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

Daily Market Reports | 11:00 AM

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)

A1N   AIA   AX1 (2)   CMM   COE   DMP   EMR   GMD   GOR   GTK   HUB   KCN   PPS   PRU   RIO   RXL   SFR  

RIO    RIO TINTO LIMITED

Bulks - Overnight Price: $113.81

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

Goldman Sachs notes Pilbara iron ore shipments were in line with the consensus forecast, but Iron Ore Company of Canada (IOC) production missed by around -15% on lower mining rates and maintenance.

Mined copper production of 171mt missed forecasts by the analysts and consensus by -5% and -2%, respectively.

Regional wildfires in Canada are expected to impact 3Q iron ore volumes, explains the broker.

The analysts believe the midpoint of FY24 Pilbara shipments guidance of 323-338mt can be met by a 2H run-rate of 345mtpa.

The target falls to $136.10 from $137. Buy.

This report was published on July 17, 2024.

Target price is $136.10 Current Price is $113.81 Difference: $22.29
If RIO meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $130.25, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 655.79 cents and EPS of 1011.13 cents.
At the last closing share price the estimated dividend yield is 5.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1203.9, implying annual growth of N/A.
Current consensus DPS estimate is 733.8, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 9.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 671.04 cents and EPS of 1030.96 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1170.3, implying annual growth of -2.8%.
Current consensus DPS estimate is 720.5, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 9.7.

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

RXL    ROX RESOURCES LIMITED

Gold & Silver - Overnight Price: $0.14

Canaccord Genuity rates ((RXL)) as Speculative Buy (1) -

Canaccord Genuity anticipates further upside for both the gold price and gold equities supported by pending rate cuts and strong margin growth, respectively.

The broker raises its 2024-29 gold price forecasts by an average of 3.4% and increases the long-term (from 2030) estimate by 5% to US$2,712/oz. For silver, the long-term price is increased by 20% to US$33.58/oz.

Across Canaccord's research coverage of developers and explorers, price targets rise by 3% on average, after FY25 and FY26 earnings (EBITDA) forecasts increase by 2% and 3%, respectively, on the higher gold price estimates.

For Rox Resources, the broker increases the target to 51c from 50c and the Speculative Buy rating is kept.

This report was published on July 11, 2024.

Target price is $0.51 Current Price is $0.14 Difference: $0.365
If RXL meets the Canaccord Genuity target it will return approximately 252% (excluding dividends, fees and charges).

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

SFR    SANDFIRE RESOURCES LIMITED

Copper - Overnight Price: $8.37

Jarden rates ((SFR)) as Upgrade to Overweight from Neutral (2) -

Jarden raises its target for Sandfire Resources to $9.00 from $7.40 and upgrades the rating to Overweight from Neutral. These changes flow from the broker's increased long-term copper price forecast of US$4.00/lb real, up from US$3.50/lb.

The analysts retain a preference for the stock across the base metals universe. Shares represent a low-risk proposition for both FY25 guidance and FY24 financial disclosure relative to the rest of the sector, according to Jarden.

June quarter results are due on Thursday July 25. The broker's FY24 underlying EBITDA forecast of around US$316m sits around -10% below the consensus estimate.

This report was published on July 19, 2024.

Target price is $9.00 Current Price is $8.37 Difference: $0.63
If SFR meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $9.51, suggesting upside of 14.3%(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 17.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.8, 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 462.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 7.63 cents and EPS of 54.90 cents.
At the last closing share price the estimated dividend yield is 0.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.2, implying annual growth of 4077.8%.
Current consensus DPS estimate is 19.1, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 11.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
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.