In Case You Missed It – BC Extra Upgrades & Downgrades – 22-09-23

This story features ALS LIMITED, and other companies. For more info SHARE ANALYSIS: ALQ

A summary of the highlights from Broker Call Extra updates throughout the week past.

Broker Rating Changes (Post Thursday Last Week)

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ALS LIMITED ((ALQ)) Upgrade to Buy from Neutral by Jarden.B/H/S: 0/0/0

Jarden believes a turning point is approaching for ALS Ltd. The acquisition of a 49% stake in Nuvisan delivered headwinds for the life sciences division as the company struggled to replace lost contract revenue amid cost inflation imposts on EBITDA margins.

Options, both call and put, in the company's favour are exerciseable from January 1, 2024 and the broker estimates exercising the call option on the remaining 51% equity stake in Nuvisan could boost underlying EBIT forecast for life sciences by 10% FY25 and drive further accretion for the group.

Following movements in the share price, and in updating global peer valuation multiples, Jarden lifts the rating to Buy from Neutral, believing the current share price provides good risk/reward for investors. Target rises to $13.40 from $11.50.

MONADELPHOUS GROUP LIMITED ((MND)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0

Jarden is becoming more bullish on Monadelphous Group amid the announcement of $260m in new contracts gained over the past two weeks.

The engineering and construction ramp-up is beginning to translate to the order book and the broker is now more confident in both the amount of construction contracts in the pipeline and the company's ability to win tenders.

Rating is upgraded to Overweight from Neutral and the target lifted to $14.45 from $12.40. Monadelphous has won $610m in new contracts over the first three months of the first half.

Downgrade

MUSGRAVE MINERALS LIMITED ((MGV)) Downgrade to Hold from Speculative Buy by Canaccord Genuity.B/H/S: 0/0/0

Ramelius Resources ((RMS)) is now approaching the compulsory acquisition threshold of 90%, now holding 88.6% of Musgrave Minerals. Canaccord Genuity envisages little risk to compulsory acquisition being achieved over coming days.

Therefore any further competing bids are ruled out and the target is lowered to $0.36 from $0.50, being the current implied price based on the acquisition terms. Rating is downgraded to Hold from Speculative Buy.

Order	Company	New Rating	Old Rating	Broker
Upgrade
1	ALS LIMITED	Buy	Neutral	Jarden
2	MONADELPHOUS GROUP LIMITED	Buy	Neutral	Jarden
Downgrade
3	MUSGRAVE MINERALS LIMITED	Neutral	Buy	Canaccord Genuity

Price Target Changes (Post Thursday Last Week)

Company		Last Price	Broker	New Target	Old Target	Change
ALQ	ALS Ltd	$11.66	Jarden	13.40	11.50	16.52%
BTH	Bigtincan Holdings	$0.30	Canaccord Genuity	0.80	1.10	-27.27%
CGC	Costa Group	$2.90	Wilsons	3.05	2.44	25.00%
FSG	Field Solutions	$0.05	Petra Capital	0.22	0.27	-18.52%
GSS	Genetic Signatures	$0.51	Taylor Collison	2.19	2.21	-0.90%
IPH	IPH	$7.14	Petra Capital	10.70	10.65	0.47%
LKE	Lake Resources	$0.17	Canaccord Genuity	0.25	0.95	-73.68%
LOT	Lotus Resources	$0.26	Canaccord Genuity	0.39	0.38	2.63%
MGV	Musgrave Minerals	$0.39	Canaccord Genuity	0.36	0.50	-28.00%
MND	Monadelphous Group	$14.45	Jarden	14.45	12.40	16.53%
MTS	Metcash	$3.68	Jarden	4.40	4.30	2.33%
PMT	Patriot Battery Metals	$1.28	Canaccord Genuity	1.95	1.87	4.28%
PMV	Premier Investments	$25.00	Goldman Sachs	21.30	20.90	1.91%
PRU	Perseus Mining	$1.71	Canaccord Genuity	2.35	2.95	-20.34%
RED	Red 5	$0.27	Canaccord Genuity	0.26	0.28	-7.14%
TIE	Tietto Minerals	$0.36	Canaccord Genuity	0.40	0.85	-52.94%
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.

BMN    BANNERMAN ENERGY LIMITED

Uranium – Overnight Price: $2.53

Canaccord Genuity rates ((BMN)) as Initiation of coverage with Speculative Buy (1) –

Bannerman Energy is developing the Etango uranium project in Namibia and Canaccord Genuity initiates coverage with a Speculative Buy rating and $3.33 target.

The broker observes the market is starting to witness the first wave of mine re-starts but is confronted by a -30mlb deficit.

After a decade of underinvestment and material closures such as Ranger and Cominak, the primary supply of uranium is at a 12-year low.

Security of supply and the need for contracting to facilitate development of new mines has been brought to the fore, and recent polling, as well as anecdotal evidence, signal a flurry of contracts have been initiated over the last nine months.

This report was published on September 19, 2023.

Target price is $3.33 Current Price is $2.53 Difference: $0.8
If BMN meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.82.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.26.

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

SPZ    SMART PARKING LIMITED

Hardware & Equipment – Overnight Price: $0.34

Canaccord Genuity rates ((SPZ)) as Initiation of coverage with Buy (1) –

Smart Parking, a technology-enabled parking management provider operating in Australasia and Europe, has sizeable growth ambitions and impressive unit-level economics, according to Canaccord Genuity.

The broker highlights the company's strong presence in the core UK market where it has a top-five position by market share. Smart Parking is in the early stages of expanding in Germany and New Zealand.

The business is profitable, high-growth, with elevated incremental EBITDA margins and the broker initiates coverage with a Buy rating and $0.45 target.

This report was published on September 18, 2023.

Target price is $0.45 Current Price is $0.34 Difference: $0.11
If SPZ meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.14.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.97.

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

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