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

Daily Market Reports | Jun 24 2024

An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listedequities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArenahas now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listedstocks, also enlarging the number of stocks that make up the FNArenauniverse.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)

BPT DTL DUG EMN HLI MAQ MRM NXT QBE RFF(2) TWE WA1

RFF RURAL FUNDS GROUP

REITs - Overnight Price: $2.07

Moelis rates ((RFF)) as Buy (1) -

Rural Funds announced the saleofa -50% interest in the Mayneland and Bamba Plains properties for around $39m, observes Moelis.

The transaction includes a 10-year CPI linkedlease agreement.

Rural Funds is retained as the farm manager,with the lease expected to yield between 5%-6%.

The analyst's forecasts are tweaked by -0.8% for FY24 and -1.3% for FY25.

Buy rating and $2.39 target unchanged,

This report was published on June 20, 2024.

Target price is $2.39 Current Price is $2.07 Difference: $0.32
If RFF meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 11.70 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.65.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 11.80 cents and EPS of 11.70 cents.
At the last closing share price the estimated dividend yield is 5.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.69.

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

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

Wilsons observesRural Fundshas entered into an agreement to lease two cropping properties, Mayneland and Baamba Plains, for 10 years and sell a -50% interest in these properties for $39m.

This transaction is expected to reduce the group'sgearing from 36% to 35% and decrease exposure to operating earnings, the analyst notes.

The lease terms include CPI annual indexation and a profit share mechanism.

Wilsons is reviewing earnings forecasts and retains a $2.49 target price and Overweight rating.

This report was published on June 24, 2024.

Target price is $2.49 Current Price is $2.07 Difference: $0.42
If RFF meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 11.70 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.48.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 12.20 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 5.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.16.

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

TWE TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco - Overnight Price: $12.63

Goldman Sachs rates ((TWE)) as Buy (1) -

Goldman Sachshighlightsstrategic growth driven by Penfolds global expansion and recent acquisitions like Frank Family Vineyards and DAOU are a positive forTreasury Wine Estates, as discussed at the company's recent market update.

Although the share price reaction was subdued, the broker believes the company is putting in place around 15% compound average growth in earnings before interest and tax through to FY27 and adjusts the price target accordingly.

There are no changes to the broker's earnings forecasts. Target price is lifted to $15.20 from $13.40 and a Buy rating is unchanged.

This report was published on June 20, 2024.

Target price is $15.20 Current Price is $12.63 Difference: $2.57
If TWE meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $13.78, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 35.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.3, implying annual growth of 52.7%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 43.00 cents and EPS of 61.00 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.1, implying annual growth of 18.4%.
Current consensus DPS estimate is 41.6, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.0.

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

WA1 WA1 RESOURCES LIMITED

Industrial Metals - Overnight Price: $17.27

Canaccord Genuity rates ((WA1)) as Buy (1) -

Canaccord Genuity analysts maintaina Speculative Buy rating for WA1 Resources with a price target of $27.50.

The broker highlightspositive initial metallurgical testwork results from the Luni deposit, showing high-grade concentrates with excellent recoveries.

The analysts believe findings support the potential for a conventional process, which could save time and money.

Financial forecasts remain unchanged, with further testwork planned to optimise beneficiation steps and assess variability across the deposit. The broker views the results as a decisive step towards proving the world-class status of the Luni deposit.

This report was published on June 19, 2024.

Target price is $27.50 Current Price is $17.27 Difference: $10.23
If WA1 meets the Canaccord Genuity target it will return approximately 59% (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

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.