Australian Broker Call *Extra* Edition – Dec 20, 2023

This story features BANNERMAN ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: BMN

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)

AKE   BMN   CVN   IEL   IGO   LNW   MGH   NEU   PLY   REG   RFF   RGN   RIC (2)   SGLLV   SPR   TAH   TWE   WC8  

AKE    ALLKEM LIMITED

New Battery Elements – Overnight Price: $10.59

Jarden rates ((AKE)) as Upgrade to Overweight from Neutral (2) –

With Allkem's shareholders set to vote on the company's proposed merger with Livent this week, Jarden sees the vote as asking shareholders to choose between retaining 100% exposure to Allkem's assets, or 56.1% of the potential combined assets.

The broker sees strong logic in "bringing together the complementary and proximal portfolio assets" but expects shareholders may be concerned by the potential that capital flows to the primary listing on the NYSE, effectively allowing a reverse takeover.

The rating is upgraded to Overweight from Neutral and the target price decreases to $11.40 from $12.00.

This report was published on December 15, 2023.

Target price is $11.40 Current Price is $10.59 Difference: $0.81
If AKE meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $15.76, suggesting upside of 48.3%(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 20.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.5, implying annual growth of -34.5%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 16.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.6, implying annual growth of 41.6%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 11.1.

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

BMN    BANNERMAN ENERGY LIMITED

Uranium – Overnight Price: $2.64

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

Bannerman Energy has received a mining license for the Etango uranium project from the Namibian government, positioning the company to be final investment decision ready in the first half of 2024.

Following the grant of the license, Bannerman Energy has immediately awarded two early works contracts, covering the build of a temporary construction water supply and site access road.

Canaccord Genuity notes Etango is one of the largest uranium deposits on the ASX, and with an intention to increase nuclear energy it sees a clear need for increased mine supply. The Speculative Buy rating and target price of $3.59 are retained.

This report was published on December 18, 2023.

Target price is $3.59 Current Price is $2.64 Difference: $0.95
If BMN meets the Canaccord Genuity target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.38.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.92.

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

CVN    CARNARVON ENERGY LIMITED

Crude Oil – Overnight Price: $0.20

Jarden rates ((CVN)) as Upgrade to Buy from Overweight (1) –

Jarden has upgraded its rating on Carnarvon Energy following board change announcements from the company, including the resignation of both the CEO and the managing director.

This comes alongside a strategy reset, potentially including a corporate sale process, and a new corporate cost-cutting program. A trade sale could be a positive, according to Jarden, realizing value for shareholders sooner compared to waiting for Dorado progress.

The rating is upgraded to Buy from Overweight and the target price increases to 25 cents from 24 cents.

This report was published on December 19, 2023.

Target price is $0.25 Current Price is $0.20 Difference: $0.045
If CVN meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 205.00.

Forecast for FY25:

Jarden forecasts a full year FY25 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 102.50.

Market Sentiment: 1.0
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: $20.50

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

Impacts from student migration policy changes look fairly contained, according to Jarden. The broker expects student placement volumes will remain driven by the dependence of the Australian economy of the international education market, alongside ongoing demand from students who were unable to pursue higher education in Australia due to covid-related border closures.

The broker amends its full year Australian student placement volume growth to 18.0%, reflecting minor downside risk, and adjusts its outlook for IDP Education accordingly.

The Overweight rating is retained and the target price decreases to $29.00 from $30.85.

This report was published on December 19, 2023.

Target price is $29.00 Current Price is $20.50 Difference: $8.5
If IEL meets the Jarden target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $27.84, suggesting upside of 34.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 48.90 cents and EPS of 65.70 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.3, implying annual growth of 18.6%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 32.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 61.40 cents and EPS of 82.50 cents.
At the last closing share price the estimated dividend yield is 3.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.1, implying annual growth of 18.6%.
Current consensus DPS estimate is 54.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 27.5.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $8.88

Jarden rates ((IGO)) as Buy (1) –

IGO is seeking a viable operational pathway to a positive economic return from Odysseus, says Jarden, with the asset continuing to present a challenge to the company.

For now, truck hauling has replaced the shaft, and Jarden notes this likely lowers upfront capital but also lowers throughput. This sees the broker write down Odysseus a further -$200m, bringing total write downs to -$1,100m.

The Buy rating is retained and the target price decreases to $10.61 from $13.46.

This report was published on December 15, 2023.

Target price is $10.61 Current Price is $8.88 Difference: $1.73
If IGO meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $10.52, suggesting upside of 17.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 21.00 cents and EPS of 107.90 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 8.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 121.4, implying annual growth of 67.4%.
Current consensus DPS estimate is 24.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 7.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 15.00 cents and EPS of 67.70 cents.
At the last closing share price the estimated dividend yield is 1.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.5, implying annual growth of -5.7%.
Current consensus DPS estimate is 31.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 7.9.

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

LNW    LIGHT & WONDER INC

Gaming – Overnight Price: $127.50

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

Despite initial scepticism by the market, Jarden believes the aspirational target set by management at Light & Wonder for adjusted earnings (EBITDA) of US$1.4bn in FY25 is real and achievable.

Following a period of operational outperformance by the company, the broker points out the consensus forecast is still -5% shy of this target.

Jarden sees potential for a further positive re-rate of the Light & Wonder share price to a premium multiple more akin to that of Aristocrat Leisure ((ALL)).

The Overweight rating and target price of $141.00 are retained.

This report was published on December 13, 2023.

Target price is $141.00 Current Price is $127.50 Difference: $13.5
If LNW meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 158.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.24.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 372.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.19.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $3.94

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

Wilsons has assessed its Maas Group investment thesis. Construction Materials and Construction Contracting & Hire earnings expectations appear reasonable to the broker, with upside potential over the medium term based on Maas Group’s historical organic growth and return on capital targets.

Residential property fundamentals in key markets for Maas remain attractive, Wilsons suggests, supporting an eventual
recovery in demand. Notwithstanding the strong recent share price performance, the broker continues to see attractive value.

Overweight retained, target rises to $4.41 from $3.75

This report was published on December 20, 2023.

Target price is $4.41 Current Price is $3.94 Difference: $0.47
If MGH meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 8.00 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.63.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 11.00 cents and EPS of 31.90 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $23.96

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

Neuren Pharmaceuticals has been somewhat de-risked by the impressive topline data from its phase II trial of NNZ-2591, according to Wilsons. As per the data, NNZ-2591 has a superior potency and tolerability profile to trofinetide.

The treatment demonstrated significant efficacy improvements over a shorter treatment period, at lower doses, compared to trofinetide, and showed benign side effects.

The broker considers this data transformational for Neuren Pharmaceuticals, encouraging investors to value NNZ-2591 as a material asset. The Overweight rating is retained and the target price increases to $27.23 from $22.79.

This report was published on December 19, 2023.

Target price is $27.23 Current Price is $23.96 Difference: $3.27
If NEU meets the Wilsons target it will return approximately 14% (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 120.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.92.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 31.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 76.55.

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

PLY    PLAYSIDE STUDIOS LIMITED

Gaming – Overnight Price: $0.66

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

Playside Studios is set to develop and jointly market two PC/console titles, expected to be based on highly recognisable IP, having secured a multi-game licensing agreement with Warner Bros Interactive Entertainment. Playside Studios will pay the latter licensing fees over the course of development.

While details are currently light, Canaccord Genuity is expecting the agreement to provide a material step change to the revenue accretion of its original IP division, given Warner Bros strong franchises.

The Buy rating and target price of 80 cents are retained.

This report was published on December 18, 2023.

Target price is $0.80 Current Price is $0.66 Difference: $0.145
If PLY meets the Canaccord Genuity target it will return approximately 22% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.75.

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

REG    REGIS HEALTHCARE LIMITED

Aged Care & Seniors – Overnight Price: $3.21

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

Regis Healthcare is set to generate an additional $15m in revenue in FY24 following the announcement of a $10 increase in AN-ACC care funding per operating bed as of the beginning of December.

This will see the company's Government revenues per bed lift to $290 per bed, equating to a $25m revenue boost on a full year basis, in order to help fund the 5.75% award wage increase for aged care staff, which came into effect from the beginning of July.

According to Jarden, it is unclear if there are additional conditions attached to this funding, or how it will address back pay for the five months to December. The Overweight rating is retained and the target price increases to $3.35 from $3.12.

This report was published on December 15, 2023.

Target price is $3.35 Current Price is $3.21 Difference: $0.14
If REG meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 4.00 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.47.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 4.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.96.

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

RFF    RURAL FUNDS GROUP

REITs – Overnight Price: $2.08

Moelis rates ((RFF)) as Initiation of coverage with Buy (1) –

Moelis has initiated coverage of Rural Funds with a Buy rating and $2.40 target. The fund offers exposure to institutional grade agricultural real estate, whilst mitigating operating risks generally associated with farming, the broker suggests.

Buying Rural Funds at a -29% discount to net asset value (with a 5.7% distribution yield) is a highly compelling investment
opportunity in Moelis' view.

Key catalysts include the divestment of assets to ensure the capital position remains strong, valuation uplift on capex programs,
and a recovery in the profitability of assets operated on balance sheet.

This report was published on December 20, 2023.

Target price is $2.40 Current Price is $2.08 Difference: $0.32
If RFF meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 11.70 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.57.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 11.80 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 5.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.48.

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

RGN    REGION GROUP

REITs – Overnight Price: $2.28

Moelis rates ((RGN)) as Buy (1) –

Total divestments by Region Group so far in FY24 now tally $53.7m, notes Moelis, at an average cap rate of 5.44% and an average -2.7% discount to June's book value.

The REIT's weighted average cost of capital (WACC) has increased to 6.04% from 5.43% in the past 18 months, while like-for-like property values have fallen by -2% in the past six months, highlights the broker.

The analyst anticipates Region Group will be relatively resilient in the face of rising pressures on the consumer, given the non-discretionary nature of spending linked to the group's shopping centre portfolio.

The Buy rating is unchanged and the target falls to $2.54 from $2.66.

This report was published on December 13, 2023.

Target price is $2.54 Current Price is $2.28 Difference: $0.26
If RGN meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 13.70 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 6.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of N/A.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 13.80 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 6.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of N/A.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 14.8.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RIC    RIDLEY CORPORATION LIMITED

Agriculture – Overnight Price: $2.60

Moelis rates ((RIC)) as Buy (1) –

Ridley Corp has agreed to acquire Oceania Meat Processors at a cost of NZ$57m, to be fully funded from existing debt facilities. Ridley Corp is anticipating the acquisition to be earnings accretive in its first year.

According to Moelis, the acquisition aligns well with the company's inorganic and capital management strategy, and opens up Ridley Corp  to new capabilities in the mechanically deboned meat products segment.

The broker assumes no organic growth from the addition in FY25, and limited growth in FY26. The Buy rating is retained and the target price increases to $2.87 from $2.64.

This report was published on December 19, 2023.

Target price is $2.87 Current Price is $2.60 Difference: $0.27
If RIC meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 8.60 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.84.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 9.50 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.99.

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

Ridley Corp has announced its acquisition of Oceania Meat Processors, a move Wilsons finds consistent with the company's growth strategy. The purchase adds capability to Ridley Corp's ingredient recovery segment, and Wilsons' sees significant synergies potential.

Ridley Corp is expecting the purchase to be earnings per share accretive in the first year post completion, and the broker assumes 8% earnings per share accretion, before synergies. 

The Overweight rating is retained and the target price increases to $3.02 from $2.61.

This report was published on December 19, 2023.

Target price is $3.02 Current Price is $2.60 Difference: $0.42
If RIC meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 9.30 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.81.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 11.30 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.12.

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

SGLLV    RICEGROWERS LIMITED

Food, Beverages & Tobacco – Overnight Price: $6.47

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

A strong first half result from Ricegrowers is indicative of the company's scale and operational diversification, says Canaccord Genuity. The broker feels Ricegrowers is comfortably shaping up to deliver a record full year profit, in the region of $130m.

The company is anticipating earnings and revenue growth in the second half, compared to the first, and is guiding to a fourth consecutive year of "abundant Australian rice production".

The Buy rating is retained and the target price increases to $9.60 from $9.45.

This report was published on December 18, 2023.

Target price is $9.60 Current Price is $6.47 Difference: $3.13
If SGLLV meets the Canaccord Genuity target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in April.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 50.00 cents and EPS of 98.00 cents.
At the last closing share price the estimated dividend yield is 7.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.60.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 52.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 8.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.28.

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

SPR    SPARTAN RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.47

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

Spartan Resources has updated the resource for its Never Never asset, increasing the resource 32% to 953,000 ounces, with the total Dalgaranga resource up 43% to 1.7m ounces. Notably, says Canaccord Genuity, the measured and indicated resource increased 23%.

The broker anticipates a strong news flow into 2024, as Spartan Resources continues its extensive drilling program, and with an updated Dalgaranga reserve and maiden Never Never reserve expected expected in early 2024, and an updated mine plan in in mid-2024.

The Speculative Buy rating is retained and the target price increases to 65 cents from 60 cents.

This report was published on December 15, 2023.

Target price is $0.65 Current Price is $0.47 Difference: $0.18
If SPR meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 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 47.00.

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $0.86

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

While the announcement of Tabcorp Holdings' twenty-year license in Victoria has largely confirmed market expectations, according to Jarden, the broker does see the announcement as removing significant uncertainty for the stock.

The license extension comes at an $864m cost for the company, including a $600m upfront payment due in August 2024. The license establishes a more even playing field in terms of point of consumption tax, driving lower online margins and providing Tabcorp Holdings an opportunity for market share growth.

The Overweight rating is retained and the target price decreases to $1.15 from $1.20.

This report was published on December 19, 2023.

Target price is $1.15 Current Price is $0.86 Difference: $0.29
If TAH meets the Jarden target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $1.05, suggesting upside of 22.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 1.70 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.3, implying annual growth of -21.5%.
Current consensus DPS estimate is 1.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 37.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 4.00 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of 139.1%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.6.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.62

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

With Treasury Wine Estates closing on its acquisition of the DAOU vineyards in mid-December, Goldman Sachs has updated its outlook to account for the purchase.

The broker assumes the DAOU vineyards provide a US$236m sales contribution and US$81m earnings contribution in FY25. Goldman Sachs suggest DAOU is uniquely positioned, offering a high quality product relative to peers at the US$20-40 per bottle price point. 

The Buy rating is retained and the target price decreases to $12.40 from $13.40.

This report was published on December 18, 2023.

Target price is $12.40 Current Price is $10.62 Difference: $1.78
If TWE meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $13.11, suggesting upside of 23.3%(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 51.00 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.0, implying annual growth of 51.9%.
Current consensus DPS estimate is 36.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 41.00 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 3.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.4, implying annual growth of 15.8%.
Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.3.

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

WC8    WILDCAT RESOURCES LIMITED

Overnight Price: $0.77

Canaccord Genuity rates ((WC8)) as Initiation of coverage with Speculative Buy (1) –

Canaccord Genuity has initiated coverage on exploration company Wildcat Resources. Since acquiring its primary asset, the Tabba Tabba lithium project, in May, Wildcat Resources has enjoyed a 3,000% share price rally.

Share price growth was helped by recent drilling results at Tabba Tabba, suggesting substantial lithium mineralisation. Given drilling results, Canaccord Genuity expects Tabba Tabba could prove another tier 1 lithium asset, and feels a resource in the region of 100m tonnes for the Leia, Chew, Han and Hutt pegmatites is a realistic initial goal.

The broker initiates with a Speculative Buy rating and a target price of $1.15.

This report was published on December 19, 2023.

Target price is $1.15 Current Price is $0.77 Difference: $0.38
If WC8 meets the Canaccord Genuity target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

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

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