Australian Broker Call *Extra* Edition – Oct 28, 2024

This story features 29METALS LIMITED, and other companies. For more info SHARE ANALYSIS: 29M

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)

29M   ACE   AD8   FBU   ILU (2)   IPD   MAC   MEI   MHJ   PNI   PPS   PYC   QBE   RXL   TAH   VEA   WOR  

29M    29METALS LIMITED

Copper – Overnight Price: $0.43

Jarden rates ((29M)) as Underweight (4) –

Jarden highlights 29Metals continues to experience significant cash burn, with -$26m consumed during 3Q24. Despite favourable base metal prices, the company’s cash balance dropped to $60m by the end of September, with net debt rising to $147m.

The company is forecasted to have a cash balance of just $30m by the end of 2024, necessitating a liquidity event of $60m to maintain its going-concern status.

Golden Grove generated positive free cash flow ($26m), but Jarden points out the overall production was offset by disappointing developments at Xantho Extended.

The broker has downgraded EBITDA forecasts by -64% for 2024 due to slower XE ramp-up and increased costs. The price target is reduced to $0.30 from $0.33, with an Underweight rating maintained.

This report was published on October 24, 2024.

Target price is $0.30 Current Price is $0.43 Difference: minus $0.135 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.53, suggesting upside of 21.3%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 12.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 3.43.

How do these forecasts compare to market consensus projections?

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

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 72.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

ACE    ACUSENSUS LIMITED

Transportation & Logistics – Overnight Price: $0.94

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

Canaccord Genuity highlights Acusensus reported “strong” 1Q25 revenue of $14m, up 17% year-on-year and 10% quarter-on-quarter, tracking ahead of expectations for FY25 revenue growth of 14% to $57m.

The company’s revenue growth is driven by long-duration government contracts, the broker explains, with no contract churn and high cross-sell success.

The broker nominates as the domestic highlight for the quarter a $9.4m, 3-year contract with the WA government, which will add $3m per annum in incremental revenue starting in 3Q25.

Internationally, the US business achieved two new long-term contracts and a UK pilot program is underway. The broker maintains a Buy rating and has kept the price target unchanged at $1.30. No material changes were made to financial forecasts.

This report was published on October 23, 2024.

Target price is $1.30 Current Price is $0.94 Difference: $0.355
If ACE meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company’s fiscal year ends in July.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 67.50.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 105.00.

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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $8.59

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

Audinate held its AGM, where it delivered a 1Q25 trading update showing softer-than-expected performance. Canaccord Genuity highlights gross profit for 1Q25 came in at US$7.2m/A$10.6m, representing a -35-40% reduction year-on-year.

Not surprising, management at the company revised its FY25 expectations downward, citing ongoing headwinds into 2Q25. Full-year gross profit is now expected to be approximately $45m, down from $68m previously.

Cost growth is projected at 7-9% for FY25, with EBITDA only modestly positive. As a result, the broker lowered its price target to $10.50 from $12.00, while maintaining a Buy rating. Financial forecasts for FY25-27 have been significantly reduced.

This report was published on October 22, 2024.

Target price is $10.50 Current Price is $8.59 Difference: $1.91
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 34.7%(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 214.75.

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 95.44.

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 156.2.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $2.82

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

Fletcher Building provided a weaker-than-expected AGM trading update, Goldman Sachs highlights. The company did not give explicit FY25 EBIT guidance but expects a 1H/2H split of 40/60, compared to prior expectations of 45/55.

Materials and Distribution volumes were down -10-15% year-on-year, with declining revenue trends and a highly competitive market leading to continued margin pressure.

The broker has adjusted its FY25 EBIT forecast downward by -13% and maintained a Neutral rating with the price target unchanged at $2.75. No significant changes were made to financial forecasts.

This report was published on October 23, 2024.

Target price is $2.75 Current Price is $2.82 Difference: minus $0.07 (current price is over target).
If FBU meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.48, suggesting downside of -12.1%(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 14.72 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 15.64 cents and EPS of 23.93 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.1, implying annual growth of 46.7%.
Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 14.0.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $5.84

Canaccord Genuity rates ((ILU)) as Hold (3) –

Iluka Resources’ 3Q24 production exceeded expectations, with 138kt of mineral sands produced, compared to Canaccord Genuity’s forecast of 122kt.

However, sales volumes of 97kt missed both the broker’s estimate of 122kt and consensus of 124kt, mainly due to a shipment delay.

Average realised prices for zircon and rutile fell by -1% and -6% quarter-on-quarter, respectively, while synthetic rutile prices remained flat.

The broker notes the macroeconomic backdrop, particularly in China, continues to impact demand. The company expects a recovery in 2025.

The price target remains unchanged at $6.30, with the broker maintaining a Hold rating. No major changes were made to financial forecasts.

This report was published on October 22, 2024.

Target price is $6.30 Current Price is $5.84 Difference: $0.46
If ILU meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $6.97, suggesting upside of 19.3%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 8.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 1.37%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.4, implying annual growth of -34.9%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 73.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.1, implying annual growth of 35.7%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 8.2.

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

Iluka Resources delivered a weaker-than-expected 3Q24 result with mineral sands sales of 116kt, down -25-30% compared to expectations, resulting in revenue of $232m.

Goldman Sachs explains the lower-than-anticipated zircon sales, realised prices, and a delayed synthetic rutile shipment into 4Q contributed to the shortfall.

The company highlighted continued subdued demand in China for zircon used in ceramics but expects recovery in 2Q25.  Synthetic rutile sales are set to surge in 4Q as the company targets 90kt in sales.

The broker has reduced its price target to $7.70 from $7.90 and maintained a Buy rating, citing long-term growth potential in mineral sands and rare earths projects. Financial forecasts were adjusted to reflect reduced zircon sales and price assumptions.

This report was published on October 22, 2024.

Target price is $7.70 Current Price is $5.84 Difference: $1.86
If ILU meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $6.97, suggesting upside of 19.3%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 8.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 1.37%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.4, implying annual growth of -34.9%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 33.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 5.65%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 29.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.1, implying annual growth of 35.7%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 8.2.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.06

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

ImpediMed reported 1Q25 revenue of $2.7m, down -7% quarter-on-quarter, with lower Rest of World sales and an FX impact contributing to the decline.

Canaccord Genuity observes the company added 22 new Sozo units in the US, but device churn limited the active installed base increase to just 17 units globally, bringing the total to 1,022.

The company’s core annual recurring revenue remains steady at $11.6m. Cash outflows from operations totaled -$4.8m, with management expecting improvement in the coming quarter as cost rationalisation efforts take effect.

The broker highlights the company holds $18.6m in cash, which should be sufficient for near-term commercialisation efforts. Speculative Buy rating retained with a price target of $0.09. No major updates were made to financial forecasts.

This report was published on October 22, 2024.

Target price is $0.09 Current Price is $0.06 Difference: $0.033
If IPD meets the Canaccord Genuity target it will return approximately 58% (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 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 5.18.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 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 5.70.

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

MAC    METALS ACQUISITION LIMITED

Copper – Overnight Price: $18.30

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

Metals Acquisition reported its SepQ’24 results, with copper production of 10.2kt, in line with expectations but down -6% quarter-on-quarter due to lower tonnage mined.

Canaccord Genuity points out sales also decreased by -21% following a shipment reclassification to the previous quarter. C1 costs were down -6% to US$1.90/lb, sitting at the lower end of guidance, while AISC remained flat at US$2.71/lb.

The broker notes the company continues to optimise production through higher-grade stopes and expects strong performance in DecQ’24.

Buy rating retained. Price target unchanged at $22.00. No significant updates were made to financial forecasts.

This report was published on October 22, 2024.

Target price is $22.00 Current Price is $18.30 Difference: $3.7
If MAC meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 228.75.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 46.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 39.78.

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

MEI    METEORIC RESOURCES NL

Gold & Silver – Overnight Price: $0.10

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

Meteoric Resources has provided an updated Scoping Study for its Caldeira Rare Earth Project, incorporating the Figueira deposit, which, as Canaccord Genuity observes, increased the project’s total resource by 20% to 740Mt at 2,572ppm TREO.

The broker highlights the study highlights improved project economics, including a 14% increase in annual NdPr production to 3.2ktpa over the first 20 years and a -4% reduction in average cash costs to US$6.70/kg TREO.

Development capex remains at -US$403m, with first production expected by late 2027. The broker maintains a Speculative Buy rating and leaves the price target at $0.40. Financial forecasts were revised to reflect increased production and lower cash costs.

This report was published on October 23, 2024.

Target price is $0.40 Current Price is $0.10 Difference: $0.295
If MEI meets the Canaccord Genuity target it will return approximately 281% (excluding dividends, fees and charges).
Current consensus price target is $0.32, suggesting upside of 204.8%(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 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.8, 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 minus 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 10.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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: $0.58

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

Jarden comments Michael Hill has shown improved trading momentum in the first 14 weeks of FY25, with group sales growth accelerating to 4.3% year-on-year, up from 3.2% in the first eight weeks.

As per the broker, Australia and Canada led the way with strong same-store sales growth of 6.3% and 4.7%, respectively, while New Zealand’s same-store sales contracted by -4.2%, though this represents an improvement from -6.2% previously.

Gross margin has also shown a “meaningful improvement,” and management remains confident in achieving the FY25 gross margin target of circa 62%.

The broker has upgraded its rating to Buy from Overweight and raised the price target to NZ$0.80 from NZ$0.78, driven by positive earnings revisions and margin recovery progress.

This report was published on October 24, 2024.

Current Price is $0.58. 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 4.31%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.68.

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 9.48%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.44.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $19.32

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

It is Wilsons’ assessment, Pinnacle Investment Management provided a solid update ahead of its 2024 AGM, with notable growth in its Metrics FUM.

Since the acquisition of a 35% stake in Metrics in 2018, FUM has grown by 550%, now contributing 15% of Pinnacle’s total group FUM and 20% of gross fees, the broker points out.

Wilsons has upgraded its 1Q25 FUM estimates to $125b, reflecting a 13% quarterly increase, supported by the Antipodes acquisition of Maple Brown Abbot and strong equity market performance.

Pinnacle’s net profit forecast has been raised by 2% for FY25 and 3% for FY26. The price target has been lifted to $20.50 from $19.70, with the broker maintaining an Overweight rating. 

This report was published on October 24, 2024.

Target price is $20.50 Current Price is $19.32 Difference: $1.18
If PNI meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $18.30, suggesting downside of -5.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 49.10 cents and EPS of 53.40 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 36.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.0, implying annual growth of 17.9%.
Current consensus DPS estimate is 45.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 35.8.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 55.50 cents and EPS of 63.10 cents.
At the last closing share price the estimated dividend yield is 2.87%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 30.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.8, implying annual growth of 20.0%.
Current consensus DPS estimate is 56.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 29.8.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.67

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

It is Canaccord Genuity’s view Praemium reported “strong” 1Q25 results, with platform funds under administration (FUA) growing to $29bn, an increase of 3.5% quarter-on-quarter and 30% year-on-year.

The broker highlights positive net inflows of $139m, driven by improved performance from the Powerwrap platform, which saw significant reductions in net outflows.

The company also noted a positive outlook for its new Spectrum platform, expected to drive further growth in 2Q25. The broker has raised its price target to $0.95 from $0.85, maintaining a Buy rating. No major changes were made to financial forecasts.

This report was published on October 23, 2024.

Target price is $0.95 Current Price is $0.67 Difference: $0.285
If PPS meets the Canaccord Genuity target it will return approximately 43% (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 1.50 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 2.26%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.63.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 2.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.30.

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

PYC    PYC THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.18

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

Canaccord Genuity comments PYC Therapeutics reported promising early-stage data from its Phase I/II clinical trial of VP-001, targeting Retinitis Pigmentosa 11 (RP11), a rare blinding eye disease.

Positive outcomes were observed in two of three patients from the Multiple Ascending Dose cohort, showing improvements in retinal sensitivity and low-luminance visual acuity.

The broker adds safety data have been encouraging, with no significant adverse events reported.

Canaccord Genuity has raised its price target to $0.24 from $0.22, maintaining a Buy rating. PYC Therapeutics is expected to provide further data on higher doses and longer-term outcomes in 1H25.

This report was published on October 22, 2024.

Target price is $0.24 Current Price is $0.18 Difference: $0.06
If PYC meets the Canaccord Genuity target it will return approximately 33% (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 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 18.00.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 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 18.00.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $17.23

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

QBE Insurance faces civil penalty proceedings initiated by ASIC, alleging contraventions related to pricing discrepancies in Caravan, householder, marine, and motor policies between July 2017 and September 2022.

As per Goldman Sachs’ comments, the issue impacted over 500,000 renewal notices and involved loyalty discounts, no-claim bonuses, and multiple policy discounts.

QBE has already provisioned US$75m pre-tax for customer remediation and related costs, including US$15m in financing and administration expenses.

Despite the ongoing legal matters, the broker points out the insurer has implemented steps to correct the inconsistencies and continues to cooperate with ASIC.

Goldman Sachs maintains a Buy rating and a price target of $20.00, with no major changes to financial forecasts.

This report was published on October 23, 2024.

Target price is $20.00 Current Price is $17.23 Difference: $2.77
If QBE meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $18.81, suggesting upside of 9.2%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 54.00 cents and EPS of 158.47 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.8, implying annual growth of N/A.
Current consensus DPS estimate is 73.9, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 10.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 57.00 cents and EPS of 169.03 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 170.7, implying annual growth of 8.2%.
Current consensus DPS estimate is 81.5, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 10.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

RXL    ROX RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.19

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

Rox Resources reported additional high-grade assay results from its ongoing 11,000m diamond and RC drilling program at the Youanmi Gold Project in WA.

Canaccord Genuity comments the standout result was 30.1m at 19.81g/t gold from 325m at the United North deposit, which is expected to enhance confidence in the stope design.

The company is also advancing exploration at Paddy’s Lode. Rox is moving from a PFS to a DFS, aiming for an average production of 103kozpa at an AISC of $1,676/oz over 7.7 years.

Canaccord Genuity has maintained a Speculative Buy rating, with a price target of $0.55.

This report was published on October 22, 2024.

Target price is $0.55 Current Price is $0.19 Difference: $0.36
If RXL meets the Canaccord Genuity target it will return approximately 189% (excluding dividends, fees and charges).

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $0.46

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

Jarden observes Tabcorp has gone through a year of significant change, with a new Chair, CEO, and CFO, setting the stage for a strategic overhaul.

At the 2024 AGM, CEO Gillon McLachlan outlined pending strategic developments aimed at unlocking value across the company’s diverse asset portfolio. Jarden notes the focus is on enhancing the wagering and Sky Racing media business.

The company expects senior leadership updates in the coming weeks and a broader strategy shift in early 2025. No immediate trading update was provided.

Jarden retains its 12-month price target of $0.65, with an Overweight rating due to potential value unlocking in the medium term. No material changes were made to financial forecasts.

This report was published on October 24, 2024.

Target price is $0.65 Current Price is $0.46 Difference: $0.195
If TAH meets the Jarden target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $0.55, suggesting upside of 20.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 1.20 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.4, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.5.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 2.10 cents and EPS of 3.50 cents.
At the last closing share price the estimated dividend yield is 4.62%.
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 2.8, implying annual growth of 100.0%.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.3.

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

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $2.71

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

Goldman Sachs comments Viva Energy reported a weaker-than-expected 3Q24 result, with a Geelong refining margin of US$6.4/bbl, -25% below the broker’s estimate of US$8.5/bbl, primarily due to crude slate and shipping costs.

Convenience gross profit remained flat at $177m, as a 2.5% improvement in gross margin to 39.6% offset a 7% decline in same-store sales driven by lower tobacco sales.

The broker points out illicit tobacco trade in South Australia impacted earnings, and the company provided FY24 Convenience & Mobility EBITDA guidance of $230-260m.

The broker has reduced its price target to $3.30 from $3.50, maintaining a Buy rating due to an “attractive valuation” and the potential for future cost-saving synergies.

This report was published on October 22, 2024.

Target price is $3.30 Current Price is $2.71 Difference: $0.59
If VEA meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $3.65, suggesting upside of 34.5%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 6.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.3, implying annual growth of 8820.0%.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 11.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.6, implying annual growth of 5.8%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 11.5.

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

WOR    WORLEY LIMITED

Energy Sector Contracting – Overnight Price: $14.18

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

Worley has delivered a strong 3Q24 update, comments Goldman Sachs, showing steady revenue growth despite ongoing cyclical headwinds.

The company’s backlog declined by -$1bn to $13.8bn in June 2024, driven by elevated scope reductions in early 2024. However, the broker believes Worley remains well-positioned for long-term growth, with key catalysts such as the CP2 project expected to add $6bn to the backlog over the next few years.

The broker reiterates a Buy rating and has slightly raised the price target to $18.00 from $17.80, reflecting improved earnings potential from ongoing strategic projects.

Financial forecasts were revised to incorporate modest EBITA growth of 3% in FY26/27.

This report was published on October 22, 2024.

Target price is $18.00 Current Price is $14.18 Difference: $3.82
If WOR meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $18.26, suggesting upside of 28.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 53.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.5, implying annual growth of 50.5%.
Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 66.00 cents and EPS of 99.00 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 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.8, implying annual growth of 22.3%.
Current consensus DPS estimate is 53.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.4.

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

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