Daily Market Reports | 10:35 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.
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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)
29M ALX ARX ASG (2) AX1 CIA CMM GOR MAC (2) PLS PMV RDY SFR VAU (2)
RDY READYTECH HOLDINGS LIMITED
Software & Services - Overnight Price: $3.19
Wilsons rates ((RDY)) as Overweight (1) -
Wilsons is expecting limited surprises at ReadyTech's result on Feb 26, noting that beyond some implementation delays in recent local government wins, IT Vision cloud conversion is accelerating following the achievement of its final earnout hurdle.
This is highlighted as a positive signal to NRR and group margin expansion for 2H25 and beyond.
The broker has considered a scenario where the company grows revenue at a slower rate, but strictly focuses on delivering 100bps of margin expansion per year.
This, combined with debt reduction, would see a far more consistent rate EPS growth trajectory of over 15%, leading to $20m of free cash flow per year and supporting fully franked dividend.
The Overweight rating and a target price of $3.70 are retained.
This report was published on January 30, 2025.
Target price is $3.70 Current Price is $3.19 Difference: $0.51
If RDY meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $4.08, suggesting upside of 27.8%(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 15.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.71.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.6, implying annual growth of 148.9%.
Current consensus DPS estimate is 1.1, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 27.5.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 19.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.1, implying annual growth of 30.2%.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 21.1.
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: $10.01
Wilsons rates ((SFR)) as Market Weight (3) -
Sandfire Resources' December quarter report contained many moving parts but overall was broadly in line with market expectations, Wilsons notes. There were few takeaways for the broker to alter its views materially.
The broker highlights the company has brought down net debt by an impressive -US$193m over the past nine months, and estimates the company could move to net cash position around the end of 2026.
In the absence of attractive internal uses for capital, Wilsons believes there's a prospect of capital returns to shareholders in 2026, also noting Sandfire's US$265m franking credit balance may play a role.
Target price of $10.8 and Market Weight rating maintained.
This report was published on January 31, 2025.
Target price is $10.80 Current Price is $10.01 Difference: $0.79
If SFR meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $10.28, suggesting upside of 2.6%(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 33.54 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 42.7, implying annual growth of N/A.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 23.4.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 71.34 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 70.1, implying annual growth of 64.2%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 14.3.
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
VAU VAULT MINERALS LIMITED
Gold & Silver - Overnight Price: $0.39
Jarden rates ((VAU)) as Upgrade to Buy from Overweight (1) -
Vault Minerals delivered a solid operational December quarter, Jarden highlights, with a focus on setting up the King of the Hills plant for expansion, a stronger 24 months at Mt Monger and a pick up in planned exploration and resource extension drilling.
In the broker's view, the company's operations are increasingly set up for material free cash flow boost over the coming years.
Jarden has incorporated increases to its gold price forecasts and lower forex, resulting in a 24% increase in valuation and target price.
Rating upgraded to Buy from Overweight and target price raised to 52c from 42c.
This report was published on January 29, 2025.
Target price is $0.52 Current Price is $0.39 Difference: $0.13
If VAU meets the Jarden target it will return approximately 33% (excluding dividends, fees and charges).
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 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.65.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.29.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Moelis rates ((VAU)) as Buy (1) -
Moelis highlights 2Q25 marked a strong period for Vault Minerals, with production in line with its estimate and cost lower, resulting in a slightly better cash and bullion position.
The company tightened FY25 production guidance to 390-410koz from 390-430koz previously, but the broker retained its 395.2koz forecast.
The broker made modest changes to forecasts. Rating remains at Buy and price target is 57c.
Vault Minerals is the broker's preferred exposure within the gold space, given the combination of valuation support, balance sheet health and confidence around operational delivery.
This report was published on January 29, 2025.
Target price is $0.57 Current Price is $0.39 Difference: $0.18
If VAU meets the Moelis target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.25.
Forecast for FY26:
Moelis forecasts a full year FY26 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 13.45.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.
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