Australian Broker Call *Extra* Edition – Aug 03, 2022

This story features AROA BIOSURGERY LIMITED, and other companies. For more info SHARE ANALYSIS: ARX

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)

ARX   CSR   CTD   DTC   EML   IDX (2)   IFL   IRE   LPD   MCR   NTO (2)   SOM  

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.89

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

Aroa Biosurgery announced 1Q23 results with cash flows coming in-line with forecasts from Wilsons.

Reported cash receipts of NZ$13.9m were up 53% on the last quarter and the company maintained its FY23 revenue guidance.

Favourable FX revenue tailwinds of NZ$5-6m could be forthcoming if the NZD/USD exchange rate is maintained at current levels over the rest of FY23, the broker highlights.

Aroa Biosurgery remains the broker's preferred pick in the small cap medical device space and the Overweight rating and $1.58 price target are retained.

This report was published on July 26, 2022.

Target price is $1.58 Current Price is $0.89 Difference: $0.69
If ARX meets the Wilsons target it will return approximately 78% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.71.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 178.00.

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

CSR    CSR LIMITED

Building Products & Services – Overnight Price: $4.59

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

Jarden reviews price increases for east coast building material suppliers and sees CSR receiving higher than anticipated prices for their Gyprock range, Bradford insulation and the Hebel products.

The off-cycle September price hikes are 2-3% ahead of the broker's forecasts and have been implemented to offset higher energy and electricity costs.

Although Jarden remains cautious on the building materials sector in Australia from falling building approvals, the current work load back log supports strong demand for FY23.

The share buyback stood at 3.4% of the proposed $100m buyback on July 25. Overweight. The price target is raised to $5.90 from $5.80.

This report was published on July 26, 2022.

Target price is $5.90 Current Price is $4.59 Difference: $1.31
If CSR meets the Jarden target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $5.92, suggesting upside of 28.9%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.80 cents and EPS of 43.50 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 10.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.7, implying annual growth of -23.5%.
Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 26.20 cents and EPS of 37.40 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.0, implying annual growth of 0.7%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 10.7.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $18.70

Jarden rates ((CTD)) as Buy (1) –

Corporate Travel Management is due to report FY22 earnings results on August 17 and Jarden notes that consensus forecasts vary considerably due to the uncertainty of the re-opening of travel markets.

Nevertheless, the analysts forecast revenues for Corporate Travel Management will return to pre-covid levels by FY24 and the recent industry updates will be positive for the company.

Jarden considers Corporate Travel Management has become a stronger business post-covid through new contracts and acquisitions.

A Buy rating is retained and the price target is raised to $26.22 from $25.37.

This report was published on July 26, 2022.

Target price is $26.22 Current Price is $18.70 Difference: $7.52
If CTD meets the Jarden target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $24.51, suggesting upside of 31.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 9.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 201.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of N/A.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 134.5.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 70.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.5, implying annual growth of 457.6%.
Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 24.1.

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

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $0.25

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

On balance Shaw and Partners considers the Damstra Holdings 4Q22 results update as positive, despite a slight miss on revenues of $29.7m which is marginally below the $30m guidance.

The broker highlights the significant cash flow improvements from the strategic turnaround which the company started in 1Q22.

In spite of the loss of the Newmont account, Damstra managed the challenges from covid, new acquisition integrations and inflation, the analysts point out.

A number of new deals have been struck adding over $7.5m in contract values, placing the company in good stead with the cost controls.

Shaw and Partners has a Buy rating with a price target of 56c.

This report was published on July 26, 2022.

Target price is $0.56 Current Price is $0.25 Difference: $0.31
If DTC meets the Shaw and Partners target it will return approximately 124% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.71.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 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 31.25.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $1.00

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

In view of the ongoing regulatory hurdles and extended remediation process for EML Payments with the Central Bank of Ireland (CBI), Wilsons has downgraded the stock to Market Weight from Overweight.

After a year CBI "identified shortcoming in components of the remediation process" which will lead to a lengthening of the process and higher costs, points out the analyst.

The broker considers the fundamental valuation of $1.62 which makes EML Payments potentially an attractive takeover target after the -71% fall in the year-to-date share price.

Wilsons reduces the price target by -57% to 97c and downgrades the rating to Market Weight from Overweight.

This report was published on July 28, 2022.

Target price is $0.97 Current Price is $1.00 Difference: minus $0.03 (current price is over target).
If EML meets the Wilsons target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.48, suggesting upside of 148.3%(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 4.60 cents.
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 4.5, 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 22.2.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of 73.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 12.8.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $3.32

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

Integral Diagnostics provided a trading update which showed a decline in Australian revenues in the 2H22, noted Jarden.

The impacts of high covid infections continue to weigh on hospitalisations and the Australian revenue growth is expected to struggle into 1H23.

The company's margins are being impacted by wage inflation, sick leave, supply chain problems and higher PPE costs at the same time as revenue growth is slowing which the analyst describes as a "perfect storm".

The broker reduces earnings forecasts by -20.6% and -30% for FY22 and FY23, respectively, but considers some of the problems as transitory and the valuation remains attractive.

The Overweight rating is retained and the target price decreases to $3.88 from $4.48.

This report was published on July 28, 2022.

Target price is $3.88 Current Price is $3.32 Difference: $0.56
If IDX meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $3.26, suggesting downside of -1.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 10.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, implying annual growth of -30.7%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 30.7.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 13.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of 47.2%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.9.

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

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

Integral Diagnostics announced lower than expected unaudited results for FY22 which missed Wilsons forecasts by -17%.

The broker points out that medicare data suggest weaker than estimated activity in Victoria, Queensland and Western Australia and assesses imaging volumes and benefits fell by -6.6% and 5.5%, respectively.

Post the update, Wilsons reduces earnings forecasts by -17% for FY22 and -14% for FY23 with covid-related costs continuing to impact on margins.

A Market Weight rating is retained and the price target is reduced to $2.91 from $3.00.

This report was published on July 28, 2022.

Target price is $2.91 Current Price is $3.32 Difference: minus $0.41 (current price is over target).
If IDX meets the Wilsons target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.26, suggesting downside of -1.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 8.00 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 2.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, implying annual growth of -30.7%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 30.7.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 9.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of 47.2%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 20.9.

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

IFL    INSIGNIA FINANCIAL LIMITED

Wealth Management & Investments – Overnight Price: $3.14

Jarden rates ((IFL)) as Buy (1) –

Insignia Financial reported 4Q22 funds under management and administration that were marginally above forecasts from Jarden.

The broker points out there are positive improvements in the retail management flows and an overall turnaround in the platform flows, which are ahead of estimates.

Market volatility led to higher outflows in the institutional fixed income funds, which is a lower margin business.

Based on the low PER valuation, estimated at 9.6x forward earnings and a 6.9% yield, the broker retains a Buy rating.

The price target is maintained at $3.15.

This report was published on July 26, 2022.

Target price is $3.15 Current Price is $3.14 Difference: $0.01
If IFL meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $3.93, suggesting upside of 25.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 21.80 cents and EPS of 33.50 cents.
At the last closing share price the estimated dividend yield is 6.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.6, implying annual growth of N/A.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 9.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 19.30 cents and EPS of 29.60 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.4, implying annual growth of -3.5%.
Current consensus DPS estimate is 23.9, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 9.4.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $11.69

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

Shaw and Partners reviews Iress post the appointment of Marcus Price (formerly CEO of PEXA Group) as the new CEO, replacing Andrew Walsh as Managing Director and CEO, immediately.

The company also indicated 1H22 profits up 6% on the previous year at $80.3m, and will now have to grow earnings by 10% in the 2H22 to meet its own guidance.

Iress announces 1H22 results on August 18. The Sell rating is retained and the price target reduced to $11.60 from $11.65.

This report was published on July 26, 2022.

Target price is $11.60 Current Price is $11.69 Difference: minus $0.09 (current price is over target).
If IRE meets the Shaw and Partners target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $11.71, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 46.00 cents and EPS of 46.90 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.3, implying annual growth of 3.9%.
Current consensus DPS estimate is 46.3, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 29.0.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 46.00 cents and EPS of 49.90 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.4, implying annual growth of 17.6%.
Current consensus DPS estimate is 47.3, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 24.7.

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

LPD    LEPIDICO LIMITED

New Battery Elements – Overnight Price: $0.03

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

Lepidico announced its June quarter activities report.

The company is making solid progress, according to Shaw and Partners, with its Lithium project and a final investment decision could come as soon as September.

Post the decision, Lepidico can move to final costings for the chemical plant, offtake agreements and the financing package with the US Development Finance Corporation mooted as a possible source.

Shaw and Partners retains a Buy rating and 6c price target.

This report was published on July 26, 2022.

Target price is $0.06 Current Price is $0.03 Difference: $0.03
If LPD meets the Shaw and Partners target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

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

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $1.91

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

Mincor Resources reported an increase in the potential nickel resource from the LNO4a surface at Kambalda, Western Australia with announced initial resource at 22.6kt versus Shaw and Partners' estimate of 20kt.

The change does not impact on the forecasts at this stage and the analyst assumes that any additional production will extend the life of the mine.

The price target is raised to $2.33 from $2.05 due to higher nickel price forecasts. A Buy rating is maintained.

This report was published on August 3, 2022.

Target price is $2.33 Current Price is $1.91 Difference: $0.42
If MCR meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1910.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.00 cents and EPS of 22.60 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.45.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $1.11

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

Goldman Sachs considered the 2Q22 trading update from Nitro Software as a resetting of earnings guidance with FY22 annual recurring revenues (ARR) reduced by -11% and a reduction in sales and marketing expenditure to result in a US$10m p.a. cost out.

Looking ahead, the analyst highlights Nitro Software has good global growth opportunities but will need to show the market it can achieve improved ARR and be able to execute on its plans.

Goldman Sachs views the company as offering value at current levels. A Buy rating is retained and the price target is revised to $2.05 from $2.35.

This report was published on July 26, 2022.

Target price is $2.05 Current Price is $1.11 Difference: $0.94
If NTO meets the Goldman Sachs target it will return approximately 85% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 19.42 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.72.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.87 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.00.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
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 ((NTO)) as Overweight (1) –

Wilsons noted Nitro Software is juggling both growth and costs in the 2Q22 trading update.

The analyst points out macro economic uncertainty is delaying customers' decisions and there has been a fall in the growth pipeline, leading to a revised customer strategy to reduce costs.

Nitro Software downgraded guidance for average recurring revenues and the overall staff count is to be reduced by -8-9% to assist in lowering operating costs in the 2H22.

Earnings forecasts are adjusted for -25% and -35% reduction in losses in FY22 and FY23, respectively.

A Buy rating is retained and the price target is reduced by -26% to $1.93.

This report was published on July 27, 2022.

Target price is $1.93 Current Price is $1.11 Difference: $0.82
If NTO meets the Wilsons target it will return approximately 74% (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 9.43 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.77.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.39.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $1.25

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

Wilsons was upbeat on the 4Q22 trading results for SomnoMed with European operations reporting quarterly device sales of $12.6m, up 37% on the previous quarter and a record high.

USA also showed good growth and APAC was more subdued, but positive. On balance the FY22 revenues were slightly higher than the broker's estimate.

Wilsons maintains forecasts and assesses that the recall of Philip's CPAP devices is likely to be providing SomnoMed with positive revenue tailwinds as clinicians seek out alternative devices for patients.

An Overweight rating and $2.40 target are maintained.

This report was published on July 26, 2022.

Target price is $2.40 Current Price is $1.25 Difference: $1.15
If SOM meets the Wilsons target it will return approximately 92% (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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.00.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.88.

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

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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.

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