Australian Broker Call *Extra* Edition – Jul 01, 2024

This story features ANSON RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: ASN

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)

ASN   BGL   CCX   CKF (3)   CTT   EVN (2)   GDG   HLS   JHX   LLL   LOT   MEI   PYC   SPK  

ASN    ANSON RESOURCES LIMITED

New Battery Elements – Overnight Price: $0.11

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

Koch Technology Solutions has provided US$250,000 in funding using the Koch’s Li-Pro DLE technology for Anson Resources’ Green River project in Utah, notes Petra Capital.

The broker highlights the collaboration with Koch may enhance the company’s access to US government grants and loans, and the project could become a priority due to faster approvals on private land.

Buy rating and 41c target maintained.

This report was published on June 26, 2024.

Target price is $0.41 Current Price is $0.11 Difference: $0.3
If ASN meets the Petra Capital target it will return approximately 273% (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 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 55.00.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 36.67.

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

BGL    BELLEVUE GOLD LIMITED

Gold & Silver – Overnight Price: $1.78

Goldman Sachs rates ((BGL)) as Initiation of coverage with Buy (1) –

Goldman Sachs initiates coverage of Bellevue Gold with a Buy rating and $2.20 target price.

The broker highlights the company’s successful ramp-up to full production, targeting 200kozpa gold production by FY25 at an all-in-sustaining cost of $1,450/oz. 

Additionally, studies are in progress for a mill expansion to 1.5Mtpa by FY27, potentially increasing gold production to around 250koz. 

Compared to its peers in the mid-tier gold sector, the analyst believes the company is undervalued.

Buy. $2.20 target.

This report was published on June 26, 2024.

Target price is $2.20 Current Price is $1.78 Difference: $0.415
If BGL meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $2.08, suggesting upside of 16.4%(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 7.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, 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 26.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.6, implying annual growth of 173.5%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 9.6.

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

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $0.12

Petra Capital rates ((CCX)) as Downgrade to Hold from Buy (3) –

Petra Capital has downgraded City Chic Collective from Buy to Hold, with a revised price target of 17c down from 60c.

The company announced what the broker considered to be a depressed trading update for FY24, including the divestment of Avenue for US$12m and an equity capital raise of $23m at 15c.

Group sales are expected to fall -30% to around $187m in FY24, with both A&NZ and Americas regions weak.

Petra Capital downgrades EBITDA estimates by between -53%-74%, citing renewed weakness in City Chic sales despite new product arrivals for FY24 and FY25, respectively.

This report was published on June 25, 2024.

Target price is $0.17 Current Price is $0.12 Difference: $0.045
If CCX meets the Petra Capital target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $0.31, suggesting upside of 141.5%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is -11.9, 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:

Current consensus EPS estimate is 0.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 21.7.

Market Sentiment: 0.0
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: $9.10

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

Canaccord Genuity assesses a “very respectable” FY24 result for Collins Foods though FY25 may be tougher with a slow start to FY25 same store sales (SSS) and an ongoing need to offer value to the consumer.

Management increased the emphasis on potential M&A activity, notes the broker, having formerly noted a sub-scale network in Europe.

The analyst retains a Hold rating while awaiting an upturn for SSS and lowers the target price to $9.20 from $9.25.

This report was published on June 26, 2024.

Target price is $9.20 Current Price is $9.10 Difference: $0.1
If CKF meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $11.27, suggesting upside of 24.9%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 28.50 cents and EPS of 51.30 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.9, implying annual growth of 12.2%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 34.50 cents and EPS of 61.20 cents.
At the last closing share price the estimated dividend yield is 3.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.7, implying annual growth of 20.0%.
Current consensus DPS estimate is 35.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 13.9.

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

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

Despite an around 2% beat against Jarden’s FY24 earnings (EBIT) forecast, the broker eases its target for Collins Foods to $10.01 from $10.25 as sales trends slowed in the 2H and early-FY25.

Management expects trends will improve through the 2H of FY25 after noting recent stabilisation in transactions as the company drives its innovation and value agenda in conjunction with Yum! Brands.

The Overweight rating is maintained.

This report was published on June 26, 2024.

Target price is $10.01 Current Price is $9.10 Difference: $0.91
If CKF meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $11.27, suggesting upside of 24.9%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 56.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.9, implying annual growth of 12.2%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 73.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.7, implying annual growth of 20.0%.
Current consensus DPS estimate is 35.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 13.9.

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

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

Stronger margins in KFC Australia for Collins Foods drove an 8% beat against Wilsons’ profit forecast. Profit growth of 16% was driven by store count expansion and positive same store sales (SSS) growth, explain the analysts.

While SSS growth began FY25 poorly, the broker suggests the KFC brand is well placed to navigate the current challenging consumer environment.

Even though a margin recovery has been pushed out to FY26, a higher baseline has been established courtesy of the FY24 result, highlights Wilsons.

The Overweight rating is maintained and the target rises to $12.83 from $12.72.

This report was published on June 26, 2024.

Target price is $12.83 Current Price is $9.10 Difference: $3.73
If CKF meets the Wilsons target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $11.27, suggesting upside of 24.9%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 31.50 cents and EPS of 52.80 cents.
At the last closing share price the estimated dividend yield is 3.46%.
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 53.9, implying annual growth of 12.2%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 39.00 cents and EPS of 66.50 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.7, implying annual growth of 20.0%.
Current consensus DPS estimate is 35.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 13.9.

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

CTT    CETTIRE LIMITED

Apparel & Footwear – Overnight Price: $1.17

Petra Capital rates ((CTT)) as Downgrade to Hold from Buy (3) –

Petra Capital has downgraded Cettire to Hold from Buy, with a revised price target of $1.20, down from $5.10.

Management provided a very weak trading update with FY24 EBITDA of $32m-$35m, significantly below previous estimates of $45.1m, highlights the analyst.

The update points to a notable margin squeeze, softening demand, and increased promotional activity, Petra Capital observes.

Future risks include the extent to which suppliers fund promotions versus the company, and reduced visibility in forecasting margins.

The broker cuts EBITDA forecasts by -25% to -40%, reflecting lower revenue and increased margin sensitivity to the consumer cycle for FY24 to FY26, respectively.

Hold rating. $1.20 target.

This report was published on June 25, 2024.

Target price is $1.20 Current Price is $1.17 Difference: $0.03
If CTT meets the Petra Capital target it will return approximately 3% (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 5.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.27.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.21.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $3.50

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

Goldman Sachs has reviewed site visits to Northparkes and Cowal, which clarify the medium-term outlook and reduce uncertainty for both Evolution Mining projects.

The analyst forecasts Cowal will produce an average of 320kozpa over the next five years, with increased feed grades from underground operations and support from E42 Stage H and I open pits.

The Northparkes valuation is increased due to deferred capital, though this is offset by higher medium-term capital expenditure at Cowal.

Goldman Sachs adjusts EPS forecasts by 1% for FY24 and -20% for FY25. Target price is lowered to $3.21 from $3.44 and Buy rating retained.

This report was published on June 25, 2024.

Target price is $3.21 Current Price is $3.50 Difference: minus $0.29 (current price is over target).
If EVN meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.04, suggesting upside of 17.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 4.00 cents and EPS of 25.10 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of 178.3%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 5.50 cents and EPS of 35.60 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.2, implying annual growth of 70.2%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 8.2.

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

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

After a Cowal site visit, the analyst at Jarden gleaned implied total capex over the next five years for the Stage 1 open pit was greater than forecasts by the broker and the consensus range by $120m/year and between $130-200m/year, respectively.

On a second site visit, management also advised the sub-level caving (SLC) development at the Northparkes operations will start in the coming weeks at a cost of -$45-60m over FY25-27.

The broker’s Underweight rating is maintained and the target adjusted to $2.84 from $2.91 partly because of change to short and long-term production forecasts and the capex program.

This report was published on June 25, 2024.

Target price is $2.84 Current Price is $3.50 Difference: minus $0.66 (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 $4.04, suggesting upside of 17.1%(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 18.10 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of 178.3%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 11.00 cents and EPS of 36.50 cents.
At the last closing share price the estimated dividend yield is 3.14%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.2, implying annual growth of 70.2%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 8.2.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $2.60

Moelis rates ((GDG)) as Buy (1) –

Moelis reinstates coverage of Generation Development post being under restriction with a Buy rating and $2.94 target.

The broker views the acquisition of the remaining 61.9% of Lonsec Holdings for -$197.4m to be EPS positive in FY25.

Also, the company’s trading update revealed strong sales momentum, particularly in LifeIncome, and management is focused on supporting Lonsec’s growth plan, the broker notes.

Moelis finds the 28x forward PER valuation as attractive with a “significant growth profile” of 33% compound EPS growth between FY23 and FY26.

Buy. Target $2.94.

This report was published on June 25, 2024.

Target price is $2.94 Current Price is $2.60 Difference: $0.34
If GDG meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 2.00 cents and EPS of 5.10 cents.
At the last closing share price the estimated dividend yield is 0.77%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 50.98.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 2.90 cents and EPS of 7.40 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 35.14.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $1.50

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

Management at Healius now expects FY24 EBITDA of between $345-350m and EBIT of $60-65m, which represent -10.4% and -37.5% downgrades, respectively, to prior guidance midpoints.

More positively, pathology volume growth of 3.9% for the five months to May is tracking ahead of the 1-3% business-as-usual (BAU) growth which management previously guided to in February, explain the analysts.

However, this growth still suggests loss of market share, observes the broker, as Medicare volumes grew by 4.4% over the same period.

The Underweight rating is retained and the target falls to $1.22 from $1.26.

This report was published on June 26, 2024.

Target price is $1.22 Current Price is $1.50 Difference: minus $0.28 (current price is over target).
If HLS 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 $1.57, suggesting upside of 5.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 107.14.

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:

Jarden forecasts a full year FY25 dividend of 0.90 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 53.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.3, implying annual growth of N/A.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 34.4.

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

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $47.30

Jarden rates ((JHX)) as Buy (1) –

During a two-day investor tour attended by Jarden analysts, management at James Hardie Industries noted an aspiration to triple earnings (EBITDA) in North America over the next decade.

Management expects to achieve this target given modest market growth, minimum primary demand growth of 4% per year, positive average selling price (ASP) growth and operating leverage courtesy of volumes and SG&A expense.

The current on-market buyback has been raised by US$50m to US$300m (currently 75% complete), and the broker is not ruling out a similar sized program being announced later this year.

James Hardie has compelling long-term investment traits, according to Jarden, to grow share profitably through the cycle in a capital-efficient manner. Buy rating and $54 target are unchanged.

This report was published on June 26, 2024.

Target price is $54.00 Current Price is $47.30 Difference: $6.7
If JHX meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $55.28, suggesting upside of 18.2%(ex-dividends)
The company’s fiscal year ends in March.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 248.25 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 237.7, 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 19.7.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 288.05 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 283.9, implying annual growth of 19.4%.
Current consensus DPS estimate is 36.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 16.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

LLL    LEO LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.51

Canaccord Genuity rates ((LLL)) as Downgrade to Hold from Speculative Buy (3) –

Canaccord Genuity analysts have downgraded their rating for Leo Lithium to Hold from Speculative Buy, lowering the price target to $0.50 from $0.80.

The downgrade reflects increased sovereign challenges in Mali and adjustments to financial projections following the sale of Goulamina to Ganfeng for US$343m.

The sale, approved by the Mali government, results in Leo Lithium ceasing project involvement by November 2024. Financial forecasts have been updated, with FY24 EBITDA now expected to be -$7.4m, reflecting better cost management, but FY25 EBITDA revised to $10m.

The broker views the transaction and subsequent capital return as steps to mitigate political risks and improve shareholder returns.

This report was published on June 21, 2024.

Target price is $0.50 Current Price is $0.51 Difference: minus $0.005 (current price is over target).
If LLL meets the Canaccord Genuity target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company’s fiscal year ends in December.

Forecast for FY24:

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

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 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 50.50.

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

LOT    LOTUS RESOURCES LIMITED

Uranium – Overnight Price: $0.34

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

Lotus Resources has completed the first drilling at the Letlhakane mine in Botswana since acquisition in 2023. While the primary aim was to convert the inferred resource to indicated and measured, the results so far suggest to the broker grade could also improve.

The Mining Development Agreement remains one of the key outstanding items prior to a final investment decision, notes the broker.

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

This report was published on June 26, 2024.

Target price is $0.54 Current Price is $0.34 Difference: $0.2
If LOT meets the Canaccord Genuity target it will return approximately 59% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 56.67.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 85.00.

Market Sentiment: 1.0
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: $0.15

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

Petra Capital views the  the signing of a memorandum of understanding (MOU) to supply Caldeira material to a Brazilian magnet manufacturer as a step in the right direction for Meteoric Resources to achieving an off take agreement and project financing.

The broker emphasises Meteoric Resources first-to-market position among Brazilian peers addresses customer pain points more rapidly, enhancing its attractiveness as a partner.

Buy rating and 38c target remain.

This report was published on June 26, 2024.

Target price is $0.38 Current Price is $0.15 Difference: $0.225
If MEI meets the Petra Capital target it will return approximately 145% (excluding dividends, fees and charges).
Current consensus price target is $0.49, suggesting upside of 204.2%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 38.75.

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:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 25.83.

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.

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

PYC    PYC THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.12

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

As Regulus Therapeutics competes against PYC Therapeutics’ asset PYC-003 with its drug asset RGLS8429, Wilsons reviews updated data for the latter’s Phase I MAD trial in autosomal dominant polycystic kidney disease (ADPKD).

The Regulus share price reacted negatively on concerns whether the data are clear enough from a regulatory standpoint to continue to progress to a Phase II, explains the broker.

The outcomes of Regulus’ end-of-Phase I meeting with the FDA in the December quarter should provide greater clarity.

The broker maintains an Overweight rating and 37c target.

This report was published on June 26, 2024.

Target price is $0.37 Current Price is $0.12 Difference: $0.25
If PYC meets the Wilsons target it will return approximately 208% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 15.00.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 13.33.

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

SPK    SPARK NEW ZEALAND LIMITED

Telecommunication – Overnight Price: $3.83

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

Jarden reduces its target for Spark New Zealand to NZ$4.67 from NZ$5.03 due to more conservative forecasts for FY25 and a small increase in the long-term maintenance capex assumption. The rating is upgraded to Overweight from Neutral on valuation.

Over the past decade, the broker notes investors were attracted to the company’s strong mobile business and steady management with a focus on capital allocation discipline to support steady dividends. It’s felt management need to reconfirm its commitment to these principles.

This report was published on June 26, 2024.

Current Price is $3.83. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 25.44 cents and EPS of 21.65 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.69.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 24.98 cents and EPS of 22.02 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.40.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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