Weekly Reports | Jul 12 2024
This story features DETERRA ROYALTIES LIMITED, and other companies. For more info SHARE ANALYSIS: DRR
Broker Rating Changes (Post Thursday Last Week)
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DETERRA ROYALTIES LIMITED ((DRR)) Upgrade to Buy from Neutral by Goldman Sachs.B/H/S: 0/0/0
For the second half of 2024 commodities outlook, Goldman Sachs remains most positive on copper, aluminium, and metallurgical coal on forecast market deficits.
On the other hand, the broker remains bearish thermal coal and battery materials (lithium, nickel) on forecast market surpluses. Elsewhere, the benchmark 62% iron ore price is expected to average between US$100-105/t over the remainder of the year.
The broker’s target for Deterra Royalties falls to $4.70 from $5.00 after both iron ore and currency forecasts are marked-to-market. The rating is upgraded to Buy from Neutral on valuation.
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METAROCK GROUP LIMITED ((MYE)) Downgrade to Speculative Buy from Buy by Petra Capital.B/H/S: 0/0/0
The Grosvenor metallurgical coal mine in the Bowen Basin, a key revenue contributor for Metarock Group, experienced a fire last Saturday. As a result, Petra Capital downgrades its rating for Metarock to Speculative Buy from Buy.
As the fire is ongoing, owner Anglo American has advised several months will elapse before workers can safely re-enter the mine.
The 35c target price is maintained. The overall impact is difficult to assess, notes the analyst, but management may be able to offset some of the reduced work availability with other contracts in the region.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | DETERRA ROYALTIES LIMITED | Buy | Neutral | Goldman Sachs | |
| Downgrade | |||||
| 2 | METAROCK GROUP LIMITED | Buy | N/A | Petra Capital | |
Price Target Changes (Post Thursday Last Week)
| Company | Last Price | Broker | New Target | Old Target | Change | |
|---|---|---|---|---|---|---|
| AMP | AMP | $1.12 | Jarden | 1.20 | 1.17 | 2.56% |
| BHP | BHP Group | $43.56 | Goldman Sachs | 48.40 | 49.00 | -1.22% |
| BOE | Boss Energy | $3.98 | Canaccord Genuity | 5.85 | 6.00 | -2.50% |
| BSL | BlueScope Steel | $20.14 | Goldman Sachs | 28.20 | 25.50 | 10.59% |
| CAI | Calidus Resources | $0.12 | Canaccord Genuity | N/A | 0.29 | -100.00% |
| CCR | Credit Clear | $0.24 | Petra Capital | 0.51 | 0.43 | 18.60% |
| CGF | Challenger | $6.87 | Jarden | 7.50 | 7.55 | -0.66% |
| CIA | Champion Iron | $6.36 | Goldman Sachs | 8.00 | 9.30 | -13.98% |
| CIP | Centuria Industrial REIT | $3.11 | Moelis | 3.72 | 3.71 | 0.27% |
| CMM | Capricorn Metals | $5.26 | Canaccord Genuity | 6.40 | 6.55 | -2.29% |
| Goldman Sachs | 5.25 | 4.65 | 12.90% | |||
| CRN | Coronado Global Resources | $1.40 | Goldman Sachs | 1.70 | 1.55 | 9.68% |
| DEG | De Grey Mining | $1.16 | Goldman Sachs | 1.35 | 1.40 | -3.57% |
| DRR | Deterra Royalties | $4.05 | Goldman Sachs | 4.70 | 5.00 | -6.00% |
| EVN | Evolution Mining | $3.76 | Goldman Sachs | 4.15 | 3.21 | 29.28% |
| FEX | Fenix Resources | $0.39 | Petra Capital | 0.49 | 0.44 | 11.36% |
| FMG | Fortescue | $22.00 | Goldman Sachs | 16.20 | 16.90 | -4.14% |
| GOR | Gold Road Resources | $1.76 | Goldman Sachs | 2.10 | 1.95 | 7.69% |
| HUB | Hub24 | $45.39 | Jarden | 43.80 | 41.75 | 4.91% |
| IFL | Insignia Financial | $2.29 | Jarden | 2.80 | 2.95 | -5.08% |
| ILU | Iluka Resources | $6.64 | Goldman Sachs | 9.30 | 9.90 | -6.06% |
| KAR | Karoon Energy | $1.83 | Wilsons | 2.59 | 2.71 | -4.43% |
| LTR | Liontown Resources | $0.97 | Canaccord Genuity | 1.05 | 1.30 | -19.23% |
| Goldman Sachs | 1.15 | 1.35 | -14.81% | |||
| Jarden | 1.00 | 1.03 | -2.91% | |||
| Wilsons | 1.75 | 1.85 | -5.41% | |||
| LYC | Lynas Rare Earths | $6.40 | Goldman Sachs | 7.50 | 7.40 | 1.35% |
| MAH | Macmahon | $0.27 | Petra Capital | 0.38 | 0.30 | 26.67% |
| MAQ | Macquarie Technology | $98.01 | Canaccord Genuity | 118.00 | 90.25 | 30.75% |
| MFG | Magellan Financial | $9.49 | Jarden | 9.50 | 9.20 | 3.26% |
| NHC | New Hope | $4.94 | Goldman Sachs | 3.90 | 3.60 | 8.33% |
| NST | Northern Star Resources | $13.29 | Goldman Sachs | 14.40 | 14.50 | -0.69% |
| NWL | Netwealth Group | $21.00 | Jarden | 17.30 | 17.00 | 1.76% |
| PPT | Perpetual | $21.85 | Jarden | 24.00 | 24.55 | -2.24% |
| PTM | Platinum Asset Management | $1.04 | Jarden | 1.05 | 1.15 | -8.70% |
| QAN | Qantas Airways | $6.22 | Jarden | 7.30 | 7.00 | 4.29% |
| RED | Red 5 | $0.42 | Canaccord Genuity | 0.43 | 0.48 | -10.42% |
| RIO | Rio Tinto | $119.62 | Goldman Sachs | 137.00 | 138.30 | -0.94% |
| RRL | Regis Resources | $1.88 | Goldman Sachs | 2.10 | 2.30 | -8.70% |
| RUL | RPMGlobal | $2.60 | Moelis | 2.90 | 2.15 | 34.88% |
| S32 | South32 | $3.62 | Goldman Sachs | 4.30 | 4.00 | 7.50% |
| SFR | Sandfire Resources | $9.08 | Goldman Sachs | 8.70 | 8.20 | 6.10% |
| SGM | Sims | $10.57 | Goldman Sachs | 11.10 | 12.40 | -10.48% |
| SLC | Superloop | $1.53 | Canaccord Genuity | 1.86 | 1.11 | 67.57% |
| SUN | Suncorp Group | $17.13 | Jarden | 17.00 | 16.80 | 1.19% |
| WGX | Westgold Resources | $2.55 | Petra Capital | 2.67 | 2.66 | 0.38% |
| WHC | Whitehaven Coal | $8.67 | Goldman Sachs | 8.10 | 6.20 | 30.65% |
| Company | Last Price | Broker | New Target | Old Target | Change | |
More Highlights
ACF ACROW LIMITED
Building Products & Services Overnight Price: $1.06
Petra Capital rates ((ACF)) as Buy (1)
The latest trading update for Acrow suggests to Petra Capital operating momentum has remained positive. Management noted record hire contract wins ($12.3m) in June, boosting contracted hire revenue to $78.3m, up by 17% on the previous corresponding period.
The broker believes the upcoming FY24 result will meet management’s guidance and anticipates further strong growth in FY25.
Petra Capital points to buoyant demand across key end markets and ongoing opportunities for Acrow to expand its operating footprint.
The Buy rating and $1.47 target are maintained.
This report was published on July 3, 2024.
Target price is $1.47 Current Price is $1.06 Difference: $0.405
If ACF meets the Petra Capital target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $1.34, suggesting upside of 25.5%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 6.00 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.26.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.8, implying annual growth of 31.7%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 9.1.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 7.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.95.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.1, implying annual growth of 11.0%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 8.2.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CIP CENTURIA INDUSTRIAL REIT
REITs Overnight Price: $3.04
Moelis rates ((CIP)) as Buy (1)
Centuria Industrial REIT’s discount to net tangible assets (NTA) has recently widened to around -22%. This gap is too wide, suggests Moelis, especially as the REIT’s weighted average capitalisation rate (WACR) has risen by 160bps since June of 2022.
The broker points out rental growth across key markets continues to be supported by low vacancy rates across all major industrial markets, noting the national vacancy rate remains at less than 2%.
Separately, in an addition to the existing data centre portfolio, the REIT has acquired a data centre in Malaga, WA, for -$39m.
The Buy rating is unchanged and the target moves up to $3.72 from $3.71.
This report was published on July 9, 2024.
Target price is $3.72 Current Price is $3.04 Difference: $0.68
If CIP meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.52, suggesting upside of 13.9%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 16.00 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.2, implying annual growth of N/A.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.0.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 16.20 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.27.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.9, implying annual growth of 4.1%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 17.3.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CCR CREDIT CLEAR LIMITED
Diversified Financials Overnight Price: $0.24
Petra Capital rates ((CCR)) as Buy (1)
Recent data are showing an acceleration in companies entering insolvency for the first time, with numbers now exceeding pre-covid levels, highlights Petra Capital. March through to May has seen a collective 47% increase over the previous corresponding period.
Credit Clear is set to meet the broker’s earnings expectations for FY25, with management having recently slightly raised FY24 guidance.
Buy rating retained. The target rises to 51c from 43c on a roll-forward of the broker’s revenue forecasts.
This report was published on July 1, 2024.
Target price is $0.51 Current Price is $0.24 Difference: $0.265
If CCR meets the Petra Capital target it will return approximately 108% (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 1.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 17.50.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 35.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
DEG DE GREY MINING LIMITED
Gold & Silver Overnight Price: $1.17
Goldman Sachs rates ((DEG)) as Buy (1)
Goldman Sachs still prefers near-term margins/returns over long-term ounces when selecting exposures in the Australian Gold sector. Assets with less execution risk and those best positioned to capture increases in gold pricing are also favoured.
The analysts remain wary on gold stocks continuing to underperform on higher costs/capex guidance for FY25 in upcoming quarterly results.
For De Grey Mining, the target falls to $1.35 from $1.43. Buy. De Grey Mining and Gold Road Resources remain the standouts at a discount to the rest of this broker’s coverage.
This report was published on July 9, 2024.
Target price is $1.35 Current Price is $1.17 Difference: $0.185
If DEG meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.76, suggesting upside of 50.0%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of minus 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 116.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.3, 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 390.0.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 0.00 cents.
How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.2, implying annual growth of -33.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 585.0.
Market Sentiment: 1.0
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: $95.16
Canaccord Genuity rates ((MAQ)) as Buy (1)
Canaccord Genuity raises its target for Macquarie Technology to $118 from $90.25 on a reappraisal of the data centre business, because of the positive outlook for colocation pricing and emerging demand for stabilised data centre assets.
The broker also highlights the premium attached to the company’s developments due to confirmed power allocations. For example, there have been significant increases in the key Northern Virginia market in the US for similar set-ups.
Also, management’s purchase of the lease on the Talavera Road site provides significant flexibility over the key IC3 Super West development, explains the analyst. Buy.
This report was published on July 5, 2024.
Target price is $118.00 Current Price is $95.16 Difference: $22.84
If MAQ meets the Canaccord Genuity target it will return approximately 24% (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 130.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 72.98.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 152.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 62.61.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
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For more info SHARE ANALYSIS: DRR - DETERRA ROYALTIES LIMITED
For more info SHARE ANALYSIS: MYE - METAROCK GROUP LIMITED