Australian Broker Call
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March 17, 2021
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, 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.
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Today's Upgrades and Downgrades
CLV - | Clover Corp | Upgrade to Buy from Neutral | UBS |
TLS - | Telstra Corp | Upgrade to Buy from Accumulate | Ord Minnett |
AGL AGL ENERGY LIMITED
Infrastructure & Utilities
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Overnight Price: $9.76
Ord Minnett rates AGL as Accumulate (2) -
Ord Minnett is of the view the decline in wholesale prices since the start of 2021 has "accelerated" the evolution of the electricity market.
AGL Energy is conducting a full strategic review to address the weak market conditions. While some may be expecting a significant asset restructure from the company, the broker expects the focus will be mostly on improving the profitability of its generation fleet.
Accumulate rating with a $14.05 target price.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $14.05 Current Price is $9.76 Difference: $4.29
If AGL meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $10.95, suggesting upside of 13.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 72.00 cents and EPS of 82.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 86.4, implying annual growth of -45.5%. Current consensus DPS estimate is 83.7, implying a prospective dividend yield of 8.7%. Current consensus EPS estimate suggests the PER is 11.2. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 66.00 cents and EPS of 67.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.2, implying annual growth of -21.1%. Current consensus DPS estimate is 68.3, implying a prospective dividend yield of 7.1%. Current consensus EPS estimate suggests the PER is 14.1. |
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components
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Overnight Price: $14.75
Morgan Stanley rates APE as Overweight (1) -
Honda and Mercedes-Benz are moving to an agency distribution model in Australia. Morgan Stanley notes investors have expressed uncertainty about what this means for the Eagers Automotive dealership.
The broker concludes that profitability will be unchanged and does not anticipate the agency model will be widely adopted any time soon. Moreover, Eagers Automotive has a relatively small exposure to the two brands.
Overweight retained. Target is $17. Industry view: In-Line.
Target price is $17.00 Current Price is $14.75 Difference: $2.25
If APE meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $14.76, suggesting upside of 0.7% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 55.60 cents and EPS of 74.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 68.8, implying annual growth of -3.6%. Current consensus DPS estimate is 44.0, implying a prospective dividend yield of 3.0%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 60.50 cents and EPS of 80.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 73.5, implying annual growth of 6.8%. Current consensus DPS estimate is 45.8, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 19.9. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.26
Morgans rates BEX as Initiation of coverage with Add (1) -
Morgans initiates coverage on the BikeExchange with a Speculative Buy and a target price of $0.34.
The company operates an online marketplace connecting consumers with specialty retailers. This platform enables the retailers to provide a wide omni-channel experience for customers.
A change in business model to combine a traditional classifieds business with e-commerce enablement opens up a much larger total addressable market (TAM), according to Morgans.
The broker believes the company has been building toward a global platform for several years and is now poised for growth.
Target price is $0.34 Current Price is $0.26 Difference: $0.08
If BEX meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Morgans forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.30 cents. |
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.10 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.49
Ord Minnett rates CLV as Buy (1) -
Clover Corp's first-half result was largely in line with Ord Minnett's expectations.
The infant formula market experienced continued volatility, leading to a -21.7% decline in total revenue over last year with the covid impacted Daigou channel a key victim.
Even so, the company managed to control costs throughout the half and delivered operating income of $4.1m, slightly ahead of the broker's expected $4m.
Ord Minnett considers Clover Corp well-placed with its global network of infant formula customers that enables the company to meet demand wherever it may arise first.
Buy rating with the target falling to $2.37 from $2.47.
Target price is $2.37 Current Price is $1.49 Difference: $0.88
If CLV meets the Ord Minnett target it will return approximately 59% (excluding dividends, fees and charges).
The company's fiscal year ends in July.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 1.50 cents and EPS of 4.70 cents. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 2.50 cents and EPS of 6.70 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CLV as Upgrade to Buy from Neutral (1) -
UBS upgrades Clover Corp to Buy from Neutral rating with the target price dropping to $2 from $2.10.
The broker views the stock as a recovery play offering a best-of-breed product and a unique growth story despite a covid-hit weak result with revenues down -22% versus last year.
The company's FY21 revenue guidance also implies a -16-37% downgrade to UBS's second-half expectations. Even so, the broker expects a gradual recovery with FY20 revenues and net profit expected to return by FY23.
Target price is $2.00 Current Price is $1.49 Difference: $0.51
If CLV meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in July.
Forecast for FY21:
UBS forecasts a full year FY21 dividend of 1.70 cents and EPS of 3.90 cents. |
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 2.60 cents and EPS of 6.20 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DBI DALRYMPLE BAY INFRASTRUCTURE LTD
Infrastructure & Utilities
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Overnight Price: $2.09
Citi rates DBI as Buy (1) -
Citi notes two near-term events which have the potential to be catalysts for Dalrymple Bay. The Queensland Competition Authority is due to hand down a decision on "light handed regulation". At current pricing the broker does not believe the market is ascribing any value to the regulation.
The second event is the inclusion in the ASX300 on March 22. There is no downside risk to the inclusion and Citi considers the lack of liquidity and publicity on the stock are key factors in its underperformance since listing. Buy rating and $2.51 target maintained.
Target price is $2.51 Current Price is $2.09 Difference: $0.42
If DBI meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.52, suggesting upside of 20.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 18.30 cents and EPS of 7.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.1, implying annual growth of N/A. Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 8.6%. Current consensus EPS estimate suggests the PER is 25.9. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 18.60 cents and EPS of 8.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.7, implying annual growth of 32.1%. Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 8.7%. Current consensus EPS estimate suggests the PER is 19.6. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates DXS as Sell (5) -
A Dexus fund has instigated a merger agreement with an AMP ((AMP)) fund. Citi envisages hurdles to completing the transaction as it is subject to unitholder approval by both funds.
Dexus Wholesale Property Fund has an agreement with AMP Capital Diversified Property fund, subject to unitholder approval with a 50% threshold for the former and 75% threshold for the latter.
If successful, the transaction could be around 2-3% accretive to annualised earnings, the broker calculates. Sell rating retained given the headwinds in the office sector. Target is $7.86.
Target price is $7.86 Current Price is $9.61 Difference: minus $1.75 (current price is over target).
If DXS meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.27, suggesting downside of -3.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 50.30 cents and EPS of 66.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 62.6, implying annual growth of -30.3%. Current consensus DPS estimate is 50.3, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 50.30 cents and EPS of 64.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.6, implying annual growth of -1.6%. Current consensus DPS estimate is 48.5, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 15.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates DXS as Buy (1) -
Dexus Diversified Wholesale Property Fund (DWPF) will engage with AMPC Diversified Property Fund (ADPF) unitholders for a six-month period over a potential merger, according to news reports.
UBS notes the agreement offers both sides the potential to vote on a combination of the funds, in turn providing scale efficiencies for unitholders.
The broker calculates the potential accretion to Dexus's funds management business to be $10-20m per annum. which is 17-34% of UBS's FY22 management operating income forecast.
UBS retains its Buy rating with a target of $10.25.
Target price is $10.25 Current Price is $9.61 Difference: $0.64
If DXS meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $9.27, suggesting downside of -3.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
UBS forecasts a full year FY21 dividend of 50.30 cents and EPS of 66.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 62.6, implying annual growth of -30.3%. Current consensus DPS estimate is 50.3, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 15.3. |
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 50.10 cents and EPS of 67.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 61.6, implying annual growth of -1.6%. Current consensus DPS estimate is 48.5, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 15.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.02
Credit Suisse rates HLS as Outperform (1) -
The Australian government has announced an additional $1.1bn in funding for Australia's health response to covid-19 and will extend pathology testing for a further nine months to December 31 2021.
Credit Suisse now expects the $100 fee will persist until December, noting that, despite Australia's low rate of infection, testing rates remain robust at 40,000 per day.
The broker had assumed this fee would be reduced to $50 from April 1. Estimates for FY21 and FY22 are raised by 5% and 9%, respectively.
Outperform retained. Target is $4.25.
Target price is $4.25 Current Price is $4.02 Difference: $0.23
If HLS meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $4.26, suggesting upside of 4.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 12.58 cents and EPS of 22.97 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.5, implying annual growth of N/A. Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 18.0. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 9.84 cents and EPS of 19.71 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.4, implying annual growth of -22.7%. Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 23.3. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.96
Macquarie rates MPL as Neutral (3) -
Macquarie puts the spotlight on the deteriorating trend in risk equalisation which illustrates that older persons are capturing more of the value from private health insurance versus the younger/healthier cohorts.
The broker expects Medibank Private to continue as a contributor to the risk equalisation (RE) pool (started in the second half of FY20).
The government is reviewing the RE framework, expected to complete by early 2022, that should reward insurers for improving the cost structure of the industry.
In the meantime, Macquarie prefers to stick to its Neutral rating with the target dropping to $2.80 from $2.85.
Target price is $2.80 Current Price is $2.96 Difference: minus $0.16 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.08, suggesting upside of 5.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 12.20 cents and EPS of 15.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.5, implying annual growth of 36.0%. Current consensus DPS estimate is 11.9, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 18.8. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 12.40 cents and EPS of 15.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 15.2, implying annual growth of -1.9%. Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 19.1. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.39
Citi rates MTS as Buy (1) -
The company's capital expenditure intentions over the next three years are twice as much as Citi anticipated, which rules out a capital return in the near term.
Given the strong position in trade hardware a return on expenditure in this division is anticipated, as the broker notes hardware is underpinning earnings growth of 4.5% in FY23.
Capital expenditure forecasts are upgraded to $170m over FY22-24. One third of this is driven by investment in joint-venture hardware stores.
Meanwhile, the broker notes underlying supermarket sales have improved over recent months, which signals independents are gaining share. Citi retains a Buy rating and $4.10 target.
Target price is $4.10 Current Price is $3.39 Difference: $0.71
If MTS meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 15.2% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 15.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of N/A. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 14.00 cents and EPS of 22.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of -8.2%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates MTS as Outperform (1) -
Credit Suisse was pleased with the strategy update, which met or even exceeded expectations in some areas. The company performed strongly across all segments.
A simultaneous increase in the dividend pay-out ratio to 70% of underlying earnings also reflects confidence in returns, the broker suggests.
FY21 and FY22 forecasts are downgraded because of higher corporate costs while higher rates of reinvestment result in an upgrade to FY23 and beyond. Outperform rating and $4.08 target retained.
Target price is $4.08 Current Price is $3.39 Difference: $0.69
If MTS meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 15.2% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 17.65 cents and EPS of 25.57 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of N/A. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 16.69 cents and EPS of 23.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of -8.2%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates MTS as Neutral (3) -
Metcash's latest update shows continued strong demand over the last four months, observes Macquarie, with supermarket sales up 14%, liquor sales rising by 20% and hardware sales growing by 19% over last year.
While expecting Metcash's strong near-term growth across key categories to persist, Macquarie believes the gains will likely normalise with the vaccine rollout underway.
Neutral rating and $3.60 target price.
Target price is $3.60 Current Price is $3.39 Difference: $0.21
If MTS meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 15.2% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 17.60 cents and EPS of 25.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of N/A. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 16.40 cents and EPS of 23.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of -8.2%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates MTS as Overweight (1) -
The strategy briefing revealed initiatives to retain market share gains and provided greater insight into the hardware opportunities, Morgan Stanley notes. Food sales growth accelerated to around 5% over December-February.
Further capital will be deployed in hardware, particularly Total Tools. The broker believes execution remains key to the strategy but also highlights an improved balance sheet and increased diversity.
Morgan Stanley considers the current discount to the market too cheap and retains an Overweight rating. Target is $4.20. industry view is Attractive.
Target price is $4.20 Current Price is $3.39 Difference: $0.81
If MTS meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 15.2% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY21:
Morgan Stanley forecasts a full year FY21 dividend of 17.60 cents and EPS of 25.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of N/A. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 15.30 cents and EPS of 21.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of -8.2%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates MTS as Accumulate (2) -
Metcash's management provided a very strong trading update with market share gains in the food and liquor divisions versus Coles Group ((COL)) and Woolworths ((WOW)).
The company has guided to a higher than expected capital expenditure estimate for FY22-24. A return on funds employed (ROFE) of at least 15% is needed, notes the broker, with Metcash planning to invest to generate the cost savings.
Ord Minnett maintains its Accumulate recommendation with the target falling to $3.75 from $3.85.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $3.75 Current Price is $3.39 Difference: $0.36
If MTS meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 15.2% (ex-dividends)
The company's fiscal year ends in April.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 19.00 cents and EPS of 27.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.5, implying annual growth of N/A. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 19.00 cents and EPS of 26.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.4, implying annual growth of -8.2%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.7%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.63
Macquarie rates NHF as Neutral (3) -
Macquarie puts the spotlight on the deteriorating trend in risk equalisation (RE) which illustrates that older persons are capturing more of the value from private health insurance versus the younger/healthier cohorts.
The government is reviewing the RE framework, expected to complete by early 2022, that should reward insurers for improving the cost structure of the industry.
The broker expects nib Holdings will be one of the largest contributors to the risk equalisation (RE) pool going ahead.
Neutral retained with the target falling to $5.45 from $5.80.
Target price is $5.45 Current Price is $5.63 Difference: minus $0.18 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.88, suggesting upside of 8.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 19.50 cents and EPS of 28.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.8, implying annual growth of 50.5%. Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 3.6%. Current consensus EPS estimate suggests the PER is 18.2. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 14.00 cents and EPS of 21.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.3, implying annual growth of -5.0%. Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 3.4%. Current consensus EPS estimate suggests the PER is 19.2. |
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $32.36
Credit Suisse rates SHL as Outperform (1) -
The Australian government has announced an additional $1.1bn for the covid-19 health response and extended reimbursement for pathology testing items to December 31 2021.
Importantly, the current $100 covid-19 test fee remains. Credit Suisse had assumed this would be reduced to $50 from April 1.
The broker notes management is confident about acquisition and contract growth opportunities over numerous markets.
After delays in people seeking healthcare services, Credit Suisse expects above-historical growth rates in the second half and into FY22. Outperform rating and $40 target retained.
Target price is $40.00 Current Price is $32.36 Difference: $7.64
If SHL meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $37.36, suggesting upside of 14.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Credit Suisse forecasts a full year FY21 dividend of 93.00 cents and EPS of 234.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 250.1, implying annual growth of 125.1%. Current consensus DPS estimate is 115.2, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 13.0. |
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 97.00 cents and EPS of 160.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 159.9, implying annual growth of -36.1%. Current consensus DPS estimate is 101.1, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 20.4. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.50
Macquarie rates SO4 as Outperform (1) -
Macquarie highlights Salt Lake Potash's Lake Way sulphate of potash (SOP) project development continues to advance and the company expects commissioning in the third quarter.
The broker expects first production in the fourth quarter with its base case assuming a ramp-up in line with the company's latest commentary on the staging of pond production sources.
Outperform rating with a target of $0.80.
Target price is $0.80 Current Price is $0.50 Difference: $0.3
If SO4 meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.50 cents. |
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.70 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TLS TELSTRA CORPORATION LIMITED
Telecommunication
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Overnight Price: $3.12
Ord Minnett rates TLS as Upgrade to Buy from Accumulate (1) -
With the national broadband network rollout affecting fixed margins, Ord Minnett notes the mobile retail sector is the most important earnings driver for Telstra Corp.
According to the broker's assessment of the market, Telstra will lose share of the prepaid market to mobile virtual network operators (MVNO). The postpaid market remains lucrative for Telstra with the company better placed given its head start in the rollout of 5G infrastructure.
Noting the company offers good subscriber growth, quality cellular service and an attractive valuation, Ord Minnett upgrades its rating to Buy from Accumulate with the target price rising to $4.05 from $3.75.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $4.05 Current Price is $3.12 Difference: $0.93
If TLS meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $3.59, suggesting upside of 12.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 16.00 cents and EPS of 16.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.7, implying annual growth of -3.9%. Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 21.6. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 16.00 cents and EPS of 13.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 14.1, implying annual growth of -4.1%. Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $7.01
Ord Minnett rates TPG as Hold (3) -
With the national broadband network rollout affecting fixed margins, Ord Minnett notes the mobile retail sector is the most important earnings driver for TPG Telecom.
According to the broker's assessment of the market, TPG’s Vodafone has likely suffered the most from covid because of its international brand and the decline in travellers and offshore roaming.
While expecting this to unwind post-pandemic, the broker believes Vodafone will lose share of the mobile market to Telstra because of the lags on the 5G rollout.
Hold rating with the target reduced to $7.40 from $7.60.
Target price is $7.40 Current Price is $7.01 Difference: $0.39
If TPG meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $8.00, suggesting upside of 14.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 0.00 cents and EPS of 17.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.4, implying annual growth of -72.8%. Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 40.2. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of 25.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.9, implying annual growth of 43.1%. Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 28.1. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.71
Ord Minnett rates WSP as Buy (1) -
Whispir completed a $45.3m placement and Ord Minnett notes the proceeds will be used to accelerate the company's product roadmap, drive new and existing customer growth in A&NZ and Asia and drive market expansion in North America.
The company is aiming for 25-30% of revenue from the US by the end of FY23. There will be a material step-up in R&D with an additional $20m to be spent between FY21-FY23. Ord Minnett views the strategy as sound given the size of the opportunity.
Buy rating with the target falling to $4.25 from $4.53.
Target price is $4.25 Current Price is $3.71 Difference: $0.54
If WSP meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY21:
Ord Minnett forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.00 cents. |
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.90 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
CLV | Clover Corp | $1.60 | Ord Minnett | 2.37 | 2.47 | -4.05% |
UBS | 2.00 | 2.10 | -4.76% | |||
MPL | Medibank Private | $2.91 | Macquarie | 2.80 | 2.85 | -1.75% |
MTS | Metcash | $3.39 | Citi | 4.10 | 4.00 | 2.50% |
Ord Minnett | 3.75 | 3.85 | -2.60% | |||
NHF | nib Holdings | $5.42 | Macquarie | 5.45 | 5.80 | -6.03% |
TLS | Telstra Corp | $3.18 | Ord Minnett | 4.05 | 3.75 | 8.00% |
TPG | TPG Telecom | $7.00 | Ord Minnett | 7.40 | 7.60 | -2.63% |
WSP | Whispir | $3.66 | Ord Minnett | 4.25 | 4.53 | -6.18% |
Summaries
AGL | AGL Energy | Accumulate - Ord Minnett | Overnight Price $9.76 |
APE | EAGERS AUTOMOTIVE | Overweight - Morgan Stanley | Overnight Price $14.75 |
BEX | BIKEEXCHANGE LTD FULLY PAID ORD. SHRS | Initiation of coverage with Add - Morgans | Overnight Price $0.26 |
CLV | Clover Corp | Buy - Ord Minnett | Overnight Price $1.49 |
Upgrade to Buy from Neutral - UBS | Overnight Price $1.49 | ||
DBI | DALRYMPLE BAY INFRASTRUCTURE LTD | Buy - Citi | Overnight Price $2.09 |
DXS | Dexus | Sell - Citi | Overnight Price $9.61 |
Buy - UBS | Overnight Price $9.61 | ||
HLS | Healius | Outperform - Credit Suisse | Overnight Price $4.02 |
MPL | Medibank Private | Neutral - Macquarie | Overnight Price $2.96 |
MTS | Metcash | Buy - Citi | Overnight Price $3.39 |
Outperform - Credit Suisse | Overnight Price $3.39 | ||
Neutral - Macquarie | Overnight Price $3.39 | ||
Overweight - Morgan Stanley | Overnight Price $3.39 | ||
Accumulate - Ord Minnett | Overnight Price $3.39 | ||
NHF | nib Holdings | Neutral - Macquarie | Overnight Price $5.63 |
SHL | Sonic Healthcare | Outperform - Credit Suisse | Overnight Price $32.36 |
SO4 | SALT LAKE POTASH | Outperform - Macquarie | Overnight Price $0.50 |
TLS | Telstra Corp | Upgrade to Buy from Accumulate - Ord Minnett | Overnight Price $3.12 |
TPG | TPG Telecom | Hold - Ord Minnett | Overnight Price $7.01 |
WSP | Whispir | Buy - Ord Minnett | Overnight Price $3.71 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 14 |
2. Accumulate | 2 |
3. Hold | 4 |
5. Sell | 1 |
Wednesday 17 March 2021
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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.
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