Australian Broker Call *Extra* Edition – Jul 25, 2024

This story features ACCENT GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AX1

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)

AX1   BHP   COE   CXO   DMP   EOS   GMD   LOT   LYC   NWH   SEK   SHM   TLX  

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.19

Petra Capital rates ((AX1)) as Hold (3) –

Petra Capital was positively surprised by Accent Group’s trading update. The guided range for FY24 EBIT between $123.2m to $125.2m compares with the broker’s estimate of $121m.

The statutory result will be impacted by a one-off charge of -$14.2m related to the closure of Glue stores. Management is closing 17 underperforming Glue Stores, which will result in the banner comprising 18 stores. including its digital store, which, the broker highlights, is expected to be profitable in FY25.

Forecasts have been upgraded. The price target lifts to $2.35 from $2.10 in March and the rating remains Buy.

This report was published on July 18, 2024.

Target price is $2.35 Current Price is $2.19 Difference: $0.16
If AX1 meets the Petra Capital target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.40, suggesting upside of 9.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 12.30 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of -32.5%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 13.00 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of 36.7%.
Current consensus DPS estimate is 12.7, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.7.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $41.56

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

Goldman Sachs believes the Big Australian ended the financial year on a strong note for all key divisions. Copper production was the strongest output result in 15 years.

Reaslised prices outperformed the broker’s expectations. Unit costs will come out at the upper end of guidance, the broker suspects.

Buy rating remains in place as the valuation is still seen as attractive, even if it remains at a relative premium vis a vis Rio Tinto ((RIO)).

Goldman Sachs remains bullish on copper. Target $48.40. Estimates for FY25 have fallen slightly.

This report was published on July 17, 2024.

Target price is $48.40 Current Price is $41.56 Difference: $6.84
If BHP meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $45.67, suggesting upside of 10.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 216.60 cents and EPS of 393.53 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 403.1, implying annual growth of N/A.
Current consensus DPS estimate is 209.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 187.61 cents and EPS of 341.67 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 421.1, implying annual growth of 4.5%.
Current consensus DPS estimate is 230.0, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 9.8.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.22

Canaccord Genuity rates ((COE)) as Buy (1) –

Cooper Energy’s June-quarter result met consensus’ and Canaccord Genuity’s forecasts but disappointed management’s expectation for improved flow rates from Sole, due to an upstream pipeline restriction, observes the broker.

The broker said management had been hoping to use Sole as an indicator of Orbost’s value.

BMG abandonment was completed and is no longer a drag on earnings.

The broker points to an AEMO warning that the seasonal shortages could hit Australia’s south east from 2028.

Buy rating and 27c target price retained.

This report was published on July 17, 2024.

Target price is $0.27 Current Price is $0.22 Difference: $0.05
If COE meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 18.2%(ex-dividends)
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 0.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 73.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.3, 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 73.3.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 220.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of 333.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.9.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.09

Jarden rates ((CXO)) as Neutral (3) –

Jarden’s update on Core Lithium centres around what kind of risks are still attached to a company that has put Finniss, its main operation, on care and maintenance until better times arrive for the lithium industry at large.

The broker explains its valuation assumes Finniss returns to operation with future lithium price support, but it is risked to account for estimated funding requirements.

The price target has lost -1c to 10c. As per the broker, ongoing risks include operational performance and potential contractual disputes and litigation (think Tesla), as well as a manifest pivot in strategy.

Lithium price and organic growth are seen as representing upside risks. Neutral.

This report was published on July 17, 2024.

Target price is $0.10 Current Price is $0.09 Difference: $0.006
If CXO meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $0.09, suggesting upside of 3.7%(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 9.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 1.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.7, 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 N/A.

Forecast for FY25:

Jarden 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 10.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.4, 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: -0.7
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

DMP    DOMINO’S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $33.61

Petra Capital rates ((DMP)) as Hold (3) –

Petra Capital has stuck with its Hold rating and downgraded its price target for Domino’s Pizza Enterprises to $34.70 from $38.10.

These moves occurred in response to company management announcing underperforming store closures in Japan and France.

The net outcome, the broker explains, is total group store growth will reduce to flat to slightly up in FY25, followed by anticipated growth of 3-4% in FY26.

Petra Capital has reduced future store openings. The broker remains cautious despite already a heavy fall in the share price as the outlook in Japan remains uncertain and with France and Malaysia also challenged, while Taiwan remains “volatile”.

This report was published on July 18, 2024.

Target price is $38.10 Current Price is $33.61 Difference: $4.49
If DMP meets the Petra Capital target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $40.48, suggesting upside of 19.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 106.30 cents and EPS of 132.40 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 132.9, implying annual growth of 188.3%.
Current consensus DPS estimate is 103.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 25.4.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 121.50 cents and EPS of 151.50 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.6, implying annual growth of 19.3%.
Current consensus DPS estimate is 118.6, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 21.3.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $1.85

Canaccord Genuity rates ((EOS)) as Buy (1) –

Electro Optic Systems’ pre-released June-half result beat Canaccord Genuity’s revenue forecast by 24%, the company posting strong performances in both its EM Solutions/Space division and Defence division and derisking forecasts, in the broker’s view.

Management attributed the beat to accelerated delivery of its backlog and plans to meet its contracting obligations by the end of December, a feat the broker says is possible given the company’s healthy cash deposit balance. Canaccord Genuity adds the reduction of its contract asset balance should also normalise working capital movements.

Electro Optic Systems closed the half with cash of $53m and the broker expects it will receive another $45m within the year and observes the company is in late-stage negotiations for some big named contracts, which, along with its Northrop investments, should underscore earnings for FY25.

Buy rating and $1.95 target price retained.

This report was published on July 17, 2024.

Target price is $1.95 Current Price is $1.85 Difference: $0.1
If EOS meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
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 minus 9.98 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 18.54.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 71.15.

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

GMD    GENESIS MINERALS LIMITED

Gold & Silver – Overnight Price: $2.17

Moelis rates ((GMD)) as Buy (1) –

Genesis Minerals’ Q4 production report has positively surprised with volumes beating but costs (AISC) worse than projected. Moelis blames higher than anticipated throughput flowing onto unit costs.

It does appear growth capex might be higher than expected. Moelis has pulled forward production estimates, also suggesting the second operation at Laverton might see an earlier re-start.

Price target lifts to $2.50 from $2.40. Buy.

This report was published on July 18, 2024.

Target price is $2.15 Current Price is $2.17 Difference: minus $0.02 (current price is over target).
If GMD meets the Moelis target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.35, suggesting upside of 10.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 70.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, 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 52.0.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 12.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of 231.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 15.7.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

LOT    LOTUS RESOURCES LIMITED

Uranium – Overnight Price: $0.28

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

Petra Capital has noted greenfield uranium developers have lagged brownfield developers and producers in the first half of the year. Investor enthusiasm for the sector is expected to broaden in the second half of the year.

Only one third of ASX uranium equities delivered a positive return in 1H 2024, the broker notes.

The broker continues to see value in the near-term production of Lotus Resources, rating the shares Buy with a price target of 59c (up from 50c).

Forecasts have been left untouched.

This report was published on July 22, 2024.

Target price is $0.59 Current Price is $0.28 Difference: $0.31
If LOT meets the Petra Capital target it will return approximately 111% (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 minus 0.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 70.00.

Forecast for FY25:

Petra Capital forecasts a full year FY25 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 93.33.

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

LYC    LYNAS RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $6.06

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

Canaccord Genuity has downgraded Lynas Rare Earths to Hold from Buy as uncertainty has risen around the near-term production outlook and as weak pricing for rare earths has persisted.

The broker’s target price has declined by -10% to $6.25.

Lynas Rare Earths’ quarterly production report only slightly missed due to shipping delays, but management continued to refer to soft market conditions in China.

The broker has now revised forecasts to a loss in FY25.

This report was published on July 23, 2024.

Target price is $7.00 Current Price is $6.06 Difference: $0.94
If LYC meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $6.66, suggesting upside of 9.5%(ex-dividends)
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 7.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 86.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -80.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 92.1.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 101.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 157.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 35.8.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

NWH    NRW HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $3.35

Moelis rates ((NWH)) as Buy (1) –

Moelis saw NRW Holdings releasing a positive trading update, including the anticipation of a record FY24 EBITDA outside of management’s guided range.

The broker highlights the EBITDA outcome will include a $8m gain on realised shares in Spartan Resource ((SPR)).

Thinking NRW Holdings is well positioned for FY25, Moelis has increased forecasts for FY24-26. Buy rating retained while the price target lifts to $3.56 from $3.40.

This report was published on July 18, 2024.

Target price is $3.56 Current Price is $3.35 Difference: $0.21
If NWH meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting downside of -7.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 15.00 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 41.5%.
Current consensus DPS estimate is 20.2, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.5.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 17.00 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.2, implying annual growth of 4.8%.
Current consensus DPS estimate is 20.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.0.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $20.54

Goldman Sachs rates ((SEK)) as Sell (5) –

Goldman Sachs has doubts about operational dynamics for Seek. Job listings provide an ongoing headwind, but also the sale of LatAm businesses might prove problematic, the broker suggests.

The broker has, ahead of FY24 release in August, lowered expectations (noticeably). Sell rating retained. Price target is $20.60 (down from $23.50 in February).

This report was published on July 22, 2024.

Target price is $20.60 Current Price is $20.54 Difference: $0.06
If SEK meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $27.46, suggesting upside of 35.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 34.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 37.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of -80.2%.
Current consensus DPS estimate is 38.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 35.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 41.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 2.00%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 37.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.2, implying annual growth of 19.6%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 29.6.

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

SHM    SHRIRO HOLDINGS LIMITED

Overnight Price: $0.68

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

Shriro has decided to outsource subscale parts of its A&NZ business to a third-party distributor and Petra Capital welcomes the move, arguing in combination with the upcoming completion of the ERP upgrade, this should secure a boost for earnings and cash flows.

On this basis FY24 forecasts have been upgraded (slightly reduced for FY25) and Petra Capital re-iterates its Buy rating. The price target lifts to 99c from 90c.

This report was published on July 18, 2024.

Target price is $0.99 Current Price is $0.68 Difference: $0.31
If SHM meets the Petra Capital target it will return approximately 46% (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 24.00 cents and EPS of 8.40 cents.
At the last closing share price the estimated dividend yield is 35.29%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.10.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 7.50 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 11.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.01.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $18.85

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

Telix Pharmaceuticals reported revenue of $189m in 2Q24 and announced a 10% upgrade to full year revenue guidance now $745-776m.

Wilsons thinks there’s more on offer. With opex elements of the guidance fixed, the broker expects further upgrades across the market.

Observing a more stable outlook for radiopharmaceutical diagnostic pricing following the new CMS Proposed Rule, Wilsons suspects more positive newsflow is forthcoming.

Also important: new entrant Posluma is believed to have failed to extend its market share beyond 5% in 1Q24. Overweight. Target $20. Forecasts have been placed under review.

This report was published on July 18, 2024.

Target price is $20.00 Current Price is $18.85 Difference: $1.15
If TLX meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 186.63.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 20.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 90.63.

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

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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.

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