Australian Broker Call *Extra* Edition – Mar 25, 2024

This story features ARGOSY MINERALS LIMITED, and other companies. For more info SHARE ANALYSIS: AGY

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)

AGY   AKG   ALK   AQZ   BGL   BKT   BLD   BRG   CU6   CYG   EML   FEX   IAG   IGO   IPH   IRE   KAR   KMD (2)   QIP   SUN   SYA   TWE   VVA   WEB (2)  

AGY    ARGOSY MINERALS LIMITED

New Battery Elements – Overnight Price: $0.14

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

Petra Capital is anticipating acceleration of the ramp up at Argosy Minerals' Rincon lithium carbonate project in the coming quarter.

Filtration circuit performance has been the main bottleneck impacting on production rates to date, but there are indications new filter cloths are having a positive result.

Petra Capital has adjusted its expectations for the slower ramp up to date, having a material impact on earnings and valuation.

The Buy rating is retained and the target price decreases to 32 cents from 63 cents.

This report was published on March 20, 2024.

Target price is $0.32 Current Price is $0.14 Difference: $0.185
If AGY meets the Petra Capital target it will return approximately 137% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.29.

Forecast for FY25:

Petra Capital 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 19.29.

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

AKG    ACADEMIES AUSTRALASIA GROUP LIMITED

Overnight Price: $0.24

Taylor Collison rates ((AKG)) as Speculative Buy (1) –

Academies Australasia's first half result was a miss for Taylor Collison, but the broker notes the headwinds impacting the result were felt industry-wide.

The broker points out there is ongoing uncertainty as to government policy surrounding international student visas, and this impacts on its valuation of the stock. 

Taylor Collison does, however, see upside risk for investors over the coming 12-18 months.

The Speculative Buy rating is retained and the target price decreases to 35 cents from 40 cents.

This report was published on March 19, 2024.

Target price is $0.35 Current Price is $0.24 Difference: $0.105
If AKG meets the Taylor Collison target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.50.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.31.

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

ALK    ALKANE RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.60

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

Latest assays from the infill drilling program at Alkane Resources' Kaiser project have uncovered the highest gold grade interval recorded at the deposit, an 8.6 metre interval at 14.8 grames per tonne. 

For Petra Capital, this wasn't, however, the standout, with a thicker 162 metre interval at 2.13 grams per tonne grabbing the broker's attention. 

Alongside near surface intercepts reported in February, Petra Capital sees scope for a mining schedule to commence with a relatively high-grade starter pit at Kaiser.

The broker anticipates a scoping study in June. The Buy rating and target price of $1.02 are retained.

This report was published on March 18, 2024.

Target price is $1.02 Current Price is $0.60 Difference: $0.42
If ALK meets the Petra Capital target it will return approximately 70% (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 4.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.77.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.96.

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

AQZ    ALLIANCE AVIATION SERVICES LIMITED

Transportation & Logistics – Overnight Price: $2.99

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

Wilsons has undertaken a cash flow and capital management analysis for Alliance Aviation Services given a significant fleet expansion is only partially complete. It's felt the current funding gap (based on available debt facilities) will be resolved due to strong earnings growth.

Independent of the several options management has to close the funding gap, is the board's consideration for the timing of resumption of dividends, according to the broker.

Wilsons lowers its target to $4.35 from $4.48 and maintains an Overweight rating.

This report was published on March 21, 2024.

Target price is $4.35 Current Price is $2.99 Difference: $1.36
If AQZ meets the Wilsons target it will return approximately 45% (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 35.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.40.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 39.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.59.

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

BGL    BELLEVUE GOLD LIMITED

Gold & Silver – Overnight Price: $1.89

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

Drilling at Bellevue Gold's Deacon Main project has identified a new high-grade shoot. The shoot, points out Canaccord Genuity, has a similar mineralisation style to the high-grade Bellevue Lode shoots, which were mined for 800,000 ounces at 13 grams per tonne.

Results of the drilling outperform the resource identified in the current mine plan, says Canaccord Genuity, with drilling further identifying potential for six additional high-grade shoots.

The broker lifts its FY25 production forecast to 200,000 ounces.

The Speculative Buy rating is retained and the target price increases to $2.00 from $1.80.

This report was published on March 19, 2024.

Target price is $2.00 Current Price is $1.89 Difference: $0.115
If BGL meets the Canaccord Genuity target it will return approximately 6% (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 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.85.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.98.

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

BKT    BLACK ROCK MINING LIMITED

New Battery Elements – Overnight Price: $0.08

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

Black Rock Mining has secured a second finance loan for its Mahenge graphite project, with the US$53m loan bringing its total loan package US$113m.

The company has now secured loans from the Development Bank of South Africa and the Industrial Development Corporation, both South African institutions with a focus on development projects with commercial benefit for South African entities.

The broker expects Black Rock Mining will now turn its attention to domestic Tanzanian banks to finance working capital for the project. Petra Capital expects the company will be able to quickly secure the up to $40m its looking for.

The Buy rating is retained and the target price decreases to 16 cents from 22 cents.

This report was published on March 18, 2024.

Target price is $0.16 Current Price is $0.08 Difference: $0.078
If BKT meets the Petra Capital target it will return approximately 95% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY25:

Petra Capital 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 41.00.

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

BLD    BORAL LIMITED

Building Products & Services – Overnight Price: $6.15

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

Boral's board has rejected the takeover offer from Seven Group ((SVW)) following an independent report suggesting the price was neither fair nor reasonable. The high end of the offer at $6.39 is below the independent valuation of $6.50-7.13.

Otherwise, Boral's property portfolio has now been valued at $1.4-1.6bn, up from "more than $1bn" disclosed at end-FY23.

Jarden has increased its target to $5.90 from $5.80, and suggests Seven Group has its work cut out if wants to mop up the remaining stake. Neutral retained.

This report was published on March 19, 2024.

Target price is $5.90 Current Price is $6.15 Difference: minus $0.25 (current price is over target).
If BLD meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.66, suggesting downside of -9.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 3.60 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 0.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of 53.6%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 28.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 12.30 cents and EPS of 30.90 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.0, implying annual growth of 9.1%.
Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 26.0.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $25.83

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

Wilsons has extended its forecast period for Breville Group from FY28 to FY30 to capture long-term earnings growth, resulting in a $31.30 target, up from $27.60. There were no changes in near-and medium-term forecasts.

The broker likes the potential from upcoming meaningful geographic expansion in the APAC region and believes the overall outlook is fundamentally strong. The Overweight rating is unchanged.

This report was published on March 19, 2024.

Target price is $31.30 Current Price is $25.83 Difference: $5.47
If BRG meets the Wilsons target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $27.02, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 33.00 cents and EPS of 82.50 cents.
At the last closing share price the estimated dividend yield is 1.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.2, implying annual growth of 5.1%.
Current consensus DPS estimate is 32.3, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 37.00 cents and EPS of 97.80 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.1, implying annual growth of 13.4%.
Current consensus DPS estimate is 35.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 28.1.

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

CU6    CLARITY PHARMACEUTICALS LIMITED

Medical Equipment & Devices – Overnight Price: $2.85

Wilsons rates ((CU6)) as Overweight (1) –

Clarity Pharmaceuticals has provided the market with new positive data from both their diagnostic and therapeutic PSMA prostate cancer programs over the past month.

This has provided a basis for further de-risking of their therapeutic development pipeline, Wilsons suggests, and re-analysis of the PSMA PET Dx market from an indication basis where Clarity’s agent may take a disproportionate share of the market if they can prove clinical superiority.

Wilsons has increased its "risked" target to $3.05 from $2.78 ($7.50 unrisked). Overweight retained.

This report was published on March 18, 2024.

Target price is $3.05 Current Price is $2.85 Difference: $0.2
If CU6 meets the Wilsons target it will return approximately 7% (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 14.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.66.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 18.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.24.

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

CYG    COVENTRY GROUP LIMITED

Hardware & Equipment – Overnight Price: $1.50

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

On recent comparison, Petra Capital finds Coventry Group trading at a -34% discount to its peer group, and at -44% discount on FY25 expectations. 

With the stock screening as undervalued, the broker sees scope for a rerate as margins improve, which will prove critical to meeting Petra Capital's forecasts. The broker remains attracted to the company's market leading position.

The Buy rating and target price of $2.29 are retained.

This report was published on March 20, 2024.

Target price is $2.29 Current Price is $1.50 Difference: $0.79
If CYG meets the Petra Capital target it will return approximately 53% (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 4.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 7.50 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.43.

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

EML    EML PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $1.23

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

EML Payments has entered into an agreement with GoCardless for the sale of Sentenial for EUR33m, a choice Wilsons finds positive. 

According to the broker, this divestment genuinely returns EML Payments to its core business, and expects a refocusing of human and financial capital on this core business should allow it to improve.

The Overweight rating and target price of $1.17 are retained.

This report was published on March 18, 2024.

Target price is $1.17 Current Price is $1.23 Difference: minus $0.06 (current price is over target).
If EML meets the Wilsons target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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

FEX    FENIX RESOURCES LIMITED

Overnight Price: $0.24

Petra Capital rates ((FEX)) as Initiation of coverage with Buy (1) –

Fenix Resources has been appointed the haulage logistics and port services provider for Gold Valley's Wiluna West iron ore project, in a contract that stands to generate more than $70m in additional revenue for the company over the initial three-year term.

The contract will see Fenix Resources haul road ore from the Ruvidni rail siding to Geraldton Port, and facilitate ship loading and export at the port.

Petra Capital feels the company is establishing itself as the go to bulk commodity logistics provider in Western Australia's mid-west. 

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

This report was published on March 15, 2024.

Target price is $0.42 Current Price is $0.24 Difference: $0.175
If FEX meets the Petra Capital target it will return approximately 71% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $6.32

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

Goldman Sachs sees a positive read-through for both Insurance Australia Group and Suncorp Group from recent interim results for South African-based OUTsurance Holdings , whose subsidiary Youi operates in Australia.

For Youi, the broker highlights strong gross written premium (GWP) and net earned premium (NEP) growth driven by rate increases, organic growth and increased new business.

Outlook commentary suggesting ongoing pricing discipline was also positive for Insurance Australia Group and Suncorp Group, in the analysts' view.

A Neutral rating and $6 target are retained for Insurance Australia Group.

This report was published on March 19, 2024.

Target price is $6.00 Current Price is $6.32 Difference: minus $0.32 (current price is over target).
If IAG meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.08, suggesting downside of -3.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 25.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 3.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.2, implying annual growth of -5.1%.
Current consensus DPS estimate is 26.0, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 31.00 cents and EPS of 41.00 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 15.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.8, implying annual growth of 20.5%.
Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 16.3.

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

IGO    IGO LIMITED

Nickel – Overnight Price: $7.20

Canaccord Genuity rates ((IGO)) as Sell (5) –

Rare insight has been gained into the Greenbushes asset following the release of a technical document from Albemarle, but Canaccord Genuity has been quick to point out areas where the market may be overestimating the asset.

This includes issues with recoveries at CGP2, a declining production and grade profile, and higher than anticipated costs. Greenbushes, says Canaccord Genuity, is a Tier 1 asset that is not being run like a Tier 1 asset.

The broker also notes IGO continues to claim its ability to add value to the project by supporting optimisation, but Canaccord Genuity sees little evidence that the company has much to offer by way of a value add. It points out the company has not operated an open pit mine, spodumene mine or spodumene flotation plant.

Canaccord Genuity expects its will be harder to resolve these issues at Greenbushes given the complex ownership structure, compared to an asset under direct control.

The Sell rating is retained and the target price decreases to $5.50 from $6.00.

This report was published on March 20, 2024.

Target price is $5.50 Current Price is $7.20 Difference: minus $1.7 (current price is over target).
If IGO meets the Canaccord Genuity target it will return approximately minus 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.69, suggesting upside of 6.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 16.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.4, implying annual growth of -12.6%.
Current consensus DPS estimate is 12.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 11.4.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 3.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 0.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 80.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of -49.7%.
Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 22.7.

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

IPH    IPH LIMITED

Legal – Overnight Price: $6.19

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

Petra Capital's analysis of patent filings in Australia year to date have shown the larger intellectual property agents are leading the filings turnaround.

IPH's fillings, it notes, have lagged the market, declining -2.3% as the market lifted 0.3%, but this does suggest improvement which was underpinned by the company's two largest agents. 

The Buy rating and target price of $10.50 are retained.

This report was published on March 18, 2024.

Target price is $10.50 Current Price is $6.19 Difference: $4.31
If IPH meets the Petra Capital target it will return approximately 70% (excluding dividends, fees and charges).
Current consensus price target is $8.91, suggesting upside of 44.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 34.00 cents and EPS of 43.60 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 58.6%.
Current consensus DPS estimate is 34.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 36.50 cents and EPS of 48.20 cents.
At the last closing share price the estimated dividend yield is 5.90%.
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 48.9, implying annual growth of 7.7%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.6.

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

IRE    IRESS LIMITED

Wealth Management & Investments – Overnight Price: $8.43

Wilsons rates ((IRE)) as Market Weight (3) –

Iress has delivered an accelerated divestment of the MSO business, a historical component of the Avelo acquisition from 2013, at a value towards the upper-end of Wilsons' valuation range.

Given MSO was profitable, earnings downgrades follow, however given the release of the capital from the sale, return on invested capital is expected to improve with leverage targeted to fall towards 1-1.5x by year-end, Wilsons notes.

The broker has rolled forward its valuation into FY25, leading to a target increase to $9 from $8. Market Weight retained.

This report was published on March 18, 2024.

Target price is $9.00 Current Price is $8.43 Difference: $0.57
If IRE meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $8.76, suggesting upside of 3.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 18.00 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.2, implying annual growth of N/A.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 32.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 35.00 cents and EPS of 43.50 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of 24.4%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 26.0.

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

KAR    KAROON ENERGY LIMITED

Crude Oil – Overnight Price: $1.95

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

Wilsons initiates coverage on oil and gas producer Karoon Energy, noting the company's recent acquisition of the Who Dat asset has diversified the company's geography, market and geopolitical risk.

The coming twelve months could be an exciting time for the company, with Wilsons seeing potential for both organic and inorganic growth. It considers there to be potential for a smaller acquisition, in the realm of US$250-350m, in the coming year.

The broker initiates with an Overweight rating and a target price of $2.71.

This report was published on March 21, 2024.

Target price is $2.71 Current Price is $1.95 Difference: $0.76
If KAR meets the Wilsons target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $2.74, suggesting upside of 38.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 41.49 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.6, 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 3.8.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 50.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.9, implying annual growth of -14.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 4.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

KMD    KMD BRANDS LIMITED

Sports & Recreation – Overnight Price: $0.50

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

KMD Brands' first half result was evidence of the challenges the company faced, says Canaccord Genuity, but the broker already sees signs that action has been taken to manage operating conditions. 

The broker also notes the company has not stepped back from its financial targets, which suggest material upside but will require much improved execution in Canaccord Genuity's opinion.

Second half sales performance and working capital execution are key near-term factors for the broker. 

The Hold rating is retained and the target price decreases to 54 cents from 57 cents.

This report was published on March 19, 2024.

Target price is $0.54 Current Price is $0.50 Difference: $0.04
If KMD meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $0.53, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.93 cents and EPS of 0.93 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.3, implying annual growth of N/A.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 2.78 cents and EPS of 4.64 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.9, implying annual growth of 113.0%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 10.4.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((KMD)) as Buy (1) –

It was another tough interim result for KMD Brands, Jarden notes, as Rip Curl slowed amid a broader decline in consumer activity, while Kathmandu brand's performance continued to slide.

Group sales remained weak into 1H24, falling -14.5% year on year, with the Kathmandu brand the key source of weakness, down -21.5%. KMD Brands continues to lag the performance seen across the broader outdoor sector, with the brand clearly ceding market share to competitors.

Contributing to the weakness, Jarden suggests, has been poor product execution and a lack of commercial product development. Management has outlined a clear strategy to return to core under the new brand chief executive.

Buy and NZ85c target retained.

This report was published on March 19, 2024.

Current Price is $0.50. Target price not assessed.
Current consensus price target is $0.53, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 89.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.3, implying annual growth of N/A.
Current consensus DPS estimate is 1.9, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 2.32 cents and EPS of 3.43 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.9, implying annual growth of 113.0%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 10.4.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

QIP    QANTM INTELLECTUAL PROPERTY LIMITED

Legal – Overnight Price: $1.55

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

Rouse International has withdrawn from attempting to takeover Qantm Intellectual Property, and the board of Qantm has accepted Adamantem Capital's proposal for exclusive due diligence, to enable a firm offer.

So far, private equity firm Adamantem has made a non-binding indicative proposal for the acquisition of all the shares in Qantm Intellectual Property for $1.817/share by way of scheme of arrangement.

The Buy rating and target price of $1.76 are retained.

This report was published on March 18, 2024.

Target price is $1.76 Current Price is $1.55 Difference: $0.21
If QIP meets the Petra Capital target it will return approximately 14% (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 7.50 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.11.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 8.40 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 5.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.57.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $16.30

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

Goldman Sachs sees a positive read-through for both Insurance Australia Group and Suncorp Group from recent interim results for South African-based OUTsurance Holdings , whose subsidiary Youi operates in Australia.

For Youi, the broker highlights strong gross written premium (GWP) and net earned premium (NEP) growth driven by rate increases, organic growth and increased new business.

Outlook commentary suggesting ongoing pricing discipline was also positive for Insurance Australia Group and Suncorp Group, in the analysts' view.

A Buy rating and $16.25  target are retained for Suncorp Group.

This report was published on March 19, 2024.

Target price is $16.25 Current Price is $16.30 Difference: minus $0.05 (current price is over target).
If SUN meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.31, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 77.00 cents and EPS of 106.00 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.2, implying annual growth of 15.7%.
Current consensus DPS estimate is 73.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 82.00 cents and EPS of 114.00 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.9, implying annual growth of 2.6%.
Current consensus DPS estimate is 88.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 15.1.

Market Sentiment: 0.7
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: $0.04

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

There were no big surprises for Petra Capital in Sayona Mining's first half result, with the company reporting revenue of $118m and operating cashflow of $3.4m. 

The broker was, however, pleased by commentary that Sayona Mining is setting up North American Lihtium (NAL) to produce through the cycle.

As per Petra Capital, Sayona Mining was one of only a few projects to enter into production into the last cycle. Having remained in operation through the low-price environment, it should now benefit from better prices.

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

This report was published on March 15, 2024.

Target price is $0.14 Current Price is $0.04 Difference: $0.102
If SYA meets the Petra Capital target it will return approximately 268% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.43.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.00 cents.

Market Sentiment: 0.0
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: $12.24

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

Treasury Wine Estates expects any earnings contributions gained through the (potential) removal of Chinese tariffs on Australian wine imports to be minimal in FY24.

The China Ministry of Commerce has released an interim draft determination outlining a proposed removal of tariffs, with a formal decision expected before the end of March. 

Jarden considers there to be a high probability these tariffs will be removed, and that some benefits would emerge in the second half with more material upgrades emerging from FY27, anticipating significant reinvestment in China through FY25 and FY26 limits upside in these years.

The Overweight rating and target price of $12.90 are retained.

This report was published on March 12, 2024.

Target price is $12.90 Current Price is $12.24 Difference: $0.66
If TWE meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $13.10, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 42.00 cents and EPS of 57.60 cents.
At the last closing share price the estimated dividend yield is 3.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.6, implying annual growth of 50.7%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 23.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 51.00 cents and EPS of 71.10 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.5, implying annual growth of 20.7%.
Current consensus DPS estimate is 42.5, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 19.3.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.46

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

Viva Leisure appears attractively valued compared to peers, according to Petra Capital. While noting the differences in business models and return metrics between Viva Leisure and its peers, the broker considers the company demonstrably cheaper.

The broker sees a clear growth trajectory for Viva Leisure to 400 corporate locations, with potential to generate over $80m in earning, and also sees numerous acquisition opportunities.

It remains confident in its FY24 earnings expectations for the company.

The Buy rating and target price of $2.52 are retained.

This report was published on March 21, 2024.

Target price is $2.52 Current Price is $1.46 Difference: $1.06
If VVA meets the Petra Capital target it will return approximately 73% (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 12.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.07.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 15.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.42.

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

WEB    WEBJET LIMITED

Travel, Leisure & Tourism – Overnight Price: $8.74

Jarden rates ((WEB)) as Buy (1) –

Webjet has  guided to FY24 earnings above the midpoint of its $180-190m range, in line with Jarden. This is a pleasing outcome, the broker suggests, albeit expected given positive momentum across WebBeds and strength in travel into 2024.

Jarden believes the Webjet business is wrongly viewed as an online travel agency, rather than a high return on invested capital global B2B platform growing at more than a 30% compound annual rate, with multiple opportunities to accelerate growth into FY25 and beyond.

Buy and $8.80 target retained.

This report was published on March 19, 2024.

Target price is $8.80 Current Price is $8.74 Difference: $0.06
If WEB meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $9.43, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 27.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 713.2%.
Current consensus DPS estimate is 4.1, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 28.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 13.00 cents and EPS of 38.90 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.4, implying annual growth of 27.5%.
Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 22.4.

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

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

Ahead of Webjet's investor day on March 21, Wilsons lowered its target to $9.17 from $9.22, on a balance of a roll-forward in valuation offset by a higher risk-free rate.

Overweight retained.

This report was published on March 18, 2024.

Target price is $9.17 Current Price is $8.74 Difference: $0.43
If WEB meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $9.43, suggesting upside of 6.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 32.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 713.2%.
Current consensus DPS estimate is 4.1, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 28.6.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 18.10 cents and EPS of 40.60 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.4, implying annual growth of 27.5%.
Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 22.4.

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

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