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

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

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)

ALC   ALL   CAT   COL   DEG   GTK   IFT   IMM   ING   IPH   NXL   S32   SLC   SPZ   TYR   WGX  

ALC    ALCIDION GROUP LIMITED

Healthcare services – Overnight Price: $0.06

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

Alcidion Group recently secured a $4.5m contract with the Northern Adelaide Local Health Network for its Miya Precision and mobile task management tools.

Canaccord Genuity notes the contract spans two years, with the possibility of extension to five years. While the revenue contribution is modest in the near term, the broker believes it supports Alcidion’s FY25 revenue target of $36m and the goal of achieving break even EBITDA.

Management  remains focused on the timing and scale of new contracts in the UK, particularly with the NHS. Recent signs of progress include several NHS awards for digital transformation projects, although delays in contract appointments and implementation persist across the sector.

No changes have been made to financial forecasts. The broker emphasises the importance of sizable NHS contract wins to boost investor confidence and potentially trigger a significant re-rating of the stock.

Canaccord retains a Buy rating with a target price of 9c.

This report was published on November 14, 2024.

Target price is $0.09 Current Price is $0.06 Difference: $0.032
If ALC meets the Canaccord Genuity target it will return approximately 55% (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 0.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 19.33.

Forecast for FY26:

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

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $67.83

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

Jarden highlights Aristocrat Leisure reported strong FY24 results with NPATA reaching $1.6bn, up 17%, supported by a 12% increase in segment profits and 5% revenue growth.

Gaming operations saw record installations, with margins expanding due to strong product performance. Pixel United delivered 12% profit growth despite flat bookings, benefiting from cost controls. The sale of Plarium and the strategic review of Big Fish reflect the company’s focus on higher-margin businesses.

Jarden revised EPS forecasts slightly upwards for FY25-FY27, with the target price raised to $61.00 from $59.00.

The broker remains positive on the company’s market position, but downgrades the rating to Neutral from Overweight, due to valuation concerns after recent share price outperformance. 

This report was published on November 14, 2024.

Target price is $61.00 Current Price is $67.83 Difference: minus $6.83 (current price is over target).
If ALL meets the Jarden target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $70.75, suggesting upside of 4.3%(ex-dividends)
The company’s fiscal year ends in September.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 89.00 cents and EPS of 265.00 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 25.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 263.8, implying annual growth of 28.8%.
Current consensus DPS estimate is 92.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 25.7.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 94.00 cents and EPS of 281.40 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.5, implying annual growth of 9.0%.
Current consensus DPS estimate is 95.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 23.6.

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

CAT    CATAPULT GROUP INTERNATIONAL LIMITED

Medical Equipment & Devices – Overnight Price: $3.07

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

Canaccord Genuity observes Catapult International’s 1H25 results outperformed expectations, with annualised contract value up 20% to US$97m and revenue rising 19% to US$58m, driven by subscription growth and efficient cost management.

EBITDA increased 68% to US$14m, with free cash flow turning positive at US$4m.

Performance and Health recorded 23% growth, while Tactics and Coaching rose 20%. The company’s focus on wearables and video products offers a US$75m upside in annual contract values over the next three to five years, the broker highlights

Price target lifts to $3.50 from $2.50, reflecting a strong outlook. Buy rating unchanged.

This report was published on November 14, 2024.

Target price is $3.50 Current Price is $3.07 Difference: $0.43
If CAT meets the Canaccord Genuity target it will return approximately 14% (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 minus 5.88 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 52.21.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 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 509.12.

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

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $18.18

Jarden rates ((COL)) as Neutral (3) –

Jarden observes Coles Group’s strategy is focusing on simplification, fresh produce, and affordability, supported by tailored ranges, digital innovation, and efficiency improvements targeting -$1bn in savings over four years.

Management’s promotional refinements aim to boost sales and margins, with supplier feedback suggesting near-term outperformance over Woolworths.

Jarden retains earnings forecasts, but upside potential exists for FY26 forecasts, driven by cost savings and operational gains.

Neutral rating and $16.90 target price unchanged.

This report was published on November 14, 2024.

Target price is $16.90 Current Price is $18.18 Difference: minus $1.28 (current price is over target).
If COL meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $19.54, suggesting upside of 7.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 68.00 cents and EPS of 83.40 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 21.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.3, implying annual growth of 0.6%.
Current consensus DPS estimate is 70.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 93.80 cents.
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 95.5, implying annual growth of 13.3%.
Current consensus DPS estimate is 79.6, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 19.0.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.41

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

De Grey Mining updated the Hemi Resource which now stands at 264Mt at 1.3g/t Au for 11.2Moz, up 0.7Moz from November 2023, while group resources increased by 0.9Moz to 13.6Moz.

Canaccord Genuity notes  Hemi Resource has added 1.7Moz since June 2023, with production potential projected at 527kozpa over the first 10 years, supported by a $1.45bn pre-production capex.

A scoping study indicates potential group production to lift to 700kozpa from FY31.

Financing is advancing, with $1bn in senior debt and a $130m cost overrun facility secured, alongside a $828m cash balance, expected to fund development, the broker notes. 

The Speculative Buy rating is maintained. No change to $2.90 target price.

This report was published on November 14, 2024.

Target price is $2.90 Current Price is $1.41 Difference: $1.495
If DEG meets the Canaccord Genuity target it will return approximately 106% (excluding dividends, fees and charges).
Current consensus price target is $1.91, suggesting upside of 36.1%(ex-dividends)

Forecast for FY25:

Current consensus EPS estimate is -1.3, 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:

Current consensus EPS estimate is -1.6, 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

GTK    GENTRACK GROUP LIMITED

Software & Services – Overnight Price: $9.55

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

On November 26, Goldman Sachs forecasts Gentrack Group will deliver FY24 revenue of NZ$203m, representing 19% year-on-year growth, in line with guidance and consensus.

The broker also expects underlying earnings (EBITDA) of NZ$26.5m at the top end of the NZ$23.5-26.5m guidance range.

Contract momentum is a key driver of growth, note the analysts, with management expected to provide FY25 guidance aligned with a 15% compound annual growth rate target.

Expansion opportunities in EMEA and South East Asia, alongside M&A potential in new markets such as the US, remain a focus for management, supported by $59m in cash as of September, highlights Goldman.

The broker retains a Buy rating and target of NZ$11.75.

This report was published on November 19, 2024.

Current Price is $9.55. Target price not assessed.
Current consensus price target is $11.23, suggesting upside of 17.6%(ex-dividends)
The company’s fiscal year ends in September.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 11.03 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 86.57.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 18.39 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 51.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 93.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 55.5.

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

IFT    INFRATIL LIMITED

Wealth Management & Investments – Overnight Price: $11.25

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

Infratil’s 1H25 results exceeded expectations with EBITDA at NZ$478.8m, above consensus estimates, Jarden notes.

FY25 EBITDA guidance was revised to NZ$960mNZ$1,000m, reflecting stable performance across key assets. An interim dividend of NZ7.25 per share was announced.

CDC Data Centres which is 48.2% owned maintained FY25 EBITDA guidance of $320m$330m but shifted towards the lower end due to delayed contracts, while management anticipates FY26 EBITDA growth of around 40%.

One NZ is benefiting from stabilising sector headwinds, and retained FY25 guidance at NZ$580mNZ$620m, supported by improved margins and reduced costs.

Jarden retained its target price of NZ$12.70 and Overweight rating, citing valuation potential for CDC amidst ongoing corporate activity. 

This report was published on November 14, 2024.

Current Price is $11.25. Target price not assessed.
The company’s fiscal year ends in March.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 19.31 cents and EPS of minus 0.09 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 12228.26.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 20.32 cents and EPS of 4.23 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 266.02.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.32

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

Canaccord Genuity observes Immutep reported positive data from the INSIGHT-003 study, which evaluates a triple combination therapy for non-small cell lung cancer.

The broker notes the findings include a median overall survival of 32.9 months, a median progression-free survival of 12.7 months, and a 24-month survival rate of 81%.

These results compare favourably to the KEYNOTE-189 study and validate the upcoming TACTI-004 Phase III trial, expected to enrol 750 first-line patients.

Buy rating and $0.95 target.

This report was published on November 14, 2024.

Target price is $0.95 Current Price is $0.32 Difference: $0.635
If IMM meets the Canaccord Genuity target it will return approximately 202% (excluding dividends, fees and charges).

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.17

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

Inghams Group reconfirmed FY25 guidance at its AGM, with EBITDA expected to grow between 0% and 6%, reaching $236$250m.

Jarden notes core poultry volume is forecast to decline -1 to -3%, as previously guided, but channel trends remain stable. The loss of the Woolworths Group ((WOW)) contract created some volatility in wholesale pricing, but the volume replacement was largely successful.

Jarden’s forecasts are unchanged, projecting FY25 EBITDA of $241.8m, in line with guidance.

Forecasts EPS for FY25 is 27.9c, declining slightly year-on-year, with a three-year compound average growth rate of 5% and EBITDA margins forecast to rise to 8% by FY27, below management’s medium-term target of 10%.

No change to Overweight rating and $3.65 target price.

This report was published on November 14, 2024.

Target price is $3.65 Current Price is $3.17 Difference: $0.48
If ING meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $3.45, suggesting upside of 8.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 19.60 cents and EPS of 27.90 cents.
At the last closing share price the estimated dividend yield is 6.18%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of -30.8%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 16.8.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 20.30 cents and EPS of 28.80 cents.
At the last closing share price the estimated dividend yield is 6.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.9, implying annual growth of 26.5%.
Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 13.3.

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

IPH    IPH LIMITED

Legal – Overnight Price: $5.16

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

IPH’s AGM 1Q25 trading update showed moderate revenue growth and slightly higher underlying EBITDA year-on-year, Petra Capital observes. 

A&NZ outperformed expectations, with revenue and EBITDA up despite a decline of -4.8% in year-to-date filings, supported by pricing and workflow benefits.

The broker notes the Canadian business faced delays in revenue recognition due to CIPO system disruptions, with recovery expected in 2H25, while Asia remained weak but is forecast to improve from November 2024.

The broker lowers EPS forecasts by -2.5% and -1.5% for FY25/FY26. Petra Capital  believes external pressures are expected to ease in 2025.

Target price eases to $8 from $8.25. No change to Buy rating.

This report was published on November 15, 2024.

Target price is $8.00 Current Price is $5.16 Difference: $2.84
If IPH meets the Petra Capital target it will return approximately 55% (excluding dividends, fees and charges).
Current consensus price target is $7.21, suggesting upside of 39.8%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 34.40 cents and EPS of 45.30 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.2, implying annual growth of 84.2%.
Current consensus DPS estimate is 34.3, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 11.2.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 36.90 cents and EPS of 48.50 cents.
At the last closing share price the estimated dividend yield is 7.15%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 49.9, implying annual growth of 8.0%.
Current consensus DPS estimate is 36.5, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 10.3.

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

NXL    NUIX LIMITED

Software & Services – Overnight Price: $6.20

Petra Capital rates ((NXL)) as Upgrade to Buy from Hold (1) –

Nuix has reiterated its guidance for annual contract value (ACV) growth of 15% and revenue exceeding costs for FY24, with a stronger second-half weighting due to renewal cycles in June and December, notes Petra Capital.

Management anticipates these renewals will incorporate value-based pricing models and productivity-focused solutions like NEO, supporting long-term revenue growth.

While no changes have been made to forecasts, the broker highlights Nuix’s ability to secure better pricing terms through value-based selling, incentivised by newly introduced KPIs.

Petra Capital upgrades the rating to Buy from Hold and raises the target price to $6.91 from $6.73.

This report was published on November 18, 2024.

Target price is $6.91 Current Price is $6.20 Difference: $0.71
If NXL meets the Petra Capital target it will return approximately 11% (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 5.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 112.73.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 8.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 76.54.

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

S32    SOUTH32 LIMITED

Mining – Overnight Price: $3.77

Canaccord Genuity rates ((S32)) as Sell (5) –

Canaccord Genuity’s FY25 EBITDA estimate of $1,443m is below the consensus estimate of $2,000m for South32 due to cautious view on aluminium prices, which are anticipated to weaken from a softening demand in China’s construction sector and increased smelter availability post 1Q24 trading update.

The broker highlighlights potential oversupply of manganese following the return of GEMCO’s operations in 2025, which could depress prices further. Delays in the Sierra Gorda expansion were also flagged by management, with completion now expected in late 2025.

Despite receiving $964m from the sale of IMC, South32’s capex commitments continue to strain cash flow. The broker maintains scepticism regarding the profitability of Brazil aluminium, where costs remain high.

No change to Sell rating. Target price lifts to $2.35 from $2.25.

This report was published on November 13, 2024.

Target price is $2.35 Current Price is $3.77 Difference: minus $1.42 (current price is over target).
If S32 meets the Canaccord Genuity target it will return approximately minus 38% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.84, suggesting upside of 1.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 4.67 cents and EPS of 10.55 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 35.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of N/A.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 4.98 cents and EPS of 12.06 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.3, implying annual growth of 25.6%.
Current consensus DPS estimate is 13.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 10.7.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $2.03

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

Superloop reaffirmed FY25 guidance at the AGM of EBITDA between $83m$88m, up 53%-62% year-on-year, and capex of $28m-$30m.

Canaccord Genuity highlights strong wholesale growth, with subscribers reaching 198.1k, benefiting from Origin Energy ((ORG)) customer migrations. Consumer segment growth was steady, with 19,300 net additions, aligning with forecasts.

Business segment growth, including Smart Communities, showed progress with contract wins.

The company continues to focus on organic growth through cross-selling and operational cost management while exploring M&A opportunities, assisted by an expected FY25 net cash position of around $41m, the analyst explains.

The broker makes no changes to earnings forecasts. Buy rating retained. Target rises to $2.27 from $2.07.

This report was published on November 15, 2024.

Target price is $2.27 Current Price is $2.03 Difference: $0.24
If SLC meets the Canaccord Genuity target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $2.07, suggesting upside of 1.8%(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 0.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 676.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.7, 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 30.3.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 52.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of 26.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 23.9.

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

SPZ    SMART PARKING LIMITED

Hardware & Equipment – Overnight Price: $0.93

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

Smart Parking’s Q1 FY25 revenue increased by 24% year-on-year to $16.8m, with adjusted earnings (EBITDA) rising 30% to $5.4m, notes Petra Capital.

The broker highlights management’s new long-term target of 3,000 automatic number plate recognition (ANPR) sites by 2028, following the achievement of the previous 1,500 site goal.

Growth is expected from ongoing organic expansion in key markets, including the UK, Denmark, Germany, and New Zealand.

Management maintains a disciplined approach to international expansion and mergers, according to the analyst, with potential new entries into Scandinavia, Europe, and the US under evaluation.

Petra Capital retains a Buy rating and a $1.02 target price, with no changes to forecasts.

This report was published on November 18, 2024.

Target price is $1.02 Current Price is $0.93 Difference: $0.09
If SPZ meets the Petra Capital target it will return approximately 10% (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 2.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 42.27.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.47.

Market Sentiment: 1.0
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: $0.95

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

Tyro Payments retained FY25 guidance at the AGM, Canaccord Genuity observed, with management expecting gross profit growth of 3%-7%.

The broker highlights the company may reach the top end due to smaller-than-expected churn from Lightspeed merchants. EBITDA margins are projected to rise to 31% by FY27 from the current 28%, supported by gross profit growth of around 10% in FY26/27.

On the broker’s assessment, Tyro shares trade at a substantial discount to peers, with an EV/gross profit multiple of 1.8x and EV/EBITDA of 6x.

Despite recent concerns over potential regulatory impacts from the Reserve Bank’s payments review, management expects minimal effects on gross profit.

Canaccord Genuity considers the shares undervalued and anticipates operating leverage to improve as economic conditions stabilise.

The $1.65 target and Buy rating are maintained.

This report was published on November 13, 2024.

Target price is $1.65 Current Price is $0.95 Difference: $0.7
If TYR meets the Canaccord Genuity target it will return approximately 74% (excluding dividends, fees and charges).
Current consensus price target is $1.52, suggesting upside of 60.2%(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 5.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.00.

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 31.7.

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 15.83.

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 20.7.

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

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver – Overnight Price: $2.72

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

Westgold Resources reported a 91% increase in the Starlight Resource to 1.13Moz, with an updated resource estimate of 12.9Mt at 2.7g/t. This includes a 43% increase in underground resources and a new open-pit resource, Canaccord Genuity notes.

These updates position the Starlight Resource as a major ore supplier for the Bryah/Fortnum operation.

Westgold is conducting a scoping study to assess potential expansion at Fortnum, aiming to integrate open-pit and underground operations. The study could lead to higher-grade ore feed and increased production at the mill’s full capacity of 0.9Mtpa.

Canaccord Genuity expects production to peak at 510koz in FY28, although this forecast is considered conservative given the company’s potential growth and resource optionality.

Buy rating maintained. Target price rises to $4.50 from $4.40.

This report was published on November 15, 2024.

Target price is $4.50 Current Price is $2.72 Difference: $1.78
If WGX meets the Canaccord Genuity target it will return approximately 65% (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 3.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.63.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 3.00 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 4.61.

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don’t have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms