Australian Broker Call *Extra* Edition – Dec 09, 2024

This story features ARISTOCRAT LEISURE LIMITED, and other companies. For more info SHARE ANALYSIS: ALL

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)

ALL   APE   BRE   BRG   CKF (3)   CNB   IAG   LOT   MAH   MEK   MGH   NXG   RIO   RUL   S32   SDF   SFR   SPR   SSM   STK   WGX (2)   WOR   WTC  

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $67.68

Jarden rates ((ALL)) as Neutral (3) –

Aristocrat Leisure outlined its sustainability program, Jarden notes, focused on good governance and responsible business, responsible (safer) play, operational sustainability, climate, people, and community.

The analyst highlights the asset-light/intellectual-heavy business model lends itself to higher risks around responsible gameplay. The targets set by the company are viewed positively.

No change to the Neutral rating or $61 target price. Earnings forecasts remain unchanged.

This report was published on December 5, 2024.

Target price is $61.00 Current Price is $67.68 Difference: minus $6.68 (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 4.5%(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 1.32%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.54.

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 24.05.

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 23.5.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $11.34

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

Canaccord Genuity notes Australian vehicle sales were down -9.3% in November. It’s actually a solid standalone figure, the broker  points out, as the comparables for November and December are very high.

The broker notes we also saw for the first time in over twelve months Toyota not post a positive comparable, with a -2.1% decline, suggesting weakness across the industry.

Canaccord believes BYD sales will provide positive earnings growth for Eagers Automotive in 2H24. Sales numbers continue to improve but the broker highlights a primary driver of this outcome of high growth is the launch of new vehicles on a small installed base.

Hold and $11 target retained.

This report was published on December 4, 2024.

Target price is $11.00 Current Price is $11.34 Difference: minus $0.34 (current price is over target).
If APE meets the Canaccord Genuity target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $11.87, suggesting upside of 4.7%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 60.00 cents and EPS of 96.80 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.4, implying annual growth of -16.6%.
Current consensus DPS estimate is 64.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 57.00 cents and EPS of 87.10 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.0, implying annual growth of 1.7%.
Current consensus DPS estimate is 65.2, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.1.

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

BRE    BRAZILIAN RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $2.36

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

Despite delivering positive metallurgical test results from the Monte Alto project, shares of Brazilian Rare Earths fell last week, notes Petra Capital, which raises its target price to $5.21 from $4.55. The Buy rating remains unchanged.

The broker highlights lower operating costs, driven by the project’s chevkinite mineralogy, enhance its economic appeal and offer potential for downstream processing to add value.

The staged development approach, beginning with monazite concentrate production, followed by direct ship ore, and potentially downstream operations, is described as a flexible and capital-efficient strategy.

The broker anticipates negative earnings (EBITDA) until 2028, when production is expected to begin generating cash flow. The maiden mining study, due mid-2025, is identified as a key catalyst for re-rating.

This report was published on December 5, 2024.

Target price is $5.21 Current Price is $2.36 Difference: $2.85
If BRE meets the Petra Capital target it will return approximately 121% (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 9.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 26.22.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 56.19.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $36.06

Jarden rates ((BRG)) as Neutral (3) –

The emergence of the covid replacement cycle has improved Jarden’s sentiment towards Breville Group.

The broker also highlights a less aggressive discounting during Cyber Week in the US, with -1-3% “shallower” promotions.

The company has increased traffic share domestically by 300bps in the last three months versus other coffee brands, while US at-home coffee consumption has remained above pre-covid levels.

Jarden notes sales performance for the appliance industry suggests positive growth into 2025.

The analyst forecasts compound growth in EPS of around 10% for FY25-FY28. No change to earnings forecasts.

Neutral rated with a $26.30 target price.

This report was published on December 5, 2024.

Target price is $26.30 Current Price is $36.06 Difference: minus $9.76 (current price is over target).
If BRG meets the Jarden target it will return approximately minus 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $33.73, suggesting downside of -6.5%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 38.00 cents and EPS of 95.20 cents.
At the last closing share price the estimated dividend yield is 1.05%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 37.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.4, implying annual growth of 13.0%.
Current consensus DPS estimate is 36.9, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 38.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 41.00 cents and EPS of 105.10 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 34.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 106.4, implying annual growth of 13.9%.
Current consensus DPS estimate is 41.2, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 33.9.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $7.93

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

Collins Foods looks to be diligently managing dual pinch points from a challenged consumer landscape and cost inflation headwinds, Canaccord Genuity suggests.

The broker observes the Australian quick service restaurants (QSR) category looks to be showing levels of resilience with Collins Foods noting it has held its market share and that trading has started to improve into 2H25.

Canaccord is yet to see clear evidence of volume growth, but with improving Australian consumer sentiment and margin dynamics much of the pressure on KFC Australia profitability looks to be in the rear-view mirror, in the broker’s view.

Canaccord’s Hold rating considers the lack of near-term earnings growth, and the broker continues to hope for and model improving performance into FY26. Target rises to $8.00 from $7.70.

This report was published on December 4, 2024.

Target price is $8.00 Current Price is $7.93 Difference: $0.07
If CKF meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $9.75, suggesting upside of 22.9%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 22.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.4, implying annual growth of -20.1%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 26.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.1, implying annual growth of 38.3%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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

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

Goldman Sachs notes Collins Foods’ 1H25 results were largely as expected, although earnings margins were slightly better than August’s guidance.

The analyst highlights improving sales growth trends for KFC, driven by a focus on healthier offerings and affordability. Sales were also supported by digital app growth, with over 50% of the network expected to be equipped with kiosks by the end of FY25.

Taco Bell remains under review as Collins and Taco Bell International explore avenues for profitable growth.

Margin recovery and improving sales are anticipated in 2025. The Buy rating is unchanged, with a $10 target price.

This report was published on December 3, 2024.

Target price is $10.00 Current Price is $7.93 Difference: $2.07
If CKF meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $9.75, suggesting upside of 22.9%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 21.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.4, implying annual growth of -20.1%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 27.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.1, implying annual growth of 38.3%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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

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

Collins Foods’ 1H25 result had earnings down -7% year on year, in line with Wilsons’ forecast. Margins contracted on negative
operating leverage and cost inflation.

Wilsons is nonetheless encouraged by evidence of improved trading results for the core KFC Australia segment, suggesting this alone can drive share price performance in the near-term.

Looking further ahead, significant additional value drivers include acceleration in KFC EU store openings, M&A, and optimising the Taco Bell brand proposition.

Target falls to $10.72 from $11.79, Overweight retained.

This report was published on December 4, 2024.

Target price is $10.72 Current Price is $7.93 Difference: $2.79
If CKF meets the Wilsons target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $9.75, suggesting upside of 22.9%(ex-dividends)
The company’s fiscal year ends in May.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 25.00 cents and EPS of 39.20 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.4, implying annual growth of -20.1%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 20.7.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 34.00 cents and EPS of 56.60 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 14.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.1, implying annual growth of 38.3%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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

CNB    CARNABY RESOURCES LIMITED

Mining – Overnight Price: $0.36

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

Carnaby Resources’ binding tolling and offtake term sheet with Glencore marks a significant milestone, enabling a low-capex development pathway for the Greater Duchess Project near Mt Isa, according to Petra Capital.

The agreement encompasses 100% of fresh sulphide ore and concentrate, with terms aligned to market norms.

The broker highlights that the acquisition of the Trekelano mine increases the group resource by 27% to 400kt copper equivalent, providing near-term mining potential.

A pre-feasibility study, scheduled for mid-2025, is expected to update the mining inventory and valuation.

Petra Capital retains a Buy rating, revising the target price to $1.26 from $1.45 due to dilution from the recent capital raise.

This report was published on December 5, 2024.

Target price is $1.26 Current Price is $0.36 Difference: $0.895
If CNB meets the Petra Capital target it will return approximately 245% (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 5.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 6.89.

Forecast for FY26:

Petra Capital 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 12.17.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $8.58

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

FY25 guidance was reaffirmed by Insurance Australia Group at the investor day, with Goldman Sachs observing signs of increasing competition, notably in motor.

NZ motor rates have slowed to low-to-mid single-digit growth, and home insurance is moderating but remains in double-digit growth. New business in NZ motor is singled out as “challenging.” There are also signs of inflation slowing.

Management continues to look for M&A opportunities with companies that can be scaled and are EPS-positive.

The Neutral rating and $7.50 target price remain unchanged.

This report was published on December 4, 2024.

Target price is $7.50 Current Price is $8.58 Difference: minus $1.08 (current price is over target).
If IAG meets the Goldman Sachs target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.57, suggesting downside of -0.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 31.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 3.61%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.6, implying annual growth of 8.8%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 32.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.1, implying annual growth of 8.6%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 19.5.

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

LOT    LOTUS RESOURCES LIMITED

Uranium – Overnight Price: $0.23

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

Lotus Resources announced a binding offtake agreement for 700klbs and agreed terms for an additional 800klbs based on a long-term contract price with a 3% escalation for delivery.

Petra Capital highlights the offtake agreement with Curzon Uranium and the term sheet with North American utility PSEG Nuclear. The former includes an unsecured loan debt of US$15m.

The analyst estimates current offtake agreements represent around 20% of assumed 2026-2029 production.

The target price decreases to 37c from 41c. The Buy rating remains unchanged.

This report was published on December 5, 2024.

Target price is $0.37 Current Price is $0.23 Difference: $0.135
If LOT meets the Petra Capital target it will return approximately 57% (excluding dividends, fees and charges).
Current consensus price target is $0.55, suggesting upside of 132.6%(ex-dividends)
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 117.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.4, 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:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.8.

Market Sentiment: 1.0
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 notes Macmahon Holdings is positioned for improved free cash flow (FCF) and a higher dividend payout ratio in the medium term, driven by its strategic pivot toward less capital-intensive projects.

The broker highlights expectations for sustained FCF growth from 2027, enabling lesser debt and the accumulation of surplus cash, with forecasts indicating the company will be debt-free (excluding right-of-use leases) by 2028.

Key catalysts include potential contract extensions and the sale of the Homeground asset, which could accelerate cash flow, highlights the analyst..

Petra Capital reiterates a Buy rating and maintains its target price at 43c.

This report was published on December 5, 2024.

Target price is $0.43 Current Price is $0.35 Difference: $0.075
If MAH meets the Petra Capital target it will return approximately 21% (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 4.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.57.

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 5.63%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 6.12.

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

MEK    MEEKA METALS LIMITED

Gold & Silver – Overnight Price: $0.08

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

Petra Capital highlights significant progress at Meeka Metals’ Murchison Gold Project, located in Western Australia, with gold production on track for the September quarter of 2025.

Key milestones include advancements in processing plant expansion, nearing completion of the accommodation village, and ongoing construction of the haul road, highlights the analyst.

Final contract negotiations for open pit mining are expected to conclude in December 2024, with mining scheduled to commence in March 2025.

An updated definitive feasibility study (DFS), allowing for increased processing capacity, is set for release in mid-December 2024. Petra Capital’s base case forecasts average annual production of 63koz at costs (AISC) of $1,847/oz over a nine-year mine life.

The broker reiterates a Buy rating and maintains its target price at 15c.

This report was published on December 2, 2024.

Target price is $0.15 Current Price is $0.08 Difference: $0.068
If MEK meets the Petra Capital target it will return approximately 83% (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 41.00.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 2.73.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $4.88

Moelis rates ((MGH)) as Buy (1) –

Maas Group has announced the acquisition of three construction materials businesses with a combined purchase price of -$252m. FY24 earnings generated by the combined businesses imply a 7x FY25 earnings multiple for the three businesses, Moelis calculates.

Guidance for FY25 underlying earnings has been confirmed, with the first half expected to contribute approximately 40%. Management called out renewable energy project delays, timing of fair value adjustments and sale of residential land as factors in the 2H25 skew.

Moelis remains encouraged by continued focus on strengthening the company’s offering and network expansion in growth corridors
to support earnings and earnings growth. Target rises to $5.81 from $4.65, Buy retained.

This report was published on December 3, 2024.

Target price is $5.81 Current Price is $4.88 Difference: $0.93
If MGH 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 7.80 cents and EPS of 28.40 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.18.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 7.80 cents and EPS of 36.80 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.26.

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

NXG    NEXGEN ENERGY LIMITED

Uranium – Overnight Price: $13.07

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

Petra Capital highlights NexGen Energy’s strategic Rook 1 uranium project, citing its long mine life, high-grade production, and increasing geopolitical importance amidst Western supply challenges.

Recent exploration success has extended the assumed mine life to 30 years, with 15 years of high-grade production projected, observes the analyst.

The broker notes ongoing permitting progress, with a Commission Hearing expected in the March quarter of 2025, supporting the company’s trajectory toward production by 2030.

The analyst also identifies significant strategic value in the project due to its large scale, low operating costs, and importance to Western uranium supply. 

Petra Capital reiterates a Buy rating and raises its target price to $14.10 from $12.15.

This report was published on December 5, 2024.

Target price is $14.10 Current Price is $13.07 Difference: $1.03
If NXG meets the Petra Capital target it will return approximately 8% (excluding dividends, fees and charges).

This company reports in CAD. 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

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $119.78

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

Rio Tinto announced the growth pathways for the company at its Investor Day.

Goldman Sachs observes capex guidance has lifted slightly, and the medium-term production growth target of 3% was reiterated, including 4% growth for lithium.

The broker highlights Simandou iron ore and Oyu Tolgoi are on track, with the latter expected to generate two-thirds of Rio’s copper-equivalent growth and a 5% rise in margins to 50%.

The sale of a 30% minority stake in the Winu copper/gold project for around US$400m to Sumitomo Metal Mining was also announced.

Target price rises to $135.10 from $126.20. Buy rating retained. The broker’s EPS forecast for FY25 declines by -2% due to lower Bingham copper production.

This report was published on December 5, 2024.

Target price is $135.10 Current Price is $119.78 Difference: $15.32
If RIO meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $126.83, suggesting upside of 5.9%(ex-dividends)
The company’s fiscal year ends in December.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 513.13 cents and EPS of 855.72 cents.
At the last closing share price the estimated dividend yield is 4.28%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1064.3, implying annual growth of N/A.
Current consensus DPS estimate is 641.2, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 11.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 937.22 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1117.1, implying annual growth of 5.0%.
Current consensus DPS estimate is 692.5, implying a prospective dividend yield of 5.8%.
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: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

RUL    RPMGLOBAL HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $3.24

Taylor Collison rates ((RUL)) as Outperform (2) –

Taylor Collison initiates coverage on RPMGlobal with an Outperform rating and a $3.55 target, highlighting the company’s position as a leader in mine planning and asset management software.

The company’s AMT and XECUTE products are considered best in class, with strong adoption among Tier 1 miners.

The transition to a subscription-based model, with total contracted value (TCV) of $161m in FY24, enhances revenue visibility and reduces risk, in the analyst’s opinion.

The broker sees upside potential from global framework agreements, which streamline client onboarding and strengthen market positioning.

This report was published on November 29, 2024.

Target price is $3.55 Current Price is $3.24 Difference: $0.31
If RUL meets the Taylor Collison target it will return approximately 10% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 67.50.

Forecast for FY26:

Taylor Collison forecasts a full year FY26 dividend of 0.00 cents and EPS of 8.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 39.51.

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

S32    SOUTH32 LIMITED

Mining – Overnight Price: $3.63

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

South32 conducted an investor tour of the 45%-owned Sierra Gorda copper mine in Chile.

Goldman Sachs was “impressed” by the operation, which came across as highly efficient at around a 78% recovery rate, given the low copper grade. The analyst highlights the mine has lower costs and is more efficient than BHP Group’s ((BHP)) Spence mine.

The company increased forecast copper production to circa 156kt in FY25 and circa 164kt in FY26 from improved grades, recoveries, and mill throughput.

Goldman Sachs lifts EPS forecasts by 3% for FY25/FY26.

Target price unchanged at $3.90 with a Buy rating.

This report was published on December 4, 2024.

Target price is $3.90 Current Price is $3.63 Difference: $0.27
If S32 meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.86, suggesting upside of 6.3%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 9.06 cents and EPS of 31.69 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 11.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.5, implying annual growth of N/A.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 19.62 cents and EPS of 48.30 cents.
At the last closing share price the estimated dividend yield is 5.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.9, implying annual growth of 26.0%.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 10.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SDF    STEADFAST GROUP LIMITED

Insurance – Overnight Price: $5.96

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

Goldman Sachs outlines the latest highlights from the ongoing review of Steadfast Group’s strategy, broker and agency subsidiaries, and Mr Trowbridge’s review of operations.

The analyst views the Trowbridge review as “encouraging” in terms of operating expectations, particularly regarding increased transparency and disclosure, but notes that the recommendations have yet to be implemented.

The sharing of commissions/fees between brokers and strata managements is also seen as conflicting, while the broker highlights the short review timeframe for Trowbridge and the reliance on communication with Steadfast and strata subsidiaries as having “limitations.”

Goldman Sachs retains a Neutral rating and a target price of $6.50. No changes to earnings forecasts.

This report was published on December 4, 2024.

Target price is $6.50 Current Price is $5.96 Difference: $0.54
If SDF meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $6.91, suggesting upside of 15.9%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 20.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.2, implying annual growth of 37.7%.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 22.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 18.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.2, implying annual growth of 6.8%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 19.1.

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

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $10.23

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

Sandfire Resources hosted a seminar on exploration prospects across its portfolio, Wilsons reports, with the focus on the delivery of fifteen years of reserve life within five years at both key assets.

Management has recently spoken about the enjoyable grind’ of delivering reserve additions and improving operational degrees of freedom at both of Sandfire’s key assets.

While Wilsons is a fan of the growing quality, reliability and reserve life of Sandfire’s business, the broker sees few material catalysts in the near-term.

Market Weight retained, target $10.80.

This report was published on December 3, 2024.

Target price is $10.80 Current Price is $10.23 Difference: $0.57
If SFR meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $9.78, suggesting downside of -4.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 40.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 25.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.7, 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 19.1.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 63.84 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.6, implying annual growth of 25.9%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 15.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SPR    SPARTAN RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.58

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

Spartan Resources’ Pepper resource has grown by 99%. As Canaccord Genuity is of the view that the resource base will continue to grow, the broker has increased the assumed mining inventory underpinning valuation.

Canaccord now assumes life-of-mine mined ounces of 2.4Moz, previously 1.9Moz, which sits against the combined Never Never and Pepper underground resource.

The broker has also increased the assumed underground mining rate and increased the capital requirement to capture the likelihood for additional underground development.

Target rises to $2.10 from $1.70, Speculative Buy retained.

This report was published on December 2, 2024.

Target price is $2.10 Current Price is $1.58 Difference: $0.52
If SPR meets the Canaccord Genuity target it will return approximately 33% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 79.00.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 79.00.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.57

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

Service Stream has secured a new ten-year contract with Urban Utilities estimated initially at up to $0.5bn over the period, while also securing extensions to agreements with NBN Co that have an estimated value of $325m over their initial terms.

Canaccord Genuity expects the new agreement will help support current margin improvement within the Utilities division.

The broker notes Service Stream has extended its New Development Module contract out by three years providing greater work-in-hand certainty, and sees the company as well placed with the current NBN Field Services Contract tender.

Buy and $1.68 target retained.

This report was published on December 3, 2024.

Target price is $1.68 Current Price is $1.57 Difference: $0.11
If SSM meets the Canaccord Genuity target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.60, suggesting upside of 2.1%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 5.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.5, implying annual growth of 81.0%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.5.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 7.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.4, implying annual growth of 9.5%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 15.1.

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

STK    STRICKLAND METALS LIMITED

Mining – Overnight Price: $0.09

Canaccord Genuity rates ((STK)) as Initiation of coverage with Speculative Buy (1) –

Strickland Metals is focussed on exploring the Rogozna Gold & Base Metals Project in Serbia. The project sits in an intriguing geological setting, Canaccord Genuity notes, in a region that hosts several significant mineral deposits including Rio Tinto’s ((RIO)) Jadar lithium development.

Rogozna is a large-scale magmatic hydrothermal system which hosts a gold-copper (with zinc, silver and lead) mineralised system and comprises four key prospects, the broker notes.

Canaccord initiates coverage of Strickland with a Speculative Buy rating and price target of 16c.

This report was published on December 2, 2024.

Target price is $0.16 Current Price is $0.09 Difference: $0.071
If STK meets the Canaccord Genuity target it will return approximately 80% (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 0.00 cents.

Forecast for FY26:

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

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: $2.91

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

In Westgold Resources’ AGM presentation, the company highlighted its intention to grow the production profile, beyond Canaccord Genuity’s current forecasts in the medium term.

In referencing FY25, Westgold flagged that the 1H will be focused on optimising the business post the integration of the Karora assets, and in the 2H it plans to articulate a path to considerably exceed FY25 production guidance from FY26-27 onwards.

The Bluebird reserve has more than doubled to 573koz, the broker reports, and the South Junction expansion underway.

Buy and $4.50 target retained.

This report was published on December 4, 2024.

Target price is $4.50 Current Price is $2.91 Difference: $1.59
If WGX 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 3.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 7.10.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 3.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 4.85.

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

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

Petra Capital highlights Westgold Resources’ Bluebird-South Junction complex as a key growth driver, with reserves doubling to 573koz and further exploration upside expected.

The broker notes improvements in mining methods at South Junction are set to increase throughput and lower costs.

These changes, along with the ramp-up of operations at Big Bell Deeps and Great Fingall, position Westgold to achieve steady-state production of 130koz per quarter from the September quarter of 2025, highlights the analyst.

Projected production for 2026 is 520koz at costs (AISC) of $1,881/oz, underpinned by expanded resources and increased operational efficiency, explains the broker.

Petra Capital reiterates a Buy rating with a target price of $3.82.

This report was published on December 5, 2024.

Target price is $3.82 Current Price is $2.91 Difference: $0.91
If WGX meets the Petra Capital target it will return approximately 31% (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 10.00 cents and EPS of 26.80 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.86.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 12.00 cents and EPS of 49.30 cents.
At the last closing share price the estimated dividend yield is 4.12%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.90.

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

WOR    WORLEY LIMITED

Energy Sector Contracting – Overnight Price: $13.29

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

Goldman Sachs highlights Worley reiterated FY25 earnings guidance of low double-digit growth at the AGM, expected to be achieved against a backdrop of slowing economic growth and geopolitical uncertainty.

The update suggests the fall in the stock price of -21% over the last year suggests the market is pricing in earnings below both the broker’s and consensus forecasts, or lower by -11% to -16%.

Goldman Sachs sees the risk/reward on the stock as “positively skewed” and believes the company is positioned to benefit from the transition to a more sustainable energy mix from fossil fuels.

No change to the Buy rating or $18 target price.

This report was published on December 5, 2024.

Target price is $18.00 Current Price is $13.29 Difference: $4.71
If WOR meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $18.26, suggesting upside of 37.4%(ex-dividends)
The company’s fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 53.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.5, implying annual growth of 50.5%.
Current consensus DPS estimate is 51.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 66.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.8, implying annual growth of 22.3%.
Current consensus DPS estimate is 53.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 12.6.

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: $131.37

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

Goldman Sachs outlines updates from WiseTech Global’s in-depth investor day, where various management teams presented the product roadmap and the goal to become the global logistics operating system.

The analyst highlights long-term growth opportunities discussed in detail, along with the strength of the current operating momentum for the business.

WiseTech reiterated confidence in the proposed new management structure, with Richard White expected to focus 95% of his time on new product development and strategy, compared to 20% as CEO.

Goldman Sachs reiterates its Buy rating and target price of $138. No changes to earnings forecasts.

This report was published on December 3, 2024.

Target price is $138.00 Current Price is $131.37 Difference: $6.63
If WTC meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $141.93, suggesting upside of 8.0%(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 0.19%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 115.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 111.4, implying annual growth of 40.3%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 117.9.

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 0.25%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 83.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 160.8, implying annual growth of 44.3%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 81.7.

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

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