Australian Broker Call *Extra* Edition – Apr 11, 2024

Daily Market Reports | Apr 11 2024

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)

360   A1M   AEE   ALK (2)   APM   ASN   ASX   AVA   BBN   BKT   BLU   BMN   BOE   BOQ   BPT (2)   CMM   CSL   CU6   DYL   EOS   FLT   GMD   GOR   GQG   HUB   HZN   LEL   LIN   LOT   MAY   MFG   MMI   NWC   NWL   OBM   PBH   PDN   PEN   PNR   POS   QAN (2)   QPM   RED (3)   RHK   RNU   SFX   SGM   SLR   SLX   SMR   STX   SUN   TIE   TLG   VVA   WDS   WGX   WIN  

360    LIFE360 INC

Software & Services - Overnight Price: $13.75

Goldman Sachs rates ((360)) as Buy (1) -

On April 8, Goldman Sachs described a new strategy announced by Life360 as "strategically sound and in line with its global app-based internet peers". 

The broker further explains the company will aim to further monetise its user base through the introduction of advertising. The broker expects the ad revenue strategy to be an initially incremental driver of earnings.

It sees potential upside as the ad strategy develops.

One day later, the first quarter trading update from Life360 shows the company is run-rating well ahead of Goldman Sachs' first half expectations, particularly in US subscription net adds. 

This metric, points out the broker, is the most important driver of the company's revenue and earnings.

Goldman Sachs notes this follows a relatively softer fourth quarter, but expects the strong start to the year should see the company comfortably meet revenue guidance and potentially exceed earnings guidance.

The Buy rating and target price of $14.20 are retained.

This report was published on April 9, 2024.

Target price is $14.20 Current Price is $13.75 Difference: $0.45
If 360 meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $15.28, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 15.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 126.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 31.94 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.1, implying annual growth of 121.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 57.1.

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

A1M    AIC MINES LIMITED

Gold & Silver - Overnight Price: $0.40

Moelis rates ((A1M)) as Buy (1) -

Moelis raises its 12-month target prices for small cap resources under coverage after raising gold, copper and silver price forecasts.

The broker's long-term forecast for gold, copper and silver are US$1,696oz, US$8,406/t and US$21.17oz.

The target for AIC Mines rises to 56c from 52c and the Buy rating is maintained.

This report was published on April 5, 2024.

Target price is $0.56 Current Price is $0.40 Difference: $0.16
If A1M meets the Moelis target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.81.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.52.

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

AEE    AURA ENERGY LIMITED

Energy - Overnight Price: $0.17

Petra Capital rates ((AEE)) as No Rating (-1) -

Petra Capital's quarterly commodity price update results in a material lift to forecasts for gold and copper prices.

The broker also makes near-term downward adjustments to price forecasts for spodumene, rare earth elements, as well as thermal and coking coal.

Within Petra's research coverage of energy stocks, the target for Aura Energy remains at 47c. Buy.

This report was published on April 5, 2024.

Target price is $0.47 Current Price is $0.17 Difference: $0.295
If AEE meets the Petra Capital target it will return approximately 169% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.17.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.17.

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: $0.66

Moelis rates ((ALK)) as Buy (1) -

Moelis raises its 12-month target prices for small cap resources under coverage after raising gold, copper and silver price forecasts.

The broker's long-term forecast for gold, copper and silver are US$1,696oz, US$8,406/t and US$21.17oz.

The target for Alkane Resources rises to $1.00 from 85c and the Buy rating is maintained.

This report was published on April 5, 2024.

Target price is $1.00 Current Price is $0.66 Difference: $0.34
If ALK meets the Moelis target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.15.

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

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

Petra Capital's quarterly commodity price update results in a material lift to forecasts for gold and copper prices.

The broker also makes near-term downward adjustments to price forecasts for spodumene, rare earth elements, as well as thermal and coking coal.

From among the broker's gold coverage, the target for Alkane Resources rises to $1.16 from $1.02 and the Buy rating is maintained.

This report was published on April 5, 2024.

Target price is $1.16 Current Price is $0.66 Difference: $0.5
If ALK meets the Petra Capital target it will return approximately 76% (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 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.94.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 7.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.80.

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

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare - Overnight Price: $1.21

Canaccord Genuity rates ((APM)) as Buy (1) -

APM Human Services International has received a non-binding offer from 29% shareholder Madison Dearborn for all remaining shares at $1.40 each, a -13% discount to the initial offer from CVC Asia Pacific, notes Canaccord Genuity.

Again, management has downgraded FY24 guidance largely because of the weaker domestic employment services market.

New guidance implies to the broker underlying 2H earnings (EBITDA) and profit (NPATA) will fall short of the 1H by -16% and -26%, respectively.

FY24 earnings are also being weighed down by an investment in a new client management system within the Health business, and recruitment of graduates whose positive impact will be felt in FY25, explain the analysts.

The target falls to $1.30 from $2.00. Buy.

This report was published on April 9, 2024.

Target price is $1.30 Current Price is $1.21 Difference: $0.095
If APM meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.78, suggesting upside of 47.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.15 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of -15.5%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 6.87 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 5.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.8, implying annual growth of 29.3%.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 9.4.

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