Australian Broker Call *Extra* Edition – Apr 24, 2024

Daily Market Reports | Apr 24 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)

A1M   BHP   BOQ   CYG   DSE   FEX   GMD   KAR   ORA   QUB   RXM   STO  

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics - Overnight Price: $3.36

Goldman Sachs rates ((QUB)) as Re-initiation of coverage with Buy (1) -

Goldman Sachs has re-initiated coverage on Qube Holdings, with our archive showing active research on  the company ceased back in 2021.

Research resumes with a Buy rating and $3.70 price target. Remarkable, as back in 2021 that target was set at $3.72.

The broker's analysis attributes Qube's positive outlook to its diversified business model, delivering GDP-plus growth in revenue and earnings.

The report highlights several factors contributing to this optimistic view, including the receding uncertainty over the Moorebank project, anticipated to start contributing to revenue in the coming years.

Goldman Sachs also notes the reduced margin volatility and increased earnings predictability over the last 3-5 years, with ongoing capital expenditures set to support stable growth.

This report was published on April 18, 2024.

Target price is $3.70 Current Price is $3.36 Difference: $0.34
If QUB meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $3.61, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 7.50 cents and EPS of 14.23 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.1, implying annual growth of 41.4%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 23.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 7.65 cents and EPS of 14.53 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of 5.7%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.6.

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

RXM    REX MINERALS LIMITED

Gold & Silver - Overnight Price: $0.22

Moelis rates ((RXM)) as Initiation of coverage with Buy (1) -

Moelis has initiated with a Buy rating on Rex Minerals and a 12-month price target of $0.50/share.

The positive initiation reflects the potential of the Hillside copper-gold project in South Australia, explains the broker, which is fully permitted and expected to produce circa 40kt copper and 30koz gold annually for an initial 11-year mine life.

Moelis sees this project having longer-term potential, suggesting production could continue for 20+ years, if extended further.

This report was published on April 22, 2024.

Target price is $0.50 Current Price is $0.22 Difference: $0.28
If RXM meets the Moelis target it will return approximately 127% (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 minus 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.46.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

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

STO    SANTOS LIMITED

NatGas - Overnight Price: $7.71

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

Jarden maintains its Overweight rating on Santos, lowering its 12-month price target to $8.15 from $8.20. Despite reduced forecasts for PNG, Santos recorded stronger-than-expected Free Cash Flow (FCF) and domestic gas prices, partly offsetting other declines.

The broker reports weather-related delays, maintenance, and natural field decline caused a -7% drop in production, missing expectations by -3%.

Nonetheless, FCF generation of $692m beat the broker's estimate of around $500m and the prior quarter's $540m.

This report was published on April 18, 2024.

Target price is $8.15 Current Price is $7.71 Difference: $0.44
If STO meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $8.99, suggesting upside of 16.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 30.46 cents and EPS of 54.06 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.7, implying annual growth of N/A.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 10.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 28.93 cents and EPS of 44.16 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.6, implying annual growth of 9.8%.
Current consensus DPS estimate is 38.1, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 10.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
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.