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

This story features AUDINATE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AD8

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)

AD8   AOV   BGL   DSE   GNE   MGH   MHJ   NCK (2)   OCC   S32   SFX   SMR   VSL  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $8.62

Canaccord Genuity rates ((AD8)) as Buy (1) –

Canaccord Genuity lowers its target for Audinate Group to $10.50 from $12.00 following a 1Q AGM trading update showing a -40% fall in gross profit. Management also lowered growth expectations for FY25 as “headwinds are expected to continue into 2Q25”.

Management noted the ongoing unwind of its order book and softer-than-expected reordering patterns. The company is expecting “a moderately stronger second half”, though no quantitative figures were provided, highlight the analysts.

After the broker implies the Q1 performance into Q2, the resultant 1H gross profit misses Canaccord’s forecast by -35%.

The Buy rating is maintained.

This report was published on October 23, 2024.

Target price is $10.50 Current Price is $8.62 Difference: $1.88
If AD8 meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $11.58, suggesting upside of 34.3%(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 4.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 215.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.5, 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 FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 95.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, 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 156.7.

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

AOV    AMOTIV LIMITED

Automobiles & Components – Overnight Price: $10.89

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

Wilsons assesses a broadly neutral AGM trading update by Amotiv. The target edges up to $12.71 from $12.69.

The broker highlights ‘Wear & repair’ segments remain resilient, partly offset by softness in New Zealand, and the Caravan/RV and 4WD/SUV segments.

Management announced a share buyback of up to 5% of shares on issue, which is expected to commence from November 6. 

Wilsons suggests investors are yet to reward management’s efforts to rapidly deleverage the balance sheet with a higher share price. The Overweight rating is retained.

This report was published on October 22, 2024.

Target price is $12.71 Current Price is $10.89 Difference: $1.82
If AOV meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $13.02, suggesting upside of 19.6%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 43.00 cents and EPS of 89.60 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.8, implying annual growth of 21.4%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 47.00 cents and EPS of 98.40 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.9, implying annual growth of 10.6%.
Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 11.5.

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

BGL    BELLEVUE GOLD LIMITED

Gold & Silver – Overnight Price: $1.64

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

Mill throughput offset softer grades in the 1Q for Bellevue Gold, notes Goldman Sachs, and gold production aligned with forecasts by the broker and consensus.

The broker expects the significantly improved development rates in the 1Q at the Bellevue mine will be maintained.

Management reiterated FY25 production guidance of between 165koz-180koz. Also, the proposed debt amendment should be concluded by the end of October leaving around $100m of debt with no repayments due until 2027, explained management.

The Buy rating and $1.80 target are retained. 

This report was published on October 22, 2024.

Target price is $1.80 Current Price is $1.64 Difference: $0.16
If BGL meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $1.63, suggesting downside of -0.4%(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 10.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.1, implying annual growth of 70.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 0.00 cents and EPS of 15.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of 22.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 12.1.

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

DSE    DROPSUITE LIMITED

Cloud services – Overnight Price: $4.06

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

Dropsuite reported a 34% year-on-year increase in ARR (USD) to $42.6m for 3Q24, driven by record net seat additions. Petra Capital labels it a “strong” performance.

Operating cash flow improved to $0.8m, reflecting a sequential increase from 2Q24. While ARPU fell slightly due to sales mix changes, the gross profit margin remained stable at 69%.

Petra Capital has made modest adjustments to growth opex assumptions, raising the 2024 EPS forecast by 52% and lowering the 2025 forecast by -27%. The price target has been raised to $3.98 from $3.65, with a Buy rating maintained.

This report was published on October 23, 2024.

Target price is $3.98 Current Price is $4.06 Difference: minus $0.08 (current price is over target).
If DSE meets the Petra Capital target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company’s fiscal year ends in December.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 238.82.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 162.40.

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

GNE    GENESIS ENERGY LIMITED

Infrastructure & Utilities – Overnight Price: $1.94

Jarden rates ((GNE)) as Buy (1) –

In line with expectations, Jarden believes 1Q earnings (EBITDA) of around NZ$158m were generated by Genesis Energy, a rise of around NZ$28m on the previous corresponding period.

While Hydro generation fell to 690GWh from 830GWh in the quarter, thermal fleet profits provided a greater offset, explains the broker.

The analysts believe earnings are on track to beat FY25 guidance of NZ$460m.

Jarden leaves its forecasts, NZ$3.00 target and Buy rating unchanged.

This report was published on October 22, 2024.

Current Price is $1.94. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 12.88 cents and EPS of 6.07 cents.
At the last closing share price the estimated dividend yield is 6.66%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.86.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 13.25 cents and EPS of 7.73 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.03.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $4.75

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

Potential for sustained earnings growth at Maas Group has been confirmed by the analysts at Wilsons after further analysis of metrics for return on capital (ROC), gearing and free cash flow (FCF).

The broker’s target rises to $5.59 from $4.91 benefiting from a roll-forward in Wilsons base year forecast to FY26. Overweight.

For the Construction Material segment, by way of example, the broker’s forecasts imply a return on capital employed (RoCE) uplift of circa 600bps by FY27, which includes benefit from volume growth, price increases and asset synergies.

This report was published on October 22, 2024.

Target price is $5.59 Current Price is $4.75 Difference: $0.84
If MGH meets the Wilsons target it will return approximately 18% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 9.00 cents and EPS of 29.10 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.32.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 12.00 cents and EPS of 37.30 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.73.

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

MHJ    MICHAEL HILL INTERNATIONAL LIMITED

Luxury – Overnight Price: $0.57

Jarden rates ((MHJ)) as Upgrade to Buy from Overweight (1) –

Jarden upgrades its rating for Michael Hill to Buy from Overweight after an update for the first 14 weeks of FY25 revealed improving trading momentum across all markets.

Sales growth accelerated to 4.3% year-on-year from the 3.2% run-rate reported in the first eight weeks of FY25.

The analysts believe the company has passed an inflection point by returning to positive sales and margin growth and see upside risk to the broker’s near-term earnings forecasts.

Jarden’s target price rises to NZ80c from NZ78c.

This report was published on October 24, 2024.

Current Price is $0.57. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 2.50 cents and EPS of 3.70 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.54.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 5.50 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 9.57%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.37.

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

NCK    NICK SCALI LIMITED

Furniture & Renovation – Overnight Price: $14.36

Jarden rates ((NCK)) as Buy (1) –

Jarden encourages investors to look through transitory factors behind lower 1H profit guidance by management at Nick Scali due to higher-than-expected A&NZ freight rates.

Apart from indications of falling A&NZ freight rates at the AGM trading update, the analysts reel off a host of other positives. These include an acceleration in A&NZ written sales order (WSO) and an improving UK sales environment from the time of the Fabb acquisition.

The broker forecasts the company’s UK gross profit margin will improve by 300bps and the UK operations are set to benefit from -$1m per year in cost savings from the 2H of FY25.

Buy rating retained. Target price falls to $15.88 from $16.52.

This report was published on October 22, 2024.

Target price is $15.88 Current Price is $14.36 Difference: $1.52
If NCK meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $15.51, suggesting upside of 8.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 72.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.3, implying annual growth of -23.7%.
Current consensus DPS estimate is 58.2, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 19.1.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 86.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.8, implying annual growth of 32.5%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.4.

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

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

Wilsons describes a “mixed” AGM trading update by Nick Scali. The broker’s target falls by -10 cents to $17.30. Overweight.

The gross margin will be “down around -240bps or more”, stated management, due to increased freight rates, resulting in lower A&NZ profit guidance of between $30-33m.

On the other hand, the broker highlights an improvement in the A&NZ wholesale order (WSO) trajectory in August and September, and an improving UK gross margin on very little volume at this early stage.

This report was published on October 22, 2024.

Target price is $17.30 Current Price is $14.36 Difference: $2.94
If NCK meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $15.51, suggesting upside of 8.0%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 50.20 cents and EPS of 74.10 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.3, implying annual growth of -23.7%.
Current consensus DPS estimate is 58.2, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 19.1.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 69.20 cents and EPS of 98.90 cents.
At the last closing share price the estimated dividend yield is 4.82%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 99.8, implying annual growth of 32.5%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.4.

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

OCC    ORTHOCELL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.69

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

Petra Capital notes Orthocell reported record revenue of $2.03m for 1QFY25, up 15% year-on-year and 8% quarter-on-quarter.

The broker highlights growing traction for both Striate-plus and Remplir products, with over 150 surgeons across A&NZ now using Remplir.

The recent approval of Remplir in Singapore marks its first regulatory success outside A&NZ, with a launch expected in 1Q2025.

The broker has lifted its price target to $1.32 from $1.28, maintaining a Buy rating. Financial forecasts for FY25 and FY26 remain largely unchanged, while the FY27 net profit forecast is reduced by -19%.

This report was published on October 23, 2024.

Target price is $1.32 Current Price is $0.69 Difference: $0.63
If OCC meets the Petra Capital target it will return approximately 91% (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 3.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 22.26.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 6.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.15.

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

S32    SOUTH32 LIMITED

Mining – Overnight Price: $3.69

Goldman Sachs rates ((S32)) as Buy (1) –

Goldman Sachs assesses an improved 1Q result for South32 with production for aluminium, copper and manganese beating the broker’s forecasts, while performances from alumina, nickel and Cannington (silver/lead/zinc) missed expectations.

The broker’s target rises by 3% to $3.90 after raising the target multiple to reflect an improved operating performance and the ongoing positive outlook for near-term alumina prices. Buy.

This report was published on October 22, 2024.

Target price is $3.90 Current Price is $3.69 Difference: $0.21
If S32 meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $3.84, suggesting upside of 4.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 9.21 cents and EPS of 20.54 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of N/A.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 19.33 cents and EPS of 36.39 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.1, implying annual growth of 28.2%.
Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 10.8.

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

SFX    SHEFFIELD RESOURCES LIMITED

Mineral Sands – Overnight Price: $0.24

Petra Capital rates ((SFX)) as Downgrade to Hold from Buy (3) –

Sheffield Resources reported production at its Thunderbird mineral sands project was -11-14% below expectations, despite throughput being 3% ahead of forecast.

Petra Capital observes no zircon sales were made during the quarter due to weak market conditions, leading to revenue of $24m, significantly below the broker’s forecast of $63m.

A $14m prepayment from the JV partner is expected to provide short-term liquidity. As a result, the broker has downgraded the price target to $0.28 from $0.57 and reduced its NPV estimate.

Sheffield Resources has been downgraded to Hold from Buy. 

This report was published on October 23, 2024.

Target price is $0.28 Current Price is $0.24 Difference: $0.04
If SFX meets the Petra Capital target it will return approximately 17% (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 6.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 3.81.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 48.00.

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

SMR    STANMORE RESOURCES LIMITED

Coal – Overnight Price: $3.10

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

Petra Capital comments Stanmore Resources reported a strong quarterly production result, with all operations exceeding expectations.

Saleable production of 3.8Mt was up 10% quarter-on-quarter, beating the broker’s forecast by 9%. The broker believes the company remains on track to exceed its 2024 guidance, supported by higher-than-expected ROM stocks and no further capex projects in 2025.

The price target has slightly increased to $5.33 from $5.32. Financial forecasts have been updated, reflecting a modest increase in 2024 output but a -2% reduction in the 2025 coal price forecast. Buy.

This report was published on October 23, 2024.

Target price is $5.33 Current Price is $3.10 Difference: $2.23
If SMR meets the Petra Capital target it will return approximately 72% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 14.19 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.89.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 10.30 cents and EPS of 35.30 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.78.

This company reports in USD. 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

VSL    VULCAN STEEL LIMITED

Steel & Scrap – Overnight Price: $7.44

Jarden rates ((VSL)) as Neutral (3) –

In line with Jarden’s forecast, Vulcan Steel’s 1Q earnings (EBITDA) fell by -40% year-on-year to NZ$22.7m pre the accounting standard IFRS 16 pertaining to leases.

Management expects ongoing softness through to the end of 2025 though noted pre-sales activity levels among Vulcan’s customers have improved.

Debt fell by -NZ$22m over the quarter to NZ$254m. Just in case the aforementioned activity improvement is further delayed, the broker points out management has negotiated a relaxation of existing banking covenant thresholds for the next 14 months.

The NZ$7.80 target and Neutral rating are unchanged.

This report was published on October 22, 2024.

Current Price is $7.44. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 22.09 cents and EPS of 28.71 cents.
At the last closing share price the estimated dividend yield is 2.97%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.91.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 35.62 cents and EPS of 47.49 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.67.

This company reports in NZD. 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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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.

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