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Buy – Describes stocks that we expect to provide a total return (price appreciation plus yield) of 10% or more within a 12-month period.
Underperform – Describes stocks that we expect to provide a total return (price appreciation plus yield) of less than 10% within a 12-month period.
NR – The investment rating and price target have been temporarily suspended. Such suspensions are in compliance with applicable regulations and/or APP Securities Pty Ltd policies.
CS – Coverage Suspended. APP Securities Pty Ltd has suspended coverage of this company.
Speculative Buy – Describes stocks we research with a positive bias, whose company fundamentals and/or financials are being covered, but for which there is insufficient information for APP Securities Pty Ltd to assign a Buy or Underperform rating.
Speculative Underperform – Describes stocks we research with a negative bias, whose company fundamentals and/or financials are being covered, but for which there is insufficient information for APP Securities Pty Ltd to assign a Buy or Underperform rating.
Secondary recommendation - Market weight relative to the S&P/ASX 300 under a weighting range of 0-3, with intervals of 0.5 (7 point scale). 1.0 indicates a market weight position in the stock while a weight over 1.0 indicates an overweight position and the current level of analyst conviction.
Monitor – Describes stocks whose company fundamentals and/or financials are being monitored, or for which no financial projections or opinions on the investment merits of the company are provided.
Buy – If the last traded price of the hybrid security is more than 3% below our valuation
Underperform – If the last traded price of the hybrid security is more than 3% above our valuation
APP Securities methodology for assigning stock and credit ratings may include the following: market capitalisation, maturity, growth/value, volatility and expected total return over the next 12 months. The price targets are based on several methodologies, which may include, but are not restricted to, analyses of market risk, growth rate, revenue stream, discounted cash flow (DCF), EBITDA, EPS, cash flow (CF), free cash flow (FCF), EV/EBITDA, P/E, PE/growth, P/CF, P/FCF, premium (discount)/average group EV/EBITDA, premium (discount)/average group P/E, sum of parts, net asset value, discounted dividend model (DDM), franking credits and return on equity (ROE) over the next 12 months. Listed credit securities analysis uses appropriate discount rates that reflect credit risk of both issuer and the underlying instrument.
APP Securities Discounted Cash Flow (DCF) valuation applies a terminal growth rate to the last forecast year's cash flow and discounts the amount using Weighted Average Cost of Capital (WACC). The Terminal Value is tested using ASX-listed company multiples. For resource companies there is no terminal value because cashflows are forecast to the end of mine life.
Consensus Mean View - APP Securities publishes stock profiles which relate to companies not covered by APP Securities and the research represents a consensus view. The Consensus views have their own ratings, please refer to the following descriptions-
Buy - describes a recommendation to purchase the security, with the implication that the security is undervalued in some fashion.
Underperform - refers to an analyst's recommendation to close out a long position in a security because of the risk of a price decline.
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Past performance is no indication of future results.
“Buy” is based on time cycle and price analysis. It represents a lower risk time to buy the security from a trading perspective.
“Sell” is based on time cycle and price analysis. It now represents a lower risk time to sell the security from a trading perspective.
“Buy” and “Sell” recommendations are not based on fundamental analysis but on technical analysis, and may be contrary to APP Securities Research’s fundamental view of the security. Not all signals are published, instead only a small selection which are considered to be the best trading ideas. The technical analysis is based on trend analysis using a variety of technical indicators to generate lower risk long entries, long exit and/or short position opportunities.