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

Daily Market Reports | 11:00 AM

An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AAR   ANG   BRE   CDA   CNU   DDR   DTL   EMR   IPX   MEI   MEK   MMS   OML   OPT   PNR   PWR (2)   S32   SIQ   SYR   TCL  

AAR    ASTRAL RESOURCES NL

Gold & Silver - Overnight Price: $0.15

Canaccord Genuity rates ((AAR)) as Initiation of coverage with Buy (1) -

Canaccord Genuity has initiated coverage on Astral Resources with a Speculative Buy and price target of $0.39.

The broker noted drill programs and technical studies are underway across the company's Mandilla and Feysville gold projects.

It is modelling a 2.5 million tonnes per annum operation for an average annual gold production of 79,000 ounces over an 11-year mine life (95koz average in the first seven years)

The broker's modelling largely aligns with the life of mine plan in the Mandilla scoping study but it has incorporated more conservative assumptions for operating and capital costs. In the case of Feysville, Canaccord sees a potential upside to its base production estimates.

Target price $0.39.

This report was published on December 12, 2024.

Target price is $0.39 Current Price is $0.15 Difference: $0.24
If AAR meets the Canaccord Genuity target it will return approximately 160% (excluding dividends, fees and charges).

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: $0.52

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

Austin Engineering has secured truck tray purchase orders totalling $2.7m from its maiden customer in India which Petra Capital says is not material.

However, the broker views this as far more valuable from a strategic perspective given India ranks among the largest producers of iron ore and coal globally.

Petra Capital has left forecasts unchanged but highlights upside risks in the event the company's sales into India gain momentum.

Target price unchanged at 60c and Buy rating maintained.

This report was published on December 17, 2024.

Target price is $0.60 Current Price is $0.52 Difference: $0.085
If ANG meets the Petra Capital target it will return approximately 17% (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 4.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.58.

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 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.46.

Market Sentiment: 1.0
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: $2.24

Canaccord Genuity rates ((BRE)) as Buy (1) -

Following a site visit to Brazilian Rare Earths' project in Brazil and recently released initial metallurgical leach test work results, Canaccord Genuity has remodelled its development scenario for the Monte Alto deposit.

Key changes include timeline revisions, lower capital expenditure, smaller throughput and higher grades.

The broker reminds its modelling should be seen as preliminary, subject to the release of the maiden mineral resource estimate and scoping studies confirming operating/technical parameters.

Target price raised to $5.50 from $5.30. Speculative Buy maintained.

This report was published on December 16, 2024.

Target price is $5.50 Current Price is $2.24 Difference: $3.26
If BRE meets the Canaccord Genuity target it will return approximately 146% (excluding dividends, fees and charges).

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

CDA    CODAN LIMITED

Hardware & Equipment - Overnight Price: $15.94

Goldman Sachs rates ((CDA)) as Initiation of coverage with Buy (1) -

Goldman Sachs initiated coverage on Codan with a Buy rating and target price of $18.

The broker considers Codan a high-quality electronics company with multiple levers available to grow both its metal detection and communication segments. 

The broker's profit forecasts are 3-5% above consensus due to higher acquisition and integration assumptions. Goldman also sees further upside potential from incremental accretive acquisitions, and the integration and expansion of recently acquired businesses.

This report was published on December 18, 2024.

Target price is $18.00 Current Price is $15.94 Difference: $2.06
If CDA meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $15.90, suggesting downside of -0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 28.00 cents and EPS of 55.12 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.3, implying annual growth of 18.6%.
Current consensus DPS estimate is 25.4, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 29.9.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 33.00 cents and EPS of 66.87 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.2, implying annual growth of 18.6%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 25.2.

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


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