This story features BRAMBLES LIMITED, and other companies. For more info SHARE ANALYSIS: BXB

Starting today, FNArena is publishing a summary of the highlights from Broker Call Extra updates throughout the week past.

By Rudi Filapek-Vandyck

Broker Rating Changes (Post Thursday last week)

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BRAMBLES LIMITED ((BXB)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0

FY23 results from Brambles were in line with expectations. Jarden notes the strong positive reaction in the stock, possibly reflecting increased confidence that the company can deliver operating leverage alongside improved cash flow.

Confidence in the margin appears centred on two items, including the normalisation of group costs after a sustained period of acceleration and the ongoing benefits of price increases.

The broker lifts the target to $16.00 from $14.30, underpinned by FX and movements in peer valuation multiples. Brambles has also guided to lower capital intensity and as a result the rating is raised to Overweight from Neutral.

NEXT SCIENCE LIMITED ((NXS)) Upgrade to Overweight from Market Weight by Wilsons.B/H/S: 0/0/0

Wilsons upgrades Next Science to Overweight from Market Weight, with the target edging up to $0.57 from $0.56, surprised by the early performance of the DME business in the first half while noting Xperience took a back seat although still grew well.

The company has announced an institutional placement, an offer to US shareholders and a domestic share purchase plan, raising up to $18.5m.

A convertible note issued in February has also been redeemed and resubscribed on the same terms. This places management in a debt-free position enabling it to execute on a direct sales strategy, the broker adds.

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LEO LITHIUM LIMITED ((LLL)) Downgrade to Neutral from Buy by Jarden.B/H/S: 0/0/0

As Leo Lithium emerges from suspension, correspondence with the Mali government has involved a review of the new Mining Code act, suspension of operations to produce and sell DSO as well as potential changes to taxes and duties.

Jarden considers the most significant news, and the basis of the severity of the reaction in the share price, is the Ganfeng investment and cooperation agreement.

In replacing the $106m equity placement by Ganfeng in May the company has effectively provided an additional 5% of Goulamina to Ganfeng, taking its stake to 55%, allowing it to invest directly into the joint venture and sole fund expenditure on Goulamina.

Without any obvious premium for control, the broker considers this a major negative for Leo Lithium. Rating is downgraded to Neutral from Buy and the target reduced to $0.60 from $1.43.

MAYNE PHARMA GROUP LIMITED ((MYX)) Downgrade to Underweight from Overweight by Wilsons.B/H/S: 0/0/0

FY23 revenue and EBITDA were below forecasts. Wilsons acknowledges this was a messy year for Mayne Pharma, commencing with a management transition and delivering promises//partial withdrawals of capital returns as well as acquisitions and divestments.

In FY24 the broker is cautious about the outlook given the underperformance in key segments pivotal to growth in the US business.

Having upgraded back in May based on a trading update that signalled a more positive outlook the broker now believes the call was wrong and downgrades to Underweight from Overweight. Target is reduced to $2.68 from $4.43.

SANDFIRE RESOURCES LIMITED ((SFR)) Downgrade to Hold from Buy by Canaccord Genuity.B/H/S: 0/0/0

FY23 results beat Canaccord Genuity's estimates at the EBITDA line. Sandfire Resources has provided further guidance on operating costs and expenditure at Matsa and Motheo.

Underlying mine operating costs at Matsa were -12% below the broker's estimates while Motheo operating costs were -26% below. The broker's valuation of Motheo has fallen -4% on higher stripping rates at the start of the mine life which is partially offset by extending the Matsa mine life to 2040.

Canaccord Genuity downgrades to Hold from Buy as the stock is trading at valuation. Target is $7.

Order	Company	New Rating	Old Rating	Broker
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1	BRAMBLES LIMITED	Buy	Neutral	Jarden
2	NEXT SCIENCE LIMITED	Buy	Neutral	Wilsons
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3	LEO LITHIUM LIMITED	Neutral	Buy	Jarden
4	MAYNE PHARMA GROUP LIMITED	Sell	Buy	Wilsons
5	SANDFIRE RESOURCES LIMITED	Neutral	Buy	Canaccord Genuity

Price Target Changes (post previous Thursday)

Company		Last Price	Broker	New Target	Old Target	Change
ANZ	ANZ Bank	$25.63	Goldman Sachs	27.55	27.38	0.62%
BKT	Black Rock Mining	$0.09	Petra Capital	0.39	0.69	-43.48%
BOE	Boss Energy	$4.38	Canaccord Genuity	4.28	3.22	32.92%
BSA	BSA	$0.58	Canaccord Genuity	1.25	0.42	197.62%
BXB	Brambles	$14.72	Jarden	16.00	14.30	11.89%
CAR	Carsales	$29.87	Goldman Sachs	29.00	26.10	11.11%
CCX	City Chic Collective	$0.37	Jarden	0.47	0.39	20.51%
CGC	Costa Group	$2.99	Jarden	3.08	3.11	-0.96%
CMM	Capricorn Metals	$4.27	Canaccord Genuity	5.40	5.65	-4.42%
			Jarden	4.92	4.82	2.07%
CRD	Conrad Asia Energy	$1.51	Canaccord Genuity	2.78	2.60	6.92%
CUV	Clinuvel Pharmaceuticals	$16.56	Moelis	22.05	22.10	-0.23%
CVN	Carnarvon Energy	$0.15	Jarden	0.24	0.25	-4.00%
EDV	Endeavour Group	$5.36	Goldman Sachs	6.60	7.00	-5.71%
EML	EML Payments	$1.14	Wilsons	1.17	0.98	19.39%
EVO	Embark Early Education	$0.72	Canaccord Genuity	0.96	N/A	–
EVT	EVT Ltd	$11.55	Jarden	12.54	17.61	-28.79%
FLT	Flight Centre Travel	$19.79	Jarden	23.60	23.70	-0.42%
FWD	Fleetwood	$1.93	Moelis	2.40	2.06	16.50%
GDG	Generation Development	$1.40	Moelis	1.88	1.81	3.87%
GMD	Genesis Minerals	$1.65	Canaccord Genuity	2.30	N/A	–
HLS	Healius	$2.46	Jarden	2.48	2.62	-5.34%
HVN	Harvey Norman	$4.05	Goldman Sachs	3.80	3.60	5.56%
			Jarden	3.70	3.40	8.82%
IAG	Insurance Australia Group	$5.82	Jarden	6.15	6.00	2.50%
IGO	IGO	$13.32	Goldman Sachs	14.80	16.10	-8.07%
			Jarden	15.53	15.58	-0.32%
LLL	Leo Lithium	$0.51	Canaccord Genuity	2.00	2.45	-18.37%
			Jarden	0.60	1.43	-58.04%
			Wilsons	1.70	1.75	-2.86%
LTR	Liontown Resources	$3.02	Canaccord Genuity	2.85	2.80	1.79%
			Jarden	3.00	2.50	20.00%
MCP	McPherson's	$0.42	Moelis	0.51	0.64	-20.31%
MDR	MedAdvisor	$0.22	Moelis	0.38	0.40	-5.00%
MOZ	Mosaic Brands	$0.15	Wilsons	0.18	0.30	-40.00%
MQG	Macquarie Group	$172.52	Goldman Sachs	194.99	192.97	1.05%
MTO	Motorcycle Holdings	$2.14	Moelis	2.80	2.90	-3.45%
MYX	Mayne Pharma	$3.41	Wilsons	2.68	4.43	-39.50%
NXS	Next Science	$0.47	Wilsons	0.57	0.56	1.79%
NXT	NextDC	$12.78	Canaccord Genuity	14.65	13.05	12.26%
ORA	Orora	$2.78	Jarden	3.30	3.90	-15.38%
PBH	PointsBet Holdings	$0.73	Jarden	0.90	1.79	-49.72%
			Jarden	1.90	1.79	6.15%
PEX	Peel Mining	$0.12	Canaccord Genuity	0.40	0.50	-20.00%
PLL	Piedmont Lithium	$0.69	Canaccord Genuity	1.75	2.15	-18.60%
RED	Red 5	$0.22	Petra Capital	0.34	0.47	-27.66%
RFG	Retail Food	$0.05	Petra Capital	0.09	0.10	-5.26%
RSG	Resolute Mining	$0.35	Canaccord Genuity	1.00	1.05	-4.76%
SFR	Sandfire Resources	$6.34	Canaccord Genuity	7.00	7.25	-3.45%
			Jarden	6.50	6.53	-0.46%
SGM	Sims	$13.91	Goldman Sachs	15.70	17.50	-10.29%
			Jarden	16.53	17.67	-6.45%
STO	Santos	$7.78	Jarden	8.05	7.75	3.87%
SUN	Suncorp Group	$13.97	Jarden	15.15	14.95	1.34%
SYA	Sayona Mining	$0.10	Canaccord Genuity	0.25	0.31	-19.35%
			Petra Capital	0.37	0.36	2.78%
SYM	Symbio Holdings	$2.38	Moelis	N/A	2.14	-100.00%
TIE	Tietto Minerals	$0.34	Canaccord Genuity	0.85	0.95	-10.53%
			Petra Capital	0.64	0.97	-34.02%
Company		Last Price	Broker	New Target	Old Target	Change

More Highlights

The following updates did not include a change in broker rating. They are deemed noteworthy from a simple content perspective.

EVO    EMBARK EARLY EDUCATION LIMITED

Education & Tuition – Overnight Price: $0.73

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

First half results from Embark Early Education were ahead of estimates. Canaccord Genuity notes the organic growth and finds the stock attractively valued. Occupancy was strong and margins expanded at the EBITDA level by 280 basis points.

While no acquisitions were made in the first half the company has indicated there are plans for acquisitions in the second half.

No 2023 guidance was provided although the broker notes there is usually a weighting of 60-65% to the second half. The industry drivers are considered supportive with demand growth outpacing supply. Buy rating retained. Target rises to $0.96 from $0.82.

This report was published on September 5, 2023.

Target price is $0.96 Current Price is $0.73 Difference: $0.225
If EVO meets the Canaccord Genuity target it will return approximately 31% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.76 cents and EPS of 4.97 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.79.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 3.77 cents and EPS of 6.72 cents.
At the last closing share price the estimated dividend yield is 5.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.94.

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

NXT    NEXTDC LIMITED

Cloud services – Overnight Price: $13.00

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

Canaccord Genuity observes the market may have been underwhelmed by NextDC's guidance for FY24 but the order book should provide comfort, as this stretches more than five years ahead and overshadows the investment required to deliver the growth that may take the shine of earnings in the current year.

The broker is of the view there are few companies on ASX which provides high visibility that revenue will double over the next five years along with a near-doubling of billable capacity. Buy rating retained. The target rises to $14.65 from $13.05.

This report was published on September 11, 2023.

Target price is $14.65 Current Price is $13.00 Difference: $1.65
If NXT meets the Canaccord Genuity target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $14.81, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 171.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 EPS of minus 7.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 168.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -14.5, 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: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PNR    PANTORO LIMITED

Gold & Silver – Overnight Price: $0.05

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

In assessing the gold sector, Petra Capital believes investors will continue to look to gold for risk diversification and as a currency alternative to the US dollar in uncertain times.

Cost pressures may be ongoing yet producers are making money and balance sheets are strong. While dividends might feature, the broker suspects it more likely cash will be used to fund corporate activity with a focus on domestic gold assets.

Pantoro appears very cheap, the broker asserts, as production ramps up into a robust gold price environment. Buy rating and $0.14 target.

This report was published on September 8, 2023.

Target price is $0.14 Current Price is $0.05 Difference: $0.094
If PNR meets the Petra Capital target it will return approximately 204% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.18.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.11.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $13.90

Jarden rates ((SUN)) as Buy (1) –

Jarden assesses domestic general insurers, despite a softer performance at the FY23 results, still have some momentum. The industry is on track to deliver its first year of double-digit net earned premium growth in a decade.

The broker's analysis suggests compelling upside risk to consensus estimates for underlying profit, and the risks for the near term appear skewed to the upside given a more favourable weather backdrop.

The broker points out the PE ratios are at an undemanding -7% discount to 10-year averages and there are compelling reasons to be overweight, with Suncorp Group preferred over Insurance Australia Group because of greater value appeal.

Buy retained. Target is $15.15.

This report was published on September 6, 2023.

Target price is $15.15 Current Price is $13.90 Difference: $1.25
If SUN meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $15.23, suggesting upside of 9.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 70.00 cents and EPS of 109.80 cents.
At the last closing share price the estimated dividend yield is 5.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.2, implying annual growth of 17.9%.
Current consensus DPS estimate is 74.7, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 121.00 cents and EPS of 106.60 cents.
At the last closing share price the estimated dividend yield is 8.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 111.7, implying annual growth of 4.2%.
Current consensus DPS estimate is 85.6, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 12.4.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $68.45

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

In a conference briefing, WiseTech Global envisages an opportunity for its global customs product amid little competition. The company expects this could be at least the size of core freight forwarding as it is the only operator pursuing a global customs product suite.

Goldman Sachs observes the company expects longer-term EBITDA margins to return to more than 50% by FY26 and does not envisage any structural reasons why it cannot continue to achieve the historical organic growth rate in CargoWise of more than 30%.

The broker retains a Neutral rating and $75 target.

This report was published on September 6, 2023.

Target price is $75.00 Current Price is $68.45 Difference: $6.55
If WTC meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $79.53, suggesting upside of 17.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 15.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 0.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.8, implying annual growth of 27.8%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 82.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 22.00 cents and EPS of 108.00 cents.
At the last closing share price the estimated dividend yield is 0.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.7, implying annual growth of 28.9%.
Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 63.7.

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

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