Australian Broker Call *Extra* Edition – Jan 16, 2025

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   ALK   AMP   ASX   CAR   CGF (2)   CPU   CU6   DGT   HGO   HMC   HUB   IFL   INA   MAC   MLX   NEM   NIC   NWL   PMV   PTM   PWH   QBE   WOR   WPR  

29M    29METALS LIMITED

Copper – Overnight Price: $0.21

Canaccord Genuity rates ((29M)) as Sell (5) –

Canaccord Genuity reviews fundamentals for base metals and electric vehicle materials and updates forecasts for relevant stocks under research coverage.

Overall, the broker lowers its near-term copper, nickel and cobalt pricing, decreases near, mid and long-term lead pricing, and lowers
near-term spodumene and lithium chemicals pricing.

Earnings (EBITDA) revisions were generally lower for all companies under coverage on lower price assumptions, explain the analysts.

The analysts highlight 29Metals was the worst performer under coverage in the December quarter with the share price falling by -45% as the market digested a $180m capital raising and worked through the Gossan Valley final investment decision.

The broker’s target falls to 21c from 22c and the Sell rating is maintained.

This report was published on January 9, 2025.

Target price is $0.21 Current Price is $0.21 Difference: minus $0.005 (current price is over target).
If 29M meets the Canaccord Genuity target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.30, suggesting upside of 34.8%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.4, 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 0.00 cents.

How do these forecasts compare to market consensus projections?

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

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

ALK    ALKANE RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.48

Moelis rates ((ALK)) as Buy (1) –

Alkane Resources reported 2Q25 results, Moelis notes, where gold production missed its estimates. However, this was largely a function of timing with management indicating around 1.7koz build in ‘gold in circuit’ during the quarter implying a notional production figure of 16.6koz.

The company’s all-in sustaining costs also missed Moelis’ estimates, driven by $254/oz in non-cash inventory movements due to inventory drawdown. Additionally, the cash position was lower than the broker’s estimates due to an additional $10m debt drawdown ahead of the start of the second phase of the expansion program.

The broker has revised estimates for the timing of the phase two capital program, now assuming expenditure will commence in September 2025 (previously March 2025). This delay pushes out the production gains from the expansion, contributing to the decline in financial metrics for FY26 and FY27.

Target price remains at 75c and Buy rating stays.

This report was published on January 13, 2025.

Target price is $0.75 Current Price is $0.48 Difference: $0.265
If ALK meets the Moelis target it will return approximately 55% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.83.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 6.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.13.

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

AMP    AMP LIMITED

Wealth Management & Investments – Overnight Price: $1.58

Jarden rates ((AMP)) as Neutral (3) –

Jarden marks-to-market earnings forecasts for five stocks in the broker’s wealth management coverage for the December 2024 quarter.

The changes reflect negative Australian equity market returns offset by positive international equity returns.

Jarden makes slight upward revisions to AMP’s EPS forecasts.

Insignia Financial is highlighted as the preferred exposure in the wealth sector due to its attractive valuation, growth outlook, and cost opportunities from the Masterclass business.

AMP remains Neutral rated, with a target price increase to $1.45 from $1.35.

This report was published on January 14, 2025.

Target price is $1.45 Current Price is $1.58 Difference: minus $0.135 (current price is over target).
If AMP meets the Jarden target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.57, suggesting downside of -2.2%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 5.50 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.6, implying annual growth of 1106.3%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 7.50 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 4.73%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.8, implying annual growth of 28.9%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.4.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $64.44

Jarden rates ((ASX)) as Neutral (3) –

Jarden notes momentum in futures volumes growth on the ASX appears to be abating. The near-term revenue outlook for ASX also continues to be fragile as cash equities turnover decline and weakness in capital raisings continues, the broker adds.

The broker has trimmed the earnings outlook for FY25-27 but raised the target price due to higher risk-free rates and a revised S&P/ASX200 market multiple.

The rating is maintained at Neutral. Target price rises to $62.55 from $62.25.

This report was published on January 14, 2025.

Target price is $62.55 Current Price is $64.44 Difference: minus $1.89 (current price is over target).
If ASX 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 $63.87, suggesting downside of -1.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 217.20 cents and EPS of 255.30 cents.
At the last closing share price the estimated dividend yield is 3.37%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 255.5, implying annual growth of 4.4%.
Current consensus DPS estimate is 214.6, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.5.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 225.20 cents and EPS of 265.00 cents.
At the last closing share price the estimated dividend yield is 3.49%.
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 263.2, implying annual growth of 3.0%.
Current consensus DPS estimate is 220.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 24.7.

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

CAR    CAR GROUP LIMITED

Automobiles & Components – Overnight Price: $37.81

Jarden rates ((CAR)) as Underweight (4) –

Ahead of Car Group’s 1H25 result, Jarden notes its estimates are relatively in line with consensus at group level. The broker is forecasting a net profit of $181m which is -1% below consensus and a dividend of 38.4c, in line with consensus.

Jardens highlights surprises at the result may include softer AUD driving upgrades at the group level and cyclical softness in certain segments impacting the business more than the market expects.

The broker has updated its estimates based on new assumptions that include higher dealer revenues, updated exchange rates and removal of Car Group’s tyres business. 

As a result, the target price has risen to $35.50 from $32.75. The Underweight rating is unchanged.

This report was published on January 16, 2025.

Target price is $35.50 Current Price is $37.81 Difference: minus $2.31 (current price is over target).
If CAR meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $39.15, suggesting upside of 0.6%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 81.60 cents and EPS of 101.80 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 37.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 98.7, implying annual growth of 48.8%.
Current consensus DPS estimate is 82.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 39.4.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 93.20 cents and EPS of 116.30 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 32.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.1, implying annual growth of 15.6%.
Current consensus DPS estimate is 95.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 34.1.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $6.02

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

Ahead of Challenger’s 1H25 results, Goldman Sachs highlights its net profit estimate is $336m, cost of equity (COE) margin is 3.25% and dividend estimate is 13.5c.

The broker thinks Challenger’s COE margin will improve into 1H25 driven by a benefit on the product cash margin from mix/yields with some pressure into 2H25/FY26 from likely cash rate cuts:

The broker has fine-tuned earnings forecasts to reflect mark-to-market impacts. As a result, the target has fallen to $7.60 from $7.82, but the Buy rating remains.

This report was published on January 9, 2025.

Target price is $7.60 Current Price is $6.02 Difference: $1.58
If CGF meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $7.61, suggesting upside of 24.2%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 27.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 211.9%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 10.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 28.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.5, implying annual growth of 7.3%.
Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 9.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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

Jarden marks-to-market earnings forecasts for five stocks in the broker’s wealth management coverage for the December 2024 quarter.

The changes reflect negative Australian equity market returns offset by positive international equity returns.

Jarden lowers EPS forecasts for Challenger by -2.2% in FY25 and -1.5% in FY26 due to changes in life margin assumptions.

The stock is Overweight rated, with the analyst highlighting “compelling” value and potential upside from higher interest rates and annuity sales.

The target price is lowered to $7.70 from $8.10.

This report was published on January 14, 2025.

Target price is $7.70 Current Price is $6.02 Difference: $1.68
If CGF meets the Jarden target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $7.61, suggesting upside of 24.2%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 26.10 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 211.9%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 10.4.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 27.90 cents and EPS of 65.00 cents.
At the last closing share price the estimated dividend yield is 4.63%.
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 63.5, implying annual growth of 7.3%.
Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 9.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $33.97

Goldman Sachs rates ((CPU)) as Downgrade to Neutral from Buy (3) –

Goldman Sachs notes Computershare has had a strong share price run as it benefitted from a supportive macro backdrop of higher yield expectations and strong USD. 

The broker has marked to market valuations reflecting a stronger USD vs AUD and made small earnings changes.

As a result, the target price rises to $35.50. However, the rating is downgraded to Neutral from Buy based on share price gains.

Looking ahead to 1H25 results, the broker notes early FY25 trends have been strong and point to increased confidence in the company’s FY25 guidance. But beyond FY25, the analyst is cautiously optimistic about the company’s earnings growth prospects.

This report was published on January 15, 2025.

Target price is $35.50 Current Price is $33.97 Difference: $1.53
If CPU meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $31.91, suggesting downside of -3.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 96.00 cents and EPS of 191.58 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 202.6, implying annual growth of N/A.
Current consensus DPS estimate is 78.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 87.00 cents and EPS of 194.62 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.8, implying annual growth of 2.6%.
Current consensus DPS estimate is 81.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 16.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
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: $3.80

Canaccord Genuity rates ((CU6)) as Buy (1) –

Canaccord Genuity has considered recent updates from Vir Biotechnology and Janux Therapeutics on bispecific T-cell engagers (TCE) and potential implications for Clarity Pharmaceuticals.

Bispecific TCEs have the potential to be used as a newer therapeutic modality in prostate cancer therapy.

The broker notes the prostate cancer therapy landscape is crowded but remains confident in the use case of radioligand therapies (RLTs), given the path being paved by Novartis and the expanding use case of PSMA-PET imaging agents.

The broker believes there remains a large opportunity for Clarity to develop a ‘next-gen’ product and is looking forward to updates regarding its SECuRE trial in the next month.

The broker sees recent share price weakness as a buying opportunity. The rating is Buy and the target price is $8.06.

This report was published on January 10, 2025.

Target price is $8.06 Current Price is $3.80 Difference: $4.26
If CU6 meets the Canaccord Genuity target it will return approximately 112% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 20.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 18.36.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 29.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 12.88.

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

DGT    DIGICO INFRASTRUCTURE REIT

Cloud services – Overnight Price: $4.41

Goldman Sachs rates ((DGT)) as Initiation of coverage with Buy (1) –

Goldman Sachs has initiated coverage on Digico Infrastructure REIT with a Buy rating and target price of $5.80.

The broker sees significant development potential for Digico’s Australian data centre facility SYD1 and Chicago’s CH1 to benefit from largely risk-free near-term earnings growth as it becomes operational.

The broker calculates DigiCo’s existing 35MW of capacity generating $97m of EBITDA can increase around 7x to 238MW of capacity, generating $496m of EBITDA.

This report was published on January 16, 2025.

Target price is $5.80 Current Price is $4.41 Difference: $1.39
If DGT meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 11.00 cents and EPS of minus 7.00 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 63.00.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 20.00 cents and EPS of minus 10.00 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 44.10.

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

HGO    HILLGROVE RESOURCES LIMITED

Copper – Overnight Price: $0.05

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

Canaccord Genuity reviews fundamentals for base metals and electric vehicle materials and updates forecasts for relevant stocks under research coverage.

Overall, the broker lowers its near-term copper, nickel and cobalt pricing, decreases near, mid and long-term lead pricing, and lowers
near-term spodumene and lithium chemicals pricing.

Earnings (EBITDA) revisions were generally lower for all companies under coverage on lower price assumptions, explain the analysts.

For Hillgrove Resources, the Speculative Buy rating is unchanged and the target falls to 9.5c from 10c.

This report was published on January 7, 2025.

Target price is $0.10 Current Price is $0.05 Difference: $0.042
If HGO meets the Canaccord Genuity target it will return approximately 79% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents.

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

HMC    HMC CAPITAL LIMITED

Wealth Management & Investments – Overnight Price: $9.25

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

Goldman Sachs notes HMC Capital’s Digico Infrastructure REIT (((DGT) listing on the ASX in December has implications for the company.

The broker estimates distributions from Digico translate to around 30% higher investment income for HMC. Based on this and updated management guidance, the broker has revised FY25-27 EPS estimates by 1-35%.

The target price rises to $9.86 from $8.94. Buy rating stays.

This report was published on January 16, 2025.

Target price is $9.86 Current Price is $9.25 Difference: $0.61
If HMC meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $8.80, suggesting downside of -6.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 12.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 1.30%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.1, implying annual growth of 107.1%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 24.2.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 16.00 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.0, implying annual growth of -5.4%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 25.5.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $64.48

Jarden rates ((HUB)) as Underweight (4) –

Jarden marks-to-market earnings forecasts for five stocks in the broker’s wealth management coverage for the December 2024 quarter.

The changes reflect negative Australian equity market returns offset by positive international equity returns.

The broker sees upside risks to FY25 flow estimates for Netwealth Group and Hub24.

Jarden lowers EPS forecasts for Hub24 by -4.6% in FY25 and -3.6% in FY26 due to changes in depreciation and amortisation assumptions.

The target price is raised to $50.85 from $49.50. The Underweight rating is retained.

This report was published on January 14, 2025.

Target price is $50.85 Current Price is $64.48 Difference: minus $13.63 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $64.92, suggesting downside of -1.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 52.80 cents and EPS of 105.70 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 61.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.6, implying annual growth of 85.0%.
Current consensus DPS estimate is 51.2, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 61.3.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 66.40 cents and EPS of 132.80 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 48.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 133.9, implying annual growth of 24.4%.
Current consensus DPS estimate is 65.5, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 49.2.

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

IFL    INSIGNIA FINANCIAL LIMITED

Wealth Management & Investments – Overnight Price: $4.16

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

Jarden marks-to-market earnings forecasts for five stocks in the broker’s wealth management coverage for the December 2024 quarter.

The changes reflect the negative Australian equity market returns offset by positive international equity returns.

Jarden tweaks EPS forecasts for Insignia Financial, lifting FY25 by 0.3% and FY26 by 0.7%.

The target price is raised by 25% to $4.20. The share price is expected to move in line with corporate news, including two non-binding indicative takeover offers from CC Capital and Bain Capital.

The Overweight rating is retained, and the stock remains the preferred wealth manager due to its “undemanding” valuation.

This report was published on January 14, 2025.

Target price is $4.20 Current Price is $4.16 Difference: $0.04
If IFL meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.83, suggesting downside of -7.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 36.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.1, implying annual growth of N/A.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 27.70 cents and EPS of 39.90 cents.
At the last closing share price the estimated dividend yield is 6.66%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.4, implying annual growth of 6.2%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 10.5.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $5.12

Moelis rates ((INA)) as Sell (5) –

Ingenia Communities announced an upgrade to FY25 EBIT and underlying EPS guidance of around 8% and 18% respectively. The company reported 258 new homes were settled in 1H25, up from 176 in 1H24.

Based on upgraded guidance, Moelis increased FY25 earnings estimate and medium-term earnings profile. The broker also raised expectations for FY25 settlements to 590 from 540 as it reckons 1H is typically a seasonally weaker half for settlements.

The broker raised the target price to $4.14 from $4.07. Rating remains at Sell.

This report was published on January 15, 2025.

Target price is $4.14 Current Price is $5.12 Difference: minus $0.98 (current price is over target).
If INA meets the Moelis target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.95, suggesting upside of 12.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 14.20 cents and EPS of 29.30 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 623.8%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 15.00 cents and EPS of 31.20 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.3, implying annual growth of 13.7%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 18.6.

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

MAC    MAC COPPER LIMITED

Copper – Overnight Price: $16.45

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

Canaccord Genuity reviews fundamentals for base metals and electric vehicle materials and updates forecasts for relevant stocks under research coverage.

Overall, the broker lowers its near-term copper, nickel and cobalt pricing, decreases near, mid and long-term lead pricing, and lowers
near-term spodumene and lithium chemicals pricing.

Earnings (EBITDA) revisions were generally lower for all companies under coverage on lower price assumptions, explain the analysts.

For MAC Copper, the broker’s target falls by -3% to $21.25 on lower near-term copper pricing. Buy.

This report was published on January 7, 2025.

Target price is $21.25 Current Price is $16.45 Difference: $4.8
If MAC meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents.

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

MLX    METALS X LIMITED

Tin – Overnight Price: $0.43

Canaccord Genuity rates ((MLX)) as Hold (3) –

Canaccord Genuity reviews fundamentals for base metals and electric vehicle materials and updates forecasts for relevant stocks under research coverage.

Overall, the broker lowers its near-term copper, nickel and cobalt pricing, decreases near, mid and long-term lead pricing, and lowers
near-term spodumene and lithium chemicals pricing.

Earnings (EBITDA) revisions were generally lower for all companies under coverage on lower price assumptions, explain the analysts.

For Metals X, the target falls by -10% to 43c.

This report was published on January 7, 2025.

Target price is $0.43 Current Price is $0.43 Difference: $0
If MLX meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).

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

NEM    NEWMONT CORPORATION REGISTERED

Gold & Silver – Overnight Price: $64.93

Goldman Sachs rates ((NEM)) as Initiation of coverage with Buy (1) –

Goldman Sachs has initiated coverage on Newmont Corp with a Buy rating and target price of $76.20.

The broker believes Newmont has one of the strongest earnings growth outlooks among its Australian gold companies coverage on a medium-term view on the back of production improvements across new and existing projects, further supported by gold pricing strength.

The broker sees the company as an unlikely M&A target in the near term based on its asset history (beyond planned divestments) and scale of the overall group. No M&A component has been factored into the target price.

The analysts expect Newmont’s portfolio to transition to a largely Tier 1 asset base as major projects progress and divestments complete, supporting accelerated de-leveraging and capital management.

This report was published on January 13, 2025.

Target price is $76.20 Current Price is $64.93 Difference: $11.27
If NEM meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 152.05 cents and EPS of 491.11 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.22.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 153.57 cents and EPS of 664.44 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.77.

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

NIC    NICKEL INDUSTRIES LIMITED

Nickel – Overnight Price: $0.85

Canaccord Genuity rates ((NIC)) as Hold (3) –

Canaccord Genuity reviews fundamentals for base metals and electric vehicle materials and updates forecasts for relevant stocks under research coverage.

Overall, the broker lowers its near-term copper, nickel and cobalt pricing, decreases near, mid and long-term lead pricing, and lowers
near-term spodumene and lithium chemicals pricing.

Earnings (EBITDA) revisions were generally lower for all companies under coverage on lower price assumptions, explain the analysts.

For Nickel Industries, the broker’s target falls by -15% to 85c on lower near-term zinc pricing and financial model adjustments. The Hold rating is unchanged.

This report was published on January 7, 2025.

Target price is $0.85 Current Price is $0.85 Difference: $0
If NIC meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.20, suggesting upside of 40.8%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 4.0, implying annual growth of N/A.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 21.3.

Forecast for FY25:

Current consensus EPS estimate is 11.3, implying annual growth of 182.5%.
Current consensus DPS estimate is 3.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 7.5.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $26.58

Jarden rates ((NWL)) as Underweight (4) –

Jarden marks-to-market earnings forecasts for five stocks in the broker’s wealth management coverage for the December 2024 quarter.

The changes reflect negative Australian equity market returns offset by positive international equity returns.

The broker sees upside risks to FY25 flow estimates for Netwealth Group and Hub24.

EPS forecasts remain unchanged for Netwealth, and Jarden continues to Underweight the stock. The target price is raised to $21.10 from $20.

This report was published on January 14, 2025.

Target price is $21.10 Current Price is $26.58 Difference: minus $5.48 (current price is over target).
If NWL meets the Jarden target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.03, suggesting upside of 1.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 38.90 cents and EPS of 44.80 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 59.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.7, implying annual growth of 27.9%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 61.0.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 47.70 cents and EPS of 54.80 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 48.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.2, implying annual growth of 21.7%.
Current consensus DPS estimate is 43.3, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 50.1.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $26.97

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

Goldman Sachs cut Premier Investments’ group sales estimate for FY25-27 by -4% and EBIT by -18% following a worse-than-expected 1H25 trading update. 

While the broker has previously been cautious about the outlook for apparel brands with structurally challenged growth, the material decline in sales and EBIT  for Peter Alexander and Smiggle took it by surprise.

From an updated FY25 earnings base, the broker is forecasting Peter Alexander will recover around 8% revenue over 2-yr compounded growth to FY27 from improved domestic spending and UK expansion. 

Smiggle is expected to recover around 4% sales over 2-yr compounded growth, largely driven from global point of sale penetration.

The rating remains at Neutral but target price is reduced to $27.85.

This report was published on January 13, 2025.

Target price is $27.85 Current Price is $26.97 Difference: $0.88
If PMV meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $32.10, suggesting upside of 13.9%(ex-dividends)
The company’s fiscal year ends in July.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 135.00 cents and EPS of 135.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 141.1, implying annual growth of -12.8%.
Current consensus DPS estimate is 106.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 20.0.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 135.00 cents and EPS of 146.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.5, implying annual growth of 10.9%.
Current consensus DPS estimate is 117.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 18.0.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $0.67

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

Ahead of Platinum Asset Management’s 1H25 result, Goldman Sachs notes net outflows have been substantial and consistent through the period resulting in significant funds under management loss.

This will be its key focus for the result along with management fee, cost out versus targets and cost to income ratio, new product launches, capital allocation and turnaround plan.

The broker’s net profit estimate for 1H25 is $23.5m.

Goldman Sachs made earnings downgrades to reflect revisions for funds under management and performance fee for 1H25. As a result, the target price is lowered to 75c. Sell rating stays.

This report was published on January 10, 2025.

Target price is $0.75 Current Price is $0.67 Difference: $0.08
If PTM meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 28.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 41.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.57.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 6.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 8.96%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.17.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $7.65

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

PWR Holdings announced a North American Aerospace and Defense (A&D) contract for US$5.5m, its largest single order since the A&D division started in 2020. Goldman Sachs sees this as the first of several long-term opportunities in the A&D division.

The broker considers the company’s outlook from 2H26 to remain positive as it transitions to an upgraded Australian facility and more A&D projects progress to contracted production.

Buy retained and target price is $9.10.

This report was published on January 14, 2025.

Target price is $9.10 Current Price is $7.65 Difference: $1.45
If PWH meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $8.54, suggesting upside of 12.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 17.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 45.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -34.4%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 46.9.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 EPS of 23.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 33.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 63.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 28.7.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $19.53

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

Ahead of FY24 result, Goldman Sachs notes FY25 guidance will be key for QBE Insurance, with the broker forecasting 92.5% combined operating ratio (COR) with around mid-single digit gross written premiums growth.

For FY24, the broker believes the key numbers will be 2H24 COR which is estimated at 93.2%, adjusted cash net profit of US$872m and 2H24 dividend of 52.6c.

The broker thinks rate increases will continue to moderate given the backdrop of strong commercial CORs/rate adequacy, moderating inflation and increasing competition  – particularly evident in Lloyds and also in Australia.

No changes to the Buy rating and target price is $22.50.

This report was published on January 8, 2025.

Target price is $22.50 Current Price is $19.53 Difference: $2.97
If QBE meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $20.95, suggesting upside of 8.1%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 48.00 cents and EPS of 165.73 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 177.2, implying annual growth of N/A.
Current consensus DPS estimate is 72.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 10.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 53.00 cents and EPS of 176.37 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 185.3, implying annual growth of 4.6%.
Current consensus DPS estimate is 78.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 10.5.

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

WOR    WORLEY LIMITED

Energy Sector Contracting – Overnight Price: $14.05

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

Goldman Sachs highlights moderating growth for Worley given cyclical headwinds but sees solid earnings growth due to continued margin expansion.

Based on channel checks, the broker estimates the CP2 project will contribute $6bn to Worley’s backlog as the project moves to final investment. This represents around a 45% lift against the last reported backlog.

Key risks include any potential delays in client projects, lower-than-expected bookings/aggregated revenues and the broker’s estimate of margin profile.

No change to the Buy rating or $18 target price.

This report was published on January 16, 2025.

Target price is $18.00 Current Price is $14.05 Difference: $3.95
If WOR meets the Goldman Sachs target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $18.26, suggesting upside of 29.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 53.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.3, implying annual growth of 50.2%.
Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 66.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.0, implying annual growth of 21.7%.
Current consensus DPS estimate is 53.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.5.

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

WPR    WAYPOINT REIT LIMITED

REITs – Overnight Price: $2.39

Jarden rates ((WPR)) as Initiation of coverage with Overweight (2) –

Jarden has initiated coverage on Waypoint REIT with an Overweight rating and target price of $2.70.

The broker’s rating is based on Waypoint’s strong portfolio of essential infrastructure, predictable income growth supported by inflation-linked rental growth, and predominantly triple net leases.

The broker reckons valuation looks attractive, offering a 7.0% dividend yield and trading around a -15% discount to net tangible assets. The broker sees Waypoint as strategically positioned to capitalise on growth through the potential redevelopment of existing properties.

Viva Energy’s ((VEA)) recent acquisition of OTR Group should present a significant upside opportunity for accretive developments, and investment into these sites could enhance rental growth and further strengthen the portfolio, the broker adds.

This report was published on January 12, 2025.

Target price is $2.70 Current Price is $2.39 Difference: $0.31
If WPR meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.71, suggesting upside of 12.0%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 16.50 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 6.90%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of N/A.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 16.40 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -0.6%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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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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.

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