Australian Broker Call *Extra* Edition – Nov 08, 2023

This story features BASE RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: BSE

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)

BSE   COH   CWP   CXO   DDR   DRR   EDV (2)   EOS   EVO   FBU   HVN   IEL   IGO (2)   LEL   LIN   LOV   M7T   MAD   MEI   RMD (2)   RMS   RRL   SDF   SDR   SFR   SGM   SOM   SYA (2)   TCL   TIE   WZR  

BSE    BASE RESOURCES LIMITED

Mineral Sands – Overnight Price: $0.11

Canaccord Genuity rates ((BSE)) as Downgrade to Speculative Buy from Buy (1) –

Canaccord Genuity downgrades its rating for Base Resources to Speculative Buy from Buy after 1Q production of all products fell short of expectations.

Management switched to campaign processing at the mineral separation plant (MSP) in order to maximise recoveries, explain the analysts, resulting in extended plant shutdowns and a MSP feed which lagged production.

Bulk shipments overseas continued, notes Canaccord, and the stockpile will now take longer to build. A 70c target is set.

This report was published on October 31, 2023.

Target price is $0.70 Current Price is $0.11 Difference: $0.59
If BSE meets the Canaccord Genuity target it will return approximately 536% (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 0.60 cents and EPS of minus 1.81 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.08.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.13.

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

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $250.38

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

A recent Capital Markets Day saw Cochlear reiterate all long-term financial targets, which includes 10% revenue growth and 18% net margin guidance. Goldman Sachs expects Cochlear will remain the comprehensive cohlear implant market leader over the long term. 

For the broker, the update provided confidence around the volume opportunity available, with 20% of the global population suffering hearing loss. Within its coverage, Goldman Sachs believes hearing implants are the best exposure to long-term ageing dynamics.

The Buy rating and target price of $280.00 are retained.

This report was published on October 30, 2023.

Target price is $280.00 Current Price is $250.38 Difference: $29.62
If COH meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $237.07, suggesting downside of -6.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 562.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 553.5, implying annual growth of 21.1%.
Current consensus DPS estimate is 388.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 45.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 649.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 625.3, implying annual growth of 13.0%.
Current consensus DPS estimate is 440.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 40.6.

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

CWP    CEDAR WOODS PROPERTIES LIMITED

Infra & Property Developers – Overnight Price: $4.59

Moelis rates ((CWP)) as Buy (1) –

Cedar Woods Properties' September-quarter sales and pre-sales rose sharply but Moelis observes first-home buy activity remains subdued.

December-half guidance is downgraded, reflecting potential delayed settlements, a shift in product mix to lower margin products, a skewing of settlements to late in FY24, and continued costruction cost pressures.

Management observes cost pressures are starting to normalise but does not expect a margin recovery until FY25.

EPS forecasts fall -32.2% for FY24; -1.6% for FY25; and -1.2% for FY26. 

Buy rating retained, the broker observing strong macro tailings (such as housing shortages and migration) are about to kick in.

Target price falls to $5.40 from $5.80 to reflect the delay on the sale of William's Landing Shopping Centre.

This report was published on October 31, 2023.

Target price is $5.40 Current Price is $4.59 Difference: $0.81
If CWP meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 25.00 cents and EPS of 39.90 cents.
At the last closing share price the estimated dividend yield is 5.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.50.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 30.00 cents and EPS of 50.70 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.05.

Market Sentiment: 0.5
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: $0.36

Jarden rates ((CXO)) as Sell (5) –

After reviewing Core Lithium's 1Q results, Jarden acknowledges gains in areas including an around 8% rise in total material movements over the prior quarter, plant availability, concentrate produced and recovery.

However, the Sell rating is maintained on complexities ahead for the underground hard rock lithium development, explain the analysts.

The broker's target price decreases to 32c from 34c on a higher risk factor to allow for unquantified capex items, and after adjusting forecasts for recovery and concentrate grades.

This report was published on October 30, 2023.

Target price is $0.32 Current Price is $0.36 Difference: minus $0.045 (current price is over target).
If CXO meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.48, suggesting upside of 26.3%(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 minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 91.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, implying annual growth of 885.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 5.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.6, implying annual growth of -31.3%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 8.3.

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

DDR    DICKER DATA LIMITED

Hardware & Equipment – Overnight Price: $11.20

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

A strong third quarter result from Dicker Data, according to Petra Capital, partly on a marked turnaround in New Zealand. Sales increased 5.4% on the previous comparable period, and margins lifted 43 basis points to 3.74%. 

On the back of better than expected margins in the quarter, Petra Capital has lifted its earnings forecast but does feel upside risk remains. The broker lifted its earnings expectations 5% each year for FY23-25. 

The Buy rating is retained and the target price increases to $11.21 from $10.55.

This report was published on November 2, 2023.

Target price is $11.21 Current Price is $11.20 Difference: $0.01
If DDR meets the Petra Capital target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 46.00 cents and EPS of 46.10 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.30.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 55.00 cents and EPS of 54.80 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.44.

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

DRR    DETERRA ROYALTIES LIMITED

Iron Ore – Overnight Price: $4.76

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

Following broadly in-line 1Q results for Deterra Royalties, Canaccord Genuity expects royalty revenue will remain broadly flat over
the next two quarters as higher volumes are offset by lower prices.

The broker's target price remains at $5.00, despite an increase in earnings (EBITDA) forecasts by an average of 4% over FY24-25.

Forecasts rose thanks to small increases in Canaccord's iron ore price forecasts for FY24 and FY25 to US$108/t and US$99/t, respectively.

This report was published on October 31, 2023.

Target price is $5.00 Current Price is $4.76 Difference: $0.24
If DRR meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $4.80, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 29.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 6.09%.
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 32.2, implying annual growth of 11.6%.
Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 22.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.0, implying annual growth of -9.9%.
Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 16.1.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $4.93

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

Off the back of its first quarter, Dan Murphy's continues to be the standout amongst Endeavour Group's portfolio, says Goldman Sachs. Describing the retailer as an "event destination", Goldman Sachs expects Dan's to perform well over the upcoming holiday period. 

Having made no hotel acquisitions in the first quarter, Endeavour Group has noted it is unlikely to acquire at the same pace as last year given a focus on returns.

Largely on slower hotel sales from fewer acquisitions, Goldman Sachs revises its group sales expectations 0.1%, -1.6% and -1.9% through to FY26. 

The Buy rating is retained and the target price decreases to $6.40 from $6.60.

This report was published on October 30, 2023.

Target price is $6.40 Current Price is $4.93 Difference: $1.47
If EDV meets the Goldman Sachs target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $5.61, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 23.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.6, implying annual growth of 0.2%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 25.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of 2.7%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.2.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

A largely in-line quarterly result from Endeavour Group, with Jarden highlighting a strong exit from the period from the retail segment.

Further, retail's market share increase 2.6% year-on-year in the period, and volumes were modestly ahead of Coles Group ((COL)), which the broker believes suggest improving trends that have likely continued into the fourth quarter.

Jarden believes Endeavour Group can become leaner and more focused business post-demerger. The company has already accelerated investment in high return on investment areas and identified -$200m in cost opportunities over the coming three years. 

The Overweight rating is retained and the target price decreases to $6.10 from $6.30.

This report was published on October 30, 2023.

Target price is $6.10 Current Price is $4.93 Difference: $1.17
If EDV meets the Jarden target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $5.61, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 28.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.6, implying annual growth of 0.2%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.6.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 32.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of 2.7%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.2.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $0.94

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

Following "strong" cash receipts in the 3Q, according to Canaccord Genuity, Electro Optic Systems had a September cash balance of $46m and net debt of $17m.

This 3Q outcome means cumulative year-to-date free cash flow (FCF) is $77m (excluding security deposits of $24m), compared to 
a FCF loss of -$52m in the previous corresponding period, highlight the analysts.

The broker makes only modest revisions to the FY23 profit (NPBT) estimate and retains a Buy rating and $1.30 target.

This report was published on October 31, 2023.

Target price is $1.30 Current Price is $0.94 Difference: $0.355
If EOS meets the Canaccord Genuity target it will return approximately 38% (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 0.00 cents and EPS of minus 35.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.70.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 14.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.56.

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

EVO    EMBARK EARLY EDUCATION LIMITED

Education & Tuition – Overnight Price: $0.68

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

Consistent with recent industry commentary, according to Canaccord Genuity, management at Embark Early Education noted occupancy growth in the 3Q was impacted by staff shortages, and lower demand for places on Mondays and Fridays.

Occupancy continues to track ahead of the previous corresponding period, yet outperformance on 2022 has gradually eased in recent months, explains the broker. Staff shortages are expected to slowly improve through 2024.

Management announced a 2c interim dividend, double what the analyst was expecting. Canaccord highlights an attractive dividend yield after raising dividend forecasts for both 2023 and 2024.

The Buy rating and 96c target are unchanged.

This report was published on October 31, 2023.

Target price is $0.96 Current Price is $0.68 Difference: $0.28
If EVO meets the Canaccord Genuity target it will return approximately 41% (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 3.70 cents and EPS of 5.64 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.05.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 4.16 cents and EPS of 6.84 cents.
At the last closing share price the estimated dividend yield is 6.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.94.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $4.12

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

Goldman Sachs makes only minor changes following Fletcher Building's latest update, noting New Zealand residential volumes were lower than expected but Australia is performing better than expected. 

The result is a -3% decrease to the broker's expected earnings for FY24, but a 1% increase for FY25. Goldman Sachs notes New Zealand is a key exposure for the company, and expects activity is at or near cyclical peaks, but does see cyclical risk accounted for in the valuation.

The Buy rating is retained and the target price decreases to $5.00 from $5.25.

This report was published on October 27, 2023.

Target price is $5.00 Current Price is $4.12 Difference: $0.88
If FBU meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $5.37, suggesting upside of 29.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 41.62 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.2, implying annual growth of N/A.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 43.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.1, implying annual growth of -5.2%.
Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.8.

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

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $3.74

Jarden rates ((HVN)) as Neutral (3) –

Jarden assesses a "weak" 1Q result by Harvey Norman with normalised profit (PBT) falling by -49% year-on-year. This outcome was due to negative like-for-like growth in Australia, New Zealand and Slovenia/Croatia of -13.9%, -6% and -15.9%, respectively.

The broker reduces its FY24 profit estimate by circa -15% and lowers its target to $3.40 from $3.70. Neutral rating.

While the result was disappointing, the analysts explain trends should improve in the 2H partly because the company begins cycling a period of considerable market share loss over the 2Q/3Q period in Australia.

Management announced a buyback of up to 10% of shares, commencing in November.

This report was published on October 30, 2023.

Target price is $3.40 Current Price is $3.74 Difference: minus $0.34 (current price is over target).
If HVN 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 $3.91, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 19.00 cents and EPS of 26.30 cents.
At the last closing share price the estimated dividend yield is 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.4, implying annual growth of -32.1%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 23.00 cents and EPS of 29.80 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.2, implying annual growth of 16.3%.
Current consensus DPS estimate is 26.6, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 10.9.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $23.70

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

Goldman Sachs expects IDP Education investors may be comforted by its belief that Pearson PTE English testing is not winning material share from IELTS testing, but rather may have benefited from a post-covid surge, based on readthroughs from Pearson.  

Pearson is now expecting growth deceleration, which Goldman Sachs expects is driven by its exposure to Australia's student and migration intake. Goldman Sachs maintains its expectations of a -2% decline in IELTS volumes over FY24 given uncertainties around market share.

The Buy rating and target price of $29.65 are retained.

This report was published on October 30, 2023.

Target price is $29.65 Current Price is $23.70 Difference: $5.95
If IEL meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $27.79, suggesting upside of 15.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 45.00 cents and EPS of 64.00 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.3, implying annual growth of 16.8%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 38.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 56.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.3, implying annual growth of 19.3%.
Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 32.3.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $9.59

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

IGO's September-quarter result outpaced consensus by 12% and Goldman Sachs by 19% thanks to higher feed grades, the company bagging net cash of $440m after its TLEA JV paid a record dividend. FY24 guidance was retained.

On the downside, TLEA chose not to take its full entitlement from Greenbushes this December quarter, given sales volumes are likely to fall -25% short of production, observes the broker.

Goldman Sachs surmises this reflects a developing disconnect between the lagged pricing mechanism and spot spodumene prices.

Given Greenbushes is Australia's lowest cost spodumene broker, IGO points out its shareholders have a strong incentive to maintain volumes to market so the broker expects that, while stockpiling may occur short-term, a solution should be found by the March quarter.

All up, the broker considers the market's sell-off in response to this news to be overdone.

Buy rating retained. Target price falls to $12.70 from $13.30.

This report was published on October 30, 2023.

Target price is $12.70 Current Price is $9.59 Difference: $3.11
If IGO meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $12.54, suggesting upside of 33.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 122.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 132.4, implying annual growth of 82.6%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 7.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 30.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 144.1, implying annual growth of 8.8%.
Current consensus DPS estimate is 36.7, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 6.5.

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

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Jarden rates ((IGO)) as Buy (1) –

It is Jarden's belief that a Winfield shareholder may be looking to establish a clear mechanism to manage surplus volumes. Under the current agreement, IGO is obligated to pass on its share of spodumene concentrate offtake to Tianqi's downstream refining network. 

While Winfield remains committed to the completion of chemical grade plants CGP3 and CGP4, creating capacity for 2.5m tonnes of spodumene concentrate production by 2027, both Tianqi and Albemarle are considering their offtake intentions. 

The Buy rating is retained and the target price decreases to $13.46 from $14.70.

This report was published on October 30, 2023.

Target price is $13.46 Current Price is $9.59 Difference: $3.87
If IGO meets the Jarden target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $12.54, suggesting upside of 33.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 54.00 cents and EPS of 150.40 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 132.4, implying annual growth of 82.6%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 7.1.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 36.00 cents and EPS of 116.40 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 144.1, implying annual growth of 8.8%.
Current consensus DPS estimate is 36.7, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 6.5.

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

LEL    LITHIUM ENERGY LIMITED

New Battery Elements – Overnight Price: $0.65

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

Lithium Energy has released results of its maiden mining study for its Solaroz lithium brine project, outlining production of 20,000 tonnes of lithium carbonate per annum at US$4,985 per tonne over a span of 36 years. 

As per Petra Capital, this equates to a net present value for Solaroz of US$1.3bn, but expanded production to 40,000 tonnes per annum would see net present value increase to US$2.2bn. 

Despite a dip in investor sentiment in the lithium space, the broker notes corporate activity remains strong, and expects a corporate or strategic partner may appreciate the value where investors don't. 

The Buy rating is retained and the target price decrease to $1.90 from $1.96.

This report was published on November 1, 2023.

Target price is $1.90 Current Price is $0.65 Difference: $1.25
If LEL meets the Petra Capital target it will return approximately 192% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.91.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 65.00.

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

LIN    LINDIAN RESOURCES LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.18

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

Lindian Resources has recently announced a maiden resource of 261m tonnes at 2.19% total rare earth oxides for its Kangankunde project, which Petra Capital notes is already one of the largest and highest-grade rare earths projects outside of China. 

The company is undertaking low-cost, low-risk development to produce processing light concentrate by end of 2024, allowing the company to minimise permitting, funding, operating and sales risk, but retain future scale opportunities. 

The Buy rating is retained and the target price decreases to 61 cents from 66 cents. 

This report was published on November 2, 2023.

Target price is $0.61 Current Price is $0.18 Difference: $0.43
If LIN meets the Petra Capital target it will return approximately 239% (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 90.00.

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 180.00.

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

LOV    LOVISA HOLDINGS LIMITED

Retailing – Overnight Price: $19.76

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

With Lovisa Holdings set to host its annual general later in November, Wilsons is anticipating the company will report on like-for-like and total sales for the start of the financial year, as well as net store openings. 

The broker is anticipating a -1.1% decline in like-for-like sales year-on-year in the first nineteen weeks of the new year, noting this reflects improvement on the -5.8% decline reported in the first seven weeks. 

Developments elsewhere in the segment in recent weeks leave Wilsons to believe consumers remain willing and able to spend on smaller ticket beauty and jewellery. 

The Overweight rating and target price of $23.60 are retained.

This report was published on November 2, 2023.

Target price is $23.60 Current Price is $19.76 Difference: $3.84
If LOV meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $24.49, suggesting upside of 23.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 66.40 cents and EPS of 84.70 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.1, implying annual growth of 21.9%.
Current consensus DPS estimate is 66.4, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.8.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 85.20 cents and EPS of 108.80 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.0, implying annual growth of 29.7%.
Current consensus DPS estimate is 84.8, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.9.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

M7T    MACH7 TECHNOLOGIES LIMITED

Healthcare services – Overnight Price: $0.70

Wilsons rates ((M7T)) as Overweight (1) –

Mach7 Technologies reported sales of $33.5m in the first quarter, including $11.7m from contract wins with Veteran’s Affairs National Teleradiology Program, $3.7m with Diagnostic Imaging Associates, and $15.3m in renewals with Hospital Authority Hong Kong. 

From earlier announcements, notes Wilsons, the company was expected to deliver record quarterly sales when entering the period, despite the first quarter typically being the company's weakest. 

The company maintained sales order guidance of $48m, which Wilsons notes it has already achieved 64% of, as well as operational expenditure guidance of -10-15%. 

The Overweight rating and target price of $1.15 are retained.

This report was published on November 1, 2023.

Target price is $1.15 Current Price is $0.70 Difference: $0.45
If M7T meets the Wilsons target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.82.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 100.00.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $6.61

Moelis rates ((MAD)) as Upgrade to Buy from Hold (1) –

Mader Group's September-quarter result appears to have pleased Moelis, and management reiterated FY24 guidance.

The company experienced strong growth in both its North American and Australian operations.

The company clsoed the quarter with net debt of $40.4m, down from $42.7m at June 30, thanks to strong cash flow and capital management.

Rating is upgraded to Buy from Neutral. Target price is steady at $7.65.

This report was published on October 31, 2023.

Target price is $7.65 Current Price is $6.61 Difference: $1.04
If MAD meets the Moelis target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.40 cents and EPS of 24.60 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.87.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 8.50 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.36.

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

MEI    METEORIC RESOURCES NL

Gold & Silver – Overnight Price: $0.24

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

Having initially expected funds from the sale of its Jurena gold asset in March, Meteoric Resources has now announced receipt of $27.7m from the sale.

As per Petra Capital, the cash injectection leaves the company with a cash balance of $35m, which will allow it to advance drilling at its Caldeira project through to FY25.

The Buy rating is retained and the target price increases to 42 cents from 40 cents.

This report was published on November 1, 2023.

Target price is $0.42 Current Price is $0.24 Difference: $0.175
If MEI meets the Petra Capital target it will return approximately 71% (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 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 61.25.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.83.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $23.76

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

Goldman Sachs desribes a "mixed" Q1 result for ResMed showing some softness in US devices offset by strength in rest-of-the-world (RoW)/masks.

Strong device momentum in ROW should not only drive earnings upgrades, according to the analysts, but also assuage concerns around the early impact from weight loss drugs and competitive dynamics.

A stabilisation of gross margins, rising by 20bps, and new guidance for selling, general and administrative (SG&A) expenses drives forecast earnings upgrades by the broker.

The target falls by -3% to $32. Buy.

This report was published on October 30, 2023.

Target price is $32.00 Current Price is $23.76 Difference: $8.24
If RMD meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $32.23, suggesting upside of 36.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 30.13 cents and EPS of 109.96 cents.
At the last closing share price the estimated dividend yield is 1.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 115.4, implying annual growth of N/A.
Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 33.14 cents and EPS of 120.50 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.1, implying annual growth of 12.7%.
Current consensus DPS estimate is 33.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 18.1.

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

---

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

Following an in-line 1Q result by ResMed, Jarden explains disappointing US devices growth of only 2% was due to the cycling of an abnormally high 1Q FY23, a period boosted by the successful launch of "Card to Cloud" devices.

More positively, accordingly to the broker, mask sales grew by 22% and beat the consensus forecast by around 8%. Also, management re-affirmed expectations of a "2H-weighted gross margin improvement".

FY24 guidance for selling general and administration (SG&A) expenses was also reduced to 18-20% of revenue, down from 20-22% of revenue.

Assuming management believes its stated total addressable market (TAM) opportunity, Jarden suggests buying back stock at current prices would represent the optimum capital management initiative. Overweight. Target falls to $30.13 from $30.33.

This report was published on October 30, 2023.

Target price is $30.13 Current Price is $23.76 Difference: $6.37
If RMD meets the Jarden target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $32.23, suggesting upside of 36.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 28.92 cents and EPS of 112.07 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 115.4, implying annual growth of N/A.
Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 36.23 cents and EPS of 133.45 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.1, implying annual growth of 12.7%.
Current consensus DPS estimate is 33.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 18.1.

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

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.65

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

Due to ongoing development at the high-grade Penny mine, 3Q group production for Ramelius Resources missed Canaccord Genuity's forecast by -6%, though management anticipates a stronger 2H and maintains FY24 guidance.

Group costs (AISC) also missed forecasts by the broker and consensus by -11% and -7%, respectively. Ednay May production was a beat as water inflow issues from late-June were brought under control at the underground mine.

The Buy rating and $1.90 target are unchanged.

This report was published on October 31, 2023.

Target price is $1.90 Current Price is $1.65 Difference: $0.25
If RMS meets the Canaccord Genuity target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $1.80, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.4, implying annual growth of 92.8%.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 5.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.6, implying annual growth of 23.9%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 9.9.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.83

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

An in-line first quarter from Regis Resources according to Goldman Sachs, with the company reporting production of 111,000 ounces and sales of 107,000 ounces. 

The company continues to expect improvement to cash flow generation as mining capital expenditure begins to ease and low price hedges close out. Goldman Sachs notes the company is exploring the early closure of hedges to accelerate improvement to free cash flow.  

The Buy rating is retained and the target price increases to $1.90 fromn $1.80.

This report was published on October 27, 2023.

Target price is $1.90 Current Price is $1.83 Difference: $0.065
If RRL meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $1.92, suggesting upside of 6.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.2, 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 900.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 2.00 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 1.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of 7550.0%.
Current consensus DPS estimate is 0.2, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 11.8.

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

SDF    STEADFAST GROUP LIMITED

Insurance – Overnight Price: $5.46

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

While FY24 guidance was unchanged, Goldman Sachs notes 1Q earnings growth trends for Steadfast Group were stronger-than -anticipated.

The broker highlights underlying earnings (EBITDA) and profit guidance suggests growth of 17% and 13.5%, respectively, compared to 1Q metrics.

While these outcomes may reflect acquisitions completing quicker than the analysts expected, management also flagged ongoing rate increases by insurers from catastrophes and claims inflation, along with volume growth.

The $5.90 target and Neutral rating are unchanged.

This report was published on October 30, 2023.

Target price is $5.90 Current Price is $5.46 Difference: $0.44
If SDF meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.38, suggesting upside of 15.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 17.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.5, implying annual growth of 38.1%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 18.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.5, implying annual growth of 7.8%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.0.

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

SDR    SITEMINDER LIMITED

Travel, Leisure & Tourism – Overnight Price: $4.53

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

A stronger 1Q subscription revenue performance and currency tailwinds for SiteMinder were offset by weaker transaction revenue growth, explains Goldman Sachs. Overall, the result was considered broadly in line.

Compared to 24% growth achieved in the June quarter, explain the analysts, constant currency annual recurring revenue (ARR) grew by 22% to $191.6m.

Free cash flow (FCF) margins showed ongoing improvement, and management flagged new product launches may result in the Rule of 40 SaaS metric may be attained in the 2H of FY25/FY26.

The Neutral rating and target price of $4.60 are retained.

This report was published on October 30, 2023.

Target price is $4.60 Current Price is $4.53 Difference: $0.07
If SDR meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $5.49, suggesting upside of 15.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.7, 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.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 113.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.0, 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: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $6.18

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

Wilsons initiates coverage on Sandfire Resources with a 12-month target of $8.45, well above the average target price of $6.92 of six brokers covered daily in the FNArena database.

The broker points out Sandfire is one of the only (nearly) pure copper leveraged producers on the ASX. The company operates two  assets – Matsa in Spain and Motheo in Botswana – with both considered high quality and operating in robust mining jurisdictions.

The analysts focus on Matsa in particular, which is the early stages of ramp-up towards a copper output of around 50ktpa.

Execution to-date has been first class, according to Wilsons, and it's felt the market is not fully appreciating potential value creation within Matsa and the broader Iberian Pyrite Belt.

Despite some market concerns, reserve life is not an issue, in the broker's view, and regional opportunities abound for co-operation
and consolidation, along with avenues for internal expansion. Overweight.

This report was published on October 31, 2023.

Target price is $8.45 Current Price is $6.18 Difference: $2.27
If SFR meets the Wilsons target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $6.93, suggesting upside of 13.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.78 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 91.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.0, implying annual growth of N/A.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 613.0.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 44.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.9, implying annual growth of 3790.0%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 15.8.

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

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $13.04

Jarden rates ((SGM)) as Neutral (3) –

Jarden has cut its FY24 earnings forecast for Sims to $70m, substantially lower than consensus expectations of $114m, as the company faces significant metal compression and lower sales volumes. 

As per the broker, lower global steel demand continues to weaken market conditions for recycled metals, with average net selling prices for those recycled materials decreasing as supply flows further tighten in the US.

While lower prices would have contributed to a recent downgrade from Sims, says Jarden, it expects FY24 earnings to face further pressure from negative momentum. The Neutral rating is retained and the target price decreases to $14.66 from $16.53.

This report was published on October 30, 2023.

Target price is $14.66 Current Price is $13.04 Difference: $1.62
If SGM meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $12.88, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 10.70 cents and EPS of 35.60 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 36.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.6, implying annual growth of -55.6%.
Current consensus DPS estimate is 26.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 31.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 29.30 cents and EPS of 97.70 cents.
At the last closing share price the estimated dividend yield is 2.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.9, implying annual growth of 152.2%.
Current consensus DPS estimate is 45.5, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 12.4.

Market Sentiment: -0.5
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: $0.49

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

SomnoMed's 1Q revenues beat Wilsons forecast by 5% with a currency tailwind contributing to 6-7% constant currency growth across
Europe, the US and the APAC region.

Management also confirmed documentation for new product Rest Assure’s FDA 510(k) filing has been lodged.

A successful approval (perhaps early in 2024) would unlock oral appliance adoption, in the broker's view, as dentists and sleep
physicians will be provided with on-demand access to patient compliance and efficacy data.

The analysts anticipate the initial launch of Rest Assure in Europe later this year.

Overweight. Target $1.25.

This report was published on October 31, 2023.

Target price is $1.25 Current Price is $0.49 Difference: $0.76
If SOM meets the Wilsons target it will return approximately 155% (excluding dividends, fees and charges).

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

SYA    SAYONA MINING LIMITED

New Battery Elements – Overnight Price: $0.08

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

Production at Sayona Mining's 75%-owned North American Lithium (NAL) joint venture of 31kt SC5.5 missed the 40kt forecast by Canaccord Genuity due to unplanned downtime relating to a flagged rod mill failure.

This disruption was previously flagged and has now been overcome, notes the broker.

FY24 production and sales guidance of 140-160kt and 160-180kt, respectively, compares to the analysts' prior forecast for 175kt and 162kt, respectively.

The Speculative Buy rating is unchanged and the target eases to 22c from 25c.

This report was published on October 31, 2023.

Target price is $0.22 Current Price is $0.08 Difference: $0.14
If SYA meets the Canaccord Genuity target it will return approximately 175% (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 minus 0.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.00.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.55 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.55.

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

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

In the 1Q, Sayona Mining produced 31kt of spodumene and sold 48kt, with an average realised price of $1,985/t while incurring unit costs of -$1,231/t.

Petra Capital was pleased to discover the company was cashflow positive at the operating line in the 1Q, and free cashflow neutral after
capex and exploration were taken into account.

Management downgraded sales guidance by -20% to 160-180kt for FY24, which compares to the 209kt forecast by the broker, as mechanical faults at the crushing circuit restricted production. FY24 production guidance is now for 140-160kt.

The broker's target falls to 34c from 37c. Buy.

This report was published on October 31, 2023.

Target price is $0.34 Current Price is $0.08 Difference: $0.26
If SYA meets the Petra Capital target it will return approximately 325% (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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.71.

Forecast for FY25:

Petra Capital 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 3.81.

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

TCL    TRANSURBAN GROUP LIMITED

Infrastructure & Utilities – Overnight Price: $12.47

Goldman Sachs rates ((TCL)) as Upgrade to Neutral from Sell (3) –

Goldman Sachs is feeling vindicated for its cautious position on traffic recovery as the work-from-home trend continues to limit upside and a new normal appears to have set in.

The broker observes that spreads have stabilised at lower levels, dampening upside, and that the rate outlook is improving, predicting US and Australian 10-year bond yields will ease by December 30.

Transurban Group's rating is upgraded to Neutral from Sell. Target price eases to $13.10 from $13.50.

Analyst coverage switches to Joseph Kusia from Niraj Shah.

This report was published on October 30, 2023.

Target price is $13.10 Current Price is $12.47 Difference: $0.63
If TCL meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $14.01, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 63.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 5.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 1174.0%.
Current consensus DPS estimate is 63.1, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 47.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 67.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 5.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.4, implying annual growth of 22.3%.
Current consensus DPS estimate is 64.9, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 39.1.

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

TIE    TIETTO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.57

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

Petra Capital believes the 58c cash offer by Hong Kong-based Zhaojin Mining Industry Company undervalues Tietto Minerals and anticipates other bidders will emerge. 

Initial interest may come from 12.5% shareholder Chifeng Jilong Gold Mining, suggests the broker. Zhaojin is currently the second-largest shareholder in Tietto with a 7.02% stake.

The analyst also sees potential interest from ASX-listed and West African gold producers.

The broker has a 73c target for Buy-rated Tietto.

This report was published on October 31, 2023.

Target price is $0.73 Current Price is $0.57 Difference: $0.155
If TIE meets the Petra Capital target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.27.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.19.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.03

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

Due to a further slowing in origination growth to ensure longer-term profitability, as well as the maturation of Wisr's back book, 1Q results missed Wilsons expectations.

Headline loan book, originations, loan losses and cash earnings (EBTDA) all fell short of the broker's expectations.

Despite Wisr having capacity to fund near-term originations of $266m, the timing is uncertain for a re-acceleration, and the broker assumes flat originations until the September quarter next financial year.

The target falls to 8c from 17c partly due to the removeal of Wilsons 5cps valuation for Wisr's Financial Wellness Platform. It's felt growth is insufficient and the book size not large enough to utilise cost synergy benefits effectively.

The Overweight rating is unchanged.

This report was published on October 31, 2023.

Target price is $0.08 Current Price is $0.03 Difference: $0.05
If WZR meets the Wilsons target it will return approximately 167% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

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

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