Australian Broker Call *Extra* Edition – May 15, 2024

This story features ANZ GROUP HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: ANZ

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)

ANZ   APE   ASG   AUB   BMN   CKF   CWY   DUG   EDV   EVN   GEM   LTR   NST   PXA   SLR   THL   TIE   TLS   VIT   WBC   WGX  

ANZ    ANZ GROUP HOLDINGS LIMITED

Banks – Overnight Price: $28.01

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

ANZ Bank reported 1H24 results revealed cash earnings were down -7% year-over-year to $3,552m, slightly below Goldman Sachs' estimates.

The broker points to productivity gains with -$201m saved in the 1H24, and a robust capital position with a CET1 ratio of 13.5%.

Macroeconomic challenges and competitive pressures remain and the bank is focusing its strategy on productivity and improving the profitability of its Institutional business, the broker comments.

ANZ Bank also announced a $2bn on-market buyback. The analyst adjusts FY24 EPS forecast by -0.6% and 2.8% for FY25 EPS.

Buy rating, with the broker citing an attractive -30% valuation discount to peers. The target is lifted to $28.15 from $27.69.

This report was published on May 8, 2024.

Target price is $28.15 Current Price is $28.01 Difference: $0.14
If ANZ meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $27.57, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 223.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.4, implying annual growth of -4.8%.
Current consensus DPS estimate is 165.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 218.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.7, implying annual growth of 0.1%.
Current consensus DPS estimate is 167.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.4.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $12.45

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

The Canaccord Genuity analyst notes all states recorded double-digit sales growth in the April VFACTS data which rose 18.3%. 

Light vehicle sales rebounded due to a significant backlog and unlocking supply constraints, which the broker expect to support sales through to the end of 2024.

April sales for Toyota's were up 72.7% on the previous corresponding period, positively impacting Eagers Automotive, due to its overweight position to the brand.

There are no changes to forecasts and Canaccord Genuity points to some margin risks, but also believes the structural superiority of Eagers Automotive margins compared to peers puts it in a strong position.

Price target is set at $16.10, with a Buy rating maintained.

This report was published on May 3, 2024.

Target price is $16.10 Current Price is $12.45 Difference: $3.65
If APE meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $15.01, suggesting upside of 20.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 54.00 cents and EPS of 120.00 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 111.2, implying annual growth of 0.4%.
Current consensus DPS estimate is 71.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 64.00 cents and EPS of 160.00 cents.
At the last closing share price the estimated dividend yield is 5.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.9, implying annual growth of -1.2%.
Current consensus DPS estimate is 74.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 11.3.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $2.58

Moelis rates ((ASG)) as Buy (1) –

Logistics issues and port congestion posed delivery challenges for Autosports Group and impacted on luxury car brands like BMW, Mini, Audi, VW, and Mercedes-Benz, that it supplies for the 2024 period ending April, notes Moelis.

The analyst points to similar problems as highlighted by Qube Holdings ((QUB)) last week. Moelis adds industry sources remain upbeat on the demand for luxury cars.

The broker revises FY24 and FY25 EPS forecasts by -3.2% and 2.8%, respectively, which reflect temporary logistics challenges and an expected resolution to support future growth.

Buy rating and the target lifts to $3.40 from $3.20.

This report was published on May 6, 2024.

Target price is $3.40 Current Price is $2.58 Difference: $0.82
If ASG meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $3.08, suggesting upside of 19.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 18.90 cents and EPS of 36.70 cents.
At the last closing share price the estimated dividend yield is 7.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.4, implying annual growth of 8.8%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 7.3.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 16.40 cents and EPS of 31.90 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of -13.3%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 8.4.

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

AUB    AUB GROUP LIMITED

Insurance – Overnight Price: $31.27

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

AUB Group upgraded its FY24 underlying net profit after tax (UNPAT) guidance to the top end of the $161m to $171m range.

Goldman Sachs notes there are few details but management points to favorable trading momentum and the broker expects slightly beneficial foreign exchange (FX) assumptions.

Goldman Sachs forecasts UNPAT to be around $168m for FY24 and the company's guidance profit split between the first and second halves of 41% and 59%, respectively.

The broker makes no changes to earnings forecasts. Buy rating and $32.50 target unchanged.

This report was published on May 8, 2024.

Target price is $32.50 Current Price is $31.27 Difference: $1.23
If AUB meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $34.82, suggesting upside of 11.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 79.00 cents and EPS of 155.00 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.5, implying annual growth of 136.4%.
Current consensus DPS estimate is 76.3, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 20.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 89.00 cents and EPS of 171.00 cents.
At the last closing share price the estimated dividend yield is 2.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 169.5, implying annual growth of 9.7%.
Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.4.

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

BMN    BANNERMAN ENERGY LIMITED

Uranium – Overnight Price: $4.38

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

According to Petra Capital, the world is facing a 1970's style nuclear reactor build program, but likely at a larger scale, better distributed throughout the globe, and lasting throughout the 2030's and 2040's.

The analysts believe the industry is not prepared for the resurgence of demand as the world embraces nuclear energy.

To help meet this demand, the broker reminds investors Bannerman Energy has extensively de-risked the shovel-ready Etango project, which offers value and scale in a Tier 1 uranium jurisdiction.

The Buy rating and $4.93 target are maintained.

This report was published on May 3, 2024.

Target price is $4.93 Current Price is $4.38 Difference: $0.55
If BMN meets the Petra Capital target it will return approximately 13% (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.

Forecast for FY25:

Petra Capital 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 219.00.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $9.53

Jarden rates ((CKF)) as Upgrade to Overweight from Neutral (2) –

Jarden raises its target for Collins Foods to $10.25 from $10.00 and upgrades the rating to Overweight from Neutral. The company's shares have underperformed peers and the ASX200 by around -15% and -17%, respectively, over the past three months.

For FY25, the broker anticipates input costs will ease, particularly for feed and energy (Germany), and notes the significant roll-out plans by the new KFC master franchisee in Germany.

Also, the analysts believe around $20bn of tax cuts from July 1 should disproportionately benefit the quick service restaurant (QSR) category.

This report was published on May 6, 2024.

Target price is $10.25 Current Price is $9.53 Difference: $0.72
If CKF meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $12.28, suggesting upside of 28.8%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 51.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.6, implying annual growth of 374.3%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 63.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.1, implying annual growth of 24.2%.
Current consensus DPS estimate is 36.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.9.

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

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.71

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

Cleanaway Waste Management updated the market, maintaining its FY24 EBIT guidance around $350m against the Goldman Sachs estimate and consensus of $354m.

The company also revised its FY24 depreciation and amortization (D&A) range down to $360-370m from $370-390m, attributed to landfill optimisation efforts.

Interest expense guidance for FY24 increased to -$117m, exceeding both Goldman Sachs and consensus estimates,  and infers a -2% decrease in consensus NPAT.

A -$50m annual reduction in maintenance capital expenditure would lower FY25 guidance to $227m, representing approximately 56% of expected D&A.

 Regulatory changes are expected to increase landfill gate fees, enhancing the economics of Energy from Waste (EfW) projects, suggests the broker.

There are no changes to forecasts. The broker's $2.70 target is unchanged. Neutral.

This report was published on May 8, 2024.

Target price is $2.70 Current Price is $2.71 Difference: minus $0.01 (current price is over target).
If CWY 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 $2.80, suggesting upside of 3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of 706.1%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 34.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 21.5%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 28.2.

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

DUG    DUG TECHNOLOGY LIMITED

Cloud services – Overnight Price: $2.83

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

Canaccord Genuity views Dug Technology as well-positioned to capitalise on demand for its processing solutions, including the FWI Imaging, and expansion into new regions post the 3Q24 results.

Some of the key strategic aims include financing plans for compute, further investment in personnel, and a new Middle East office.

The recent services awards above US$60m p.a. and a strong services order book, around US$43m assist the FY25 revenue outlook, says the broker.

Near term the analyst lowers FY24 EBITDA by -28% due to a weak 4Q24 estimate and -19% for FY25 EBITDA forecast.

Buy rating unchanged and the price target is lifted to $3.20 from $2.90.

This report was published on May 2, 2024.

Target price is $3.20 Current Price is $2.83 Difference: $0.37
If DUG meets the Canaccord Genuity target it will return approximately 13% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 283.00.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.75.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $5.17

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

Goldman Sachs anticipates margin support for Endeavour Group in the 2H, after management reported 3Q results in line with expectations.

For the second quarter in a row, the group achieved market share gains against Coles Group ((COL)), while revenues for Hotel gaming
returned to being slightly positive, highlight the analysts.

The target rises to $6.30 from $6.20 and the Buy rating is retained.

This report was published on May 7, 2024.

Target price is $6.30 Current Price is $5.17 Difference: $1.13
If EDV meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.87, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 21.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.5, implying annual growth of -3.5%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 18.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 22.00 cents and EPS of 30.00 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 17.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.1, implying annual growth of 5.6%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 17.2.

Market Sentiment: 0.6
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: $3.83

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

Canaccord Genuity has reviewed its coverage of precious metals producers.

The $4.60 target is retained for Evolution Mining. Buy.

This report was published on May 6, 2024.

Target price is $4.60 Current Price is $3.83 Difference: $0.77
If EVN meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $4.26, suggesting upside of 11.2%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 25.2, implying annual growth of 182.8%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY25:

Current consensus EPS estimate is 38.8, implying annual growth of 54.0%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 9.9.

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

GEM    G8 EDUCATION LIMITED

Childcare – Overnight Price: $1.23

Moelis rates ((GEM)) as Buy (1) –

G8 Education reported a year-to-date increase in occupancy of 1.1% as of April 28, 2024, and a spot occupancy increase of 1.3% compared to the previous year at the AGM trading update.

Cost management remains strong, particularly in wage rostering and reduced agency usage, notes Moelis.

The company has exited 17 centres this year, which, the broker points out, have been a drain on earnings and an additional 14 centres are slated for divestment.

Moelis has adjusted its core occupancy growth forecast for 2024 and EPS forecasts for FY24 and FY25 have been revised  by -2.5% and -1.5%, respectively.

As per the broker, G8 Education is focusing on further improving occupancy and daily fee growth, along with additional labour efficiencies, to drive EBIT margin uplift from 10.3% in 2023 to 12%-15% in the medium term. 

Buy rating and $1.43 target retained.

This report was published on May 7, 2024.

Target price is $1.43 Current Price is $1.23 Difference: $0.2
If GEM meets the Moelis target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 4.90 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.14.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 5.50 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.42.

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $1.38

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

Canaccord Genuity attended Liontown Resources Kathleen Valley site visit, including a walkthrough of the open pit, Mt Mann underground development, and process plant.

Management did not provide guidance on operating costs or capital expenditure ahead of a decision ahead of on a 4Mt p.a. expansion.

Construction appears to be meeting expectations for first production to start around mid-2024 and the analyst's base case is for 3Mt p.a. producing spodumene concentrate at competitive cash costs. 

Recent financing arrangements, including a $550m debt facility agreement, are expected to comfortably fund the remaining development and working capital requirements. 

Hold rating and $1.30 target unchanged.

This report was published on May 6, 2024.

Target price is $1.30 Current Price is $1.38 Difference: minus $0.08 (current price is over target).
If LTR meets the Canaccord Genuity target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.34, suggesting downside of -2.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.5, 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 N/A.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.3, 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 41.8.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $14.57

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

Canaccord Genuity has reviewed its coverage of precious metals producers.

The $19.15 target is retained for Northern Star Resources. Buy.

This report was published on May 6, 2024.

Target price is $19.15 Current Price is $14.57 Difference: $4.58
If NST meets the Canaccord Genuity target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $15.13, suggesting upside of 3.8%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 49.7, implying annual growth of -2.1%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 29.3.

Forecast for FY25:

Current consensus EPS estimate is 95.9, implying annual growth of 93.0%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 15.2.

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

PXA    PEXA GROUP LIMITED

Real Estate – Overnight Price: $14.58

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

Pexa Group's 3Q trading update came with management reiterating full-year guidance and longer-term UK targets.

Goldman Sachs assessed the key positives as a 9% increase in exchange transfer volumes and successful platform share gains.

UK lender partnerships are progressing, with a full rollout of the 48-hour remo solution anticipated by the end of 2024

Analysts concerns include a -22% decrease in refinance volumes and lower than expected digital revenue growth for 2H24.

The analysts revise FY25-26 EBITDA forecasts by 1%-2%  due to narrowing losses in the UK, offset by lesser earnings from the digital segment.

Neutral rating maintained and the target is raised 8% to $14.20.

This report was published on May 8, 2024.

Target price is $14.20 Current Price is $14.58 Difference: minus $0.38 (current price is over target).
If PXA meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.24, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, 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 92.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 39.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.8, implying annual growth of 107.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 44.5.

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

SLR    SILVER LAKE RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.53

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

Canaccord Genuity has reviewed its coverage of precious metals producers.

The $1.80 target is retained for Silver Lake Resources. Buy.

This report was published on May 6, 2024.

Target price is $1.80 Current Price is $1.53 Difference: $0.27
If SLR 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 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.91.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.93.

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

THL    TOURISM HOLDINGS LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.72

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

Wilsons slashes its target for Tourism Holdings to $2.12 from $4.03 after management lowered FY24 profit guidance by -31% at the mid-point of the range, largely due to slower sales volumes and margins.

Part of the broker's reduced target relates to a change in valuation methodology.

All recreation vehicle (RV) segments (ex Canada) were negatively impacted, but Australia was responsible for more than 50% of reduced earnings expectations.

Management confirmed inbound tourism volumes remain positive, with the Tourism segment performing in line with expectations, and reaffirmed its NZ$100m FY26 NPAT target.

The Overweight rating is maintained.

This report was published on May 7, 2024.

Target price is $2.12 Current Price is $1.72 Difference: $0.4
If THL meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 7.58 cents and EPS of 21.92 cents.
At the last closing share price the estimated dividend yield is 4.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.85.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 12.49 cents and EPS of 27.10 cents.
At the last closing share price the estimated dividend yield is 7.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.35.

This company reports in NZD. 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

TIE    TIETTO MINERALS LIMITED

Gold & Silver – Overnight Price: $0.67

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

Canaccord Genuity has reviewed its coverage of precious metals producers.

The 68c target is retained for Tietto Minerals. Buy.

This report was published on May 6, 2024.

Target price is $0.68 Current Price is $0.67 Difference: $0.01
If TIE meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).

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

TLS    TELSTRA GROUP LIMITED

Telecommunication – Overnight Price: $3.65

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

Post the FY24 earnings guidance downgrade from Spark New Zealand ((SPK)) and the -8% underperformance of the share price this year, Goldman Sachs considers whether Telstra Group can achieve EBITDA of $8.6bn in FY25.

The broker is expecting a full CPI mobile price increase in July 2024 and this remains the main uncertainty with Mobile representing 70% of the company's earnings.

Productivity savings in the Fixed Enterprise segment should boost EBITDA earnings for that segment by 9% and the analyst is constructive on CPI-linked Infrastructure payments, particularly from the NBN recurring stream

Buy rating and target price of $4.55 retained.

This report was published on May 8, 2024.

Target price is $4.55 Current Price is $3.65 Difference: $0.9
If TLS meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $4.38, suggesting upside of 20.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 9.6%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 19.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.8, implying annual growth of 8.2%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.4.

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

VIT    VITURA HEALTH LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.10

Petra Capital rates ((VIT)) as Speculative Buy (1) –

The Supreme Court of Queensland upheld the CanView services agreement between Vitura Health and C4C Pty Ltd, allowing Vitura Health  to either acquire or purchase the current technology stack or migrate to a compatible technology stack within a 15-month transition period.

Petra Capital views this as a positive development for the company, with the stock under pressure post 1H24 earnings and resignation of the CEO.

The analysts retains earnings assumptions. Petra Capital retains a Speculative Buy rating and a 14c target price.

This report was published on May 6, 2024.

Target price is $0.14 Current Price is $0.10 Difference: $0.035
If VIT meets the Petra Capital target it will return approximately 33% (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 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 9.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.70 cents.
At the last closing share price the estimated dividend yield is 9.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.18.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $26.60

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

Westpac's 1H cash earnings (EBITDA) beat forecasts by Goldman Sachs and consensus by 1.7% and 1.6%, respectively, due to lower-than-expected bad and doubtful debts (BDDs).

On top of the 75c interim dividend (consensus 71c), a 15c special dividend was declared. The on-market buyback was also topped up by $1bn.

The Neutral rating is retained given Goldman's reservations as to whether management can stick to budget on its technology simplification plan and concerns over the current inflationary environment.

The broker's target is increased to $24.10 from $23.41 due to higher forecast net interest margins (NIM's), slightly lower expenses, and lower BDDs, partially offset by a small reduction in average interest earnings.

This report was published on May 7, 2024.

Target price is $24.10 Current Price is $26.60 Difference: minus $2.5 (current price is over target).
If WBC meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.22, suggesting downside of -5.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 165.00 cents and EPS of 188.00 cents.
At the last closing share price the estimated dividend yield is 6.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 190.6, implying annual growth of -7.2%.
Current consensus DPS estimate is 168.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 150.00 cents and EPS of 185.00 cents.
At the last closing share price the estimated dividend yield is 5.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 193.1, implying annual growth of 1.3%.
Current consensus DPS estimate is 155.5, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 13.8.

Market Sentiment: -0.7
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: $2.16

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

Canaccord Genuity reviewed its coverage of precious metals producers.

The $3.35 target is retained for Westgold Resources. Buy.

This report was published on May 6, 2024.

Target price is $3.35 Current Price is $2.16 Difference: $1.19
If WGX meets the Canaccord Genuity target it will return approximately 55% (excluding dividends, fees and charges).

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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