Australian Broker Call *Extra* Edition – Jun 27, 2024

Daily Market Reports | Jun 27 2024

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)

ALK   AMA   APA   APZ   BPT   CUV   CWY   ENN   EVN   HSN   KMD (2)   LLL   MTS (2)   PLS   PMV (2)   PNV   QBE   SDF   SPZ   STN   TLS   WEB  

SPZ    SMART PARKING LIMITED

Hardware & Equipment - Overnight Price: $0.47

Canaccord Genuity rates ((SPZ)) as Buy (1) -

Canaccord Genuity maintains a Buy rating for Smart Parking, raising its price target to $0.70 from $0.52.

The broker notes the strong growth trajectory in the SaaS segment, with FY24 sales expected at $55.0m, down from previous estimates of $59.6m.

Despite the downgrade in sales and EBITDA forecasts for FY24/25/26, the broker maintains the company's long-term prospects remain robust due to ongoing contract wins and market expansion.

Financial forecasts have been adjusted, with FY24 EBITDA revised to $14.8m from $16.8m, and FY25 EBITDA to $20.1m from $21.8m. The broker views the recent operational improvements and strategic initiatives positively, supporting the raised price target.

This report was published on June 20, 2024.

Target price is $0.70 Current Price is $0.47 Difference: $0.23
If SPZ meets the Canaccord Genuity target it will return approximately 49% (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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.57.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.08.

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

STN    SATURN METALS LIMITED

Gold & Silver - Overnight Price: $0.20

Petra Capital rates ((STN)) as Buy (1) -

Saturn Metals recently secured government approval for exploration drilling in salt-lake covered terrain near its 1.84Moz Apollo Hill Resource, with drilling to commence in July/August, Petra Capital notes.

The company aims to expand the Apollo Hill Resource to 2Moz and increase resource confidence with the feasibility study for a 1.2Mt heap leach pilot project expected in late July, according to the broker.

Petra Capital makes no changes to earnings forecasts. Buy rating and 50c target unchanged.

This report was published on June 24, 2024.

Target price is $0.50 Current Price is $0.20 Difference: $0.305
If STN meets the Petra Capital target it will return approximately 156% (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 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.79.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.90.

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

TLS    TELSTRA GROUP LIMITED

Telecommunication - Overnight Price: $3.62

Jarden rates ((TLS)) as Buy (1) -

Jarden reaffirms a Buy rating and $4 target price on Telstra Group after considering a comparison between BT Group's transformation metrics and Telstras upcoming T30 strategy.

The analyst highlights potential ambitions for Telstra Group, including revenue growth and free cash flow expansion and forecasts a 2.1% compound growth rate in the company's revenue over FY25-FY30.

Ex-spectrum, Jarden forecasts earnings to grow strongly over the next decade and underpin dividend payments in the mid-to-high 20c ranges, although tech investment could be required.

This report was published on June 24, 2024.

Target price is $4.00 Current Price is $3.62 Difference: $0.38
If TLS meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.00, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 18.00 cents and EPS of 16.10 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 9.0%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 19.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 18.50 cents and EPS of 18.10 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 20.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.2, implying annual growth of 5.5%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.8.

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

WEB    WEBJET LIMITED

Travel, Leisure & Tourism - Overnight Price: $8.95

Wilsons rates ((WEB)) as Overweight (1) -

Commenting on Webjet's planned separation of the WebBeds and B2C businesses, Wilsons can see a potential unlocking of additional shareholder value. It's felt both entities will then be optimally capitalised for their respective growth opportunities.

WebBeds will remain within the existing listed entity, while Webjet OTA and GoSee (collectively Webjet B2C) will demerge.

Management anticipates the de-merger will complete prior to the end of 2024, and a detailed de-merger booklet will be sent to shareholders in August.

The Overweight rating and $10.04 target are maintained.

This report was published on June 25, 2024.

Target price is $10.04 Current Price is $8.95 Difference: $1.09
If WEB meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $10.35, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 39.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.7, implying annual growth of 110.3%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 22.6.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 47.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.7, implying annual growth of 20.2%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 18.8.

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

Disclaimer:
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.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.