IT 1

Bell Potter upgrades Senetas FY16 earnings per share by 31%

Market Wire suggested last Friday (Senetas finally surprises on the upside, but is it time to buy) that it may be time to take a stake in long time laggard Senetas following a strong profit upgrade, and in particular given it appeared to have been oversold, trading at circa 9 cents compared with Bell Potter’s price target of 15 cents.

The profit upgrade sent the company’s shares to a high of 12.5 cents on the day and it continued to trade in the vicinity of 12 cents on Monday.


Bionomics’ share price implies 185% upside to Bell Potter’s price target

Bionomics (ASX: BNO) has announced its intention to trial the company’s drug candidate BNC210 on adults suffering from post-traumatic stress disorder (PTSD).

Management highlighted that there wasn’t any current effective treatment for the condition and research indicated that between 5% and 10% of the population will suffer PTSD at some point.

BNO is a global, clinical stage biopharmaceutical company leveraging its proprietary platform technologies to discover and develop a pipeline of best in class, novel drug candidates focused on the treatment of serious central nervous system disorders and on the treatment of cancer.

Free 2

SRG’s shares spike on profit upgrade, but is there more to come

Last Monday when engineering and construction group SRG announced that it expected to deliver a net profit before tax in a range between $8 million and $9 million for fiscal 2016, Market Wire suggested the company could be poised for a rerating.

The group was trading at 79.5 cents prior to the profit upgrade which appeared to be a useful entry point given there had been a slight retracement from a recent high of 89 cents. Furthermore, analysts at Hartley’s had placed a 12 month price target on the stock of $1.03 when initiating coverage in March.

Retail 1

Breville Group poised for a rebound

Analysts at Bell Potter see the recent pullback in Breville Group’s share price as a buying opportunity. Not only did the broker reaffirm its buy recommendation on Wednesday morning, but it also upgraded the 12 month share price target from $7.70 to $8.25.

Previously, Bell Potter had pointed to three key factors that emerged from the company’s strategy update. In the broker’s view the overall strategy provided a clear pathway forward with the capacity to employ three key levers including the finalisation of its transition into a global,

Gold 1

Blue Ocean upgrades Dacian price target by more than 30%

Last Thursday Market Wire highlighted the fact that the intersection of wide mineable grades at Dacian Gold’s Jupiter prospect suggested there was the potential for a substantial upgrade to the resource as well as increasing the probability of a larger open pit project being developed.

This scenario looks increasingly possible following the company’s outstanding exploration success at its Jupiter prospect which currently has a mineral resource of 1.1 million ounces.

Other potential share price catalysts are mineral resource upgrades at the group’s Westralia and Morgans underground projects which should occur in July.

IT 1

Near-term share price catalysts could drive Integrated Research higher

The share price of Integrated Research has hovered in a tight band between $2.00 and $2.25 for the last three months and in recent days has retraced to the bottom end of that range, perhaps providing an opportune entry point.

As a backdrop, shares in the provider of IT software and solutions increased from circa $1.60 in July last year to hit a high of $2.80 September. There were two catalysts for this rerating. Firstly, the company delivered upbeat profit guidance in early July.

Retail 2

Macquarie cautiously optimistic on Lovisa Holdings

Fast fashion jewellery retailer, Lovisa Holdings, provided a welcome trading update last week which finally prompted some positive share price action after the company’s shares were sold down heavily earlier in the year following a disappointing first half performance.

Prior to this decline the company’s shares were trading in the vicinity of $3.70, but fell quickly to circa $2.00 before hitting an all-time low of $1.85 in late May.

Last week, the company’s shares bounced 20% after management reaffirmed fiscal 2016 earnings before interest and tax guidance in a range between $23.5 million and $25.5 million.

Stock Decline 2

Further evidence Treasury Wine Estates could be ready to retrace

Following on from Market Wire’s June 6 note that analysts at Citi had placed a sell recommendation on Treasury Wine Estates (Citi slaps sell recommendation on Treasury Wine Estates), the broker has on Tuesday morning alerted investors to the fact that recent Australian wine export data shows China volume growth has slowed.

Citi said, ‘We expect Treasury’s Asian wine volume growth to slow to 30% in the second half of fiscal 2016,

IT 1

Highflying Aconex poised for another rerating

Market Wire ran the ruler across Aconex in mid-March (Aconex acquisition receives tick of approval from Citi – March 17, 2016) after it reached an agreement to acquire Conject Holdings GmbH.

While conceding that the associated $120 million capital raising had to be done at an 8% discount to the group’s last trading price of $5.37, Market Wire felt that given the size of the transaction and the potential medium-term upside the focus should be on the transformational benefits provided by the acquisition.

Businessman adding golden coins with a young plant in the final row of a coin stack  - Money and financial assets growth concept

Bell Potter upgrades Mayne’s earnings after dofetilide deal

Market Wire suggested yesterday (Mayne Pharma receives FDA approval for Dofetilide) that analysts were likely to upgrade Mayne Pharma’s earnings projections and share price targets after the group announced it had been granted FDA approval of its Abbreviated New Drug Application (ANDA) for dofetilide capsules in the US.

These capsules are a generic version of Pfizer’s Tykosin capsules, an antiarrhythmic agent used to prevent irregular heartbeats such as atrial fibrillation and atrial flutter.