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Disclaimer & Warning
Please note that this document/communication is only a summary of research that has been conducted by BBY's research team and should be treated accordingly. It may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require. Before making an investment or trading decision, the recipient must consider market developments subsequent to the date of this document, and whether the advice is appropriate in light of his or her financial circumstances or seek further advice on its appropriateness or should form his/her own independent view given the person’s investment objectives, financial situation and particular needs regarding any securities or Financial Products mentioned herein.
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Country specific disclosures
US Investors: This material is intended for use by "major U.S. institutional investors" (as defined in Rule 15(a)-6 of the U.S. Securities Exchange Act of 1934, (SEA 1934)). Transactions by or on behalf of any "major U.S institutional investors" or "U.S institutional investors" (as defined in Rule 15(a)-6 of the SEA 1934 in any security mentioned in this document may only be effected through BBY and Enclave Capital LLC, together BBY Enclave, U.S. registered broker dealer. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, its accuracy is not guaranteed. Additional and supporting information is available upon request. This is not an offer or solicitation of an offer to buy or sell any security or to make any investment. Any opinion or estimate constitutes the preparer's best judgement as of the date of preparation and is subject to change without notice. BBY Enclave and their associates or affiliates, and their respective officers, directors and employees may buy or sell securities mentioned herein as agent or principal for their own account.
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the research analysts responsible for the preparation of research reports receive compensation based upon various factors, including the quality and accuracy of the analyst(s) research, client evaluation feedback, independent survey rankings and overall firm revenues, which include revenues from, among other business units and corporate finance.
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Meanings of BBY Limited Ratings
Strong Buy - Describes stocks that we expect to provide a total return (price appreciation plus yield) of 20% or more within a 12-month period.
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 BBY Limited policies.
CS – Coverage Suspended. BBY Limited has suspended coverage of this company.
Speculative Buy – Describes stocks we research with a positive bias, whose company fundamentals and financials are being covered, but for which there is insufficient information for BBY Limited to assign a Strong Buy, Buy or Underperform rating.
Speculative Underperform – Describes stocks we research with a negative bias, whose company fundamentals and financials are being covered, but for which there is insufficient information for BBY Limited to assign a Strong Buy, Buy or Underperform rating.
Secondary recommendation - Market weight relative to the All Ordinaries 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.
Monitor – Describes stocks whose company fundamentals and financials are being monitored, or for which no financial projections or opinions on the investment merits of the company are provided.
BBY’s methodology for assigning 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, dividend returns, and return on equity (ROE) over the next 12 months.
Terminal Value Methodology
BBY's 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
BBY publishes stock profiles which relate to companies not covered by BBY 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.
Sell - refers to an analyst's recommendation to close out a long position in a security because of the risk of a price decline.
Hold - refers to an analysts view that the security is expected to perform with the market or at the same pace as comparable companies. Also known as "neutral" or "market perform".
Underweight - will usually mean that the security is expected to underperform either its industry, sector, or even the market altogether.
Overweight - will usually signify that the security is expected to outperform either its industry, sector or, even, the market altogether.
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BBY Interests Disclosure
Please note that BBY Limited makes important disclosures of its interests. Please click here.
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 BBY 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.
BBY Technical Analysis is provided by Anson Rosewall (ATR), a representative of BBY Limited.