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

Daily Market Reports | Jul 15 2024

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

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

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ASX   BPT   BRE   CMM   COE   CVN   DUG (2)   GQG   GYG   KAR   MEI (2)   NWL   ORG   PMT   QAN (2)   RED   STO   TLS   WDS  

RED    RED 5 LIMITED

Gold & Silver - Overnight Price: $0.42

Petra Capital rates ((RED)) as Buy (1) -

Petra Capital observes the recent merger with Silver Lake Resources has progressed very well for Red 5.

The broker notes all assets have ended the year on a strong note, particularly at the flagship King of the Hills mine, which is expected to maintain over 200koz annual production for over a decade.

A Buy rating maintained. Target price lowered to 46c from 47c.

This report was published on July 9, 2024.

Target price is $0.46 Current Price is $0.42 Difference: $0.035
If RED meets the Petra Capital target it will return approximately 8% (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 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.42.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 1.00 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.81.

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

STO    SANTOS LIMITED

NatGas - Overnight Price: $7.94

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

Jarden expects June quarter production for Santos at 22.1mboe against consensus estimates of 21.9mboe.

The broker's FY25 EPS estimate is upgraded by 7% for higher forecast LNG prices.

The target price is revised to $8.25 from $8.15. Overweight.

This report was published on July 5, 2024.

Target price is $8.25 Current Price is $7.94 Difference: $0.31
If STO meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $8.98, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 29.43 cents and EPS of 51.84 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.8, implying annual growth of N/A.
Current consensus DPS estimate is 34.3, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 30.19 cents and EPS of 47.11 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.6, implying annual growth of 9.9%.
Current consensus DPS estimate is 35.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

TLS    TELSTRA GROUP LIMITED

Telecommunication - Overnight Price: $3.82

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

Goldman Sachs observes the announced price increases for Telstra Group's mobile plans, ranging from $2 to $4 per month, which are above CPI across most plans except for the $50 Starter plan.

This change is expected to drive a blended ARPU increase of $2.50, contributing positively to Telstras revenue.

Goldman Sachs adjusts EPS projections by 1% and 3% for FY24 and FY25 with the dividend per share raised to 19.0c for FY25.

The price target is increased to $4.30 from $4.25. Buy rating unchanged.

This report was published on July 9, 2024.

Target price is $4.30 Current Price is $3.82 Difference: $0.48
If TLS meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.12, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 7.2%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 21.5.

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 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.2, implying annual growth of 7.3%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 4.9%.
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

WDS    WOODSIDE ENERGY GROUP LIMITED

NatGas - Overnight Price: $28.94

Jarden rates ((WDS)) as Neutral (3) -

Jarden expects a 3% increase in the June quarter production for Woodside Energy to 46.4mboe due to a higher seasonal output from Bass Strait.

Jarden forecasts a 2H24 Brent Oil price of US$85bbl.

The Neutral rating is retained, while the target price is lowered to $29.15 from $29.23.

This report was published on July 5, 2024.

Target price is $29.15 Current Price is $28.94 Difference: $0.21
If WDS meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $32.36, suggesting upside of 9.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 157.04 cents and EPS of 198.66 cents.
At the last closing share price the estimated dividend yield is 5.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 189.1, implying annual growth of N/A.
Current consensus DPS estimate is 151.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 15.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 163.14 cents and EPS of 221.68 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 13.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 184.8, implying annual growth of -2.3%.
Current consensus DPS estimate is 147.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.9.

This company reports in USD. 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

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.