Australian Broker Call *Extra* Edition – Oct 01, 2024

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   BKW   CIA   COL (2)   DDR   DTL   EDV   FSF   GPT   MTS   NDO   OBM   PME   PNR   QPM   SCG   STX   TCG   VCX   WJL   WOW (2)  

360    LIFE360 INC

Software & Services – Overnight Price: $18.94

Goldman Sachs rates ((360)) as Buy (1) –

Goldman Sachs raises forecasts for Life360 in advance of the company 3Q24 results due to robust growith in the subscription business, better cost management as well as growth in higher-margin indirect revenue sources.

The broker lifts EBITDA estimates by 5% in FY25 and 7% in FY26 with an accompanying upgrade in the target price of 11% to $21.75.

Goldman Sachs believes Life360 offers many levers to grow and monetise its user base, increase the international membership roll-out, as well as advertising and indirect data sales including pet care.

Buy rating unchanged.

This report was published on September 30, 2024.

Target price is $21.85 Current Price is $18.94 Difference: $2.91
If 360 meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $20.09, suggesting upside of 6.1%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 16.67 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 113.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.9, 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 86.5.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 36.38 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 52.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.4, implying annual growth of 116.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 40.0.

This company reports in USD. 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

BKW    BRICKWORKS LIMITED

Building Products & Services – Overnight Price: $29.19

Jarden rates ((BKW)) as Neutral (3) –

Jarden assesses Brickworks’ FY24 result was ahead of consensus although Australian and North American construction activity continues to remain weak.

The results were better due to better-than-expected cost controls and efficiencies from restructuring. Post a devaluation in 2023 the company generated a $18m property revaluation in June.

The broker believes weakness in residential exposure will be offset by ongoing strength in the JV industrial trust with Goodman Group ((GMG)) and investments from Washington H. Soul Pattinson ((SOL)).

Neutral rated. Target price lifts to $30 from $28.50.

This report was published on September 26, 2024.

Target price is $30.00 Current Price is $29.19 Difference: $0.81
If BKW meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $30.46, suggesting upside of 4.3%(ex-dividends)
The company’s fiscal year ends in July.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 69.00 cents and EPS of 116.90 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 129.3, implying annual growth of N/A.
Current consensus DPS estimate is 61.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 22.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 71.00 cents and EPS of 147.20 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.9, implying annual growth of 21.3%.
Current consensus DPS estimate is 65.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.6.

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

CIA    CHAMPION IRON LIMITED

Iron Ore – Overnight Price: $7.35

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

Goldman Sachs attended the investor tour of Champion Iron’s Bloom Lake iron ore mine in Quebec. The broker highlights a strong June quarter performance of 3.9mt or 15.5mt annually.

Management continues to investigate de-bottlenecking two plants to boost production to circa 17-18mt per annum. The analyst notes iron ore concentrate stockpiles have built up because of issues with a third-party rail operator. 

To alleviate the stockpiles, Champion Iron is buying 400 new rail cars with deliveries expected in the next six months.

Buy rating with $7.60.

This report was published on September 30, 2024.

Target price is $7.60 Current Price is $7.35 Difference: $0.25
If CIA meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $7.12, suggesting downside of -3.2%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 22.28 cents and EPS of 64.62 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.8, implying annual growth of N/A.
Current consensus DPS estimate is 21.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 22.28 cents and EPS of 49.02 cents.
At the last closing share price the estimated dividend yield is 3.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.99.

This company reports in CAD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $18.06

Goldman Sachs rates ((COL)) as Neutral (3) –

Goldman Sachs notes the ACCC is expected to provide its final recommendations and findings into last week’s “Supermarkets Inquiry” announcement on February 18, 2025.

The areas of interest outlined include price setting practices, consumer experience, retail competition, profits/margins and supply chains which are not a surprise to the broker.

Goldman Sachs is not taking any view on the final outcome, but believes the risks are currently discounted in the Woolworths Group ((WOW)) and Coles Group share prices.

No change to Neutral rating and $18 target price.

This report was published on September 30, 2024.

Target price is $18.00 Current Price is $18.06 Difference: minus $0.06 (current price is over target).
If COL meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.11, suggesting upside of 11.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 64.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of 2.6%.
Current consensus DPS estimate is 70.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.0.

Forecast for FY26:

Current consensus EPS estimate is 97.6, implying annual growth of 13.5%.
Current consensus DPS estimate is 80.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 18.5.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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Jarden rates ((COL)) as Neutral (3) –

Jarden observes the ACCC Interim grocery report with a final report expected on Feb 28, 2025, and does not anticipate any major negative regulatory changes to result.

The analyst does envisage three likely recommendations including a “mandatory price establishment period” before prices can be promoted; rules around land-banking, and improved transparency on supplier engagement.

Jarden remains positive on the grocery sector with a preference for Woolworths Group ((WOW)) over Metcash ((MTS) and Coles Group.

No change to Neutral rating and $17.10 target price.

This report was published on September 30, 2024.

Target price is $17.10 Current Price is $18.06 Difference: minus $0.96 (current price is over target).
If COL meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $20.11, suggesting upside of 11.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 69.00 cents and EPS of 84.50 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of 2.6%.
Current consensus DPS estimate is 70.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.0.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 95.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.6, implying annual growth of 13.5%.
Current consensus DPS estimate is 80.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 18.5.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

DDR    DICKER DATA LIMITED

Hardware & Equipment – Overnight Price: $9.40

Jarden rates ((DDR)) as Buy (1) –

Jarden observes the tailwinds of Ai are starting to flow through the hardware and software “ecosystems” of Dicker Data’s and Data#2 ((DTL)) key vendors, which gives the broker more reason to be upbeat on the PC and non-PC hardware replacement cycle, growth in software and Gen.Ai services.

Dicker Data is Buy rated with a $10.60 target price. 

This report was published on September 26, 2024.

Target price is $10.60 Current Price is $9.40 Difference: $1.2
If DDR meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $10.57, suggesting upside of 12.4%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 45.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.0, implying annual growth of -1.3%.
Current consensus DPS estimate is 47.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 50.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.4, implying annual growth of 14.2%.
Current consensus DPS estimate is 50.6, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 18.3.

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

DTL    DATA#3 LIMITED.

IT & Support – Overnight Price: $7.58

Jarden rates ((DTL)) as Neutral (3) –

Jarden observes the tailwinds of Ai are starting to flow through the hardware and software “ecosystems” of Dicker Data’s and Data#2 ((DTL)) key vendors, which gives the broker more reason to be upbeat on the PC and non-PC hardware replacement cycle, growth in software and Gen.Ai services.

Data#3 is Neutral rated with $8.54 target price.

This report was published on September 26, 2024.

Target price is $8.54 Current Price is $7.58 Difference: $0.96
If DTL meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $9.12, suggesting upside of 20.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 30.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 9.6%.
Current consensus DPS estimate is 26.9, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 24.7.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 34.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.0, implying annual growth of 10.7%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 22.3.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $5.02

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

Goldman Sachs believes the departure of Endeavour Group’s MD Steve Donohue was sooner than anticipated and may create some short-term price volatility/uncertainty around the stock.

The broker notes the board will retain Mr Donohue as the transition takes place. The new Chairman with a wealth of experience at SAB Miller, Accolade Wine is expected to appoint a successor who can deal with the complex and challenging operating environment.

This includes slowing volume consumption and gaming regulatory changes.

Buy rated. Target price $6.20.

This report was published on September 30, 2024.

Target price is $6.20 Current Price is $5.02 Difference: $1.18
If EDV meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $5.47, suggesting upside of 9.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 22.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.1, implying annual growth of 1.8%.
Current consensus DPS estimate is 21.4, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 17.3.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 24.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 4.78%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.3, implying annual growth of 7.6%.
Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 16.0.

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

FSF    FONTERRA SHAREHOLDERS FUND

Dairy – Overnight Price: $4.65

Jarden rates ((FSF)) as Overweight (2) –

FY24 results for Fonterra Shareholders Fund were stronger-than-expected by Jarden and included lower adjusted net debt than anticipated.

The upgrade cycle continues, with management’s FY25 40-60c EPS guidance range sitting above the analysts’ prior 46.4c forecast, which has now increased to 53c.

Jarden expects FY25 EBIT broadly in line with the FY30 target management set three years ago at around $1.4bn.

The Overweight rating is unchanged. The broker’s target rises to NZ$4.57 from NZ$4.05 on the outlook for lower debt/higher base earnings.

This report was published on September 26, 2024.

Current Price is $4.65. Target price not assessed.
The company’s fiscal year ends in July.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 34.48 cents and EPS of 49.24 cents.
At the last closing share price the estimated dividend yield is 7.42%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.44.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 33.93 cents and EPS of 48.50 cents.
At the last closing share price the estimated dividend yield is 7.30%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.59.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

GPT    GPT GROUP

Infra & Property Developers – Overnight Price: $4.98

Jarden rates ((GPT)) as Downgrade to Underweight from Overweight (4) –

While Jarden is not negative on prospects for mall REITs, after strong outperformances the broker’s ratings are downgraded for Vicinity Centres, Scentre Group and GPT Group.

In fact, REIT’s should continue to see 3-4% comparable net operating income (NOI) growth and a 4-6% funds from operations (FFO) compound annual growth rate (CAGR) over the next few years, predict the analysts.

However, based upon transactional evidence of development returns, the broker believes a further increase in valuation premiums is not really justified.

Jarden’s target for GPT Group rises to $5.10 from $5.05 and the rating is downgraded to Underweight from Overweight.

This report was published on September 24, 2024.

Target price is $5.10 Current Price is $4.98 Difference: $0.12
If GPT meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $4.99, suggesting upside of 0.2%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 32.3, implying annual growth of N/A.
Current consensus DPS estimate is 24.0, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY25:

Current consensus EPS estimate is 32.3, implying annual growth of N/A.
Current consensus DPS estimate is 24.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.4.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.58

Jarden rates ((MTS)) as Overweight (2) –

Jarden observes the ACCC Interim grocery report with a final report expected on Feb 28, 2025, and does not anticipate any major negative regulatory changes to result.

The analyst does envisage three likely recommendations including a “mandatory price establishment period” before prices can be promoted; rules around land-banking, and improved transparency on suppler engagement.

Jarden remains positive on the grocery sector with a preference for Woolworths Group ((WOW)) over Metcash and Coles Group ((COL)).

The Overweight rating and $4.40 target are maintained for Metcash.

This report was published on September 30, 2024.

Target price is $4.40 Current Price is $3.58 Difference: $0.82
If MTS meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $4.05, suggesting upside of 13.0%(ex-dividends)
The company’s fiscal year ends in April.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 21.00 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 5.87%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of 8.2%.
Current consensus DPS estimate is 19.8, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 22.00 cents and EPS of 28.90 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.3, implying annual growth of 5.0%.
Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 12.2.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

NDO    NIDO EDUCATION LIMITED

Childcare – Overnight Price: $0.86

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

Canaccord Genuity notes the acquisition of four childcare centres by Nido Education,  lifting the total portfolio to 56 centres since its IPO.

The broker expects the acquisition to have a minimal impact on earnings in 2024 post costs. The deal meets the strategic goals of the company.

Canaccord Genuity continues to like Nido Education with a Buy rating and $1.12 target price.

This report was published on September 30, 2024.

Target price is $1.12 Current Price is $0.86 Difference: $0.26
If NDO meets the Canaccord Genuity target it will return approximately 30% (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 4.00 cents and EPS of 8.30 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.36.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 4.00 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.78.

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

OBM    ORA BANDA MINING LIMITED

Gold & Silver – Overnight Price: $0.62

Moelis rates ((OBM)) as Downgrade to Hold from Buy (3) –

Ora Banda Mining reported FY24 results which showed favourable trading activity over the last 12 months. Moelis notes this is probably due to a higher gold price and a turnaround at Davyhurst.

The analyst believes the commissioning of Sand King in FY25 will enable the business to generate around 150koz p.a. in FY26.

Target price is raised to 66c. Stock rating downgraded to Hold from Buy with a lot of optimism built into the share price at current levels.

This report was published on September 29, 2024.

Target price is $0.66 Current Price is $0.62 Difference: $0.035
If OBM meets the Moelis target it will return approximately 6% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.59.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 8.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.10.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $178.25

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

Goldman Sachs raises its target for Buy-rated Pro Medicus by 30% to $193, well in advance of the $128.50 average target of five daily-covered brokers in the FNArena database (which doesn’t include Goldman Sachs).

The $193 target is justified by the revenue/margin outlook, unique cloud offering, and significant long-term opportunity, suggest the analysts.

The company’s share of the US market remains low at 7%, highlights the broker, which forecasts a long-term US market share over 25%. Upside potential is also noted for the core total addressable market (TAM), adjacencies (cardiology and AI) and potential new markets.

Regarding adjacencies, Goldman Sachs suggests Pro Medicus is well positioned to take share in cardiology and AI, thanks to a unique partnership with medical key opinion leaders in settings that are generally well-funded.

This report was published on September 27, 2024.

Target price is $193.00 Current Price is $178.25 Difference: $14.75
If PME meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $128.50, suggesting downside of -27.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 54.10 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 0.30%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 171.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.7, implying annual growth of 29.6%.
Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 173.6.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 68.00 cents and EPS of 133.00 cents.
At the last closing share price the estimated dividend yield is 0.38%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 134.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 135.7, implying annual growth of 32.1%.
Current consensus DPS estimate is 67.8, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 131.4.

Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

PNR    PANTORO LIMITED

Gold & Silver – Overnight Price: $0.12

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

Petra Capital forecasts ongoing production growth for Pantoro, partcularly in the 2H of FY25 as the Scotia underground mine hits steady state, and as open pit mining at Princess Royal commences in the March quarter of 2025.

The broker formed this view after reviewing a “strong” set of numbers in FY24 which included a  turnaround in earnings and operating cash flow in the 2H, reflecting a consistent ramp-up in gold production.

The Buy rating and 18c target are maintained. 

This report was published on October 1, 2024.

Target price is $0.18 Current Price is $0.12 Difference: $0.065
If PNR meets the Petra Capital target it will return approximately 57% (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 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 57.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.00.

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

QPM    QUEENSLAND PACIFIC METALS LIMITED

Nickel – Overnight Price: $0.04

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

Queensland Pacific Metals’ drilling program at Teviot Brook in South East Queensland (planned to deliver additional gas into the Moranbah Gas Plant) is on track to be completed in November, highlights Petra Capital.

In total, the broker estimates the program will deliver an additional 5TJ/d by the March quarter of 2025 for a total production rate of circa 35 TJ/d.

Buy rating and 10c target price remain.

This report was published on October 1, 2024.

Target price is $0.10 Current Price is $0.04 Difference: $0.064
If QPM meets the Petra Capital target it will return approximately 178% (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 1.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 2.00.

Forecast for FY25:

Petra Capital 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 36.00.

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

SCG    SCENTRE GROUP

REITs – Overnight Price: $3.65

Jarden rates ((SCG)) as Downgrade to Neutral from Overweight (3) –

While Jarden is not negative on prospects for mall REITs, after strong outperformances the broker’s ratings are downgraded for Vicinity Centres, Scentre Group and GPT Group.

In fact, REIT’s should continue to see 3-4% comparable net operating income (NOI) growth and a 4-6% funds from operations (FFO) compound annual growth rate (CAGR) over the next few years, predict the analysts.

However, based upon transactional evidence of development returns, the broker believes a further increase in valuation premiums is not really justified.

Jarden’s target for Scentre Group rises to $3.90 from $3.75 and the rating is downgraded to Neutral from Overweight.

This report was published on September 24, 2024.

Target price is $3.90 Current Price is $3.65 Difference: $0.25
If SCG meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.55, suggesting downside of -2.7%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 21.8, implying annual growth of 546.9%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY25:

Current consensus EPS estimate is 22.5, implying annual growth of 3.2%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 16.2.

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

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.22

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

Goldman Sachs notes Strike Energy reported FY24 results which were in line with expectations at the EBITDA level with net profit below forecasts from higher depreciation/amortisation charges and finance costs.

The main takeaway from the result, the analyst highlights, are reduced resource and reserve volumes for Walyering.

Goldman Sachs lowers EBITDA forecasts by -8% in FY25 and -18% in FY26 for lower production rates and revenue at Walyering, higher operating costs and the delay in commissioning Ocean Hill until mid 2027.

Buy rating unchanged. Target price drops to 25c from 28c.

This report was published on September 30, 2024.

Target price is $0.25 Current Price is $0.22 Difference: $0.03
If STX meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 25.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 110.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.0, 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 22.0.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 36.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.8, implying annual growth of -20.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 27.5.

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

TCG    TURACO GOLD LIMITED

Overnight Price: $0.33

Canaccord Genuity rates ((TCG)) as No Rating (-1) –

Canaccord Genuity initiates coverage on Turaco Gold with a Speculative Buy rating and a 65c target price.

The broker observes the company is concentrating on its Afema Gold project in the southeastern Cote d’Ivoire. The project was acquired from Endeavour Mining in April 2024 with a maiden resource of 2.5moz at 1.2g.t Au across three deposits.

Canaccord Genuity believes management has a good track record on progressing projects.

Speculative Buy. Target 65c.

This report was published on September 27, 2024.

Target price is $0.65 Current Price is $0.33 Difference: $0.32
If TCG meets the Canaccord Genuity target it will return approximately 97% (excluding dividends, fees and charges).

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

VCX    VICINITY CENTRES

REITs – Overnight Price: $2.21

Jarden rates ((VCX)) as Downgrade to Overweight from Buy (2) –

While Jarden is not negative on prospects for mall REITs, after strong outperformances the broker’s ratings are downgraded for Vicinity Centres, Scentre Group and GPT Group.

In fact, REIT’s should continue to see 3-4% comparable net operating income (NOI) growth and a 4-6% funds from operations (FFO) compound annual growth rate (CAGR) over the next few years, predict the analysts.

However, based upon transactional evidence of development returns, the broker believes a further increase in valuation premiums is not really justified.

Jarden’s target for Vicinity Centres rises to $2.50 from $2.45 and the rating is downgraded to Overweight from Buy.

This report was published on September 24, 2024.

Target price is $2.50 Current Price is $2.21 Difference: $0.29
If VCX meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.14, suggesting downside of -3.2%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 14.5, implying annual growth of 20.6%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY26:

Current consensus EPS estimate is 15.1, implying annual growth of 4.1%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 14.6.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

WJL    WEBJET GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.00

Jarden rates ((WJL)) as Initiation of coverage with Overweight (2) –

Jarden initiates coverage of Webjet Group with a $1.10 target price and an Overweight rating.

The broker highlights management will focus on increasing the resilience of the company as a “stand-alone entity” including capex/opex are focused on customer engagement.

While not without risks, the analyst points to a large total addressable market of $8bn for the online agency sector with a circa $48bn total travel market for Webjet Group. 

The broker adds the company also has an established brand name and a robust capital position.

Overweight rated with a $1.10 target price.

This report was published on September 26, 2024.

Target price is $1.10 Current Price is $1.00 Difference: $0.1
If WJL meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
The company’s fiscal year ends in March.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.54.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 2.00 cents and EPS of 6.10 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 16.39.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $33.30

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

Goldman Sachs notes the ACCC is expected to provide its final recommendations and findings into last week’s “Supermarkets Inquiry” announcement on February 18, 2025.

The areas of interest outlined include price setting practices, consumer experience, retail competition, profits/margins and supply chains which are not a surprise to the broker.

Goldman Sachs is not taking any view on the outcome, but believes the risks are currently discounted in the Woolworths Group and Coles Group ((COL)) share prices.

Buy rating and $40.10 target price unchanged.

This report was published on September 30, 2024.

Target price is $40.10 Current Price is $33.30 Difference: $6.8
If WOW meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $37.08, suggesting upside of 11.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 114.00 cents and EPS of 150.00 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 140.7, implying annual growth of 1489.8%.
Current consensus DPS estimate is 103.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY26:

Current consensus EPS estimate is 152.5, implying annual growth of 8.4%.
Current consensus DPS estimate is 111.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.8.

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

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Jarden rates ((WOW)) as Overweight (2) –

Jarden observes the ACCC Interim grocery report with a final report expected on Feb 28, 2025, and does not anticipate any major negative regulatory changes to result.

The analyst does envisage three likely recommendations including a “mandatory price establishment period” before prices can be promoted; rules around land-banking, and improved transparency on suppler engagement.

Jarden remains positive in the grocery sector with a preference for Woolworths Group over Metcash ((MTS) and Coles Group ((COL)).

No change to Overweight rating and $38.60 target price.

This report was published on September 30, 2024.

Target price is $38.60 Current Price is $33.30 Difference: $5.3
If WOW meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $37.08, suggesting upside of 11.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 114.00 cents and EPS of 151.10 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 140.7, implying annual growth of 1489.8%.
Current consensus DPS estimate is 103.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.7.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 127.00 cents and EPS of 168.20 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.5, implying annual growth of 8.4%.
Current consensus DPS estimate is 111.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 21.8.

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

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