Australian Broker Call *Extra* Edition – Oct 21, 2024

This story features BANNERMAN ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: BMN

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)

BMN   BRE   CGF   HUB   IMD   QOR   RWL   SMP (2)   TRS   TYR   WDS (2)   XRF  

BMN    BANNERMAN ENERGY LIMITED

Uranium – Overnight Price: $3.33

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

Management at Bannerman Energy has decided to extend the expected FID window for the Etango Uranium Project into 2025, notes Petra Capital, as “current term contract conditions have not yet fully aligned” with positive market developments.

The first phase of early works was completed in July and development is now focused on critical path contract awards and placement of long-lead item orders, explains the broker.

Buy rating. The target rises to $4.68 from $4.51.

Bannerman offers the most leverage in Petra Capital’s coverage of ASX-listed uranium stocks, with a 10% increase in the broker’s assumed long-term price delivering a 25% increase in net present value.

This report was published on October 17, 2024.

Target price is $4.68 Current Price is $3.33 Difference: $1.35
If BMN meets the Petra Capital target it will return approximately 41% (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 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 333.00.

Forecast for FY26:

Petra Capital forecasts a full year FY26 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 1665.00.

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

BRE    BRAZILIAN RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $2.50

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

Petra Capital reiterates the Buy rating on Brazilian Rare Earths with a $4.55 target price.

The broker stresses the quality of potential metallurgical assets at Monte Alto highlighting the miner has some of the “highest rare earth grades” reported.

Monte Alto also has high concentrations of uranium, niobium, scandium and tantalum.

Petra Capital posits the value currently ascribed does not reflect the true worth of the deposits.

This report was published on October 17, 2024.

Target price is $4.55 Current Price is $2.50 Difference: $2.05
If BRE meets the Petra Capital target it will return approximately 82% (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 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 27.78.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 59.52.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $6.15

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

As part of Challenger’s 1Q update, management reaffirmed FY25 profit guidance but a weaker capital position reduces the company’s flexibility to fund earnings growth into FY26, explains Goldman Sachs.

Annuity book growth declined by -1.2% in Q1 and Life annuity sales were down -37% versus the previous corresponding period, impacted by the Aware Super lifetime sale in Q1, note the analysts.

Buy rating and the target falls to $7.82 from $8.00.

This report was published on October 17, 2024.

Target price is $7.82 Current Price is $6.15 Difference: $1.67
If CGF meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $7.83, suggesting upside of 27.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 27.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 211.9%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 28.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.5, implying annual growth of 7.3%.
Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 9.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $67.03

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

Canaccord Genuity believes Hub24 is very well placed for future growth based on competitive positioning, ongoing growth in the adviser base and current momentum as evidenced by 1Q results.

Record net custodial inflows of $4.0bn were a 44% increase on the previous corresponding period. On an annualised basis these flows exceeded the FY25 estimates of around $12.8bn by the broker and consensus.

The custodial funds under administration (FUA) market movement impact was also strong at $3.1bn, highlight the analysts, with total custodial FUA rising by 41% on the previous corresponding period.

Management noted a “strong pipeline across all customer segments” and reiterated confidence in its FY26 Platform FUA target.

Unchanged Buy rating and $65.80 target.

This report was published on October 16, 2024.

Target price is $65.80 Current Price is $67.03 Difference: minus $1.23 (current price is over target).
If HUB meets the Canaccord Genuity target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $59.67, suggesting downside of -11.0%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is 109.8, implying annual growth of 88.8%.
Current consensus DPS estimate is 52.1, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 61.0.

Forecast for FY26:

Current consensus EPS estimate is 133.0, implying annual growth of 21.1%.
Current consensus DPS estimate is 64.9, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 50.4.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

IMD    IMDEX LIMITED

Mining Sector Contracting – Overnight Price: $2.51

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

Canaccord Genuity raises its target for Imdex to $2.67 from $2.25 after in-line 1Q revenue and a substantial outperformance relative to overall industry data. The Buy rating is maintained.

The total number of drill holes globally is down -25% for the quarter compared to the previous corresponding period, and by -7% quarter-on-quarter, explain the analysts.

Management is aiming for “further margin expansion” via an increasing percentage of revenue from Sensors and Software, integrated solutions and Digital 2.5, observes Canaccord.

The broker forecasts earnings (EBITDA) margins of around 28-30%, with potential to move higher in the medium-term.

This report was published on October 17, 2024.

Target price is $2.67 Current Price is $2.51 Difference: $0.16
If IMD meets the Canaccord Genuity target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $2.23, suggesting downside of -11.2%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 3.30 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.7, implying annual growth of 52.5%.
Current consensus DPS estimate is 3.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 4.40 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 15.5%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 22.4.

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

QOR    QORIA LIMITED

Software & Services – Overnight Price: $0.45

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

Wilsons highlights Qoria reported strong positive cash flow in 1Q25, which is a seasonally robust quarter.

Annual recurring revenues advanced 3% on the previous quarter, and up 17% on the year to $120m with a sales pipeline of around $21m. Cash stood at circa $42m post the OctopusBI acquisition and capital raising.

Wilsons lowers revenue assumptions for FY25-FY27 and EBITDA estimates, which should prove to be conservative, the analyst notes. 

The broker retains an Overweight rating and lifts the target to 55c from 45c with a rise in the EV/Sales multiple ascribed.

This report was published on October 18, 2024.

Target price is $0.55 Current Price is $0.45 Difference: $0.1
If QOR meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 23.68.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 64.29.

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

RWL    RUBICON WATER LIMITED

Overnight Price: $0.28

Wilsons rates ((RWL)) as Initiation of coverage with Overweight (1) –

Wilsons begins with an Overweight rating in new research coverage on water management solution provider Rubicon Water which aims to improve water efficiency for the agriculture sector.

The broker not only likes the favourable global thematic associated with water security, but also Rubicon’s market-leading product solutions, along with evidence of a more balanced business model.

Changes to the business model over the past year include a greater product range (FarmConnect) and a broadened geographic mix (US market is emerging), as well as greater supply chain flexibility.

A 41c target is set.

This report was published on October 17, 2024.

Target price is $0.41 Current Price is $0.28 Difference: $0.13
If RWL meets the Wilsons target it will return approximately 46% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 16.47.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.00 cents.

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

SMP    SMARTPAY HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.65

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

The RBA payments review has impacted negatively on the SmartPay share price. The immediate market fear is based around merchant acquirers having to potentially absorb a large proportion of the margin impact of lower payment costs, explains Canaccord Genuity.

At present, the focus is on payment surcharging, notes the broker, and seeking feedback from stakeholders on how to address increasing public concern.

Any change is unlikely to alter the actual cost of acceptance by merchants as there is a cost that must be borne by someone, points out Canaccord.

The $1.40 target and Buy rating are maintained.

This report was published on October 16, 2024.

Target price is $1.40 Current Price is $0.65 Difference: $0.75
If SMP meets the Canaccord Genuity target it will return approximately 115% (excluding dividends, fees and charges).
The company’s fiscal year ends in March.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.38 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 47.07.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 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 28.25.

This company reports in NZD. 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

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

The RBA’s Merchant Card Payments Costs and Surcharging review is set to continue for around two months, notes Wilsons, and the final directive (if any) will dictate the implications for SmartPay.

The broker anticipates a largely neutral outcome given the “Gives” and “Takes” outcomes of the review, though any surcharge ban (outright or partial) would reduce SmartPay’s competitive differentiation relative to major incumbents.

Overweight. Target $1.66.

This report was published on October 17, 2024.

Target price is $1.66 Current Price is $0.65 Difference: $1.01
If SMP meets the Wilsons target it will return approximately 155% (excluding dividends, fees and charges).
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 3.31 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.61.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 7.27 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.94.

This company reports in NZD. 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

TRS    REJECT SHOP LIMITED

Household & Personal Products – Overnight Price: $3.17

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

Jarden liked the trading update at Reject Shop’s AGM with sales and gross margins showing ongoing improvements, underpinned by consumables and general merchandise.

As per the broker, sales rose year-to-date on an annual basis, boosted by new ranges, higher selling prices and increased customer engagement. Gross margins advanced with higher margin ranges assisting.

Management confirmed five store closures in FY25 with 15-20 new stores openings.

Jarden does not alter earnings forecasts. Overweight rating and $5.10 price target maintained.

This report was published on October 16, 2024.

Target price is $5.10 Current Price is $3.17 Difference: $1.93
If TRS meets the Jarden target it will return approximately 61% (excluding dividends, fees and charges).
Current consensus price target is $3.77, suggesting upside of 18.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 15.00 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 4.73%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.4, implying annual growth of 64.6%.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 33.00 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 10.41%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 29.9%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 5.0%.
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

TYR    TYRO PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $0.78

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

The RBA payments review has impacted negatively on the Tyro Payments share price with the immediate fear based around merchant acquirers having to potentially absorb a large proportion of the margin impact of lower payment costs.

At present, the focus is on payment surcharging, notes the broker and seeking feedback from stakeholders on how to address increasing public concern.

Any change is unlikely to alter the actual cost of acceptance by merchants as there is a cost that must be borne by someone, points out Canaccord.

The $1.65 target and Buy rating are maintained.

This report was published on October 16, 2024.

Target price is $1.65 Current Price is $0.78 Difference: $0.87
If TYR meets the Canaccord Genuity target it will return approximately 112% (excluding dividends, fees and charges).
Current consensus price target is $1.52, suggesting upside of 95.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity 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 16.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.0, implying annual growth of -38.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.6, implying annual growth of 53.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 17.0.

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

WDS    WOODSIDE ENERGY GROUP LIMITED

NatGas – Overnight Price: $24.63

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

Woodside Energy’s record quarterly production in Q3 led to a narrowing of 2024 production guidance to the top end of the 189-195mmboe guidance range from 185-195mmboe.

Sales volume and revenue beat the consensus forecast by 7% and 12%, respectively, with Goldman Sachs noting strong early oil production at Sangomar and resilient WA LNG exports.

The $27.20 target and Neutral rating are unchanged.

This report was published on October 17, 2024.

Target price is $27.20 Current Price is $24.63 Difference: $2.57
If WDS meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $27.80, suggesting upside of 12.9%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 172.21 cents and EPS of 214.20 cents.
At the last closing share price the estimated dividend yield is 6.99%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 242.7, implying annual growth of N/A.
Current consensus DPS estimate is 187.5, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 10.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 96.68 cents and EPS of 120.85 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.1, implying annual growth of -34.9%.
Current consensus DPS estimate is 118.9, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

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Jarden rates ((WDS)) as Neutral (3) –

Jarden observes a solid 3Q24 result from Woodside Energy with a good performance from Australian assets and a full quarter from Sangomar.

Production for the quarter reached a record, up 20% on the previous quarter ,and 4% higher than the broker’s expectations. The analyst increases forecasts for Sangomar production entitlement volumes. Achieved LNG prices were also higher than anticipated.

Jarden forecasts lower capex in 2024 while noting LNG linked to gas-hub price guidance range has also increased.

No change to Neutral rating. Target price lifts to $26.80 from $26.60.

This report was published on October 16, 2024.

Target price is $26.80 Current Price is $24.63 Difference: $2.17
If WDS meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $27.80, suggesting upside of 12.9%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 200.91 cents and EPS of 251.81 cents.
At the last closing share price the estimated dividend yield is 8.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 242.7, implying annual growth of N/A.
Current consensus DPS estimate is 187.5, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 10.1.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 125.38 cents and EPS of 196.22 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.1, implying annual growth of -34.9%.
Current consensus DPS estimate is 118.9, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting – Overnight Price: $1.64

Canaccord Genuity rates ((XRF)) as Speculative Buy (1) –

XRF Scientific’s 1Q earnings were in line with Canaccord Genuity’s forecast while delivery and timing issues along with lower lithium prices resulted in lower-than-expected revenue. 

Lower lithium prices may translate to greater margins provided demand holds, notes the broker.

Overall demand is unlikely to collapse as capital equipment orders remain robust and because XRF has a lower exposure to the volatilities of the exploration and gold sectors, highlights Canaccord.

The record profit margin of 24% in Q1 impressed the analysts. Speculative Buy. The target rises to $1.75 from $1.62.

This report was published on October 16, 2024.

Target price is $1.75 Current Price is $1.64 Difference: $0.11
If XRF meets the Canaccord Genuity target it will return approximately 7% (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 4.30 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 2.62%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.10.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 4.50 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 2.74%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.00.

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

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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.

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