Australian Broker Call *Extra* Edition – Feb 24, 2025

Daily Market Reports | Feb 24 2025

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

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

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

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

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

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

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

COMPANIES DISCUSSED IN THIS ISSUE

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

ASG   BC8   BMT   CDA   CTD   CWP   CWY   CYG   DTL (2)   DUR   DXB   EBO   EGL   EHL   EVS   FBU (2)   GMD   GMG   GOR   HSN   HUB   ILU   IPH   JHX (2)   LGL   LNW (2)   MGH   MIN (2)   NAB   PWH   PWR   RFG   SBM   SGP   SHA (2)   STO   SXE   TLC   UNI  

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components - Overnight Price: $1.65

Moelis rates ((ASG)) as Hold (3) -

Autosports Group's 1H25 result was line with the downgraded guidance provided in late January where the company cited challenging trading conditions in late-2024. Moelis highlights no quantified guidance was provided now but the company expects challenging new vehicle market conditions to continue in 2H25.

The broker downgraded FY25-27 EPS forecasts by -15% to -31%, reflecting a weaker topline and gross margin profile persisting throughout 2025, before recovering in 2026. This is on top of the -9% to -22% EPS forecast cuts following the late-January guidance.

Target price $1.66 and Hold rating remains.

This report was published on February 20, 2025.

Target price is $1.66 Current Price is $1.65 Difference: $0.01
If ASG meets the Moelis target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $1.85, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 6.80 cents and EPS of 13.00 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 12.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.2, implying annual growth of -49.8%.
Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 7.10 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 4.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.6, implying annual growth of 55.3%.
Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 8.6%.
Current consensus EPS estimate suggests the PER is 6.9.

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

BC8    BLACK CAT SYNDICATE LIMITED

Gold & Silver - Overnight Price: $0.86

Petra Capital rates ((BC8)) as Buy (1) -

Petra Capital points to a press article indicating Westgold Resources ((WGX)) is running a sale process for its Lakewood Mill, and sees Black Cat Syndicate as a potentially interested party in the sales process.

The broker notes Black Cat's November Gold Acceleration and Expansion strategy for its Kal East Gold Project (KEGP) looked at expanding from a new build 0.8Mtpa to 1.2-1.5Mtpa either via construction or acquisition.

An expanded KEGP lifts the company's valuation by 16% to $766M ($1.28/sh) vs base, the broker estimates.

Buy rating and $1.1 target price are unchanged.

This report was published on February 20, 2025.

Target price is $1.10 Current Price is $0.86 Difference: $0.235
If BC8 meets the Petra Capital target it will return approximately 27% (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 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.60.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 15.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.69.

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

BMT    BEAMTREE HOLDINGS LIMITED

Healthcare services - Overnight Price: $0.24

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

In Petra Capital's view, Beamtree Holdings' 1H25 result indicated management has been proactively repositioning the cost structure of the business. This resulted in a marginally positive operating profit outcome from a loss y/y and an operating cashflow break-even outcome. 

The step-down in guided FY25 revenue growth forecast to 10% from 20-30% was a disappointment, the broker comments, though this was partly offset by additional disclosure on opportunity pipeline.

The broker cut forecasts on the back of revised guidance. Target price drops to 50c from 56. Buy maintained.

This report was published on February 20, 2025.

Target price is $0.50 Current Price is $0.24 Difference: $0.26
If BMT meets the Petra Capital target it will return approximately 108% (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 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.46.

Forecast for FY26:

Petra Capital forecasts a full year FY26 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 80.00.

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: $16.16

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

Moelis notes Codan's 1H25 result was solid across the group, but margins were driven mainly by the communications segment. Order book for communications expanded 35% y/y to $247m which is expected to support 2H growth.

The company expects communications revenue growth to top 15% including acquisition but was cautious about Minelab, expecting to maintain 1H revenue in 2H if conditions remain stable.

The broker has incorporated expectations of stronger communications performance and more conservative Minelab into the forecast. 

Target price rises to $18.43 from $18.14, and Buy maintained.

This report was published on February 24, 2025.

Target price is $18.43 Current Price is $16.16 Difference: $2.27
If CDA meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $16.86, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 27.40 cents and EPS of 54.80 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.2, implying annual growth of 18.4%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 30.5.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 34.00 cents and EPS of 67.90 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.5, implying annual growth of 21.2%.
Current consensus DPS estimate is 31.1, 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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism - Overnight Price: $17.66

Jarden rates ((CTD)) as Overweight (2) -

Jarden believes there's a lot to like in Corporate Travel Management's 1H25 result despite slightly softer FY25 guidance implying a -2% consensus EBITDA downgrade. 

The broker is focusing more on the travel group's contract wins, incremental margins of over 50% and that it remains on track to double EPS by FY29. If that's achieved, market EPS forecasts would rise over 35%, the broker estimates.

The broker cut underlying FY25 EPS forecast by -0.5% but lifted FY26 by 12.4%. Target price rises to $17 from $14, and Overweight maintained.

This report was published on February 19, 2025.

Target price is $17.00 Current Price is $17.66 Difference: minus $0.66 (current price is over target).
If CTD meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $17.63, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 76.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.6, implying annual growth of 30.6%.
Current consensus DPS estimate is 30.1, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 23.5.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 102.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.5, implying annual growth of 23.7%.
Current consensus DPS estimate is 38.8, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 19.0.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources