Australian Broker Call *Extra* Edition – Apr 18, 2024

Daily Market Reports | Apr 18 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)

ABC   AVH   BLD   BSL   CGF   CSR   DMP (2)   DTL   EOS   HUB (2)   IPH   MAQ (2)   PLL   PME   QOR (2)   RMD   RWC   WGX  

QOR    QORIA LIMITED

Software & Services - Overnight Price: $0.42

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

Canaccord Genuity acknowledges Qoria's enhanced financial guidance for FY24, reflecting an expected early achievement of cash EBITDA breakeven, due to stronger than anticipated business performance.

Management's upgrade follows a notable increase in the annual recurring revenue (ARR) forecast for FY24, marking an upward revision from initial estimates.

Despite the increased investment in capitalised costs, there is no change to cash forecasts. Canaccord Genuity sees significant structural tailwinds for Qoria's consumer products, which are likely to drive future growth.

Canaccord Genuity retains a Buy rating on Qoria with a stable target price of $0.50.

This report was published on April 16, 2024.

Target price is $0.50 Current Price is $0.42 Difference: $0.075
If QOR meets the Canaccord Genuity target it will return approximately 18% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.63.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 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 21.25.

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

Wilsons rates ((QOR)) as Overweight (1) -

A solid third quarter result from Qoria according to Wilsons, with the company reporting good top line traction across its main geographies and core segments.

Annual recurring revenue rose $6m in the quarter, leaving a further $8m to be achieved in the final quarter for Qoria to meet the broker's full year expectations.

Despite the result, Wilsons continues to see FY24 as a year of investment and consolidation for the company, but anticipates the fourth quarter could prove a period of robust sales pipeline conversion.

The Overweight rating is retained and the target price increases to 48 cents from 37 cents.

This report was published on April 16, 2024.

Target price is $0.48 Current Price is $0.42 Difference: $0.055
If QOR meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.18.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.69.

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

RMD    RESMED INC

Medical Equipment & Devices - Overnight Price: $28.88

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

ResMed's 3Q results are due on April 26. Jarden suggests a positive movement in gross margin (the broker forecasts a rise of 40bps on Q2) and further operating leverage would be well received by the market.

The analysts expect device growth will still be positive, an outstanding outcome considering the US is cycling 48% revenue growth.

Jarden highlights the significance of ResMed being on the verge of delivering stronger mask growth versus device growth, which effectively converts a gross margin percentage headwind into a tailwind.

The broker retains an Overweight rating. Target price rises to $31.33 from $31.22.

This report was published on April 16, 2024.

Target price is $31.33 Current Price is $28.88 Difference: $2.45
If RMD meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $34.21, suggesting upside of 18.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 29.22 cents and EPS of 115.81 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 118.3, implying annual growth of N/A.
Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 24.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 37.59 cents and EPS of 138.79 cents.
At the last closing share price the estimated dividend yield is 1.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 134.3, implying annual growth of 13.5%.
Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 21.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RWC    RELIANCE WORLDWIDE CORP. LIMITED

Building Products & Services - Overnight Price: $5.19

Jarden rates ((RWC)) as Overweight (2) -

Softer building approvals and starts continue to hold back housing supply, notes Jarden, exacerbating the impact affordability is having on Australian residential activity. February Building Approvals fell for third month in a row.

The broker's recent discussions with domestic homebuilders indicates a further slowing ahead, with build times still longer than pre-covid and ongoing cost pressures from materials and labour shortages.

The Overweight rating is maintained for Reliance Worldwide. The target slips to $5.25 from $5.30 driven by weaker near-term Australian residential construction activity and a roll forward of the broker's valuation.

This report was published on April 16, 2024.

Target price is $5.25 Current Price is $5.19 Difference: $0.06
If RWC meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $5.43, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 6.85 cents and EPS of 24.50 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of N/A.
Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 17.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 6.85 cents and EPS of 29.52 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.0, implying annual growth of 15.3%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 15.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver - Overnight Price: $2.18

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

Westgold Resources and Karora Resources have agreed to merge, subject to approval from Karora Resources shareholders. 

Westgold Resources will takeover Karora Resources, with the latter's shareholders receiving 2.524 Westgold Resources shares, 0.3 SpinCo shares and 68 cents cash for each Karora Resources share.

It is Canaccord Genuity's view that the merger offers Westgold Resources shareholders exposure to a more diversified asset base.

The broker points out the final entity would be a top five Australian gold producer with a market capitalisation of $2bn, a resource base of 13m ounces and a reserve of 3.2m ounces.

The Buy rating is retained and the target price decreases to $2.65 from $2.75.

This report was published on April 15, 2024.

Target price is $2.65 Current Price is $2.18 Difference: $0.47
If WGX 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 1.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 0.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.47.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 1.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 0.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.41.

Market Sentiment: 0.0
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.