Weekly Reports | 10:30 AM
A summary of the highlights from Broker Call Extra updates throughout the week past.
Broker Rating Changes (Post Thursday Last Week)
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ALKANE RESOURCES LIMITED ((ALK)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades to a Buy rating for Alkane Resources with its target price decreased to $1.70 from $2.20 following a solid June quarter production report undermined by a flat FY27 outlook.
The operation produced 42.5koz of gold equivalent during the quarter at an all-in sustaining cost of $3,011 per ounce, culminating in a $104m cash build aided by lower capital expenditure and a $20m security bond refund.
Management's guidance outlines flat production alongside higher operating costs and a significant capital expenditure increase to -$343m for FY27, prompting the broker to question the return profile on this accelerated investment phase.
In response to the diminished free cash flow outlook, the analyst lowers the price to adjusted cash flow multiple from 6.0x to 5.0x, while incorporating an anticipated 2.0c per share annual dividend across the forecast period.
Moelis retains a positive rating purely on valuation grounds but views other gold equities as offering more compelling growth momentum and clearer catalysts.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | ALKANE RESOURCES LIMITED | Buy | Neutral | Moelis | |
Price Target Changes (Post Thursday Last Week)
| Company | Last Price | Broker | New Target | Old Target | Change | |
|---|---|---|---|---|---|---|
| ALK | Alkane Resources | $1.91 | Moelis | 1.70 | 1.80 | -5.56% |
| BTL | Beetaloo Energy Australia | $0.25 | Research as a Service (RaaS) | 0.97 | 0.95 | 2.11% |
| CCV | Cash Converters International | $0.28 | Research as a Service (RaaS) | 0.50 | 0.47 | 6.38% |
| EIQ | EchoIQ | $0.59 | Shaw and Partners | 0.70 | 1.50 | -53.33% |
| FFM | FireFly Metals | $1.73 | Canaccord Genuity | 3.45 | 3.00 | 15.00% |
| GNC | GrainCorp | $6.59 | Jarden | 6.20 | 5.40 | 14.81% |
| MRT | Maritana Minerals | $0.75 | Research as a Service (RaaS) | 2.84 | 2.82 | 0.71% |
| MTS | Metcash | $2.84 | Jarden | 3.30 | 3.70 | -10.81% |
| NWL | Netwealth Group | $18.58 | Canaccord Genuity | 28.05 | 28.40 | -1.23% |
| OBM | Ora Banda Mining | $1.43 | Moelis | 1.40 | 1.60 | -12.50% |
| PNR | Pantoro Gold | $2.61 | Moelis | 3.65 | 3.60 | 1.39% |
| SGLLV | Ricegrowers | $12.61 | Canaccord Genuity | 17.60 | 17.90 | -1.68% |
| SLS | Solstice Minerals | $2.36 | Canaccord Genuity | 4.05 | 2.55 | 58.82% |
| SYR | Syrah Resources | $0.11 | Jarden | 0.09 | 0.10 | -10.00% |
| TRE | Toubani Resources | $0.30 | Canaccord Genuity | 1.25 | 1.85 | -32.43% |
| Company | Last Price | Broker | New Target | Old Target | Change | |
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