Australian Broker Call *Extra* Edition – Jun 19, 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   ASX (2)   CAJ (3)   CYG   DRR   EVN   IDX (3)   MEI   OCC   ORG   REH   WC8  

AEE    AURA ENERGY LIMITED

Energy – Overnight Price: $0.14

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

Aura Energy updated its global Mineral Resource Estimate (MRE)  by 55% to 91 Mlb U3O8, which is viewed as a “considerable” increase by Petra Capital.

The broker highlights the resource growth supports a base case 2 Mlbpa development with potential upside to 3.5 Mlbpa due to the modular plant design.

The analyst views the funding issue positively with Orimico appointed to arrange debt funding. A debt-to-equity funding split of 55/45 anticipated.

A final investment decision is expected late 2024 or early 2025.

The Buy rating and 45c target are retained.

This report was published on June 13, 2024.

Target price is $0.45 Current Price is $0.14 Difference: $0.31
If AEE meets the Petra Capital target it will return approximately 221% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

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 7.00.

Forecast for FY26:

Petra Capital forecasts a full year FY26 EPS of minus 2.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 7.00.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $58.40

Goldman Sachs rates ((ASX)) as Sell (5) –

At the Investor Day Briefing, ASX guided to capex of some -$160-180m per annum from FY25 to FY27 which implies cumulative spend on CHESS, derivatives, and maintenance capex will reach around -$510m, with a reduction expected from FY28, Goldman Sachs highlights.

The analyst forecasts depreciation and amortisation will weigh on earnings growth, with an estimated -$50m charge in FY25, increasing gradually through to FY30.

Operating expenses are expected to grow between 4%-7% into FY25, contributing to higher expense growth over the medium term. Revenue growth potential could mitigate some earnings pressure.

Earnings forecasts are adjusted further into the future. Sell rating and the target price is lowered to $55.45.

This report was published on June 14, 2024.

Target price is $55.45 Current Price is $58.40 Difference: minus $2.95 (current price is over target).
If ASX meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $61.34, suggesting upside of 5.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 209.00 cents and EPS of 245.00 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.8, implying annual growth of 50.0%.
Current consensus DPS estimate is 209.5, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 216.00 cents and EPS of 254.00 cents.
At the last closing share price the estimated dividend yield is 3.70%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 252.2, implying annual growth of 2.6%.
Current consensus DPS estimate is 215.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 23.2.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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Jarden rates ((ASX)) as Neutral (3) –

Jarden highlights the updated medium-term capital expenditure plans announced by the ASX came in above expectations.

FY25 total cost growth guidance of 6-9% is above consensus estimates, the broker notes, impacting FY25 profit before tax by -2.0% at the top end of management’s guidance.

The analyst’s EPS forecast for FY25 has been revised down by -3.3% and Jarden sees limited upside potential given the moderate 4% compound average EPS growth expected.

Neutral rating and the target lowered to $61.10 from $63.70.

This report was published on June 13, 2024.

Target price is $61.10 Current Price is $58.40 Difference: $2.7
If ASX meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $61.34, suggesting upside of 5.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 210.60 cents and EPS of 247.80 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.8, implying annual growth of 50.0%.
Current consensus DPS estimate is 209.5, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 219.00 cents and EPS of 257.70 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 22.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 252.2, implying annual growth of 2.6%.
Current consensus DPS estimate is 215.1, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 23.2.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.29

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

In a positive for both parties, according to Canaccord Genuity, Integral Diagnostics has made a takeover/merger proposal bid for peer diagnostic imaging company Capitol Health. It is a 100% scrip merger which provides 0.12849 Integral shares per Capitol share.

The broker believes the deal is priced fairly and helps mitigate balance sheet pressure for Integral Diagnostics and will drive synergies in what is becoming a more competitive market.

Around -$10m of annual cost synergies are also expected within two years, coming from headcount, indirect procurement, and savings on costs associated with maintaining ASX listing.

The Buy rating and 27c target are maintained for Capitol Health.

This report was published on June 18, 2024.

Target price is $0.27 Current Price is $0.29 Difference: minus $0.025 (current price is over target).
If CAJ meets the Canaccord Genuity target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.31, suggesting upside of 5.1%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 23.7, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 1.2.

Forecast for FY25:

Current consensus EPS estimate is 25.2, implying annual growth of 6.3%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 1.2.

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

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Jarden rates ((CAJ)) as Neutral (3) –

The proposed merger of Integral Diagnostics with Capitol Health would result in EPS accretion for Integral in FY25 and FY26 of 14.6% and 10.6%, respectively, according to Jarden.

This forecast by the broker is consistent with management guidance for “double-digit pro forma EPS accretion in FY25”.

The analysts see an opportunity for the combined group around the recent deregulation of magnetic resonance imaging (MRI) licenses announced at the Federal Budget in May 2024.

Integral has seven partial licenses and Capitol 10, resulting in 17 MRIs to deploy across an expanded clinic network to win market share, explains Jarden.

The conditional, non-binding merger proposal involves the provision of 0.12849 Integral Diagnostics shares per Capitol Health share, or $0.326 per share.  The newly formed entity would be owned by shareholders of Integral and Capitol in the ratio of 63%:37%.

The Neutral rating and 27c target are maintained for Capitol Health.

This report was published on June 18, 2024.

Target price is $0.27 Current Price is $0.29 Difference: minus $0.025 (current price is over target).
If CAJ meets the Jarden target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.31, suggesting upside of 5.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 1.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 29.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.7, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 1.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.30 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.2, implying annual growth of 6.3%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 1.2.

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

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Wilsons rates ((CAJ)) as Market Weight (3) –

While noting the attractiveness in creating a large, listed player in radiology via the merger of Integral Diagnostics and Capitol Health, Wilsons notes achieving management’s -$10m target for cost synergies will be vital to ultimate success.

Capitol has long been regarded as an attractive target, according to the broker, and its clinics will markedly expand Integral’s presence in Victoria, Western Australia and Tasmainia.

Scale is the most significant benefit of a merger, suggest the analysts, with the combined entity matching the size of Lumus Imaging, with I-MED still a significantly larger peer.

Integral intends to acquire 100% of Capitol’s shares for $0.326/share, a 33% increase on the last close for Capitol shares. The broker’s Market Weight rating and 27c target are kept, but both are under review.

This report was published on June 18, 2024.

Target price is $0.27 Current Price is $0.29 Difference: minus $0.025 (current price is over target).
If CAJ meets the Wilsons target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.31, suggesting upside of 5.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 1.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 3.39%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 29.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.7, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 1.2.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 1.10 cents and EPS of 1.30 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.2, implying annual growth of 6.3%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 1.2.

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

CYG    COVENTRY GROUP LIMITED

Hardware & Equipment – Overnight Price: $1.38

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

Petra Capital transfers coverage of Coventry Group to a new analyst and retains a Buy rating and $2.50 target price.

The analyst makes no changes to the earnings forecast.

The broker is forecastings revenue growth of 15.1% in FY25 and 8.5% the year after, including a 12-month contribution from Steelmasters.

Margins are also anticipated to improve off the FY24 levels. Petra Capital views the stock as fundamentally undervalued.

Buy rating and $2.50 target unchanged.

This report was published on June 13, 2024.

Target price is $2.50 Current Price is $1.38 Difference: $1.12
If CYG meets the Petra Capital target it will return approximately 81% (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 3.50 cents and EPS of 10.60 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.02.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 8.00 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.11.

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

DRR    DETERRA ROYALTIES LIMITED

Iron Ore – Overnight Price: $4.12

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

Deterra Royalties announced a cash offer to acquire Trident Royalties for -GBP144m ($276m), funded via a GBP150m bridge loan.

Canaccord Genuity notes Trident’s portfolio is primarily exposed to lithium and includes royalties and streams generating free cash flow, expected to diversify Deterra Royalties’ earnings.

However, this acquisition may impact on future dividend yield, as the dividend policy changes to 50% of net profit payout, highlights the broker.

The Hold rating is retained and $5.30 target price are unchanged.

This report was published on June 14, 2024.

Target price is $5.30 Current Price is $4.12 Difference: $1.18
If DRR meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $4.90, suggesting upside of 18.9%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 32.4, implying annual growth of 12.3%.
Current consensus DPS estimate is 31.9, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY25:

Current consensus EPS estimate is 33.1, implying annual growth of 2.2%.
Current consensus DPS estimate is 28.9, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 12.4.

Market Sentiment: 0.2
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: $3.58

Jarden rates ((EVN)) as Underweight (4) –

Evolution Mining downgraded FY24 production estimates due to operational challenges, including heavy rainfall and seismic activity affecting several sites.

Jarden lowers projected FY24 production to 716koz.

The broker points to an estimated cash position of $289m due to the higher gold and copper prices, but capital expenditure guidance for key projects remains uncertain, potentially impacting future production and costs

The Underweight rating is maintained and the target adjusted to $2.91 from $3.02.

This report was published on June 13, 2024.

Target price is $2.91 Current Price is $3.58 Difference: minus $0.67 (current price is over target).
If EVN meets the Jarden target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.31, suggesting upside of 20.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 9.00 cents and EPS of 22.20 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 172.7%.
Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 11.00 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 3.07%.
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 41.7, implying annual growth of 71.6%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 8.6.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $2.50

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

In a positive for both parties, according to Canaccord Genuity, Integral Diagnostics has made a takeover/merger proposal bid for peer diagnostic imaging company Capitol Health. It is a 100% scrip merger, which provides 0.12849 Integral shares per Capitol share.

The broker believes the deal is priced fairly and helps mitigate balance sheet pressure for Integral Diagnostics and will drive synergies in what is becoming a more competitive market.

Around -$10m of annual cost synergies are also expected within two years, coming from headcount, indirect procurement, and savings on costs associated with maintaining ASX listing.

The Hold rating and $2.10 target are maintained for Integral Diagnostics.

This report was published on June 18, 2024.

Target price is $2.10 Current Price is $2.50 Difference: minus $0.4 (current price is over target).
If IDX meets the Canaccord Genuity target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.35, suggesting downside of -6.0%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 7.9, implying annual growth of -26.6%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.6.

Forecast for FY25:

Current consensus EPS estimate is 10.7, implying annual growth of 35.4%.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.4.

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

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Jarden rates ((IDX)) as Neutral (3) –

The proposed merger of Integral Diagnostics with Capitol Health ((CAJ)) would result in EPS accretion for Integral in FY25 and FY26 of 14.6% and 10.6%, respectively, according to Jarden.

This forecast by the broker is consistent with management guidance for “double-digit pro forma EPS accretion in FY25”.

The analysts see an opportunity for the combined group around the recent deregulation of magnetic resonance imaging (MRI) licenses announced at the Federal Budget in May 2024.

Integral has seven partial licenses and Capitol 10, resulting in 17 MRIs to deploy across an expanded clinic network to win market share, explains Jarden.

The conditional, non-binding merger proposal involves the provision of 0.12849 Integral Diagnostics shares per Capitol Health share, or $0.326 per share.  The newly formed entity would be owned by shareholders of Integral and Capitol in the ratio of 63%:37%.

The Neutral rating and $2.59 target are maintained for Integral Diagnostics.

This report was published on June 18, 2024.

Target price is $2.59 Current Price is $2.50 Difference: $0.09
If IDX meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $2.35, suggesting downside of -6.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 6.00 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 33.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of -26.6%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 6.50 cents and EPS of 9.90 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 35.4%.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.4.

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

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Wilsons rates ((IDX)) as Market Weight (3) –

While noting the attractiveness in creating a large, listed player in radiology via the merger of Integral Diagnostics and Capitol Health, Wilsons notes achieving management’s -$10m target for cost synergies will be vital to ultimate success.

Capitol has long been regarded as an attractive target, according to the broker, and their clinics will markedly expand Integral’s presence in Victoria, Western Australia and Tasmainia.

Scale is the most significant benift of a merger, suggest the analysts, with the combined entity matching the size of Lumus Imaging, with I-MED still a significantly larger peer.

Integral intends to acquire 100% of Capitol’s shares for $0.326/share, a 33% increase on the last close for Capitol shares. The broker’s Market Weight rating and $2.12 target for Integral Diagnostics are under review.

This report was published on June 18, 2024.

Target price is $2.12 Current Price is $2.50 Difference: minus $0.38 (current price is over target).
If IDX meets the Wilsons target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.35, suggesting downside of -6.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 6.00 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 30.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of -26.6%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.6.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 7.10 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 35.4%.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.4.

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

MEI    METEORIC RESOURCES NL

Gold & Silver – Overnight Price: $0.17

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

Meteoric Resources reported a resource update for the Capao do Mel license at its Caldeira rare earth project in Brazil, revealing a high-grade core that significantly enhances project economics, Petra Capital believes.

The analyst views the release of the Scoping Study as potential “de-risking” event for investors as it will confirm Meteoric Resources can be potentially profitable at spot prices.

Petra Capital notes the study is due in July 2024 with the Figuera Resource Update in 3Q2024, construction permit and a final investment decission by late 2025.

First production of rare earth carbonate by mid-2027 is possible, the broker suggests. No changes to earnings forecasts.

Buy rating and 38c target remain.

This report was published on June 14, 2024.

Target price is $0.38 Current Price is $0.17 Difference: $0.21
If MEI meets the Petra Capital target it will return approximately 124% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Petra Capital forecasts a full year FY25 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 34.00.

Forecast for FY26:

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

OCC    ORTHOCELL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.36

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

Petra Capital believes the application for SmrtGraft in Australia by Orthocell could introduce a third revenue stream for the Celgro platform, enhancing its potential without much additional cost.

SmrtGraft is anticipated to be approved by June 2025 in Australia, the broker highlights, with a broader market applicability across multiple tendon repairs. A US market entry is expected a few years later.

Remplir, the company’s nerve repair product, is on track for US approval by 1Q2025, with existing distribution synergies in place through Device Technologies.

No changes have been made to earnings forecasts. $1.28 target and Buy rating unchanged.

This report was published on June 14, 2024.

Target price is $1.28 Current Price is $0.36 Difference: $0.915
If OCC meets the Petra Capital target it will return approximately 251% (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 4.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 9.13.

Forecast for FY25:

Petra Capital forecasts a full year FY25 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 13.04.

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

ORG    ORIGIN ENERGY LIMITED

Infrastructure & Utilities – Overnight Price: $10.41

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

Origin Energy updated its distribution policy at the Investor Briefing and is now targeting a minimum of 50% of free cashflow payout, up from 30-50%.

Management also aims to expand its renewables and storage portfolio to 4.0-5.0 GW by FY30, increasing its investment target by 1.5-2.5 GW through the Yanco Delta windfarm and additional battery, wind, and solar projects, notes Jarden.

Origin Energy continues to project electricity gross profit of $25-40/MWh and a gas gross profit margin of $3-4/GJ in the medium term, with lower APLNG costs enhancing overall profitability.

Jarden tweaks its EPS estimates for FY24-FY25 by -0.1% and -3.0%, respectively. Target price adjusted to $10.40 from $10.61 and Overweight rating maintained.

This report was published on June 13, 2024.

Target price is $10.40 Current Price is $10.41 Difference: minus $0.01 (current price is over target).
If ORG meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.02, suggesting downside of -3.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 55.00 cents and EPS of 70.50 cents.
At the last closing share price the estimated dividend yield is 5.28%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 72.6, implying annual growth of 18.4%.
Current consensus DPS estimate is 58.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 52.50 cents and EPS of 90.70 cents.
At the last closing share price the estimated dividend yield is 5.04%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.3, implying annual growth of 16.1%.
Current consensus DPS estimate is 62.4, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.3.

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

REH    REECE LIMITED

Furniture & Renovation – Overnight Price: $25.92

Goldman Sachs rates ((REH)) as Initiation of coverage with Sell (5) –

Goldman Sachs initiates coverage of Reece with a Sell rating and a $23.35 target price.

The broker views the A&NZ business as mature with limited growth potential, generating 44% of group revenue and 59% of EBITDA.

The US market generates 56% of revenue and offers growth opportunities through store expansions and margin improvements, but these are expected to be long-dated. The analyst forecasts 7% EBITDA compound annual growth for this segment over three years.

Goldman Sachs assesses the stock is trading above its historical valuations and at an excessive premium.

Sell rating and $23.35 target.

This report was published on June 13, 2024.

Target price is $23.35 Current Price is $25.92 Difference: minus $2.57 (current price is over target).
If REH meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $21.37, suggesting downside of -17.6%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 26.00 cents and EPS of 65.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 39.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.0, implying annual growth of 6.6%.
Current consensus DPS estimate is 25.1, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 40.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 27.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 39.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.9, implying annual growth of 1.4%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 39.9.

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

WC8    WILDCAT RESOURCES LIMITED

New Battery Elements – Overnight Price: $0.35

Canaccord Genuity rates ((WC8)) as Speculative Buy (1) –

Wildcat Resources reported further results from the Tabba Tabba Lithium Project, notes Canaccord Genuity.

The broker expects maiden resources for Tabba Tabba in the 2H2024.

Speculative Buy rating and $1 target unchanged.

This report was published on June 13, 2024.

Target price is $1.00 Current Price is $0.35 Difference: $0.65
If WC8 meets the Canaccord Genuity target it will return approximately 186% (excluding dividends, fees and charges).

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

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