Australian Broker Call *Extra* Edition – Apr 07, 2025

Daily Market Reports | Apr 07 2025

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)

AAR (2)   ADT   AEL   AMA   ANZ   AOV   APE   APZ   ARB   ARG   ASL   BRG   BRI   BSL   BXB   CIA   EGG   EGL   GNP   GQG   HMC   HVN   LAM   LGP   LOT   MDR   MFG   MM8   MMI   MPA   MYR   NXG   PNI   PPT   PTM   PXA   QAL   TCG   TYR   WGX   XRO  

TYR    TYRO PAYMENTS LIMITED

Business & Consumer Credit - Overnight Price: $0.70

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

Canaccord Genuity hosted a briefing with Tyro Payments' management to gain deeper insights into the rationale for Smartpay Holdings ((SMP)) takeover and the company's plans to expand into the Aged Care vertical.

The broker notes the company's plans to enter three verticals in 2025 translates to $200m revenue from a combined addressable market of $21bn, with gross margin estimate of over 50%.

With the Smartpay takeover, the broker estimates cost synergies of $25-35m, which would push up the combined entitiies' FY26 EBITDA forecast to $117m and FY27 to $134m. The broker also expects valuation to fall to 4.7x and 4x times respectively, which is well below listed payment peers of 12.5x.

Buy retained. Target unchanged at $1.65.

This report was published on April 4, 2025.

Target price is $1.65 Current Price is $0.70 Difference: $0.95
If TYR meets the Canaccord Genuity target it will return approximately 136% (excluding dividends, fees and charges).
Current consensus price target is $1.34, suggesting upside of 91.8%(ex-dividends)
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 4.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, implying annual growth of -28.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.0.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of 22.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.3.

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: $2.87

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

Westgold Resources' sale of the Lakewood processing facility to Black Cat Syndicate ((BC8)) was completed on March 31.

Petra Capital notes this resulted in reduced mill availability to Westgold because of Black Cat's accelerated mine development plan. The broker cut the FY25 output estimate from Southern Goldfields to 120koz from 128koz, and for FY26 to 115koz from 135koz.

Buy retained. Target price drops to $4.29 from $4.36.

This report was published on April 3, 2025.

Target price is $4.29 Current Price is $2.87 Difference: $1.42
If WGX meets the Petra Capital target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 2.50 cents and EPS of 20.90 cents.
At the last closing share price the estimated dividend yield is 0.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.73.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 10.00 cents and EPS of 45.60 cents.
At the last closing share price the estimated dividend yield is 3.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.29.

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

XRO    XERO LIMITED

Accountancy - Overnight Price: $145.54

Jarden rates ((XRO)) as Overweight (2) -

At the time of 1H25 result in November, Jarden believed Xero's FY25 opex ratio was conservative at 73%, given 1H was only 71.2%.

However, the broker has now increased opex ratio forecast to 72.9% from 72.1% following a significant revision to CEO Sukhinder Singh Cassidy's remuneration and an increase in hiring activity. Additionally, the FY26 forecast will also be impacted by the new CFO's sign-on incentives and compensation.

The broker cut FY25-26 EPS estimates by -3.2% and -6.5%, respectively, after factoring in higher operating cost assumptions, updated forex and some changes to subscriber forecasts.

Target rises to $180 from $177. Overweight maintained.

This report was published on April 3, 2025.

Target price is $180.00 Current Price is $145.54 Difference: $34.46
If XRO meets the Jarden target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $196.15, suggesting upside of 34.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 155.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.1, 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 106.9.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 98.68 cents and EPS of 160.40 cents.
At the last closing share price the estimated dividend yield is 0.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 209.2, implying annual growth of 53.7%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 0.0%.
Current consensus EPS estimate suggests the PER is 69.6.

This company reports in NZD. 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

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.