Weekly Reports | 10:48 AM
Broker Rating Changes (Post Thursday Last Week)
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CORE LITHIUM LIMITED ((CXO)) Upgrade to Neutral from Sell by Jarden and Upgrade to Neutral from Sell by Goldman Sachs.B/H/S: 0/0/0
Jarden revises the rating on Core Lithium to Neutral from Sell and the target price is lowered to 10c from 12c.
The target price is based on the assumption by the analyst that Finniss will return to operation, supported by lithium price and the enterprise value of $110m can be justified, notes Jarden, on the basis of a strong cash position and residual salvage value of the Finniss infrastructure.
Goldman Sachs reviews the lithium market, observing that lithium companies' share prices continue to de-rate despite having outperformed global peers (and the underlying commodities market) in the past year.
The broker spies no solid support in the near term and forecasts near-term pricing weakness through to December 2025 given continued additions to the market surplus as new projects continue to be proposed or progressed and the brokers observes narrowing premiums and widening discounts at auctions.
The broker upgrades Core Lithium to Neutral from Sell believing production restart risk has been priced in; given the company now holds cash equivalent to 40% of its market capitalisation; and given it is trading at discount to peers given the -76% fall in its share price.
But the broker cuts its target price to 8c from 12c, expecting potential benefits from easing inflation and ongoing exploration wont hit any time soon.
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JUMBO INTERACTIVE LIMITED ((JIN)) Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0
Jumbo Interactive is downgraded to Underweight from Neutral by Jarden with a target price of $15.40, down from $15.70.
The broker forecasts strong upcoming FY24 results but the outlook for FY25 has been tempered by a mean reversion in jackpots towards more historical trends of 23-25 jackpots over $15m per half.
Jarden believe there is downside risk to consensus estimates for FY25.
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