If you’re a client of a big financial firm you would know that the majority of stocks covered are larger firms. An analysts’ job is far easier because they will have a longer trading and financial history than their small cap peers.

Yet hundreds of small caps sit on the ASX without any analyst coverage at all and investors have little to rely on other than the stock’s long term vision and whether or not it can become reality.

You may see the occasional report released on the ASX but often it is from the micro-cap broker that either just raised money for them or is hoping to do so.

However, Stockhead has found nearly 30 stocks that in the last 12 months have been covered by four firms or more in the last 12 months.

CodeNamePrice (2.30pm 13.5.19)Market CapTotal Reports (12 months)BrokersAverage Target pricePremium to current price
CDVCARDINAL RESOURCES LTD0.39$149.2M6Cormack, Hartleys, Beacon, Argonaut, RFC Ambrian and Clarus Securities1.091.79
DCNDACIAN GOLD LTD1.755$396.1M6Canaccord, RBC, Argonaut, Macquarie, Bell Potter and Hartleys2.070.18
PNLPARINGA RESOURCES LTD0.14$64.2M5Canaccord, Macquarie, Argonaut, HC Wainwright and Roth Capital partners0.653.64
FARFAR LTD0.067$407.2M6RBC, Credit Suisse, Evans & Partners, Canaccord, Morgan Stanley, Bell Potter0.130.94
SXYSENEX ENERGY LTD0.325$472.2M8Credit Suisse, Hartleys, Morgan Stanley, JP Morgan, Canaccord, Bell Potter, Morgans. Macquarie0.460.42
BSEBASE RESOURCES LTD0.255$303.3M6Berenberg, Peel Hunt, Numis Securities, Hartleys, RFC, Canaccord0.470.84
CGLCITADEL GROUP LTD/THE6.9$341.9M5RBC, Bell Potter, Wilsons, Evans & Partners, Shaw & Partners8.560.24
SYRSYRAH RESOURCES LTD1.145$390.8M5Canaccord, Morgan Stanley, Credit Suisse, Macquarie, Everblu2.531.21
EMLEML PAYMENTS LTD1.9975$498.0M5RBC, Bailleu, Canaccord, Wilsons, Petra2.240.12
WAFWEST AFRICAN RESOURCES LTD0.315$269.6M5Sprott, Cormack Securities, Hartleys, Argonaut, Macquarie.0.610.94
CLQCLEAN TEQ HOLDINGS LTD0.285$216.5M4Canaccord, BMO, Macquarie, GMP1.454.09
RBLREDBUBBLE LTD0.99$256.2M5Goldman Sachs, Canaccord, Petra, RBC, Morgans1.090.1
MWY MIDWAY LTD3.46$302.0M4Shaw and Partners, Bell Potter, Morgans, Ord Minnett4.050.17
BGLBELLEVUE GOLD LTD0.605$297.5M4Canaccord, Macquarie, Sprott and Argonaut0.780.29
MLXMETALS X LTD0.25$168.8M4Canaccord, Bell Potter, Macquarie, Hartleys0.551.2
ANGAUSTIN ENGINEERING LTD0.17$98.4M4Blue Ocean, Argonaut, Petra, Wilsons0.290.71
SO4SALT LAKE POTASH LTD0.6$122.7M5Canaccord, Taylor Collison, Shore Capital, Cenkos Securities, Argonaut1.120.87
PEAPACIFIC ENERGY LTD0.61$262.4M4Petra Capital, Hartleys, Bailleu, Argonaut0.750.23
CLHCOLLECTION HOUSE LTD1.295$181.8M6Evans & Partners, Bailleu, JP Morgan, Canaccord, Morgans, Blue Ocean1.760.36
MODMOD RESOURCES LTD0.305$91.1M5Canaccord, Arden, Edison, Blue Ocean, Argonaut0.781.56
SMRSTANMORE COAL LTD1.42$368.8M4Petra, Wilsons, Bell Potter, Argonaut1.780.25
COICOMET RIDGE LTD0.29$211.1M4Canaccord, RBC, Taylor Collison, Shaw & Partners0.560.93
PPSPRAEMIUM LTD0.4275$172.1M7Shaw, Bell Potter, Bailleu, Canaccord, Goldman Sachs, Morgans, Wilsons0.640.5
PANPANORAMIC RESOURCES LTD0.35$194.1M4Hartleys, Bailleu, Macquarie, Morgans0.6150.76
BBNBABY BUNTING GROUP LTD2.3$285.8M4Morgans, Macquarie, Morgan Stanley, Everblu2.530.1
TNKTHINK CHILDCARE LTD1.685$101.9M4RBC, Canaccord, Wilsons, Moelis2.140.27
ADHADAIRS LTD1.68$281.2M5Goldman Sachs, Morgans, Bailleu, Wilsons, Everblu2.370.41
G1AGALENA MINING LTD0.385$140.3M4Petra Capital, Blue Ocean, Hartleys, Argonaut Securities0.530.38

The most eyeballed stocks

The stock with the most reports was veteran oil explorer Senex Energy (ASX: SXY). Since January it has received buy ratings from Macquarie, Morgans, Bell Potter, Canaccord and Hartleys. Credit Suisse, JP Morgan and Morgan Stanley were neutral.

By 2021, Senex anticipate increasing production from 1 million barrels of oil equivalent to 4 million. Hartleys set a target of 48 cents per share, considering their potential for sales deals and oil prices recovering.

J.P. Morgan however were more cautious only rating 40 cents, noting recent production figures were slightly below their estimates. They also were uncertain as to the quality of their Queensland assets.

The second most analysed stock was financial platform Praemium (ASX: PPS), which has had seven reports written, all of which since the start of April when it released its half-yearly.

Brokers’ key concern was the loss of Praemium’s major client ANZ Private which contributed eight per cent of its revenue ($4m). It did gain Morgan Stanley and Shaw & Partners as clients but this has only made up $2 million.

Morgans, Bell Potter, Shaw & Partners, Canaccord and Bailleu recommended buys whilst Goldman Sachs and Wilsons recommended hold.

While even some ‘buy’ reccomendations had downgrades, brokers believed in their product, the market opportunity and its trading ratios compared to competitors.

Commodity prices

Some mining stocks have been helped by commodity prices and even the most bullish of brokers have admitted as such.

Potash explorer Salt Lake Potash (ASX: SO4) has had five reports including one by Taylor Collison’s in early April which set a target price of $1.21. This was and still is double its current price of 60 cents.

Taylor Collison admitted this was contingent on potash prices and AUD/US exchange rates. While its primary target assumed a US$500 p/t and a 75 cents exchange rate, a higher Aussie dollar and low potash price (85 cents and US$350p/t) would literally sink the stock.

As Stockhead has covered, Australian coal stocks have had a strong year and Stanmore Coal (ASX: SMR) is one stock that has caught brokers’ attention.

One was Wilsons who set a $1.45 price target in early April.

Stanmore has now nearly reached it. Yet as with Salt Lake Potash, the key to continued growth is coal prices – although having $58 million cash on hand can’t hurt.

The content of the reports referred to in this article were not selected, modified or otherwise controlled by Stockhead. Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in those reports.