Australian Broker Call *Extra* Edition – Jan 22, 2024

This story features COAST ENTERTAINMENT HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: CEH

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)

CEH   DTL   FFM   HUB   NWL   PLS   PPS   PSI   PWR   STO   TTM  

CEH    COAST ENTERTAINMENT HOLDINGS LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.43

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

A first half trading update from Coast Entertainment suggests "underlying momentum" to Canaccord Genuity, but the broker has adjusted its expectations of stronger second half attendances despite a largely in line first half.

The company reported 6.5% year-on-year attendance growth over the first half, noting new rides opened in December and had limited contribution on metrics. Canaccord Genuity now expects revenue and attendance to be broadly flat half-on-half over the coming period.

The Buy rating is retained and the target price decreases to 54 cents from 59 cents.

This report was published on January 17, 2024.

Target price is $0.54 Current Price is $0.43 Difference: $0.105
If CEH meets the Canaccord Genuity target it will return approximately 24% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.75.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.00 cents.

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

DTL    DATA#3 LIMITED.

IT & Support – Overnight Price: $9.12

Jarden rates ((DTL)) as Buy (1) –

A recent profit guidance update from Data#3 has reaffirmed Jarden's belief that the company will continue to improve margins, benefiting from IT tailwinds and increasing market share. 

At the midpoint, new guidance is a 12% beat to the broker's expectations. The broker intends to keep a close eye on the company's first half results, to gain insights into whether Data#3 can eventually bridge the gap to margins generated by international peers.

The Buy rating is retained and the target price increases to $9.02 from $8.93.

This report was published on January 17, 2024.

Target price is $9.02 Current Price is $9.12 Difference: minus $0.1 (current price is over target).
If DTL meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.97, suggesting downside of -12.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 29.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.8, implying annual growth of 16.0%.
Current consensus DPS estimate is 24.2, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 32.8.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 33.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 11.2%.
Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 29.5.

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

FFM    FIREFLY METALS LIMITED

Gold & Silver – Overnight Price: $0.55

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

First assays from FireFly Metals' phase one drilling program have revealed "significant results", as per Canaccord Genuity, including thick, high grade intercepts that extend mineralisation by around 350 metres down plunge.

The company also intercepted a precious metals enriched volcanogenic massive sulphide zone at Ming South, reporting an intersection of 14.7m comprising 2.6% copper and 1.2% zinc, as well as 5.5 grams per tonne of gold, 24.2 grams per tonne of silver.

The Speculative Buy rating and target price of $1.35 are retained.

This report was published on January 17, 2024.

Target price is $1.35 Current Price is $0.55 Difference: $0.805
If FFM meets the Canaccord Genuity target it will return approximately 148% (excluding dividends, fees and charges).

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $36.98

Jarden rates ((HUB)) as Neutral (3) –

Jarden has described Hub24's 11% funds under administration growth over the second quarter, or $72.4bn, an impressive result, benefiting from record quarterly flows and a pre-flagged $1.8bn institutional transaction.

The broker notes the flow recovery that was apparent in the first quarter has clearly persisted over the half, and it sees net flow prospects as strong.

While new advisor growth remains strong, Hub24 has warned headcount growth will be skewed to the first half, and Jarden sees potential for earnings margins to compress before improving in the second half.

The Neutral rating is retained and the target price increases to $36.80 from $36.15.

This report was published on January 17, 2024.

Target price is $36.80 Current Price is $36.98 Difference: minus $0.18 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $38.50, suggesting upside of 4.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 37.60 cents and EPS of 82.70 cents.
At the last closing share price the estimated dividend yield is 1.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.8, implying annual growth of 69.4%.
Current consensus DPS estimate is 36.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 45.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 48.50 cents and EPS of 107.30 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.2, implying annual growth of 29.0%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 35.5.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $17.12

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

With peer results suggesting an ongoing healthy flow environment, Wilsons has updated its forecasts for Netwealth Group ahead of the company's second quarter update.

The broker expects Netwealth Group to report a better market movement return than Praemium's ((PPS)) 3.7%, but below Hub24's ((HUB)) 4.5%, based on market leverage. It believes Hub24 is the most leveraged to improved equity markets.

Wilsons lifts its second quarter funds under management forecast by 4% to $77.3bn. The Overweight rating is retained and the target price increases to $18.40 from $15.37.

This report was published on January 18, 2024.

Target price is $18.40 Current Price is $17.12 Difference: $1.28
If NWL meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $15.83, suggesting downside of -7.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 28.60 cents and EPS of 33.70 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.0, implying annual growth of 23.5%.
Current consensus DPS estimate is 28.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 50.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 38.30 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.1, implying annual growth of 20.9%.
Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 41.7.

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

PLS    PILBARA MINERALS LIMITED

New Battery Elements – Overnight Price: $3.47

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

An amendment to Pilbara Minerals' existing offtake agreement with Ganfeng sees the agreement now cover up to 310,000 tonnes per annum of spodumene concentrate over the three calendar years to 2026. The initial agreement was for 160,000 tonnes per annum.

Goldman Sachs notes the Genfeng amendment sits separately to Pilbara Minerals' ongoing strategic partnership process, which remains on track for conclusion in the upcoming March quarter.

The Sell rating and target price of $3.20 are retained, with Pilbara Minerals continuing to trade at a premium to peers.

This report was published on January 17, 2024.

Target price is $3.20 Current Price is $3.47 Difference: minus $0.27 (current price is over target).
If PLS meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.85, suggesting upside of 11.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 5.80 cents and EPS of 21.30 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.6, implying annual growth of -70.5%.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 4.20 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of -20.3%.
Current consensus DPS estimate is 3.7, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 18.5.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.36

Moelis rates ((PPS)) as Buy (1) –

Praemium's December quarter update outlined 10% year-on-year growth in platform funds under administration, comprised of a 16% year-on-year increase in SMA funds under administration to $10.4bn and a 5% increase in Powerwrap funds under administration to $12.5bn.

Moelis described the performance from the company's SMA platform as solid, which it expects will continue. Powerwrap faces some short-term challenges, driven by key advisor exits, with outflows from transitioning advisors exceeding -$500m in the last half.

The Buy rating is retained and the target price decreases to 64 cents from 66 cents.

This report was published on January 17, 2024.

Target price is $0.64 Current Price is $0.36 Difference: $0.275
If PPS meets the Moelis target it will return approximately 75% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 1.10 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.28.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 1.40 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.87.

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

PSI    PSC INSURANCE GROUP LIMITED

Insurance – Overnight Price: $4.58

Jarden rates ((PSI)) as Initiation of coverage with Neutral (3) –

Despite finding PSC Insurance's operations and management to be of high quality, Jarden has justified initiating on PSC Insurance with a Neutral rating due to its relative preference for AUB Group ((AUB)) and Steadfast Group ((SDF)).

The broker expects robust commercial premium rates to support PSC Insurance's near-term earnings, but is more sceptical about the ability to defend industry-leading margins as premium rates moderate.

Jarden does not expect this moderation to occur until FY25, or later, and expects PSC Insurance to experience solid gross written premium growth through FY24 at least.

The broker initiates with a target price of $4.80. 

This report was published on January 17, 2024.

Target price is $4.80 Current Price is $4.58 Difference: $0.22
If PSI meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $5.72, suggesting upside of 25.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 15.00 cents and EPS of 23.80 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 46.4%.
Current consensus DPS estimate is 15.4, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 19.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 17.00 cents and EPS of 25.30 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of 7.4%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 18.5.

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

PWR    PETER WARREN AUTOMOTIVE HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $2.34

Moelis rates ((PWR)) as Buy (1) –

Peter Warren Automotive has announced the acquisition of a four-brand dealership group in Western Sydney for -$27m, expanding its "strong presence" in the area according to Moelis. Existing operational management will stay on. 

The purchase represents Peter Warren Automotive's first exposure to Nissan, MG Motor and LDV Automotive, and currently generates $140m in revenue. The broker sees strategic rationale in the acquisition, and in strengthening the company's Western Sydney holdings.

The Buy rating is retained and the target price decreases to $2.76 from $3.33.

This report was published on January 17, 2024.

Target price is $2.76 Current Price is $2.34 Difference: $0.42
If PWR meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $3.40, suggesting upside of 45.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 22.00 cents and EPS of 31.30 cents.
At the last closing share price the estimated dividend yield is 9.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.7, implying annual growth of -12.4%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 8.1%.
Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 21.00 cents and EPS of 29.90 cents.
At the last closing share price the estimated dividend yield is 8.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.2, implying annual growth of -1.7%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 8.0%.
Current consensus EPS estimate suggests the PER is 8.3.

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

STO    SANTOS LIMITED

NatGas – Overnight Price: $7.64

Jarden rates ((STO)) as Neutral (3) –

As the Federal Court has now set Santos free to complete pipeline laying activities at the Barossa LNG project, Jarden increases its risk weighting on the project to 75% from 50%. As a result, the target rises by 6% to $7.70.

If the remaining Environmental Plans for Drilling and completions and subsea equipment are unchallenged, the broker's valuation may be de-risked, which would add another 32cps to the target.

Jarden's focus remains on the outcome of merger discussions between Neutral-rated Santos and Woodside Energy ((WDS)). 

This report was published on January 15, 2024.

Target price is $7.70 Current Price is $7.64 Difference: $0.06
If STO meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $9.32, suggesting upside of 22.0%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 72.2, implying annual growth of N/A.
Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY24:

Current consensus EPS estimate is 71.8, implying annual growth of -0.6%.
Current consensus DPS estimate is 28.4, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 10.6.

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

TTM    TITAN MINERALS LIMITED

Gold & Silver – Overnight Price: $0.02

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

Results from nine diamond drill holes at Titan Minerals' Cerro Verde prospect have been released, indicating potential resource estimate growth, comments Canaccord Genuity.

In what was the first resource growth drilling at the site since the maiden resource deliver in mid-2023, the company aimed to test mineralisation extensions and continuity, as well as grade improvement.

The broker sees Titan Minerals moving into a potentially catalyst rich period, with results of diamond drill holes at the Papayal prospect due in the coming months.

The Speculative Buy rating and target price of 14 cents are retained.

This report was published on January 17, 2024.

Target price is $0.14 Current Price is $0.02 Difference: $0.118
If TTM meets the Canaccord Genuity target it will return approximately 536% (excluding dividends, fees and charges).

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms