIS: ALX

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)

ALX   AVA   BCI   BVS   BWX   CAJ   CSL   CUP   CYG   DSK   GNC   HTG   MTO   NAN   NUC   NXS   PBH   SHV   SIG   SLA (2)  

ALX    ATLAS ARTERIA

Infrastructure & Utilities – Overnight Price: $6.30

Jarden rates ((ALX)) as Buy (2) –

Following the release of FY21 results, Atlas Arteria looks focused on growth opportunities in France. Jarden notes the company should be well placed to win tenders given a track record for major road projects. 

The company also suggested it had gained traction for a restructuring of Dulles Greenway where it aims to adopt a distance-based tolling system. This could lead to an initial toll revenue reduction but the company expects it should be accretive by extending concession term.

The Overweight rating is retained and the target price decreases to $7.20 from $7.25. 

This report was published on March 4, 2022.

Target price is $7.20 Current Price is $6.30 Difference: $0.9
If ALX meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $6.95, suggesting upside of 11.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 36.50 cents and EPS of 40.70 cents.
At the last closing share price the estimated dividend yield is 5.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.6, implying annual growth of 219.9%.
Current consensus DPS estimate is 42.7, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 11.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 40.00 cents and EPS of 52.40 cents.
At the last closing share price the estimated dividend yield is 6.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.1, implying annual growth of 4.6%.
Current consensus DPS estimate is 49.8, implying a prospective dividend yield of 8.0%.
Current consensus EPS estimate suggests the PER is 10.9.

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

AVA    AVA RISK GROUP LIMITED

Hardware & Equipment – Overnight Price: $0.27

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

AVA Risk Group's first half result was mixed given the inclusion of a more than three month benefit from the now divested services division. Canaccord Genuity notes following the sale, the company is a focused security technology business with significant growth opportunity.

The company reported revenue of $20.2m and earnings of $2.2m in the half, in line with the broker's expectations. Expect near-term investor caution given delays in key initiatives, says the broker, but long-term opportunity suggests significant revenue and earnings growth.

The Buy rating is retained and the target price decreases to $0.33 from $0.54. 

This report was published on March 3, 2022.

Target price is $0.33 Current Price is $0.27 Difference: $0.06
If AVA meets the Canaccord Genuity target it will return approximately 22% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 1.00 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.50.

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

BCI    BCI MINERALS LIMITED

Iron Ore – Overnight Price: $0.38

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

First half earnings (EBITDA) and the loss of -$5.5m for BCI Minerals were a beat versus Bell Potter's forecasts. This was due to lower-than-expected exploration and evaluation expenses relating to predevelopment at the Mardie Salt and sulphate of potash (SOP) project.

In addition, for the portfolio of iron ore tenements, there were lower benchmark iron ore prices, increased price volatility and widening grade discounts, explains the analyst.

The broker makes no material changes to forecasts and retains its Buy rating and $0.63 target.

This report was published on March 4, 2022.

Target price is $0.63 Current Price is $0.38 Difference: $0.25
If BCI meets the Bell Potter target it will return approximately 66% (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 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.22.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.14.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $1.72

Jarden rates ((BVS)) as Upgrade to Buy from Underweight (1) –

Bravura Solutions has issued a downgrade to full year net profit guidance, down -18-32% to $25-30m. Jarden attributes the decline to elevated demand for IT staff driving wage inflation and thus contracting margins. 

Expect capital expenditure of $11.6m in the second half to be a peak, with costs projected to decrease in FY23. Jarden anticipates 11% revenue growth in the second half, noting flow through from clients is benefiting top-line growth. 

Jarden suggests here is a value opportunity following a share price sell-off. The rating is upgraded to Buy from Underweight and the target price decreases to $2.55 from $2.65. 

This report was published on February 28, 2022.

Target price is $2.55 Current Price is $1.72 Difference: $0.83
If BVS meets the Jarden target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 6.90 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.78.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 8.00 cents and EPS of 12.40 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.87.

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

BWX    BWX LIMITED

Household & Personal Products – Overnight Price: $2.40

Jarden rates ((BWX)) as Buy (2) –

A big miss from BWX's first half result has disappointed Jarden, with net revenue of $106.9m compared to the broker's forecast $115.2m. Segmentally Sukin and Andalou sales grew just 4.3% and 5.5% respectively.

First half results have driven Jarden to reduce its full year earnings estimate -13.5% to $41.3m, and anticipates a transition period through to FY23 before earnings improvement in FY24.

The Overweight rating is retained and the target price decreases to $2.74 from $4.30.

This report was published on February 28, 2022.

Target price is $2.74 Current Price is $2.40 Difference: $0.34
If BWX meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $5.40, suggesting upside of 127.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 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 16.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of -22.1%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 12.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 27.8%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 13.9.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.36

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

Wilsons nominates Capital Health as a clear winner within the Healthcare sector from the recent reporting season.

The broker previously upgraded its rating to Overweight from Market Weight and lifted its target by 14% to $0.40 after a 30% lift in statutory profit.

The company is a prospective takeover target, in the analyst's view, now that the radiology network has been stabilised, integrated and returned to growth. It's estimated the stock is trading at multiples below unlisted asset pricing.

This report was published on March 4, 2022.

Target price is $0.40 Current Price is $0.36 Difference: $0.04
If CAJ meets the Wilsons target it will return approximately 11% (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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $257.50

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

In a review of Wilsons stocks under coverage in the Healthcare sector, CSL's 1H result was considered a standout. It's felt the 1H
will likely be the nadir for IG/albumin supply with the scale, scope and efficiency of collection appearing to be recovering.

Should plasma collection costs remain structurally higher, the analyst feels CSL’s position as the lowest cost producer will redouble.

This is expected by the broker on the back of HIZENTRA and the low-volume, high-value proteins (KCENTRA,HAEGARDA). In addition, the recombinants (IDELVION) and the pipeline (CSL112) will contribute. The $350 target and Overweight rating are kept.

This report was published on March 4, 2022.

Target price is $350.00 Current Price is $257.50 Difference: $92.5
If CSL meets the Wilsons target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $317.42, suggesting upside of 24.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 296.54 cents and EPS of 647.12 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 674.3, implying annual growth of N/A.
Current consensus DPS estimate is 290.9, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 37.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 356.52 cents and EPS of 811.57 cents.
At the last closing share price the estimated dividend yield is 1.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 811.3, implying annual growth of 20.3%.
Current consensus DPS estimate is 346.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 31.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CUP    COUNTPLUS LIMITED

Commercial Services & Supplies – Overnight Price: $0.75

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

While Wilsons was encouraged by underlying momentum after assessing 1H results for Countplus, the rating is lowered to Market Weight from Overweight.

This comes after the surprise departure of previous CEO, Matthew Rowe, and the uncertainty created around future strategy, explains the analyst. As a result, the target falls to $0.78 from $1.60 after applying a discount to valuation. No guidance was provided.

This report was published on March 4, 2022.

Target price is $0.79 Current Price is $0.75 Difference: $0.04
If CUP meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 2.90 cents and EPS of 4.90 cents.
At the last closing share price the estimated dividend yield is 3.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.31.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 3.60 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

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

CYG    COVENTRY GROUP LIMITED

Hardware & Equipment – Overnight Price: $1.54

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

Coventry Group's first half result was a little softer than expected by Bell Potter, with earnings of $7.3m up 4.3% on the previous comparable period but missing the mark on the broker's forecast $7.9m. 

Labour mobility and cost pressures continue to impact on margins, which declined to 9.8% from 12.1% in the previous half. The broker considers Konnect and Arteria Australia to be the main drivers of value for shareholders, delivering a $1.6m earnings benefit in the half. 

The Buy rating is retained and the target price decreases to $2.00 from $2.05.

This report was published on March 3, 2022.

Target price is $2.00 Current Price is $1.54 Difference: $0.46
If CYG meets the Bell Potter target it will return approximately 30% (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 3.60 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 3.60 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.

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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $2.64

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

Dusk has announced the termination of its conditional agreement to acquire Eroma given noncompliance with conditions. Canaccord Genuity removes the earnings benefits previously included in forecasts. 

The reversal of forecast earnings benefits equates to a -$3m and -10% reduction to earnings forecast in FY22, and a -$8m and -23% decline in FY23.

The Buy rating is retained and the target price decreases to $2.73 from $3.30.

This report was published on March 3, 2022.

Target price is $2.73 Current Price is $2.64 Difference: $0.09
If DSK meets the Canaccord Genuity target it will return approximately 3% (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 20.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 7.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.15.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 21.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 7.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.78.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $8.70

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

In commentary on the global wheat market, Bell Potter notes spot and future pricing looks to benefit as the global market factors in a likely yield loss from Ukraine wheat supply as the Russian-Ukraine crisis escalates, with price rises positive for GrainCorp.

 With Ukraine producing 24-33m tonnes of wheat annually, equating to 3-4% of global supply, and exporting around 16-24m tonnes each year, a void in global supply has driven price rallies. 

The broker highlights US wheat pricing increased 20% in the past week, and forward prices are elevated into early 2023. 

A 20% lift in grain prices could equate to a $13-17m net profit benefit to GrainCorp. The Sell rating and target price of $6.70 are retained with the broker pointing out ultimately today's tailwinds will turn into headwinds.

This report was published on March 3, 2022.

Target price is $6.70 Current Price is $8.70 Difference: minus $2 (current price is over target).
If GNC meets the Bell Potter target it will return approximately minus 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.25, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 35.00 cents and EPS of 119.90 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 116.5, implying annual growth of 91.1%.
Current consensus DPS estimate is 43.7, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 7.4.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 22.00 cents and EPS of 72.80 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.2, implying annual growth of -43.2%.
Current consensus DPS estimate is 42.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.1.

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

HTG    HARVEST TECHNOLOGY GROUP LIMITED

Hardware & Equipment – Overnight Price: $0.16

Moelis rates ((HTG)) as Buy (1) –

Harvest Technology Group's reported first half revenue of $0.8m disappointed Moelis' forecast of $1.7m, but more positively the company signed key seller agreements with Inmarsat and Speedcast during the half. 

Seller agreements are a key to achieving a targeted 1,000 licenses by year end, which Moelis anticipates will be met. The broker expects an acceleration of license agreements signed in coming months, with the target implying annual recurring revenue of $12m. 

Revenue forecast for FY22 reduces -$1.7m to reflect first half results. The Buy rating is retained and the target price decreased to $0.28 from $0.40. 

This report was published on March 2, 2022.

Target price is $0.28 Current Price is $0.16 Difference: $0.12
If HTG meets the Moelis target it will return approximately 75% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.55.

Forecast for FY23:

Moelis forecasts a full year FY23 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 80.00.

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

MTO    MOTORCYCLE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $3.07

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

Wilsons spotted a solid first half result from MotorCycle Holdings despite lockdown impacts, with earnings largely in line with the previous comparable period.

Inventory levels improved but demand remains strong, and Wilsons expects margins to remain elevated through 2022 as a result. 

Sales were up 8% on the previous comparable period driven by strong new and used bike sales. Wilsons updates its earnings forecasts -3% in FY22 and 15% in FY23.

The Market Weight rating is retained and the target price increases to $3.13 from $2.73.

This report was published on February 28, 2022.

Target price is $3.13 Current Price is $3.07 Difference: $0.06
If MTO meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 23.50 cents and EPS of 40.20 cents.
At the last closing share price the estimated dividend yield is 7.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.64.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 23.50 cents and EPS of 39.80 cents.
At the last closing share price the estimated dividend yield is 7.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.71.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $4.24

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

In a review of stocks under coverage in the Healthcare sector following the February reporting season, Wilsons reiterates the belief that the recent sales model change for Nanosonics is without controversy, despite market skepticism.

Having transitioned from the GE Healthcare agreement, the broker believes the company is set to capture more of the Trophon-2 upgrade cycle at a higher average selling price. The Overweight rating and $7 target are unchanged.

This report was published on March 4, 2022.

Target price is $7.00 Current Price is $4.24 Difference: $2.76
If NAN meets the Wilsons target it will return approximately 65% (excluding dividends, fees and charges).
Current consensus price target is $4.34, suggesting upside of 6.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 223.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.0, 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 FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 94.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 99.3.

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

NUC    NUCHEV PTY LIMITED

Dairy – Overnight Price: $0.43

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

Nuchev's first half result was largely in line, reporting sales of $5.2m, down -4% on the previous comparable period, and an earnings loss of -$6.6m. Wilsons notes improved average selling price, expanded domestic range and daigou momentum are all positives.

Guidance was not provided by the company, but the company will benefit from continued growth in consumer offtake through Coles ((COL)), while the Oli6 infant formula will be available at 450 Woolworths ((WOW)) locations from May. 

The Market Weight rating is retained and the target price decreases to $0.44 from $0.56.

This report was published on March 1, 2022.

Target price is $0.44 Current Price is $0.43 Difference: $0.01
If NUC meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 13.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.26.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.52.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.91

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

FY21 sales for Next Science were just a -2% miss versus Wilsons forecast. Meanwhile, an earnings (EBITDA) loss was steeper than estimated due to a lower gross margin.

Additionally, selling general and administrative expenses were more than estimated by the analyst as the company invested in market development and R&D activities to support XPerience and BlastX.

The broker maintains its Overweight rating, while the target falls to $1.80 from $2.00 following a recent institutional placement.

This report was published on March 4, 2022.

Target price is $1.80 Current Price is $0.91 Difference: $0.89
If NXS meets the Wilsons target it will return approximately 98% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.31 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.10.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.62 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.28.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $4.35

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

PointsBet Holdings delivered 83% sales growth in the first half to $138m and an earnings loss of -$126m, with results weaker than anticipated by Goldman Sachs.The miss was largely attributed to higher corporate costs. 

iGaming should launch in Pennsylvania in March, before Sports Wagering and iGaming launch in Ontario in April, with a further seven state launches targeted by end of 2022. Roll out costs see the broker reduce earnings per share forecasts -3%, -2% and -16% through to FY24. 

The Buy rating is retained and the target price decreases to $6.74 from $9.97.

This report was published on March 2, 2022.

Target price is $6.74 Current Price is $4.35 Difference: $2.39
If PBH meets the Goldman Sachs target it will return approximately 55% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 95.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.58.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 87.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.00.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $5.45

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

Whlie Select Harvests has warned of continued subdued almond market conditions and elevated costs, Bell Potter does expect pricing recovery ahead. 

Growing costs are expected to be flat year-on-year, higher than anticipated by the broker, while low almond pricing has Select Harvests product at around $6.00-6.20 per kilogram compared to a long-term average of $7.70 per kilogram.

The Buy rating is retained and the target price decreases to $6.85 from $7.10.

This report was published on March 3, 2022.

Target price is $6.85 Current Price is $5.45 Difference: $1.4
If SHV meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 8.00 cents and EPS of 21.10 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.83.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 12.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.17.

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

SIG    SIGMA HEALTHCARE LIMITED

Health & Nutrition – Overnight Price: $0.50

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

Sigma Healthcare upgraded full year guidance, expecting earnings growth of 10-15% on the previous comparable period compared to prior guidance of a -10% decline. Shaw and Partners notes rapid antigen test sales drove the increase. 

The company benefited from a sudden increase in demand for the diagnostic tool in the month leading up to its financial year close. Shaw and Partners notes a profit loss of -$5-10m is still expected for the year, with results to be released in late March. 

The Buy rating and target price of $0.60 are retained. 

This report was published on March 3, 2022.

Target price is $0.60 Current Price is $0.50 Difference: $0.1
If SIG meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $0.51, suggesting upside of 2.0%(ex-dividends)
The company's fiscal year ends in January.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1.00 cents and EPS of 3.00 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.1, implying annual growth of -15.8%.
Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1.30 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.1, implying annual growth of 19.6%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 8.2.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $3.55

Jarden rates ((SLA)) as Buy (1) –

First half earnings (EBITDA) for Silk Laser Australia beat Jarden's estimate by more than 29% due to lower-than-expected employee, marketing and other expenses.

While the analyst notes a positive trading update for the first eight weeks of the 2H, concerns remain over covid impacts on the Western Australian company-owned stores after the mid-March border reopening. The target slips to $5.97 from $6.10. Buy.

Interestingly, management noted the potential for an international expansion, which could be run in parallel with a clinic rollout program in Australia.

This report was published on March 4, 2022.

Target price is $5.97 Current Price is $3.55 Difference: $2.42
If SLA meets the Jarden target it will return approximately 68% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.32.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 26.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

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

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

Wilsons nominates Silk Laser Australia as a clear result winner within the Healthcare sector from the recent reporting season. 

The broker previously maintained its Overweight rating and $5.25 target price after 1H results showed strong 7% like-for-like
growth across their combined Silk and ASC/TCC networks. 

In September 2021, the company acquired the Australian Skin Clinics and The Cosmetic Clinic in New Zealand.

Three days earlier, on March 3, Wilsons reported Silk Laser delivered a strong first half result in challenging trading conditions, with the company delivering 7% group like-for-like growth. Revenue of $40.5m was up 32% on the previous comparable period and a 28% forecast beat.

Segmentally, Australian Skin Clinic locations, more exposed to covid lockdowns, saw a strong rebound of 15% like-for like growth while Silk Laser locations reported 2% like-for-like growth. Looking ahead, the company's e-commerce platform will launch in March.

The Overweight rating and target price of $5.25 are retained.

This report was published on March 4, 2022.

Target price is $5.25 Current Price is $3.55 Difference: $1.7
If SLA meets the Wilsons target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 17.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.52.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 23.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.17.

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

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