Australian Broker Call *Extra* Edition – Oct 09, 2023

This story features AMA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AMA

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)

AMA   AVH   BOQ   CKF   CPU   CRD   CXO (2)   DLI   DMP   IPH   LTR   QPM   RUL   SOM   VR8  

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.04

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

Having recently completed a $55m capital raise, AMA Group is set to deploy $35m to repay senior bank debt. Canaccord Genuity points out this will reduce net senior debt to $85m and total net debt to $135m. AMA Group is expected to refinance residual debt facilities in the financial year, and improve all-in senior debt costs.

While mindful of remaining operational headwinds and challenges, the broker upgrades to a Buy rating from Speculative Buy given the resetting of the balance sheet, improved operational stability and significant market share. 

The target price decreases to 14 cents from 22 cents. 

This report was published on October 4, 2023.

Target price is $0.14 Current Price is $0.04 Difference: $0.103
If AMA meets the Canaccord Genuity target it will return approximately 278% (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 0.00 cents.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.70.

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

AVH    AVITA MEDICAL INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.51

Wilsons rates ((AVH)) as Overweight (1) –

Avita Medical has warned of a six month delay to the launch of its RECELL GO device, but Wilsons points out the delay has no impact on its FY23 or FY24 revenue guidance at this point. Launch is now expected between May and June 2024. 

The longer aspect of the delay is required cell suspension testing. It is Wilsons' understanding that the FDA requires further samples to better validate statistical significance between RECELL GO and the original RECELL device. 

The Overweight rating and target price of $6.34 are retained.

This report was published on October 3, 2023.

Target price is $6.34 Current Price is $3.51 Difference: $2.83
If AVH meets the Wilsons target it will return approximately 81% (excluding dividends, fees and charges).
Current consensus price target is $6.40, suggesting upside of 82.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 86.24 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -90.2, 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 FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -31.8, 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

BOQ    BANK OF QUEENSLAND LIMITED

Banks – Overnight Price: $5.71

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

Ahead of a full year result release from Bank of Queensland, Goldman Sachs points out cash earnings look to have declined -7.7% on the previous comparable period as net interest margins remain under pressure from competition in mortgages and deposits. The broker expects the bank's margins to continue to be more impacted by competition given its higher cost of funding. 

The bank remains firm that it will not write mortgages below cost of capital, and will instead focus on business lending and holding capital until the market normalises. In line with this, Bank of Queensland's housing lending lagged system growth in the six months to August, with business lending stronger but still soft.

The Sell rating and target price of $5.59 are retained.

This report was published on October 5, 2023.

Target price is $5.59 Current Price is $5.71 Difference: minus $0.12 (current price is over target).
If BOQ meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.94, suggesting upside of 4.1%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 40.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 7.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.4, implying annual growth of -19.4%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 40.00 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 7.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.8, implying annual growth of 6.4%.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 10.1.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $9.16

Jarden rates ((CKF)) as Neutral (3) –

In a review of the quick-service restaurant sector, Jarden believes companies should be benfitting from more tailwinds than headwinds. With consumers responding to cost-of-living pressures, the broker has seen improving trends for takeaway and delivery food. It expects the industry can outperform against a slowing macro backdrop. 

While Jarden sees the outlook for Collins Foods as positive, with management executing well and positive expansion in new channels such as Uber Eats, it does see the company as being more likely to suffer margin pressure than peers. 

The Neutral rating and target price of $9.20 are retained.

This report was published on October 3, 2023.

Target price is $9.20 Current Price is $9.16 Difference: $0.04
If CKF meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $10.99, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 40.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.6, implying annual growth of 328.3%.
Current consensus DPS estimate is 29.9, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 49.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.0, implying annual growth of 33.0%.
Current consensus DPS estimate is 34.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.8.

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $25.70

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

Computershare has announced the sale of its under-performing US mortgage services business for a consideration of US$720m. With Jarden having expected a valuation of US$600m, it considers this a positive result for the company. The sale looks unlikely to impact on FY24 financials, but should prove 2% accretive moving into FY25.

The broker believes Computershare will be left with a buyback capacity of US$500m given the divestment of its most capital-intensive division, alongside an absence of merger and acquisition activity. 

The Overweight rating is retained and the target price increases to $28.00 from $27.00.

This report was published on October 3, 2023.

Target price is $28.00 Current Price is $25.70 Difference: $2.3
If CPU meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $28.43, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 62.00 cents and EPS of 178.48 cents.
At the last closing share price the estimated dividend yield is 2.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 186.8, implying annual growth of N/A.
Current consensus DPS estimate is 125.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 64.41 cents and EPS of 193.08 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.9, implying annual growth of 11.3%.
Current consensus DPS estimate is 121.3, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 12.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CRD    CONRAD ASIA ENERGY LIMITED

Business & Consumer Credit – Overnight Price: $1.38

Wilsons rates ((CRD)) as Initiation of coverage with Overweight (1) –

Wilsons has initiated coverage on Conrad Asia Energy, noting it is the only ASX-listed pure offshore Asia exploraton and production gas company.

While the company has several discovered gas resources, all in the shallow waters offshore Indonesia, its first gas development will be Mako, one of the largest discoveries in Indonesia in the last decade. The broker is estimating Mako could generate average free cash flow of US$116m per annum over its first four years. 

Importantly, the gas field is located in the fastest growing gas demand region in the world, with imports expected to almost quadruple over thirty years. The broker initiates with an Overweight rating and a target price of $2.52.

This report was published on October 5, 2023.

Target price is $2.52 Current Price is $1.38 Difference: $1.14
If CRD meets the Wilsons target it will return approximately 83% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.04 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.46.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.31.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.35

Jarden rates ((CXO)) as Sell (5) –

Core Lithium's share price experienced a more than 20% intraday bounce in response to what Jarden describes as a "remarkable" maiden net profit announcement. However, the broker does point out that while operations appear profitable from an accounting perspective, it does not otherwise appear free cash flow generative. 

The broker does highlight this is unsurprising given the company is still in its ramp up and comissioning phase. Jarden remains confident in delaying a review of its Sell rating on the stock and its target price decreases to 34 cents from 36 cents. 

This report was published on September 30, 2023.

Target price is $0.34 Current Price is $0.35 Difference: minus $0.01 (current price is over target).
If CXO 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 $0.49, suggesting upside of 39.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 973.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 4.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.9, implying annual growth of -32.9%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 7.1.

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

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Petra Capital rates ((CXO)) as Upgrade to Buy from Hold (1) –

Petra Capital upgrades its Core Lithium rating, finding the current stock price too cheap given upside risk. With a current market cap of $844m, the broker values the company at $1.2bn taking into consideration assumptions for the coming two years. 

The broker feels the company has kept production expectations low for the coming two years, guiding to between 80 and 90,000 tonnes in FY24 and lower in FY25, leaving room for upside. Looking ahead, the broker expects the BP33 project to be key to Core Lithium's future, with a final investment decision on the project due in the March quarter. 

The rating is upgraded to Buy from Hold and the target price decreases to 60 cents from 66 cents.

This report was published on October 5, 2023.

Target price is $0.60 Current Price is $0.35 Difference: $0.25
If CXO meets the Petra Capital target it will return approximately 71% (excluding dividends, fees and charges).
Current consensus price target is $0.49, suggesting upside of 39.0%(ex-dividends)
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 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 973.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 4.8.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.9, implying annual growth of -32.9%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 7.1.

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

DLI    DELTA LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.66

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

Canaccord Genuity is pleased by updates from Delta Lithium's Mt Ida project, with the company not only announcing an updated resource of 14.6m tonnes, a 15% increase to the maiden resource, but also an indicated resource of 7.8m tonnes with a higher grade of 1.3%. This indicated resource represents a 136% increase in tonnes compared to prior.

While the broker continues to expect development to begin in the December quarter, it also does not rule out the possibility of Mt Ida entering into a regional consolidation centered on Mount Marion, or another asset, particularly given interest from Mineral Resources ((MIN)).

The Speculative Buy rating and target price of $1.20 are both retained.

This report was published on October 4, 2023.

Target price is $1.20 Current Price is $0.66 Difference: $0.54
If DLI meets the Canaccord Genuity target it will return approximately 82% (excluding dividends, fees and charges).

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $50.45

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

In a review of the quick-service restaurant sector, Jarden believes companies should be benfitting from more tailwinds than headwinds. With consumers responding to cost-of-living pressures, the broker has seen improving trends for takeaway and delivery food. It expects the industry can outperform against a slowing macro backdrop. 

The broker is increasingly confident in Domino's Pizza Enterprises' outlook, and retains its preference for the company within the quick-service restaurant sector. 

The Overweight rating and target price of $65 are retained.

This report was published on October 3, 2023.

Target price is $65.00 Current Price is $50.45 Difference: $14.55
If DMP meets the Jarden target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $57.33, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 168.00 cents and EPS of 173.40 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 174.6, implying annual growth of 278.7%.
Current consensus DPS estimate is 129.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 28.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 222.00 cents and EPS of 229.00 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 218.0, implying annual growth of 24.9%.
Current consensus DPS estimate is 160.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.1.

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

IPH    IPH LIMITED

Legal – Overnight Price: $7.45

Goldman Sachs rates ((IPH)) as Upgrade to Buy from Neutral (1) –

With its defensive business model and solid growth outlook, Goldman Sachs has seen value in lifting its rating on IPH to Buy from Neutral. At this point, the broker believes the market continues to price in patent filing market share challenges in Australia New Zealand and Asia, with the stock trading at around a -20% discount, but a positive update at the upcoming AGM could drive a re-rate. 

Goldman Sachs expects the company could fund further merger and acquisition activity on its current balance sheet, and highlights further Canadian acquisitions, as flagged at the full year result, could prove a catalyst. 

The target price increases 1.2% to $8.75. 

This report was published on October 5, 2023.

Target price is $8.75 Current Price is $7.45 Difference: $1.3
If IPH meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $10.49, suggesting upside of 40.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 34.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.9, implying annual growth of 56.9%.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 37.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.1, implying annual growth of 7.1%.
Current consensus DPS estimate is 36.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.5.

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $2.99

Jarden rates ((LTR)) as Downgrade to Underweight from Neutral (4) –

Jarden is concerned about increasing downside risk to Liontown Resources' share price as Hancock Prospecting continues to increase its holding amid a conditional cash offer from Albemarle. 

While the latter's $3 per share cash offer remains subject to due diligence, Hancock Prospecting has increased its holding in the company from a less than 5% stake to 12.4%, all at no more than $3 per share. With this in mind, the broker sees a chance of a higher offer as being diminished, therefore increasing downside risk to the share price. 

The broker describes its rating downgrade to Underweight from Neutral as "bold in the face of strong corporate interest", but notes Hancock Prospecting's ability to increase its stake at less than $3 per share undermines a competitive situation. It retains its $3.00 target price. 

This report was published on September 29, 2023.

Target price is $3.00 Current Price is $2.99 Difference: $0.01
If LTR meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $3.09, suggesting upside of 3.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 74.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.9, 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:

Jarden forecasts a full year FY25 EPS of 14.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.1, 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 26.9.

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

QPM    QUEENSLAND PACIFIC METALS LIMITED

Nickel – Overnight Price: $0.07

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

Petra Capital was left pleased by the successful transition of operatorship to Queensland Pacific Metals at the Moranbah gas project on a recent site visit, with the company improving production rate to 25 terrajoules per day from 3 terrajoules per day in just one month. 

The broker decribes the project as "overdue a strategy refresh", with Queensland Pacific Metals looking to capture a larger proportion of waste coal mine gas with its updated approach. 

The Buy rating is retained with a target price of 28 cents.

This report was published on October 5, 2023.

Target price is $0.28 Current Price is $0.07 Difference: $0.213
If QPM meets the Petra Capital target it will return approximately 318% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.75.

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

RUL    RPMGLOBAL HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $1.46

Moelis rates ((RUL)) as Buy (1) –

RPMGlobal has issued upgrades to guidance ranges for the coming financial year, now anticipating revenue in the $107-112m range and earnings in the $18.5-20.5m range. At the midpoint, this suggest 11% revenue growth year-on-year and 30% earnings growth year-on-year. 

Moelis points out the major driver of the upgrade was strong advisory demand, and has increased earnings guidance to $17.2m from $16.6m. The company has also signed another Tier-1 miner in what the broker described as a strategic deal that will support total contract value and annual recurring revenue into FY24. 

The Buy rating is retained and the target price increases to $2.03 from $2.01.

This report was published on October 3, 2023.

Target price is $2.03 Current Price is $1.46 Difference: $0.57
If RUL meets the Moelis target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.89.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.55.

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

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.65

Wilsons rates ((SOM)) as Overweight (1) –

Wilsons is concerned that SomnoMed may have jumped the gun in announcing its intention to break into the US sleep physician market with its new technology-enabled oral appliance, Rest Assure. The broker is concerned valuation of the company's core business may decline as investors await approvals and launches on the new product. 

SomnoMed's claim is that Rest Assure can change US sleep physician's prescribing habits to favour oral appliances. The product features on-board patient monitoring and cloud-connected data feedback. Wilsons finds the connectivity and data feedback abilities reminiscent of ResMed's My Air, noting these features were revolutionary to ResMed's CPAP business. 

The Overweight rating is retained and the target price decreases to $1.25 from $2.00.

This report was published on October 4, 2023.

Target price is $1.25 Current Price is $0.65 Difference: $0.6
If SOM meets the Wilsons target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.06.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.00.

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

VR8    VANADIUM RESOURCES LIMITED

Overnight Price: $0.05

Petra Capital rates ((VR8)) as Buy (1) –

Vanadium Resources has pushed out a final investment decision on its majority owned Steelpoortdrift Vanadium Project to the second half of 2024, now targeting first production in the second half of 2026. Petra Capital notes the delay will allow engineering and technical processes to be optimised, and for the company to progress discussion with potential debt, offtake and strategic partners. 

Among a number of key dates ahead for the project, Petra points out plant construction is due to get underway in the second half of 2024 following the final investment decision. 

The Buy rating is retained and the target price decreases to 21 cents from 28 cents. 

This report was published on October 5, 2023.

Target price is $0.21 Current Price is $0.05 Difference: $0.161
If VR8 meets the Petra Capital target it will return approximately 329% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 49.00.

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

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