Australian Broker Call *Extra* Edition – Nov 26, 2024

Daily Market Reports | 10:30 AM

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)

ASG   AX1   CSC   HGO   HSN   NWS   REA   SEK   WEB (2)   WOR  

AX1    ACCENT GROUP LIMITED

Apparel & Footwear - Overnight Price: $2.28

Jarden rates ((AX1)) as Buy (1) -

Jarden comments Accent Group reported a disappointing trading update at the AGM, with group sales up 6.8% year-on-year for the first 20 weeks to October 17, compared to the consensus estimate of 8% annual growth for 1H25.

Gross margins were down -70bps due to increased promotional activity, compared to consensus expectations of a decline of -47bps in 1H25.

Management confirmed 40 new store openings in 1H25, on track for at least 50 in FY25, while the cost of doing business as a percentage of sales was in line with consensus.

The target price rises to $2.35 from $2.29. The Buy rating is unchanged.

This report was published on November 21, 2024.

Target price is $2.35 Current Price is $2.28 Difference: $0.07
If AX1 meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.57, suggesting upside of 12.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 14.40 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 13.9, implying annual growth of 31.0%.
Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of 17.3%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 14.0.

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

CSC    CAPSTONE COPPER CORP.

Copper - Overnight Price: $11.26

Wilsons rates ((CSC)) as Initiation of coverage with Overweight (1) -

Wilsons initiates coverage on multi-asset, high-growth copper producer Capstone Copper with an Overweight rating and a $14.50 target. The company has four producing assets in the Americas (US, Mexico, and Chile), along with a key growth project in Chile.

The company, also listed in Canada, ranks around the 30th largest copper producer globally but has the potential to rise into the top 15 within five years, according to the broker.

The analysts highlight the company's strategic advantage as its massive resource base, supported by near-term operating cash flow and a strong balance sheet to evolve into a larger and lower-cost major producer.

Production guidance for 2024 is 189kt of copper, matching the broker's expectations but below consensus, reflecting management's conservative estimates.

This report was published on November 25, 2024.

Target price is $14.50 Current Price is $11.26 Difference: $3.24
If CSC meets the Wilsons target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 212.45.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 23.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.31.

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

HGO    HILLGROVE RESOURCES LIMITED

Copper - Overnight Price: $0.06

Moelis rates ((HGO)) as Buy (1) -

Moelis visited Hillgrove Resources' Kanmantoo underground mine in South Australia following the restart of idled assets.

The broker notes the mine restart is now complete, and the transition to underground mining has been successful, with management now focusing on increasing resources and reserves beyond current levels.

The target is 3-4 years of reserve life and ensuring ongoing replacement of depleted tonnes.

The Buy rating with an 8c target price is retained.

This report was published on November 21, 2024.

Target price is $0.08 Current Price is $0.06 Difference: $0.024
If HGO meets the Moelis target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.00.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.67.

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


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