Australian Broker Call *Extra* Edition – May 03, 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   AGY   ATG   BXB   FMG   KGN   LIC   LYC (2)   NST (2)   RMD   WGX  

29M    29METALS LIMITED

Copper – Overnight Price: $0.48

Jarden rates ((29M)) as Underweight (4) –

29Metals continues to maintain a high cash rate burn post the March quarter results with the company reporting very weak production and financial accounts, highlights Jarden.

Cash outflows totalled -$56m including -$15m in dept repayments, bringing the cash balance down to $106m from $162m at the end of the December quarter.

Despite the recent $93m liquidity injection, Jarden considers the possibility of another $60m liquidity injection due to high cash burn and capital expenditure.

After accounting for a higher copper price, the broker downgrades 29Metals to a FY24 EBITDA loss of -$23m (from -$4m) and -3% decline  in forecast EBITDA for FY25.

An Underweight rating is maintained with a 28c target price.

This report was published on April 23, 2024.

Target price is $0.28 Current Price is $0.48 Difference: minus $0.2 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 42% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.42, suggesting downside of -12.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 9.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.6, 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:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.2, 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 240.0.

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

AGY    ARGOSY MINERALS LIMITED

New Battery Elements – Overnight Price: $0.12

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

Canaccord Genuity maintains a Speculative Buy rating on Argosy Minerals, with a price target of $0.27 (unchanged). 

The broker highlights the Government of Salta Province's approval of the Environmental Impact Assessment (EIA) for a 10ktpa battery grade lithium carbonate expansion at the Rincon Lithium Project, de-risking the project and solidifying the development timeline.

Argosy has completed the 2,000ktpa plant and is addressing operational challenges; the broker adds continuous production is expected soon.

No significant changes have been made to financial forecasts.

This report was published on April 24, 2024.

Target price is $0.27 Current Price is $0.12 Difference: $0.145
If AGY meets the Canaccord Genuity target it will return approximately 116% (excluding dividends, fees and charges).

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

ATG    ARTICORE GROUP LIMITED

Retailing – Overnight Price: $0.41

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

Canaccord Genuity maintains its But rating for Articore Group with an unchanged price target of $1.00 as the broker remains optimistic about a potential re-rate of the stock if Articore successfully executes its strategies and achieves forecasted improvements.

Short term, however, the company has experienced a downward revision in its future revenue and earnings forecasts, reflecting expected challenges but also potential stabilisation in its cost structure and improvement in gross profit margins.

Despite a decline in sales forecasts for 2024 to 2026, the broker notes management remains focused on strategic initiatives that could improve performance, including enhanced marketing efficiency and AI integration for better customer engagement.

Earnings forecasts have been lowered.

This report was published on April 24, 2024.

Target price is $1.00 Current Price is $0.41 Difference: $0.595
If ATG meets the Canaccord Genuity target it will return approximately 147% (excluding dividends, fees and charges).
Current consensus price target is $0.59, suggesting upside of 44.9%(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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 81.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.4, 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:

Canaccord Genuity forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.1, 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 N/A.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $14.28

Jarden rates ((BXB)) as Overweight (2) –

Jarden assesses that the market is too concerned about the revenue momentum for Brambles post the 3Q24 trading update.

The analyst highlights a slowing in revenue growth to 2.3% over the quarter, compared to 10% in the 1H24 and 7% for the 9 months ending March, but emphasises that the 'slowdown' in the pallet return rate is a positive for the company.

Management has retained FY24 guidance with an expected pick up in 4Q24 revenues, seasonally a stronger period for Brambles.

Jarden makes no changes to FY24 forecasts, however the analyst considers the market is ignoring potential positives from in-period pricing going into FY25.

A Buy rating and $15.70 target are unchanged.

This report was published on April 23, 2024.

Target price is $15.70 Current Price is $14.28 Difference: $1.42
If BXB meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $15.44, suggesting upside of 8.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 72.96 cents and EPS of 81.95 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.0, implying annual growth of N/A.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 81.04 cents and EPS of 90.48 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.6, implying annual growth of 11.9%.
Current consensus DPS estimate is 55.5, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 14.3.

This company reports in USD. 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

FMG    FORTESCUE LIMITED

Iron Ore – Overnight Price: $25.57

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

Goldman Sachs maintains a Sell rating on Fortescue, with a 12-month price target of $16.90, unchanged. The broker spotted a challenging third quarter, missing expected iron ore shipments and cost targets due to adverse weather and operational disruptions.

A significant fourth quarter effort will be required, states the report, to meet the lower end of shipment guidance, amidst concerns over production constraints.

Fortescue has adjusted its FY24 iron ore capex guidance downward by -US$0.3-0.5bn, primarily due to a slower rollout of its decarbonisation program in the Pilbara.

Energy operational expenditures were also reduced by -US$100m to US$700m, with no change in the energy capex guidance of US$500m, the broker notes.

The EPS estimate declined -3% for FY24, with a slight improvement projected for the following years.

This report was published on April 24, 2024.

Target price is $16.90 Current Price is $25.57 Difference: minus $8.67 (current price is over target).
If FMG meets the Goldman Sachs target it will return approximately minus 34% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.03, suggesting downside of -21.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 193.45 cents and EPS of 300.08 cents.
At the last closing share price the estimated dividend yield is 7.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 310.6, implying annual growth of N/A.
Current consensus DPS estimate is 228.7, implying a prospective dividend yield of 8.9%.
Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 94.44 cents and EPS of 178.22 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 259.3, implying annual growth of -16.5%.
Current consensus DPS estimate is 190.0, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 9.9.

This company reports in USD. 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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $4.74

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

Canaccord Genuity has adjusted the price target for Kogan.com to $8.00, down from $9.00, while maintaining a Buy rating. Forecast EBITDA and net income for FY24 have been lowered to $37.9m and $18.7m, respectively.

These revisions follow a lower-than-expected performance in 3Q. The broker notes Kogan continues to focus on expanding its Kogan First membership, which is seen as crucial to the company's future profitability.

This report was published on April 24, 2024.

Target price is $8.00 Current Price is $4.74 Difference: $3.26
If KGN meets the Canaccord Genuity target it will return approximately 69% (excluding dividends, fees and charges).
Current consensus price target is $7.17, suggesting upside of 51.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 14.10 cents and EPS of 20.20 cents.
At the last closing share price the estimated dividend yield is 2.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of N/A.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 34.1.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 21.60 cents and EPS of 30.80 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.9, implying annual growth of 115.1%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.9.

Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $12.17

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

Below average settlement rates continue to impact on Lifestyle Communities according to Goldman Sachs, post the FY24 trading update.

The anticipated improvement in settlement times for the 2H24 has not come to pass due to 'higher-for-longer' interest rate settings and a soft Victorian property market.

The broker doesn't envisage the issues to be demand related with sales leads remaining robust, rather it is the challenging headwinds from the macro economic context.

Adjusting for the lower settlements, earnings forecasts are lowered to -12% and -20% for FY24 and FY25, respectively.

The target price is lowered to $18.45 from $21.32 and the rating is unchanged; Buy.

This report was published on April 23, 2024.

Target price is $18.45 Current Price is $12.17 Difference: $6.28
If LIC meets the Goldman Sachs target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $15.52, suggesting upside of 27.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.7, implying annual growth of -34.9%.
Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 24.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 14.00 cents and EPS of 74.00 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.7, implying annual growth of 45.4%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 16.5.

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

LYC    LYNAS RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $6.47

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

Canaccord Genuity has raised the target price for Lynas Rare Earths to $7.00 from $6.90, while maintaining a Buy rating.

The broker notes improvements at the Lynas Advanced Materials Plant (LAMP) in Malaysia, which have led to a production beat for NdPr.

Despite some operational challenges, Lynas has managed higher production volumes, contributing to a positive outlook. The broker has adjusted financial forecasts downward for FY25 and FY26 EBITDA, reflecting a more cautious stance on future earnings.

Overall, the broker's sentiment remains positive, supported by favourable market conditions for rare earth elements and potential sector M&A activities.

This report was published on April 24, 2024.

Target price is $7.00 Current Price is $6.47 Difference: $0.53
If LYC meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.35, suggesting downside of -1.9%(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 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 107.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of -75.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 76.1.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 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 58.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.0, implying annual growth of 241.2%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 22.3.

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

Goldman Sachs maintains a Buy rating for Lynas Rare Earths and adjusts the price target to $7.40 from $7.50, reflecting a slight decrease in the net asset value (NAV) to $7.95 from $7.99 per share.

The adjustment follows heavy downgrades to earnings per share (EPS) estimates for FY24 to FY26 due to updated assumptions for the ramp-up of Neodymium-Praseodymium (NdPr) production.

The broker highlights the final capex estimate for the Kalgoorlie project has increased to -$800m from -$730m, with the expenditure now extending into FY25.

This report was published on April 24, 2024.

Target price is $7.40 Current Price is $6.47 Difference: $0.93
If LYC meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $6.35, suggesting downside of -1.9%(ex-dividends)
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 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 104.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of -75.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 76.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 14.00 cents and EPS of 26.60 cents.
At the last closing share price the estimated dividend yield is 2.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.0, implying annual growth of 241.2%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 22.3.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $14.57

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

Northern Star Resources reported a gold production miss for the 3Q24, coming in -9% lower for the quarter on the previous quarter, notes Goldman Sachs.

Sales for Yandal and Pogo were in line but costs were slightly higher than expected. Management retained FY24 guidance at 1600-1700koz, with June quarter gold sales expected to improve.

Goldman Sachs makes no changes to the earnings forecasts. Neutral rating is retained and the target is lowered to $14.50 from $14.60.

This report was published on April 23, 2024.

Target price is $14.50 Current Price is $14.57 Difference: minus $0.07 (current price is over target).
If NST 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 $15.13, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 56.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.7, implying annual growth of -2.1%.
Current consensus DPS estimate is 32.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 29.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 118.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.9, implying annual growth of 93.0%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 15.2.

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

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Jarden rates ((NST)) as Overweight (2) –

Higher gold prices came will come to the earnings rescue for Northern Star Resources in FY24 according to Jarden, following a very disappointing set of 3Q24 results across production, cost and sales.

The broker lowers the FY25 production forecasts by -4% accounting for lower grades at Jundee and Pogo and FY24 production estimates are reduced to the lower end of guidance.

Accounting for higher gold prices offsets the production and cost misses and the analyst lifts EBITDA forecasts by 10% for FY24 and 8% for FY25.

Jarden likes the asset mix for the company despite the weaker quarterly results.

An Overweight rating is maintained and the target lifted to $14.10 from $13.70.

This report was published on April 24, 2024.

Target price is $14.10 Current Price is $14.57 Difference: minus $0.47 (current price is over target).
If NST meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.13, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 27.00 cents and EPS of 52.40 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.7, implying annual growth of -2.1%.
Current consensus DPS estimate is 32.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 29.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 27.00 cents and EPS of 68.30 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.9, implying annual growth of 93.0%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 15.2.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $32.96

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

Wilsons analysts maintain their Overweight rating on ResMed, upgrading the price target by 9% to $36, citing significant gross margin expansion as a key driver.

The broker reports 3Q revenue of US$1,197m, a 7% increase year-on-year, was 2% above forecasts, driven by robust sales in both US and Rest of World (ROW) markets.

The report highlights ResMed's gross margin improved by 260 basis points due to efficiencies such as freight cost reductions and inventory management, with further enhancements anticipated.

EPS forecasts for FY24 through FY26 have been raised by 3-5% based on higher device sales and earlier gross margin improvements.

This report was published on April 29, 2024.

Target price is $36.00 Current Price is $32.96 Difference: $3.04
If RMD meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $35.73, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 29.55 cents and EPS of 117.59 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 118.8, implying annual growth of N/A.
Current consensus DPS estimate is 30.1, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 27.7.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 31.99 cents and EPS of 134.81 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 137.0, implying annual growth of 15.3%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 24.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.20

Petra Capital rates ((WGX)) as Buy (1) –

Petra Capital notes Westgold Resources experienced an extremely challenging March quarter as production fell -12% on the previous corresponding quarter to 52koz, due to wet weather, problems with the crusher at two mills and the cessation of operations at Paddy's Flat.

Total all-in-sustaining-costs (AISC) fell -2% quarter-on-quarter, but mill maintenance costs ticked up 11% over the same period.

The broker remains upbeat on the company, highlighting the merger with Karora Resources as a "supercharger" for production and exploration.

The Buy rating is unchanged and the target lowered to $2.66 from $2.68.

This report was published on April 26, 2024.

Target price is $2.66 Current Price is $2.20 Difference: $0.46
If WGX meets the Petra Capital target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 3.00 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.64.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.48.

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

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The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

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