Australian Broker Call *Extra* Edition – Sep 19, 2024

Daily Market Reports | Sep 19 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)

BKT   CCX   CHL   COI   IPL   JAN   NHC   PTM   TLX   TWE   WGX (2)   XRO  

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco - Overnight Price: $11.23

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

Goldman Sachs reviews the latest NielsenIQ scan data and highlights it only covers around 50% of retail sales in the US.

The latest data insights do offer a trend, the broker notes. Sales for the four weeks to September 7 were mixed with 19 Crimes revealing slightly weaker pricing and better volumes.

Treasury Wine Estates US sales ex-Daou were down -5% year-on-year versus a fall of -2% for the US wine market, the analyst points to an improvement against the previous four weeks.

Goldman Sachs believes the results were "positive" for the group. Buy rating and $15.20 target maintained. No change to earnings forecasts.

This report was published on September 19, 2024.

Target price is $15.20 Current Price is $11.23 Difference: $3.97
If TWE meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $13.71, suggesting upside of 22.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 42.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.7, implying annual growth of 385.8%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 50.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.5, implying annual growth of 15.9%.
Current consensus DPS estimate is 48.1, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 15.7.

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

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver - Overnight Price: $2.65

Canaccord Genuity rates ((WGX)) as Buy (1) -

Following the merger of Westgold Resources with Karora Resources which completed on August 1, management has provided group
FY25 production guidance of 400-420koz at a cost (AISC) of between $2,000-2,300/oz.

This guidance is broadly in line with prior forecasts by Canaccord Genuity and consensus.

In a 'peak year' for growth capex, according to management, guidance in FY25 is 7% higher-than-expected by the broker.

The Buy rating is maintained, and the target reduced to $3.50 from $3.55.

This report was published on September 18, 2024.

Target price is $3.50 Current Price is $2.65 Difference: $0.85
If WGX meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 2.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 0.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.57.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 2.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 0.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.52.

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

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

Petra Capital forecasts FY26 production of 520koz for Westgold Resources which would lift the company to be the third-largest producer on the ASX.

This week, management guided to FY25 production of 400-420koz --which will be back ended-- as several mines ramp-up.

As synergy benefits are crystallised and output rises, the broker notes a falling cost (AISC) profile for Westgold at the same time as capex is peaking.

The target for Westgold Resources falls to $3.60 from $3.75. Buy.

This report was published on September 18, 2024.

Target price is $3.60 Current Price is $2.65 Difference: $0.95
If WGX meets the Petra Capital target it will return approximately 36% (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 10.00 cents and EPS of 21.20 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 12.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.64.

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

XRO    XERO LIMITED

Accountancy - Overnight Price: $147.85

Wilsons rates ((XRO)) as Market Weight (3) -

Wilsons places its earnings forecasts for Xero under review after the announced acquisition of Syft Analytics for -US$70m.

Syft is a leading global cloud-based reporting, insights and analytics platform used (in over 80 countries) by accountants, bookkeepers, and small businesses, observes the broker.

Xero has been utilising AI and machine learning for some time, but the analysts explain how Syft capabilities could add more valuable insights for their customers combined with Xeros GenAI-driven assistant JAX (Just Ask Xero).

Market Weight. Target $131.63.

This report was published on September 18, 2024.

Target price is $131.63 Current Price is $147.85 Difference: minus $16.22 (current price is over target).
If XRO meets the Wilsons target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $161.43, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 230.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 139.1, 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 106.3.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 289.34 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 184.3, implying annual growth of 32.5%.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 80.2.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
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.