Weekly Reports | Feb 09 2024
This story features 29METALS LIMITED, and other companies. For more info SHARE ANALYSIS: 29M
Broker Rating Changes (Post Thursday Last Week)
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29METALS LIMITED ((29M)) Upgrade to Hold from Sell by Canaccord Genuity.B/H/S: 0/0/0
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.
AUCKLAND INTERNATIONAL AIRPORT LIMITED ((AIA)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0
Jarden assesses a weaker than expected guidance update from Air New Zealand (AIR) on the potential passenger volumes for Auckland International Airport.
International volumes are below guidance and load factors remain under 2019 levels. The analyst expects FY24 international passengers of 10.1m against 10.6m guidance. Forecast domestic volumes of 8.45m are also slightly softer than 8.5m guidance.
The broker highlights potential downside risks to Auckland Airport's earnings in FY24 with net profit guidance at $260m-$280m and the Jarden forecast at the lower end of the range.
Jarden lifts the target price to $8.26 from $7.71 based on lower risk-free rates and has a Neutral rating.
SANDFIRE RESOURCES LIMITED ((SFR)) Buy by Canaccord Genuity.B/H/S: 0/0/0
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.
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AROA BIOSURGERY LIMITED ((ARX)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Jarden was left surprised by downgrades issued by Aroa Biosurgery, with the company lowering its second half revenue guidance by -17% and full year revenue guidance by -8%, despite providing previous guidance just two months ago.
As explained by the broker, the downgrade is due to an overestimation of revenue share from Tela Bio, a delay in new Tela product, and lower sales from Myriad.
On the latter point, while Jarden finds lower than expected growth in Myriad disappointing, it points out progress has been made on accounts and sales productivity and guidance of 70-85% year-on-year growth for the product is still encouraging.
The rating is downgraded to Overweight from Buy and the target price decreases to $1.00 from $1.20.
BORAL LIMITED ((BLD)) Downgrade to Sell from Neutral by Goldman Sachs.B/H/S: 0/0/0
Prior to reporting season results, Goldman Sachs notes building starts in Australia have been weaker-than-expected, but it's now thought the elevated backlog will take longer to unwind than previously forecast.
In the US, the broker has a more robust forecast for housing starts due to growing single-family 2024/25 starts. Multi-family starts in 2024 are expected to decline, but growth is anticipated in 2025.
From among Goldman's coverage, James Hardie Industries is considered best placed, with operating leverage under-appreciated by the wider market. The company has also been a beneficiary of normalising input costs in the 4Q.
As Boral has successfully executed a margin turnaround, the share price has significantly outperformed, and the broker downgrades its rating to Sell from Neutral.
The analyst feels recent margin expansion may be hard to sustain as residential starts in Australia wane, and infrastructure may have limited capacity for incremental growth.
The target rises to $4.90 from $4.70.
BEACH ENERGY LIMITED ((BPT)) Downgrade to Sell from Neutral by Goldman Sachs.B/H/S: 0/0/0
According to Goldman Sachs, Beach Energy reported mixed 2Q24 results.
Notably the report included an early LNG cargo from Waitsia (export allowance) which was better than expected, but offset by a non-cash -$505m charge from higher capex and operating expenses at the Cooper Basin JV with Santos.
The analyst adjusts EBITDA earnings by 14%, -4% and -3% for FY24 to FY26, respectively, and the NAV is lowered by -2% to $1.69 from $1.73.
Although the stock is trading at an attractive discount to NAV, Goldman's retains a Sell rating with better perceived opportunities in upstream energy companies.
The price target is shifted marginally to $1.66 from $1.65.
DICKER DATA LIMITED ((DDR)) Downgrade to Sell from Neutral by Goldman Sachs.B/H/S: 0/0/0
Goldman Sachs downgrades its rating for Dicker Data to Sell from Neutral. Based on feedback from OEM suppliers, it's thought the consensus forecast for a FY24 PC sales recovery is too high.
The analyst also cautions Networking sales may slow considerably as due to slow backlog fulfillment. Gearing levels are also considered high, with potential for a capital raise if management targets organic or inorganic growth initiatives.
Overall, the broker remains cautious on management's forward commentary during upcoming 2H results, given the tailwinds experienced during the supply-constrained post-covid period.
The $10.20 target is unchanged.
ELDERS LIMITED ((ELD)) Hold by Moelis.B/H/S: 0/0/0
Moelis assesses that more favourable weather conditions since October 2023 on Elders.Above average rainfall for the east coast of Australia, Norther Territory and South Australia has boosted non-irrigated crops and livestock prices.
Also imported agricultural chemical prices have remained steady for the last six months providing a further boost to Elders.
Earnings per share forecasts are adjusted by 7%, 6% and 4% for FY24 through to FY26, respectively, after the broker accounts for better livestock volumes, prices and cropping outcomes.
A Hold rating is maintained and the price target is raised to $9.44 from $7.92.
LEO LITHIUM LIMITED ((LLL)) Downgrade to Market Weight from Overweight by Wilsons.B/H/S: 0/0/0
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.
LIONTOWN RESOURCES LIMITED ((LTR)) Downgrade to Market Weight from Overweight by Wilsons.B/H/S: 0/0/0
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.
NEWMARK PROPERTY REIT ((NPR)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
A "merger" between Newmark Property REIT and BWP Trust ((BWP)) is on the table, with the latter making an all-scrip offer for all of Newmark Property REIT shares. This has been unanimously recommended by Newmark Property REIT's board.
The offer holds an implied price of $1.39 per Newmark Property REIT, and a 43% premium to its pre-offer trading price, with each 0.4 of a BWP Trust share demanding one Newmark Property REIT share.
Moelis finds the offer reasonable, noting a successful merger would give Newmark Property REIT's shareholders a resolution to gearing and interest cover issues.
The rating is downgraded to Hold from Buy and the target price decreases to $1.45 from $1.58.
OBJECTIVE CORPORATION LIMITED ((OCL)) Downgrade to Neutral from Buy by Goldman Sachs.B/H/S: 0/0/0
Goldman Sachs downgrades its rating for Objective Corp to Neutral from Buy and lowers its target to $13.80 from $14.55.
The broker believes consensus is too early incorporating into forecasts an acceleration in annual recurring revenue (ARR) across FY24-26. Also, growth initiatives, resulting in higher hosting costs and greater R&D/S&M spending, present downside risk for margins.
First half results are due on February 22.
POINTSBET HOLDINGS LIMITED ((PBH)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Despite a one third reduction in marketing spend over the 2Q, Jarden highlights a record quarter for the net win measure, which grew by 3% on the previous corresponding period.
PointsBet Holdings provided FY24 normalised EBITDA loss guidance of -$9m to -$14m, with the midpoint of the range less than the -$12m loss expected by consensus, which the broker considers a key highlight of the result.
The rating is downgraded to Overweight from Buy after recent share price outperformance, while the target is increased to $1.00 from 94c.
SAYONA MINING LIMITED ((SYA)) Downgrade to Hold from Speculative Buy by Canaccord Genuity.B/H/S: 0/0/0
Sayona Mining's 2Q production beat Canaccord Genuity's forecast due to a better-than-expected ramp-up at the North American Lithium (NAL) operations, but missed on cash costs.
The broker's rating is downgraded to Hold from Speculative Buy pending outcomes of an operational review of NAL, which has the potential to jeopardise management's FY24 production guidance.
The company expects the definitive feasibility study (DFS) for the 60%-owned Moblan project by Q1 of FY24.
The target plummets to 6c from 20c, largely due to the analysts' removal of NAL downstream and Moblan from base-case assumptions, and the risking for both operations is also increased.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | 29METALS LIMITED | Neutral | Sell | Canaccord Genuity | |
| 2 | AUCKLAND INTERNATIONAL AIRPORT LIMITED | Neutral | Sell | Jarden | |
| 3 | SANDFIRE RESOURCES LIMITED | Buy | Neutral | Canaccord Genuity | |
| Downgrade | |||||
| 4 | AROA BIOSURGERY LIMITED | Buy | Buy | Jarden | |
| 5 | BEACH ENERGY LIMITED | Sell | Neutral | Goldman Sachs | |
| 6 | BORAL LIMITED | Sell | Neutral | Goldman Sachs | |
| 7 | DICKER DATA LIMITED | Sell | Neutral | Goldman Sachs | |
| 8 | ELDERS LIMITED | Neutral | Buy | Moelis | |
| 9 | LEO LITHIUM LIMITED | Neutral | Buy | Wilsons | |
| 10 | LIONTOWN RESOURCES LIMITED | Neutral | Buy | Wilsons | |
| 11 | NEWMARK PROPERTY REIT | Neutral | Buy | Moelis | |
| 12 | OBJECTIVE CORPORATION LIMITED | Neutral | Buy | Goldman Sachs | |
| 13 | POINTSBET HOLDINGS LIMITED | Buy | Buy | Jarden | |
| 14 | SAYONA MINING LIMITED | Neutral | Buy | Canaccord Genuity | |
Price Target Changes (Post Thursday Last Week)
| Company | Last Price | Broker | New Target | Old Target | Change | |
|---|---|---|---|---|---|---|
| 29M | 29Metals | $0.26 | Canaccord Genuity | 0.41 | 0.57 | -28.07% |
| A11 | Atlantic Lithium | $0.37 | Wilsons | 1.05 | 0.95 | 10.53% |
| AIA | Auckland International Airport | $7.91 | Jarden | 8.26 | N/A | – |
| ALC | Alcidion Group | $0.05 | Canaccord Genuity | 0.10 | 0.13 | -23.08% |
| ALU | Altium | $50.98 | Goldman Sachs | 50.00 | 47.00 | 6.38% |
| AND | Ansarada Group | $1.79 | Canaccord Genuity | 2.20 | 2.00 | 10.00% |
| ARX | Aroa Biosurgery | $0.59 | Jarden | 1.00 | 1.20 | -16.67% |
| Wilsons | 1.00 | 1.60 | -37.50% | |||
| BGL | Bellevue Gold | $1.32 | Canaccord Genuity | 1.80 | 1.85 | -2.70% |
| BLD | Boral | $5.41 | Goldman Sachs | 4.90 | 4.55 | 7.69% |
| BPT | Beach Energy | $1.65 | Canaccord Genuity | 1.60 | 1.54 | 3.90% |
| Goldman Sachs | 1.66 | 1.40 | 18.57% | |||
| Jarden | 1.85 | 1.80 | 2.78% | |||
| CAI | Calidus Resources | $0.17 | Canaccord Genuity | 0.33 | 0.35 | -5.71% |
| CAR | CAR Group | $33.30 | Goldman Sachs | 32.00 | 29.00 | 10.34% |
| CCP | Credit Corp | $17.80 | Canaccord Genuity | 21.90 | 20.00 | 9.50% |
| CIA | Champion Iron | $8.29 | Goldman Sachs | 9.40 | 9.20 | 2.17% |
| Jarden | 9.24 | 8.54 | 8.20% | |||
| CMM | Capricorn Metals | $4.37 | Canaccord Genuity | 5.75 | 5.85 | -1.71% |
| Goldman Sachs | 4.60 | 4.55 | 1.10% | |||
| Jarden | 4.78 | 4.89 | -2.25% | |||
| CSR | CSR | $6.58 | Goldman Sachs | 7.10 | 6.50 | 9.23% |
| CU6 | Clarity Pharmaceuticals | $2.75 | Wilsons | 2.78 | 2.13 | 30.52% |
| CXO | Core Lithium | $0.19 | Wilsons | 0.15 | 0.45 | -66.67% |
| DDR | Dicker Data | $11.21 | Goldman Sachs | 10.20 | 9.35 | 9.09% |
| DHG | Domain Holdings Australia | $3.40 | Goldman Sachs | 3.55 | 3.50 | 1.43% |
| DMP | Domino's Pizza Enterprises | $39.91 | Goldman Sachs | 38.30 | 37.50 | 2.13% |
| ELD | Elders | $8.89 | Moelis | 9.44 | 7.92 | 19.19% |
| FBU | Fletcher Building | $3.92 | Goldman Sachs | 4.65 | 5.00 | -7.00% |
| Goldman Sachs | 4.90 | 5.00 | -2.00% | |||
| FMG | Fortescue | $28.48 | Goldman Sachs | 19.80 | 19.30 | 2.59% |
| GOR | Gold Road Resources | $1.45 | Canaccord Genuity | 1.85 | 2.20 | -15.91% |
| Goldman Sachs | 1.95 | 2.10 | -7.14% | |||
| HLS | Healius | $1.45 | Jarden | 1.60 | 1.52 | 5.26% |
| IDX | Integral Diagnostics | $2.02 | Jarden | 2.54 | 2.38 | 6.72% |
| IFL | Insignia Financial | $2.23 | Jarden | 2.70 | 2.85 | -5.26% |
| IGO | IGO | $7.21 | Canaccord Genuity | 6.00 | 7.00 | -14.29% |
| Canaccord Genuity | 6.25 | 7.00 | -10.71% | |||
| Goldman Sachs | 8.85 | 10.60 | -16.51% | |||
| Jarden | 9.61 | 10.61 | -9.43% | |||
| Jarden | 9.73 | 10.61 | -8.29% | |||
| ING | Inghams Group | $4.37 | Goldman Sachs | 3.25 | 3.05 | 6.56% |
| INR | ioneer | $0.13 | Wilsons | 0.30 | 0.55 | -45.45% |
| IPD | ImpediMed | $0.09 | Wilsons | 0.20 | 0.26 | -23.08% |
| JHX | James Hardie Industries | $58.93 | Goldman Sachs | 62.20 | 54.45 | 14.23% |
| KAR | Karoon Energy | $1.95 | Goldman Sachs | 2.40 | 2.41 | -0.41% |
| LLL | Leo Lithium | Wilsons | 0.42 | 1.70 | -75.29% | |
| LTR | Liontown Resources | $1.01 | Wilsons | 0.85 | 2.30 | -63.04% |
| MAQ | Macquarie Technology | $70.01 | Goldman Sachs | 82.20 | 77.70 | 5.79% |
| MDR | MedAdvisor | $0.26 | Moelis | 0.36 | 0.38 | -5.26% |
| MIN | Mineral Resources | $57.07 | Goldman Sachs | 51.90 | 53.00 | -2.08% |
| Jarden | 49.50 | 48.30 | 2.48% | |||
| MP1 | Megaport | $12.96 | Goldman Sachs | 12.90 | 11.90 | 8.40% |
| Goldman Sachs | 13.50 | 11.90 | 13.45% | |||
| NPR | Newmark Property REIT | $1.37 | Moelis | 1.45 | 1.58 | -8.23% |
| NUC | Nuchev Pty | $0.20 | Wilsons | 0.19 | 0.24 | -20.83% |
| NUF | Nufarm | $5.57 | Wilsons | 5.28 | 5.13 | 2.92% |
| NWL | Netwealth Group | $17.25 | Jarden | 15.00 | 14.85 | 1.01% |
| NWS | News Corp | $41.85 | Goldman Sachs | 42.80 | 38.50 | 11.17% |
| NXS | Next Science | $0.33 | Wilsons | 0.33 | 0.29 | 13.79% |
| NXT | NextDC | $14.35 | Goldman Sachs | 16.60 | 15.80 | 5.06% |
| OCL | Objective Corp | $12.07 | Goldman Sachs | 13.80 | 14.55 | -5.15% |
| OML | oOh!media | $1.62 | Goldman Sachs | 1.59 | 1.47 | 8.16% |
| PBH | PointsBet Holdings | $0.85 | Jarden | 1.00 | 0.94 | 6.38% |
| PER | Percheron Therapeutics | $0.07 | Wilsons | 0.27 | 0.30 | -10.00% |
| PLT | Plenti Group | $0.71 | Wilsons | 1.05 | 1.10 | -4.55% |
| PLY | Playside Studios | $0.81 | Canaccord Genuity | 0.85 | 0.80 | 6.25% |
| PNI | Pinnacle Investment Management | $10.77 | Wilsons | 13.30 | 12.20 | 9.02% |
| PPM | Pepper Money | $1.50 | Goldman Sachs | 1.45 | 1.57 | -7.64% |
| PPT | Perpetual | $25.20 | Jarden | 27.50 | 29.10 | -5.50% |
| PRN | Perenti | $0.82 | Canaccord Genuity | 1.20 | 1.44 | -16.67% |
| REA | REA Group | $176.43 | Goldman Sachs | 204.00 | 179.00 | 13.97% |
| RED | Red 5 | $0.33 | Canaccord Genuity | 0.40 | 0.39 | 2.56% |
| RMD | ResMed | $28.63 | Goldman Sachs | 33.50 | 32.00 | 4.69% |
| Jarden | 31.22 | 30.13 | 3.62% | |||
| RRL | Regis Resources | $1.94 | Canaccord Genuity | 2.50 | 2.55 | -1.96% |
| Goldman Sachs | 2.15 | 2.25 | -4.44% | |||
| RWC | Reliance Worldwide | $4.30 | Goldman Sachs | 4.70 | 4.25 | 10.59% |
| SDR | SiteMinder | $5.27 | Goldman Sachs | 5.15 | 4.60 | 11.96% |
| Wilsons | 5.34 | 4.69 | 13.86% | |||
| SDV | SciDev | $0.27 | Canaccord Genuity | 0.42 | 0.40 | 5.00% |
| SEK | Seek | $26.23 | Goldman Sachs | 24.90 | 23.00 | 8.26% |
| SFR | Sandfire Resources | $7.14 | Canaccord Genuity | 7.75 | 7.00 | 10.71% |
| Goldman Sachs | 7.20 | 6.70 | 7.46% | |||
| Jarden | 6.50 | 6.40 | 1.56% | |||
| SHL | Sonic Healthcare | $31.44 | Jarden | 31.20 | 29.90 | 4.35% |
| SHV | Select Harvests | $3.92 | Wilsons | 5.53 | 5.20 | 6.35% |
| SLR | Silver Lake Resources | $1.12 | Canaccord Genuity | 1.50 | 1.55 | -3.23% |
| Moelis | 1.50 | 1.45 | 3.45% | |||
| STO | Santos | $7.34 | Goldman Sachs | N/A | 8.55 | -100.00% |
| Jarden | 8.05 | 7.70 | 4.55% | |||
| SUN | Suncorp Group | $14.29 | Jarden | 15.10 | 15.25 | -0.98% |
| SWM | Seven West Media | $0.27 | Goldman Sachs | 0.27 | 0.30 | -10.00% |
| SYA | Sayona Mining | $0.04 | Canaccord Genuity | 0.06 | 0.22 | -72.73% |
| TLC | Lottery Corp | $5.04 | Jarden | 5.10 | 5.46 | -6.59% |
| TLS | Telstra Group | $3.99 | Goldman Sachs | 4.65 | 4.70 | -1.06% |
| Jarden | 4.40 | 4.30 | 2.33% | |||
| TPG | TPG Telecom | $5.36 | Jarden | 5.80 | 5.40 | 7.41% |
| WOW | Woolworths Group | $35.51 | Jarden | 42.90 | 42.60 | 0.70% |
| WTC | WiseTech Global | $76.08 | Goldman Sachs | 80.00 | 75.00 | 6.67% |
| Company | Last Price | Broker | New Target | Old Target | Change | |
More Highlights
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
ALL ARISTOCRAT LEISURE LIMITED
Gaming – Overnight Price: $43.86
Jarden rates ((ALL)) as Buy (1) –
In an incremental positive for Aristocrat Leisure, Quebec in Canada has announced its much anticipated video lottery terminal (VLT) replacement orders. It's expected the company will place 1,000 units per annum across the province.
Outright sales to business-to-government (B2G), semi-commercial entities tend to be largely directed to the incumbent IGT, Aristocrat and Light & Wonder, explains the broker.
Target $47.20. Buy.
This report was published on January 31, 2024.
Target price is $47.20 Current Price is $43.86 Difference: $3.34
If ALL meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $45.24, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 77.00 cents and EPS of 220.00 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 212.9, implying annual growth of -4.3%.
Current consensus DPS estimate is 69.4, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 20.6.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 87.00 cents and EPS of 249.00 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.61.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 228.7, implying annual growth of 7.4%.
Current consensus DPS estimate is 74.8, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 19.2.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CU6 CLARITY PHARMACEUTICALS LIMITED
Medical Equipment & Devices – Overnight Price: $2.43
Wilsons rates ((CU6)) as Overweight (1) –
M&A deals in the radiopharma space have brought Clarity Pharmaceuticals in view for many investors, Wilsons suggests, with corporate activity demonstrating a willingness for big pharma to invest in radiopharma assets.
Both Eli Lilly and Bristol Myers Squibb making radiopharma part of their portfolios is only the beginning, and the broker continues to see Clarity as a supreme asset target.
The stock set-up across 2024 looks good to Wilsons, with a regular cadence of news flow expected from eight ongoing clinical programs in combination with broader radiopharmaceutical sector activity ramp keeping investors interested.
Target rises to $2.78 from $2.13, Overweight retained.
This report was published on February 2, 2024.
Target price is $2.78 Current Price is $2.43 Difference: $0.35
If CU6 meets the Wilsons target it will return approximately 14% (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 13.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.61.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 18.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.43.
Market Sentiment: 1.0
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
MAQ MACQUARIE TECHNOLOGY GROUP LIMITED
Telecommunication – Overnight Price: $69.40
Goldman Sachs rates ((MAQ)) as Buy (1) –
Coming into results season, Goldman Sachs likes companies within its small and mid cap coverage with structural growth tailwinds that can withstand a potentially more challenging macroeconomic backdrop.
Buy-rated names Lifestyle Communities, Macquarie Technology and Life360 fit these requirements, according to the analyst.
The broker will be looking at Macquarie Technology's 1H result for additional detail regarding the IC3W data centre development now that the development application (DA) has been obtained.
Goldman raises its IC3W risk-weighting valuation, following the DA approval, and rolls-forward the company's valuation to FY25. The target increases to $82.20 from $77.70 and the Buy rating is maintained.
This report was published on January 29, 2024.
Target price is $82.20 Current Price is $69.40 Difference: $12.8
If MAQ meets the Goldman Sachs target it will return approximately 18% (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 125.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.48.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 164.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.21.
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
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
SDV SCIDEV LIMITED
Industrial Sector Contractors & Engineers – Overnight Price: $0.27
Canaccord Genuity rates ((SDV)) as Speculative Buy (1) –
A strong quarterly report from SciDev, according to Canaccord Genuity, demonstrated not only an acceleration of revenue growth and margin support, but also record revenue and earnings for the company. Given the result, Canaccord Genuity lifts its full year earnings forecast 42%.
The company continues to actively pursue global strategic opportunities, and is diversifying its North American business through entry into new markets.
Canaccord Genuity continues to view the stock positively. The Speculative Buy rating is retained and the target price increases to 42 cents from 40 cents.
This report was published on January 30, 2024.
Target price is $0.42 Current Price is $0.27 Difference: $0.155
If SDV meets the Canaccord Genuity target it will return approximately 58% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.17.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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