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

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

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)

AEE   AGN   COE   DYL   EVN (2)   HUB   INR   LGP   LOT   MAH   MAQ   PNR   QAN   QBE   WGX  

AEE    AURA ENERGY LIMITED

Energy – Overnight Price: $0.17

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

Aura Energy has announced a refresh of its legacy uranium offtake agreement with Curzon Group, with pricing to be 50% fixed and 50% prevailing spot. 

Petra Capital points out the fixed pricing increases 70% to US$75 a pound from a previous US$44 a pound, reflecting higher term contracting prices since the last iteration of the agreement. 

It is expected the pricing update will add US$41m in revenue over the seven year term of the contract.

The Buy rating is retained and the target price increases to 45 cents from 44 cents.

This report was published on April 18, 2024.

Target price is $0.45 Current Price is $0.17 Difference: $0.275
If AEE meets the Petra Capital target it will return approximately 157% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.33.

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

AGN    ARGENICA THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.57

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

Argenica Therapeutics has successfully raised $12m, leaving the company fully funded through its ongoing Phase 2 Seancon stroke trial, points out Petra Capital.

As per the broker, the additional capital also strengthens the company's balance sheet ahead of partnering negotiations. 

The trial has reached first dosing milestones faster than expected according to the broker, with the first five patients dosed in less than two weeks. 

The Buy rating is retained and the target price decreases to $1.00 from $1.09.

This report was published on April 18, 2024.

Target price is $1.00 Current Price is $0.57 Difference: $0.43
If AGN meets the Petra Capital target it will return approximately 75% (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 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.63.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.21

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

March quarter production, sales revenues and realised (contracted and spot) gas prices were all in line with Jarden estimates. However, management also noted the re-emergence of issues around the BMG decommisioning program.

"Commissioning and integration of abandonment equipment for the work scope on the upper well abandonment has taken longer than planned, with work on the first upper plug now underway”, the broker has quoted the company.

The broker lowers its target to 23c from 24c and the Overweight rating is maintained.

This report was published on April 17, 2024.

Target price is $0.23 Current Price is $0.21 Difference: $0.015
If COE meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 18.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 215.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, 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 36.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 107.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.2, implying annual growth of 100.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 18.3.

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

DYL    DEEP YELLOW LIMITED

Uranium – Overnight Price: $1.35

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

Following a successful $250m capital raising, Deep Yellow is equipped to aggressively progress the Tumas development says Canaccord Genuity. 

The March quarter saw the company commence a 650 hole drilling program, aimed at defining six years of proven reserves, commence the tendering and selection process for an EPCM service provider, and commence offtake marketing and financier discussions.

The company expects to appoint an EPCM contractor and commence detailed engineering in the second quarter of the calendar year.

The Speculative Buy rating and target price of $1.92 are retained.

This report was published on April 18, 2024.

Target price is $1.92 Current Price is $1.35 Difference: $0.57
If DYL meets the Canaccord Genuity target it will return approximately 42% (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 1.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 68.22.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.37 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 98.54.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $4.07

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

Despite its March quarter result being largely in line with market expectations, Evolution Mining has surprised by retaining its full year production and all in sustaining cost guidance, says Canaccord Genuity.

The company reported quarterly gold production of 185,000 ounces at $1,464 an ounce, and continues to guide to 749,000 ounces at $1,410 an ounce over the full year. 

As per Canaccord Genuity, achieving guidance would require producing 245,000 ounces in the June quarter. Despite seeing improvement across key assets, the broker does not expect the company to meet guidance.

The Buy rating is retained and the target price increases to $4.60 from $4.50.

This report was published on April 18, 2024.

Target price is $4.60 Current Price is $4.07 Difference: $0.53
If EVN meets the Canaccord Genuity target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.18, suggesting upside of 2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 6.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 179.5%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 11.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.6, implying annual growth of 55.0%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.6.

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

Evolution Mining maintains its full year guidance following the March quarter, albeit aiming for the lower end, implying a particularly strong June quarter as noted by Goldman Sachs.

The company reported gold production of 185,000 ounces and sales of 178,000 ounces over the March quarter, and reiterated an expected material production ramp up from Cowal, Red Lake and Mungari in the coming period. 

Goldman Sachs' estimates remain below guidance. The Buy rating is retained and the target price increases to $4.25 from $4.00.

This report was published on April 19, 2024.

Target price is $4.25 Current Price is $4.07 Difference: $0.18
If EVN meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $4.18, suggesting upside of 2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 4.00 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 0.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.9, implying annual growth of 179.5%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 5.50 cents and EPS of 44.40 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.6, implying annual growth of 55.0%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.6.

Market Sentiment: 0.7
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: $38.75

Jarden rates ((HUB)) as Neutral (3) –

As 3Q underlying net flows for Hub24 were broadly in line, and the EQT transition is expected to accelerate in Q4, Jarden believes management is on track to deliver around $16bn of net inflows in FY24.

Even in the absence of further large transitions, the analysts suggest Hub24 will deliver above its $92-100bn platform funds under administration (FUA) target by FY25. This view is subject to normalised market returns.

Platform flows in the 3Q fell -17.5% short of the broker's forecast, but this was largely due to a slightly slower start to the around $4bn EQT transition, explains Jarden.

The Neutral rating and $41.75 target are maintained.

This report was published on April 17, 2024.

Target price is $41.75 Current Price is $38.75 Difference: $3
If HUB meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $41.74, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 41.60 cents and EPS of 82.50 cents.
At the last closing share price the estimated dividend yield is 1.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.1, implying annual growth of 74.2%.
Current consensus DPS estimate is 39.5, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 47.1.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 55.30 cents and EPS of 110.60 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 35.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.5, implying annual growth of 7.7%.
Current consensus DPS estimate is 52.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 43.7.

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

INR    IONEER LIMITED

New Battery Elements – Overnight Price: $0.19

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

ioneer anticipates a draft Environmental Impact Statement from the Bureau of Land Management in coming days, in a step towards permitting approval for the company. 

As per Canaccord Genuity, the release of the statement triggers a 45-day public commentary period which will end in early June. A Record of Decision is then expected in October, ahead of a final investment decision from the company in December.

The broker considers there to be a strong chance of a positive Record of Decision, but notes the possibility of delay via legal action remains.

The Speculative Buy rating and target price of 35 cents are retained.

This report was published on April 18, 2024.

Target price is $0.35 Current Price is $0.19 Difference: $0.16
If INR meets the Canaccord Genuity target it will return approximately 84% (excluding dividends, fees and charges).

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

LGP    LITTLE GREEN PHARMA LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.14

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

Little Green Pharma has closed out its financial year with a return to revenue growth in the March quarter, with Canaccord Genuity noting revenue increased 34% quarter-on-quarter and 36% year-on-year.

The broker points out regulatory developments have supported a positive shift in sentiment in overseas markets, although the ASX-listed industry has lagged. It considers Little Green Pharma particularly well-positioned for the opening of European markets. 

The Hold rating is retained and the target price increases to 17 cents from 16 cents.

This report was published on April 18, 2024.

Target price is $0.17 Current Price is $0.14 Difference: $0.035
If LGP meets the Canaccord Genuity target it will return approximately 26% (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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 67.50.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.50.

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

LOT    LOTUS RESOURCES LIMITED

Uranium – Overnight Price: $0.40

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

Post its recent $30m capital raising, Lotus Resources is now positioned to advance the Letlhakane project says Canaccord Genuity. The broker notes the asset, at 190m pounds of uranium, is one of the largest undeveloped resources globally. 

Lotus Resources is set to commence a substantial work program in the near term. With the most recent resource update and study for the project completed in 2015, the company believes there is significant scope to improve the value proposition.

The Speculative Buy rating and target price of 54 cents are retained.

This report was published on April 18, 2024.

Target price is $0.54 Current Price is $0.40 Difference: $0.14
If LOT meets the Canaccord Genuity target it will return approximately 35% (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

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.23

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

Macmahon has announced its acquisition of Decmil Group, unanimously supported by the latter's board and shareholders, creating an integrated provider of civil construction and contract mining. 

Decmil shareholders will receive 30 cents per share, equating to a valuation of $127m. 

Canaccord Genuity does not consider the transaction to be without risk, but notes the transaction allows Macmahon to increase lower capital intensity services. The broker estimates 14% earnings per share accretion in FY25.

The Buy rating and target price of 28 cents are retained.

This report was published on April 18, 2024.

Target price is $0.28 Current Price is $0.23 Difference: $0.045
If MAH meets the Canaccord Genuity target it will return approximately 19% (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 0.90 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.18.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 1.00 cents and EPS of 4.30 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.47.

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

MAQ    MACQUARIE TECHNOLOGY GROUP LIMITED

Telecommunication – Overnight Price: $82.00

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

Macquarie Technology will acquire the existing IC2 and IC3 East land and buildings located at Macquarie Park for $174m, having entered into a binding agreement with Keppel DC REIT. 

The company intends to fund the purchase with a $90m loan note, coupled with the proceeds of a $100m equity raising, with settlement expected in the second half of the financial year. 

Petra Capital describes the move as a "strategic win" for Macquarie Technology, explaining it will assist in securing syndicated bank debt and assuage investor uncertainty.

The Buy rating is retained and the target price decreases to $82.16 from $89.77.

This report was published on April 18, 2024.

Target price is $82.16 Current Price is $82.00 Difference: $0.16
If MAQ meets the Petra Capital target it will return approximately 0% (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 128.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.81.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 150.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.52.

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

PNR    PANTORO LIMITED

Gold & Silver – Overnight Price: $0.09

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

Pantoro has reported gold production of 19,235  ounces from its Norseman Gold Project during the March quarter, marking a fourth consecutive production increase for the site and a 5.8% increase on the previous period.

The period was closed out with a monthly production record of 8,298 ounces in March, putting the asset on a 100,000 ounce per annum run rate in what the broker describes as a key milestone.

The broker anticipates a sharp turn to positive free cash flow in the June quarter. The Buy rating and target price of 17 cents are retained.

This report was published on April 18, 2024.

Target price is $0.17 Current Price is $0.09 Difference: $0.083
If PNR 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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.95.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $5.62

Jarden rates ((QAN)) as Buy (1) –

In a review of Qantas Airways' international competitiveness, Jarden notes North America and Europe (via the Middle East) have both become more competitive, with large market share changes among participants.

Qantas still occupies a dominant market share position, in the key markets the broker reviewed, and Jarden believes the airliner should remain competitive with "superior" fuel hedging in a volatile environment.

The Buy rating and target price of $7.00 are retained.

This report was published on April 17, 2024.

Target price is $7.00 Current Price is $5.62 Difference: $1.38
If QAN meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $6.68, suggesting upside of 17.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 88.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.5, implying annual growth of -6.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 6.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 25.40 cents and EPS of 101.80 cents.
At the last closing share price the estimated dividend yield is 4.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.4, implying annual growth of 8.8%.
Current consensus DPS estimate is 19.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 5.9.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $17.34

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

With US insurer Travelers reporting on its first quarter, Goldman Sachs has drawn a number of readthroughs for QBE Insurance. 

The broker notes Travelers core income did disappoint market expectations, but expects QBE Insurance is more protected by global exposure. Net written premium growth of around 9% also disappointed, which the broker flags as a possible negative read.

The broker maintains QBE Insurance offers the strongest exposure to the commercial rate cycle. 

The Buy rating and target price of $20.58 are retained.

This report was published on April 18, 2024.

Target price is $20.58 Current Price is $17.34 Difference: $3.24
If QBE meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $17.96, suggesting upside of 3.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 89.70 cents and EPS of 183.77 cents.
At the last closing share price the estimated dividend yield is 5.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 181.5, implying annual growth of N/A.
Current consensus DPS estimate is 86.5, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 9.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 89.80 cents and EPS of 184.53 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 189.4, implying annual growth of 4.4%.
Current consensus DPS estimate is 90.8, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 9.2.

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

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.34

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

Westgold Resources and Karora Resources have agreed to a merger, with the former's shareholders to hold a majority 50.1% of the new entity and the latter's shareholders to hold the remaining 49.9%. 

As per Petra Capital, this move elevates Westgold Resources into the top five gold producers on the ASX, likely attracting significant new investor interest. Further, the new company intends to list on the TSX following deal completion.

The broker expects Karora Resources' "significant, long-life and well-capitalised asset" can be accelerated with the benefit of a larger and better company behind it.

The Buy rating is retained and the target price decreases to $2.68 from $3.19.

This report was published on April 18, 2024.

Target price is $2.68 Current Price is $2.34 Difference: $0.34
If WGX meets the Petra Capital target it will return approximately 15% (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 3.00 cents and EPS of 12.00 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 19.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 10.00 cents and EPS of 21.00 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 11.14.

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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