Australian Broker Call *Extra* Edition – Feb 09, 2024

This story features 29METALS LIMITED, and other companies. For more info SHARE ANALYSIS: 29M

An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

29M   A11   ALC   ALU   CCP   CMM   CXO   FBU   IGO   INR   LLL   LTR   MP1   NEC   NUC   NWS   NXS   OML   PLY   PNI   PXA   RED   SDR   SFR (2)   SLR (2)   SWM   WTC   XRO  

29M    29METALS LIMITED

Copper – Overnight Price: $0.26

Canaccord Genuity rates ((29M)) as Upgrade to Hold from Sell (3) –

29Metals' December quarter result missed consensus forecasts on a number of items, including production of 5,200 ounces at Golden Grove and 2,400 at Capricorn Copper.

Canaccord Genuity notes C1 cash costs declined -7% quarter-on-quarter to US$3.06 per pound. All-in sustaining costs declined -11% quarter-on-quarter to US$3.71 per pound, but remained higher than the broker's estimated US$1.57 per pound.

The rating is upgraded to Hold from Sell and the target price decreases to 41 cents from 59 cents.

This report was published on January 30, 2024.

Target price is $0.41 Current Price is $0.26 Difference: $0.155
If 29M meets the Canaccord Genuity target it will return approximately 61% (excluding dividends, fees and charges).
Current consensus price target is $0.60, suggesting upside of 135.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -23.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

A11    ATLANTIC LITHIUM LIMITED.

New Battery Elements – Overnight Price: $0.37

Wilsons rates ((A11)) as Overweight (1) –

Wilsons reviews the lithium market and adjusts its price deck and equity ratings after "expanding" its approach to lithium pricing. The broker holds the faith, believing recent lows are typical of a bottoming commodities cycle rather than a structural decline, and that the fundamental outlook is still very strong, and forecasts sharp long-term price rises (albeit sharply downgrading near-term prices).

The broker says its expanded approach, covering 1.3Mt LCE of potential additional supply demanding a minimum required cash flow internal rate of return of 15%, suggests that more than 50% of potential new global spodumene supply will not be developed at current spodumene prices. The read-through is that prices will need to rise to encourage supply.

Under this approach, Wilsons forecasts that long-term spodumene prices will rise 13% US$1550/t and long-term Lithium Carbonate prices will fall -20% to US$20,000/t – substantially higher than current prices of US$850/t and US$16,500/t respectively.

Under this scenario, Wilsons says some miners will have a more nuanced future than just "buy lithium" – but not Atlantic Lithium, which is the broker's top pick.

The company is the only producer under coverage to escape Wilsons' near-term downgrade wrath given production starts in FY26.

Overweight rating retained. Target price rises 10% to $1.05.

This report was published on February 5, 2024.

Target price is $1.05 Current Price is $0.37 Difference: $0.68
If A11 meets the Wilsons target it will return approximately 184% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.67.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 185.00.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ALC    ALCIDION GROUP LIMITED

Healthcare services – Overnight Price: $0.05

Canaccord Genuity rates ((ALC)) as Buy (1) –

Alcidion Group reported 2Q24 results which met Canaccord Genuity's expectations but the company continues to experience NHS procurement delays and sluggish revenue and TCV growth.

The broker is looking to the 1H24 results announcement to offer more details around how earnings are shaping up for the full year with concerns that current guidance is looking overly optimistic.

Management continued cost cutting measures with $2.4m excised leading to a circa $1.2m positive result in the 2H24.

The broker's Buy rating is unchanged and the price target falls to 10c from 13c.

This report was published on January 31, 2024.

Target price is $0.10 Current Price is $0.05 Difference: $0.05
If ALC meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.67.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ALU    ALTIUM

Hardware & Equipment – Overnight Price: $50.98

Goldman Sachs rates ((ALU)) as Neutral (3) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For Altium, the Neutral rating is retained and the target price increases to $50.00 from $47.00.

This report was published on January 30, 2024.

Target price is $50.00 Current Price is $50.98 Difference: minus $0.98 (current price is over target).
If ALU meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $48.07, suggesting downside of -5.7%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 97.0, implying annual growth of N/A.
Current consensus DPS estimate is 95.5, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 52.6.

Forecast for FY25:

Current consensus EPS estimate is 120.4, implying annual growth of 24.1%.
Current consensus DPS estimate is 93.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 42.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $17.80

Canaccord Genuity rates ((CCP)) as Buy (1) –

Canaccord Genuity remains constructive on Credit Corp, believing operational challenges are largely behind the company now. 

The Australian and New Zealand purchased debt ledgers are showing early signs of stabilisation, with Credit Corp securing $90m in purchasing year-to-date, and expecting a further $10-20m in the second half, while US purchased debt ledgers are slowly turning around.

The broker expects Credit Corp can benefit from improving supply conditions and an undemanding valuation backdrop, and expects lending in Australia and New Zealand to drive net profits in FY25.

The Buy rating is retained and the target price increases to $21.90 from $20.00.

This report was published on February 1, 2024.

Target price is $21.90 Current Price is $17.80 Difference: $4.1
If CCP meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $17.76, suggesting downside of -0.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 48.00 cents and EPS of 120.10 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.1, implying annual growth of -44.0%.
Current consensus DPS estimate is 53.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 73.00 cents and EPS of 146.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 133.5, implying annual growth of 77.8%.
Current consensus DPS estimate is 68.3, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.3.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $4.37

Goldman Sachs rates ((CMM)) as Neutral (3) –

Capricorn Metals' pre-reported December-quarter gold production met Goldman Sachs's forecasts as did all-in-sustaining costs, which slightly outpaced consensus.

The company closed the quarter with cash and gold of $160m (up quarter on quarter) and net cash of $100m.

Management retained FY24 production, capex and cost guidance.

Neutral rating retained on valuation. Target price inches up to $4.60 from $4.55.

This report was published on January 30, 2024.

Target price is $4.60 Current Price is $4.37 Difference: $0.23
If CMM meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 33.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.24.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.00.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.18

Wilsons rates ((CXO)) as Underweight (5) –

Wilsons reviews the lithium market and adjusts its price deck and equity ratings after "expanding" its approach to lithium pricing. The broker holds the faith, believing recent lows are typical of a bottoming commodities cycle rather than a structural decline, and that the fundamental outlook is still very strong, and forecasts sharp long-term price rises (albeit sharply downgrading near-term prices).

The broker says its expanded approach, covering 1.3Mt LCE of potential additional supply demanding a minimum required cash flow internal rate of return of 15%, suggests that more than 50% of potential new global spodumene supply will not be developed at current spodumene prices. The read-through is that prices will need to rise to encourage supply.

Under this approach, Wilsons forecasts that long-term spodumene prices will rise 13% US$1550/t and long-term Lithium Carbonate prices will fall -20% to US$20,000/t – substantially higher than current prices of US$850/t and US$16,500/t respectively.

Under this scenario, high-cost operator Core Lithium (which has an uncertain longer term operational plan) is not covered in glory. Its only hope, says Wilsons, is if lithium prices recover faster than the broker's base-case scenario, which would mean upside leverage would be sharp.

Underweight rating retained. Target price falls to 15c from 45c.

This report was published on February 5, 2024.

Target price is $0.15 Current Price is $0.18 Difference: minus $0.035 (current price is over target).
If CXO meets the Wilsons target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.25, suggesting upside of 33.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, implying annual growth of 341.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 6.2.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, implying annual growth of -80.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 30.8.

Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $3.92

Goldman Sachs rates ((FBU)) as Buy (1) –

Goldman Sachs notes Fletcher Building has announed an additional -NZ$180m provision for the 1H24 relating to the New Zealand International Convention Centre project and the WIAL carpark.

Completion date of the end of calendar 2024 was reconfirmed by management for these legacy projects as well as ongoing liability insurance claims of more than NZ$100m.

The Buy rating and $4.90 target price remain unchanged.

This report was published on February 5, 2024.

Target price is $4.90 Current Price is $3.92 Difference: $0.98
If FBU meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $5.37, suggesting upside of 36.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 38.87 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.9, implying annual growth of N/A.
Current consensus DPS estimate is 28.4, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 9.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 40.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.8, implying annual growth of -5.1%.
Current consensus DPS estimate is 26.5, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.1.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IGO    IGO LIMITED

Nickel – Overnight Price: $7.21

Canaccord Genuity rates ((IGO)) as Sell (5) –

IGO reported disappointing 3Q23 results for all of its assets according to Canaccord Genuity.

Management has placed Cosmos into care and maintenance; Kwinana continues to produce negative results (-$169m EBITDA) and Greenbushes reported a -30% quarterly hit to sales.

The analyst highlights concern over the cash levels and views further cost management measures as prudent.

The Sell rating is retained and the target lowered to $6 from $6.25.

This report was published on January 31, 2024.

Target price is $6.00 Current Price is $7.21 Difference: minus $1.21 (current price is over target).
If IGO meets the Canaccord Genuity target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.23, suggesting upside of 14.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 10.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.7, implying annual growth of -9.4%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 11.0.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 11.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.2, implying annual growth of -38.8%.
Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 17.9.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

INR    IONEER LIMITED

New Battery Elements – Overnight Price: $0.12

Wilsons rates ((INR)) as Overweight (1) –

Wilsons reviews the lithium market and adjusts its price deck and equity ratings after "expanding" its approach to lithium pricing. The broker holds the faith, believing recent lows are typical of a bottoming commodities cycle rather than a structural decline, and that the fundamental outlook is still very strong, and forecasts sharp long-term price rises (albeit sharply downgrading near-term prices).

The broker says its expanded approach, covering 1.3Mt LCE of potential additional supply demanding a minimum required cash flow internal rate of return of 15%, suggests that more than 50% of potential new global spodumene supply will not be developed at current spodumene prices. The read-through is that prices will need to rise to encourage supply.

Under this approach, Wilsons forecasts that long-term spodumene prices will rise 13% US$1550/t and long-term Lithium Carbonate prices will fall -20% to US$20,000/t – substantially higher than current prices of US$850/t and US$16,500/t respectively.

Under this scenario, ioneer's fullly funded potentially very low cost mine is a boon, and lengthy delays in permitting prices no longer seem so problematic and Wilsons posits ioneer could be "one of the most exciting developers in this space". 

Overweight rating. Target price falls -45% to 30c from 55c.

This report was published on February 5, 2024.

Target price is $0.30 Current Price is $0.12 Difference: $0.175
If INR meets the Wilsons target it will return approximately 140% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.13.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 3.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.13.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LLL    LEO LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.51

Wilsons rates ((LLL)) as Downgrade to Market Weight from Overweight (3) –

Wilsons reviews the lithium market and adjusts its price deck and equity ratings after "expanding" its approach to lithium pricing. The broker holds the faith, believing recent lows are typical of a bottoming commodities cycle rather than a structural decline, and that the fundamental outlook is still very strong, and forecasts sharp long-term price rises (albeit sharply downgrading near-term prices).

The broker says its expanded approach, covering 1.3Mt LCE of potential additional supply demanding a minimum required cash flow internal rate of return of 15%, suggests that more than 50% of potential new global spodumene supply will not be developed at current spodumene prices. The read-through is that prices will need to rise to encourage supply (the "incentive" curve).

Under this approach, Wilsons forecasts that long-term spodumene prices will rise 13% US$1550/t and long-term Lithium Carbonate prices will fall -20% to US$20,000/t – substantially higher than current prices of US$850/t and US$16,500/t respectively.

Under this scenario, Leo Lithium's near-term earnings take a shellacking given production is expected to kick off within a year.

Political uncertainty in Mali heading into an election has also raised the company's risk profile says Wilsons, as does Mali's decision to exit ECOWAS, which will affect export channels. Any liquidation of the company's stake in Goulamina would still yield a valuation of 65c (30% above the suspended share price), says the broker but stresses the risk is skewed.

Rating is downgraded to Market Weight from Overweight. Target price falls to 42c from $1.70.

This report was published on February 5, 2024.

Target price is $0.42 Current Price is $0.51 Difference: minus $0.085 (current price is over target).
If LLL meets the Wilsons target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 101.00.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.67.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $1.01

Wilsons rates ((LTR)) as Downgrade to Market Weight from Overweight (3) –

Wilsons reviews the lithium market and adjusts its price deck and equity ratings after "expanding" its approach to lithium pricing. The broker holds the faith, believing recent lows are typical of a bottoming commodities cycle rather than a structural decline, and that the fundamental outlook is still very strong, and forecasts sharp long-term price rises (albeit sharply downgrading near-term prices).

The broker says its expanded approach, covering 1.3Mt LCE of potential additional supply demanding a minimum required cash flow internal rate of return of 15%, suggests that more than 50% of potential new global spodumene supply will not be developed at current spodumene prices. The read-through is that prices will need to rise to encourage supply.

Under this approach, Wilsons forecasts that long-term spodumene prices will rise 13% US$1550/t and long-term Lithium Carbonate prices will fall -20% to US$20,000/t – substantially higher than current prices of US$850/t and US$16,500/t respectively.

Under this scenario, Liontown Resources near-term earnings forecasts come a-cropper (-96% in FY25 and -50% in FY26) as the broker reduces its ramp-up forecasts for the company. Net present values fall -24% to $1.72.

Rating is downgraded to Market Weight from Overweight. Target price falls to 85c from $2.30.

This report was published on February 5, 2024.

Target price is $0.85 Current Price is $1.01 Difference: minus $0.16 (current price is over target).
If LTR meets the Wilsons target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.17, suggesting upside of 15.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 202.0.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $12.96

Goldman Sachs rates ((MP1)) as Buy (1) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For Megaport, the Buy rating is retained and the target price increases to $12.90 from $11.90.

This report was published on January 30, 2024.

Target price is $12.90 Current Price is $12.96 Difference: minus $0.06 (current price is over target).
If MP1 meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.46, suggesting upside of 3.8%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 9.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 140.9.

Forecast for FY25:

Current consensus EPS estimate is 19.4, implying annual growth of 110.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 66.8.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NEC    NINE ENTERTAINMENT CO. HOLDINGS LIMITED

Print, Radio & TV – Overnight Price: $1.94

Goldman Sachs rates ((NEC)) as Buy (1) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For Nine Entertainment, the Buy rating and target price of $2.30 are retained.

This report was published on January 30, 2024.

Target price is $2.30 Current Price is $1.94 Difference: $0.365
If NEC meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $2.31, suggesting upside of 19.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 10.00 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 5.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.7, implying annual growth of 25.9%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 10.00 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 5.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of 10.2%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.8.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NUC    NUCHEV PTY LIMITED

Dairy – Overnight Price: $0.20

Wilsons rates ((NUC)) as Market Weight (3) –

Nuchev Pty reported a strong 2Q24 result notes Wilsons, boosted by a 44% rise in branded revenue on the previous corresponding period, which is considered a signal of traction in the China market post a new distribution agreement.

The broker adjusts sales forecasts by -18% to -30% due to the lower than expected China CBEC channel, but  cost controls help boost the EBITDA by $3m to $4m.

A Market Weight is maintained while the target price is lowered to 19c from 24c.

This report was published on February 5, 2024.

Target price is $0.19 Current Price is $0.20 Difference: minus $0.01 (current price is over target).
If NUC meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.45.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.92.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $41.85

Goldman Sachs rates ((NWS)) as Buy (1) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For News Corp, the Buy rating is retained and the target price increases to $42.80 from $38.50.

This report was published on January 30, 2024.

Target price is $42.80 Current Price is $41.85 Difference: $0.95
If NWS meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $36.67, suggesting downside of -12.4%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 118.2, implying annual growth of N/A.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 35.4.

Forecast for FY25:

Current consensus EPS estimate is 156.1, implying annual growth of 32.1%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 26.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.33

Canaccord Genuity rates ((NXS)) as Speculative Buy (1) –

Commenting on 4Q23 results for Next Science, Canaccord Genuity highlights the company met the revised 1H23 guidance ($12.1m), or $7.1m for the quarter, up from $5m in the previous quarter.

The broker views Xperience as offering the best long-term commercial upside and pointed to 48% sales growth on the previous year, albeit coming off a low base.

Despite cash of $9.2m, the analyst thinks the balance sheet remains under pressure, though management is continuing to control costs.

FY24 revenue guidance is lowered to $36m-$40m from $41m. The Speculative Buy rating and 40c target price are retained.

This report was published on January 30, 2024.

Target price is $0.40 Current Price is $0.33 Difference: $0.075
If NXS meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 9.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.35.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.02.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OML    OOH!MEDIA LIMITED

Out of Home Advertising – Overnight Price: $1.62

Goldman Sachs rates ((OML)) as Neutral (3) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For oOh!media, the Neutral rating is retained and the target price increases to $1.59 from $1.47.

This report was published on January 30, 2024.

Target price is $1.59 Current Price is $1.62 Difference: minus $0.03 (current price is over target).
If OML meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.77, suggesting upside of 9.5%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 8.4, implying annual growth of 58.8%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY24:

Current consensus EPS estimate is 10.1, implying annual growth of 20.2%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 16.0.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PLY    PLAYSIDE STUDIOS LIMITED

Gaming – Overnight Price: $0.81

Canaccord Genuity rates ((PLY)) as Buy (1) –

Playside Studios reported strong 2Q24 results, amounting to a record 1H24 and another guidance upgrade to earnings since last August, rejoices the analyst at Canaccord Genuity.

Revenues accelerated 119% on the previous year for 1H24 and were well ahead of market expectations, but the highlight was the 34% EBITDA margin and the record cash balance of $38m, a lift of $7m on the previous quarter.

Guidance for FY24 EBITDA was lifted to $11m-$13m, 70% higher than the broker's previous forecast.

The target price is raised to 85c from 80c and the Buy rating retained.

This report was published on February 1, 2024.

Target price is $0.85 Current Price is $0.81 Difference: $0.04
If PLY meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.50.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $10.77

Wilsons rates ((PNI)) as Overweight (1) –

Wilsons retains an upbeat stance on Pinnacle Investment Management post the 1H24 results, with FUM up 3.9% versus consensus and net profits a -6.9% miss compared to the consensus estimates.

Management stressed the 2H24 earnings skew would be more pronounced this year and the analyst adjusts the net profit forecast by 4.7% for FY24 and 2.3% in FY25.

Overweight rating retained. Target shifts to 9% to $13.30.

This report was published on February 2, 2024.

Target price is $13.30 Current Price is $10.77 Difference: $2.53
If PNI meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $10.64, suggesting downside of -1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 32.70 cents and EPS of 41.20 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 0.9%.
Current consensus DPS estimate is 37.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 43.90 cents and EPS of 55.20 cents.
At the last closing share price the estimated dividend yield is 4.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.8, implying annual growth of 22.9%.
Current consensus DPS estimate is 41.6, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 22.1.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PXA    PEXA GROUP LIMITED

Real Estate – Overnight Price: $11.63

Goldman Sachs rates ((PXA)) as Initiation of coverage with Neutral (3) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

The broker initiates on Pexa Group with a Neutral rating and a target price of $12.80.

This report was published on February 8, 2024.

Target price is $12.80 Current Price is $11.63 Difference: $1.17
If PXA meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $14.06, suggesting upside of 20.9%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 23.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 50.3.

Forecast for FY25:

Current consensus EPS estimate is 34.8, implying annual growth of 50.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 33.4.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RED    RED 5 LIMITED

Gold & Silver – Overnight Price: $0.33

Canaccord Genuity rates ((RED)) as Buy (1) –

Pre-reported December quarter production from Red 5 of 53,000 ounces was in line with Canaccord Genuity's expectations, although all-in sustaining costs of $2,328 per ounce were higher than the broker had expected.

Canaccord Genuity explains the miss as an impact of the adoption of a new accounting policy for low grade ore stockpiles, implemented in the period. This new policy added a $267 non-cash cost per ounce, which will be a one-off adjustment.

The Buy rating is retained and the target price increases to 40 cents from 39 cents.

This report was published on January 31, 2024.

Target price is $0.40 Current Price is $0.33 Difference: $0.07
If RED meets the Canaccord Genuity target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SDR    SITEMINDER LIMITED

Travel, Leisure & Tourism – Overnight Price: $5.27

Goldman Sachs rates ((SDR)) as Neutral (3) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For SiteMinder, the Neutral rating is retained and the target price increases to $5.15 from $4.60.

This report was published on January 30, 2024.

Target price is $5.15 Current Price is $5.27 Difference: minus $0.12 (current price is over target).
If SDR meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.93, suggesting upside of 12.4%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is -7.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Current consensus EPS estimate is -1.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $7.14

Canaccord Genuity rates ((SFR)) as Buy (1) –

Canaccord Genuity notes a further ramp-up of Motheo helped secure a 50% rise in copper production and zinc production lifted 31% in Sandfire Resources' December quarter, compared to the previous quarter.

The broker continues to be impressed by the Motheo ramp-up with the average annualised run rate at 3.5Mtpa, compared to 3.1Mtpa for the September quarter.

The Buy rating is unchanged but the target price is lifted to $7.75 from $7.50.

This report was published on January 30, 2024.

Target price is $7.75 Current Price is $7.14 Difference: $0.61
If SFR meets the Canaccord Genuity target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $7.08, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.45 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1572.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 7.58 cents and EPS of 43.94 cents.
At the last closing share price the estimated dividend yield is 1.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.3, implying annual growth of N/A.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 19.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Goldman Sachs rates ((SFR)) as Neutral (3) –

Sandfire Resources' December-half pre-reported earnings (EBITDA) missed Goldman Sachs's forecast due to timing of shipments.

December-quarter copper production missed the broker's forecast but zinc outpaced.

The good news is the Motheo ramp-up is ahead of schedule based on mill throughput; and Matsa's metal recoveries continued to improve.

FY24 production and guidance was retained but the broker believes Motheo's strong ramp-up weighs the odds in favour of a guidance upgrade this month with the full December-half result.

EPS forecasts rise 15% in FY25 and 20% in FY26. Neutral rating retained on valuation. Target price rises 7% to $7.20.

This report was published on January 30, 2024.

Target price is $7.20 Current Price is $7.14 Difference: $0.06
If SFR meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $7.08, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 2.30 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 0.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 714.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 20.15 cents and EPS of 66.67 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.3, implying annual growth of N/A.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 19.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SLR    SILVER LAKE RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.12

Canaccord Genuity rates ((SLR)) as Buy (1) –

Silver Lake Resources reported group sales of 57,000 ounces, a largely flat result quarter-on-quarter. All-in sustaining costs of $1,868 per ounce, however, were up 9% quarter-on-quarter, but in line with Canaccord Genuity's expectations.

The company was unhedged during the quarter, allowing it to realise an average price of $3,025 per ounce, or total revenue of $174m. Cash and bullion declined -$86m quarter-on-quarter following repayment of a $130m short-term loan facility. 

The Buy rating is retained and the target price decreases to $1.50 from $1.55.

This report was published on January 30, 2024.

Target price is $1.50 Current Price is $1.12 Difference: $0.38
If SLR meets the Canaccord Genuity target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.18.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.00.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Moelis rates ((SLR)) as Buy (1) –

Silver Lake Resources reported strong results for the December quarter which came in above Moelis' expectations.

Gold production of 57.4koz beat the 52.9koz forecast; costs of $1868/oz were below the $2102/oz estimate and cash generated exceeded the target at $281.3m against $269.8m expected.

The broker continues to like the stock given the predictability of production and costs alongside an attractive valuation.

The Buy rating is retained and the price target is raised to $1.50 from $1.45.

This report was published on February 4, 2024.

Target price is $1.50 Current Price is $1.12 Difference: $0.38
If SLR meets the Moelis target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 EPS of 9.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.91.

Forecast for FY25:

Moelis forecasts a full year FY25 EPS of 9.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SWM    SEVEN WEST MEDIA LIMITED

Print, Radio & TV – Overnight Price: $0.27

Goldman Sachs rates ((SWM)) as Sell (5) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For Seven West Media, the Sell rating is retained and the target price decreases to 27 cents from 30 cents.

This report was published on January 30, 2024.

Target price is $0.27 Current Price is $0.27 Difference: $0.005
If SWM meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $0.37, suggesting upside of 37.7%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 6.7, implying annual growth of -28.8%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 4.0.

Forecast for FY25:

Current consensus EPS estimate is 7.6, implying annual growth of 13.4%.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 9.4%.
Current consensus EPS estimate suggests the PER is 3.5.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $76.08

Goldman Sachs rates ((WTC)) as Neutral (3) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For WiseTech Global, the Neutral rating is retained and the target price increases to $80.00 from $75.00.

This report was published on January 30, 2024.

Target price is $80.00 Current Price is $76.08 Difference: $3.92
If WTC meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $76.39, suggesting upside of 0.4%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 80.2, implying annual growth of 23.8%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 94.9.

Forecast for FY25:

Current consensus EPS estimate is 108.3, implying annual growth of 35.0%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 70.2.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

XRO    XERO LIMITED

Accountancy – Overnight Price: $109.77

Goldman Sachs rates ((XRO)) as Buy (1) –

It is clear to Goldman Sachs that market expectations for interest rates will be a significant determinant of share price performance and shareholder returns for its domestic telecoms, media and technology (TMT) coverage through the coming year.

Overall, the broker sees the TMT space as well-positioned to continue to deliver robust earnings growth. It expects rate cuts to underpin a renewed focus on growth.

For Xero, the Buy rating and target price of $141.00 are retained.

This report was published on January 30, 2024.

Target price is $141.00 Current Price is $109.77 Difference: $31.23
If XRO meets the Goldman Sachs target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $110.62, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 99.04 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 180.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 136.99 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.9, implying annual growth of 65.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 108.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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