Australian Broker Call *Extra* Edition – Nov 27, 2024

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M   ABB   ANG   ASG   EGH   EHL   EOS   FEX   FPR   GQG   KGN   LIC   LOV   MAH   MEK   MP1 (2)   NXD   PYC   SDV   SLC   WTC   XRF  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.53

Wilsons rates ((A2M)) as Market Weight (3) –

Wilsons notes a better-than-expected trading update from a2 Milk Co, along with the introduction of a dividend policy.

External Mataura Valley Milk ingredient sales and higher global dairy prices supported the results, with English Label and Liquid Milk sales exceeding expectations.

The dividend policy specifies a payout ratio of 60%-80% of net profit, with the first dividend expected in February 2025.

The target price decreases to $5.75 from $5.97, and the Market Weight rating is retained.

This report was published on November 25, 2024.

Target price is $5.75 Current Price is $5.53 Difference: $0.22
If A2M meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $6.14, suggesting upside of 9.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 16.08 cents and EPS of 23.16 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 23.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.2, implying annual growth of N/A.
Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 24.2.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 17.46 cents and EPS of 25.36 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.1, implying annual growth of 12.5%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.5.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $3.58

Jarden rates ((ABB)) as Initiation of coverage with Overweight (2) –

Jarden  initiates coverage on Aussie Broadband with a $4.00 target and Overweight rating, supported by proprietary infrastructure, strong capital management, and premium positioning.

Within the industry, the analysts like challenger telcos as they continue to take market share from the incumbent operators.

The company’s premium status (and pricing) in consumer fixed connectivity is underpinned by its proprietary software, owned fibre network, and Tier-1 voice infrastructure, explain the analysts.

Key drivers include NBN Co’s Fibre Connect program upgrading approximately 3.1m subscribers to higher-speed tiers and NBN Co’s new pricing model encouraging higher-speed adoption, explains Jarden.

The analysts also expects increased service and installation orders from small businesses and new building activity.

The broker forecasts an 18% dividend compound annual growth rate (CAGR) through FY33.

This report was published on November 25, 2024.

Target price is $4.00 Current Price is $3.58 Difference: $0.42
If ABB meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $4.24, suggesting upside of 14.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 8.00 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 28.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of 57.1%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 24.2.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 11.00 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of 36.6%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 17.8.

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

ANG    AUSTIN ENGINEERING LIMITED

Mining Sector Contracting – Overnight Price: $0.54

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

Petra Capital reiterates a Buy rating and a target price of 60c for Austin Engineering, noting the recent share price decline presents a buying opportunity.

The broker expects the company to benefit from resilient customer demand, market share gains, and profit margins exceeding the FY26 consensus forecast.

Management reaffirmed FY25 guidance for revenue of $350m and earnings (EBIT) of $50m, anticipating 1H:2H revenue and EBIT splits of 45:55 and 40:60, respectively.

This report was published on November 21, 2024.

Target price is $0.60 Current Price is $0.54 Difference: $0.065
If ANG meets the Petra Capital target it will return approximately 12% (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 2.50 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.92.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 3.50 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.75.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $1.89

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

Autosports Group reported a downgrade in 1H25 pre-tax profit guidance to $28m, below Wilsons’ and consensus estimates.

New vehicle sales were in line with expectations, but the new luxury market has contracted by -15% year-to-date. Management noted maintaining new vehicle sales has negatively impacted margins.

The broker observes the magnitude of the gross margin decline to improve inventory was significantly higher than anticipated.

Wilsons reduces EPS forecasts by -21% for FY25 and -4% for FY26.

The target price decreases to $2.86 from $3.41, while the Overweight rating is retained.

This report was published on November 25, 2024.

Target price is $2.86 Current Price is $1.89 Difference: $0.975
If ASG meets the Wilsons target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $2.33, suggesting upside of 25.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 14.50 cents and EPS of 23.70 cents.
At the last closing share price the estimated dividend yield is 7.69%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of -23.7%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 7.7%.
Current consensus EPS estimate suggests the PER is 8.1.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 19.00 cents and EPS of 32.80 cents.
At the last closing share price the estimated dividend yield is 10.08%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of 21.2%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 9.4%.
Current consensus EPS estimate suggests the PER is 6.6.

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

EGH    EUREKA GROUP HOLDINGS LIMITED

Aged Care & Seniors – Overnight Price: $0.59

Moelis rates ((EGH)) as Initiation of coverage with Buy (1) –

Moelis initiates coverage on Eureka Group with a Buy rating and a 70c target price.

The broker highlights the group is the largest seniors’ rental village operator in an undersupplied market, expected to grow at a 3% p.a. compound rate over the next decade.

Eureka recently raised equity, strengthening the balance sheet and reducing gearing to 8% from 37%. Moelis believes the funds deployed will be EPS accretive.

The analyst forecasts EPS growth of 12% p.a. for the next three years. Eureka trades at a 16% premium to NTA.

This report was published on November 25, 2024.

Target price is $0.70 Current Price is $0.59 Difference: $0.11
If EGH meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 1.50 cents and EPS of 3.30 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 17.88.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 1.80 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.53.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.87

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

Canaccord Genuity maintains its Buy rating for Emeco Holdings and raises the target price to $1.07 from $1.05, reflecting improvements in operational performance and return on capital.

FY25 earnings (EBITDA) guidance exceeds $300m, supported by robust gold and bulk commodity production, offsetting weaker performance in lithium and nickel, explains the broker.

The company is targeting a 20% return on capital by FY26, aided by a -$60m growth capex investment in FY24.

Operational updates indicate to the broker improved underground rental utilisation and confidence in redeploying surface rental equipment in 2H25. Management also reiterated depreciation and capex guidance.

Canaccord highlights strong free cash flow generation and a deleveraging balance sheet, with the overall valuation supported by an attractive FY25 valuation multiple. 

This report was published on November 21, 2024.

Target price is $1.07 Current Price is $0.87 Difference: $0.2
If EHL meets the Canaccord Genuity target it will return approximately 23% (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 14.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.88.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 3.20 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.51.

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

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $1.25

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

The sale of EM Solutions for $144m enables Electro Optic Systems to eliminate all debt and hold a net cash position exceeding $100m, notes Canaccord Genuity.

Management plans to allocate funds to RWS counter-drone systems, High Energy Laser projects, and M&A opportunities over a five-year period.

FY25 revenue guidance is revised down to $160m, reflecting the divestment, with a current pro forma order book of $165m and a $1.2bn sales pipeline, explains the broker.

The analysts highlight advanced-stage opportunities valued at $350m, including key contracts in the counter-drone and laser segments.

The company’s robust capital position and undervaluation relative to its IP and backlog support the broker’s unchanged $1.90 target and Buy rating.

This report was published on November 22, 2024.

Target price is $1.90 Current Price is $1.25 Difference: $0.645
If EOS meets the Canaccord Genuity target it will return approximately 51% (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 minus 14.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 8.96.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 14.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 8.66.

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

FEX    FENIX RESOURCES LIMITED

Iron Ore – Overnight Price: $0.27

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

Petra Capital highlights the potential to extend mine life at Fenix Resources’ Iron Ridge mine through recent exploration and geotechnical drilling.

High-grade intersections below and along strike from the existing pit are expected to support a resource update later this quarter. Near-mine targets identified through aeromagnetic surveys also provide further exploration opportunities, notes the broker.

A production extension at Iron Ridge would complement the group’s iron ore growth strategy, explains the analyst, with additional mines at Shine and Beebyn-W11 coming online in December and March, respectively.

Petra Capital speaks of a potential 6% valuation uplift to 44c per share with an extended mine life at Iron Ridge, but, for now, the 42c target and Buy rating are maintained.

This report was published on November 21, 2024.

Target price is $0.42 Current Price is $0.27 Difference: $0.155
If FEX meets the Petra Capital target it will return approximately 58% (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 1.70 cents and EPS of 5.30 cents.
At the last closing share price the estimated dividend yield is 6.42%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.00.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 1.80 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 6.79%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 4.14.

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

FPR    FLEETPARTNERS GROUP LIMITED

Vehicle Leasing & Salary Packaging – Overnight Price: $3.25

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

Canaccord Genuity lowers its target price for FleetPartners Group to $3.40 from $3.80 while retaining a Hold rating, citing an increasingly compelling valuation.

FY24 net operating income before end-of-lease (EOL) and provisions grew 5% year-on-year to $158.8m, slightly ahead of consensus, while normalised NPATA remained flat at $87.7m, described by the broker as an overall “solid” outcome.

Elevated used car prices contributed to higher-than-expected EOL income of $70.6m, notes the analyst.

Canaccord forecasts a decline in EPS over the next two years as EOL income normalises, with FY25 estimates raised by 10.7% due to slower declines in used car prices, but FY26 lowered by -3.4%.

The broker highlights strong management execution, a robust balance sheet, and strategic growth drivers but observes limited near-term catalysts for a re-rate.

This report was published on November 18, 2024.

Target price is $3.40 Current Price is $3.25 Difference: $0.15
If FPR meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.76, suggesting upside of 16.8%(ex-dividends)
The company’s fiscal year ends in September.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 35.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.4, implying annual growth of -3.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 35.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.9, implying annual growth of 1.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 10.1.

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

GQG    GQG PARTNERS INC

Wealth Management & Investments – Overnight Price: $2.29

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

Goldman Sachs notes that GQG Partners’ share price fell -19% following reports that US prosecutors have charged senior Adani executives, including the Chairman, with alleged bribery. The company holds shares in Adani companies through its funds.

Over 90% of client assets are invested in issuers unrelated to the Adani group, indicating approximately 10% of funds under management are exposed.

The analyst estimates a decline in the value of Adani assets by -10% to -50% would result in a reduction in net profit forecasts of -1.3% to -6.6%, respectively.

Based on the sensitivity analysis, the share price sell-off appears to have been overdone.

The Buy rating with a $3 target price remains unchanged.

This report was published on November 22, 2024.

Target price is $3.00 Current Price is $2.29 Difference: $0.71
If GQG meets the Goldman Sachs target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $3.19, suggesting upside of 42.0%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 22.62 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.5, implying annual growth of N/A.
Current consensus DPS estimate is 20.8, implying a prospective dividend yield of 9.2%.
Current consensus EPS estimate suggests the PER is 10.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 28.65 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.5, implying annual growth of 13.3%.
Current consensus DPS estimate is 23.4, implying a prospective dividend yield of 10.4%.
Current consensus EPS estimate suggests the PER is 8.8.

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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $4.92

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

Canaccord Genuity maintains a Buy rating for Kogan.com and retains its $8.20 target, citing ongoing momentum in revenue and profit growth.

The October trading update showed gross sales increased by 0.4% to $259m, with revenue rising 8% to $152m and gross profit up 15% to $59m.

Adjusted earnings (EBITDA) grew 55% to $15m, exceeding the broker’s forecast of 35% growth and consensus of 22%.

Canaccord identifies upside risks to forecasts, driven by higher-margin subscription revenue from Kogan First and stronger-than-expected November sales momentum. Seasonal uplift during Black Friday and Cyber Monday is also expected to support growth.

This report was published on November 22, 2024.

Target price is $8.20 Current Price is $4.92 Difference: $3.28
If KGN meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).
Current consensus price target is $5.23, suggesting upside of 6.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 22.10 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 4.49%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.5, implying annual growth of 28025.0%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 26.80 cents and EPS of 41.20 cents.
At the last closing share price the estimated dividend yield is 5.45%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.1, implying annual growth of 16.0%.
Current consensus DPS estimate is 19.4, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 18.8.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $9.01

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

Canaccord Genuity assesses a solid AGM trading update by Lifestyle Communities in light of a challenging Victorian property market and, more specifically, the impact of adverse media coverage.

For the first four months of FY25, the company achieved 92 new home settlements, up from 64 year-on-year, with 1H25 settlement guidance of 120-130 homes, comparable to 124 in 1H24.

Management expects 1H profit in the range of $19.5m and $22m, consistent with the prior year’s $20.8m.

The broker highlights lower settlement numbers and margin pressure, reducing its FY25 and FY26 earnings EBITDA and profit estimates by -8% and -9%, respectively.

Canaccord views Lifestyle Communities’ long-term annuity revenue from 3,950 homes under management positively but remains cautious given the unresolved VCAT dispute and market uncertainties. 

The broker’s target falls to $9.75 from $10.00 with an unchanged Hold rating.

This report was published on November 13, 2024.

Target price is $9.75 Current Price is $9.01 Difference: $0.74
If LIC meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $9.96, suggesting upside of 11.7%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 10.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.0, implying annual growth of -1.5%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 19.8.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 10.00 cents and EPS of 45.40 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.6, implying annual growth of 41.3%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 14.0.

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

LOV    LOVISA HOLDINGS LIMITED

Retailing – Overnight Price: $27.68

Jarden rates ((LOV)) as Upgrade to Overweight from Neutral (2) –

Following a trading update for the first 20 weeks of FY25, Jarden lowers its forecasts for Lovisa Holdings to reflect a more conservative store rollout.

The target price falls to $29.03 from $30.59, and the broker upgrades the rating to Overweight from Neutral, noting execution risk is now largely priced into the current share price. A strong long-term rollout opportunity is still considered viable.

Net new store rollouts totaled 27, with closures reduced to 13, consistent with FY23 levels.

The trading update showed like-for-like sales growth slowed to 1.0% year-on-year, below the 2.5% consensus, while total sales growth of 10% lagged the 13.2% forecast, note the analysts.

This report was published on November 25, 2024.

Target price is $29.03 Current Price is $27.68 Difference: $1.35
If LOV meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $31.00, suggesting upside of 10.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 88.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.6, implying annual growth of 21.5%.
Current consensus DPS estimate is 82.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 30.7.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 111.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 111.5, implying annual growth of 21.7%.
Current consensus DPS estimate is 96.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 25.3.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.35

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

Petra Capital highlights management’s consistent delivery of Macmahon’s growth strategy and guidance since FY17 and expects the positive share price trend to continue, supported by a larger and more diverse revenue base.

The broker identifies upside risk to FY25 guidance, which currently suggests a modest rate of organic growth and implies an annual revenue run-rate for civil below the levels observed between April and October.

Petra Capital maintains a Buy rating with a 43c target.

This report was published on November 13, 2024.

Target price is $0.43 Current Price is $0.35 Difference: $0.08
If MAH meets the Petra Capital target it will return approximately 23% (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 1.50 cents and EPS of 5.40 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.48.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 2.00 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.03.

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

MEK    MEEKA METALS LIMITED

Overnight Price: $0.07

Petra Capital rates ((MEK)) as Initiation of coverage with Buy (1) –

Petra Capital initiates coverage on Meeka Metals with a Buy rating and a 15c target, citing near-term production potential at the Murchison Gold Project.

The May 2024 definitive feasibility study (DFS) outlined a low-capex path to production, with a nine-year mine life and first gold targeted for the September quarter of 2025, explains the broker.

Following the acquisition of a larger ball mill, an updated DFS in December is expected to increase processing capacity by 30%, lifting production to 570koz over the mine’s life, notes the analyst.

The project is fully funded, with construction underway, including plant refurbishment and infrastructure upgrades. Pre-production capex is estimated at -$44m, and operations remain unhedged and debt-free, highlights Petra Capital.

The broker anticipates significant valuation upside from exploration and re-optimised production metrics.

This report was published on November 25, 2024.

Target price is $0.15 Current Price is $0.07 Difference: $0.083
If MEK meets the Petra Capital target it will return approximately 124% (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 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 33.50.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 2.16.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $7.61

Canaccord Genuity rates ((MP1)) as Buy (1) –

Canaccord Genuity lowers its target price for Megaport to $9.45 from $11.15, citing lower growth expectations. Lower net revenue retention, aligned with industry trends, is identified as a key challenge.

The broker notes early indications from management suggest FY26 revenue growth will align with FY25, with revenue around $243m, representing a miss of approximately -4% against consensus.

The AGM update reaffirmed FY25 guidance, with revenue of $214-222m and earnings (EBITDA) of $57-65m, reflecting 10-14% year-on-year growth.

Canaccord highlights the stock’s long-term growth potential and sees value despite the modest revenue revisions, maintaining the Buy rating.

This report was published on November 22, 2024.

Target price is $9.45 Current Price is $7.61 Difference: $1.84
If MP1 meets the Canaccord Genuity target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $11.32, suggesting upside of 52.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 9.60 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 79.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of 145.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 50.3.

Forecast for FY26:

Canaccord Genuity 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 50.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of 41.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 35.6.

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

---

Goldman Sachs rates ((MP1)) as Buy (1) –

Megaport confirmed FY25 guidance for revenue and earnings but highlighted FY26 revenue growth is expected to be in line with FY25.

This follows significant investment in products and employee hires, with the company not yet experiencing an uptick in revenue growth, Goldman Sachs observes and attributes the issues to pricing challenges.

The broker lowers its revenue growth forecast for FY26 by -12%, and with higher employee costs, the earnings forecast declines by -15%.

The target price drops by -13% to $10.40, with no change to the Buy rating.

This report was published on November 24, 2024.

Target price is $10.40 Current Price is $7.61 Difference: $2.79
If MP1 meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $11.32, suggesting upside of 52.1%(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 4.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 190.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.8, implying annual growth of 145.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 50.3.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 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 152.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of 41.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 35.6.

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

NXD    NEXTED GROUP LIMITED

Education & Tuition – Overnight Price: $0.12

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

Canaccord Genuity highlights regulatory and political challenges in international education are affecting NextEd Group.

The AGM update showed vocational student numbers for October 2024 averaged 6,700, slightly below the broker’s estimate of 6,900 for 1H25.

English student enrolments remain under pressure, leading to reductions in the analyst’s FY25 revenue and earnings (EBITDA) forecasts by -4% and -10%, respectively.

The broker acknowledges uncertainty surrounding government-imposed caps on international students but points to promising growth in vocational sectors like healthcare and hospitality.

Canaccord views the upcoming strategic review as an opportunity to refocus the company and enhance resilience, maintaining the Buy rating with a 34c target, down from 38c.

This report was published on November 26, 2024.

Target price is $0.34 Current Price is $0.12 Difference: $0.22
If NXD meets the Canaccord Genuity target it will return approximately 183% (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 4.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 3.00.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 4.00.

Market Sentiment: 1.0
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: $1.87

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

Canaccord Genuity maintains a Buy rating for PYC Therapeutics and a $2.40 target (following a 10:1 share consolidation) supported by positive developments in its VP-001 program for RP11.

The October data update showed statistically significant improvements in low luminance visual acuity (LLVA) at key time points, with reductions in scotomas and enhanced retinal sensitivity. Safety data remained strong, reinforcing confidence in the treatment’s potential.

An end-of-Phase-II meeting with the FDA is planned for March/April 2025, with Phase III trials likely commencing mid-2025. The broker expects the trial design to focus on functional endpoints relevant to regulatory approval.

Canaccord highlights the absence of approved treatments for RP11 and anticipates further valuation upside as clinical milestones are achieved. 

This report was published on November 22, 2024.

Target price is $2.40 Current Price is $1.87 Difference: $0.53
If PYC meets the Canaccord Genuity target it will return approximately 28% (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 187.00.

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 187.00.

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

SDV    SCIDEV LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.55

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

SciDev has secured a landmark win, according to Canaccord Genuity, with its first European Per- and Polyfluoroalkyl Substances (PFAS) treatment contract.

The $475,000 contract with Swedish Hydro Solutions involves designing, constructing, and commissioning a containerised water treatment plant for contaminated landfill leachate, observes the broker.

A successful trial could lead to expanded usage and additional contract value, highlights the analyst.

Canaccord notes significant growth potential in Europe, where 17,000 sites have confirmed PFAS contamination and 21,000 are suspected. Expansion into the US market is considered a key next step.

The broker points out SciDev’s effective and low-cost PFAS treatment technology provides a strong competitive advantage, underpinning the unchanged $0.74 target and Buy rating.

This report was published on November 20, 2024.

Target price is $0.74 Current Price is $0.55 Difference: $0.19
If SDV meets the Canaccord Genuity target it will return approximately 35% (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 2.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.97.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 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 13.75.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $2.13

Jarden rates ((SLC)) as Initiation of coverage with Buy (1) –

Jarden initiates coverage on Superloop with a Buy rating and a $2.50 target, highlighting structural tailwinds including the NBN Fibre Connect program, pricing reforms, and increased small business penetration.

Within the industry, the analysts like challenger telcos as they continue to take market share from the incumbent operators.

The broker expects FY26 adjusted earnings EBITDA of $112m, 6% above guidance, driven by the Origin Energy ((ORG)) contract, which adds $19m in annualised earnings from broadband subscribers.

The analysts’ forecast Superloop will deliver a 54% EPS compound annual growth rate (CAGR) from FY25 to FY27.

The company’s residential segment is set to grow at a 14% revenue CAGR through FY33, while wholesale contracts, including Origin Energy and AGL Energy ((AGL)), underpin near-term earnings leverage, explains Jarden.

Challenges include competition from incumbents and fixed wireless access (FWA) penetration, highlights the broker.

This report was published on November 25, 2024.

Target price is $2.50 Current Price is $2.13 Difference: $0.37
If SLC meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.15, suggesting downside of -0.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden 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 710.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.3, 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 40.8.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 4.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 45.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of 34.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 30.4.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $124.40

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

Goldman Sachs highlights the delay of Container Transport Optimisation from late 2Q25 to 2H25, which has led to a guidance downgrade from WiseTech Global, with revenue and earnings guidance reduced by -6% and -7%, respectively, at the midpoint.

The broker believes the downgrade reflects a more conservative view of the ramp-up for ComplianceWise and CargoWise Next.

Adjusting for the update, Goldman Sachs shifts higher revenue growth expectations to FY26, forecasting 28% growth compared to 21% in FY25.

The Buy rating and $138 target price remain unchanged. Additional details at the Investor Day on 3 December will be welcomed.

This report was published on November 24, 2024.

Target price is $138.00 Current Price is $124.40 Difference: $13.6
If WTC meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $139.79, suggesting upside of 10.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 25.00 cents and EPS of 114.00 cents.
At the last closing share price the estimated dividend yield is 0.20%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 109.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.6, implying annual growth of 41.8%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 112.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 33.00 cents and EPS of 157.00 cents.
At the last closing share price the estimated dividend yield is 0.27%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 79.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 161.1, implying annual growth of 43.1%.
Current consensus DPS estimate is 31.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 78.5.

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

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting – Overnight Price: $1.80

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

Management at XRF Scientific announced the acquisition of Labfit (manufacturer of laboratory equipment) for -$1.16m with additional potential earn-outs of -$300,000.

Labfit’s products diversify XRF’s exposure to sectors such as water, agriculture, and environmental testing, alongside mining.

The analysts expect the acquisition will have a modest financial impact, adding approximately 1.4% to FY25 revenue and profit forecasts on a pro forma basis.

XRF’s strong balance sheet, with an estimated $10m net cash at FY25, supports further growth investments, in the broker’s view.

Canaccord highlights the complementary nature of the acquisition, which could accelerate revenue growth and profitability, reinforcing the $1.75 target and Speculative Buy rating.

This report was published on November 22, 2024.

Target price is $1.75 Current Price is $1.80 Difference: minus $0.05 (current price is over target).
If XRF meets the Canaccord Genuity target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 4.30 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.35.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 4.50 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 2.50%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.95.

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