Australian Broker Call *Extra* Edition – Apr 03, 2025

Daily Market Reports | Apr 03 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)

ABB   ADT   AEL   AIA   BOE   BOQ   GTK   LGI   MEK   MM8 (2)   MP1   PLT   SPZ   SXE  

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit - Overnight Price: $0.81

Wilsons rates ((PLT)) as Overweight (1) -

Wilsons points to three short-term catalysts for Plenti Group, with the key one being the start of the phase 3 partnership with National Australia Bank ((NAB)) for auto loans.

In this phase, the loans will be marketed to non-NAB customers, and the broker expects this will lift quarterly auto originations. Other catalysts include rate cut prospects and higher operating leverage as the loan book expands.

The broker expects the company's cost-to-income ratio to drop to 22% in FY26 from 34% in FY23. 

The analyst updated numbers to reflect the 1H25 and 3Q result, and made some downward revisions to FY26-27 origination forecasts. Target drops to $1.46 from $1.50. Overweight maintained.

The coverage is now transferred to Lachlan Woods.

This report was published on April 1, 2025.

Target price is $1.46 Current Price is $0.81 Difference: $0.65
If PLT meets the Wilsons target it will return approximately 80% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.63.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.55.

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

SPZ    SMART PARKING LIMITED

Hardware & Equipment - Overnight Price: $0.79

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

Petra Capital underlines the benefits of Smart Parking's acquisition of Peak Parking after noting the stock's underperformance since the capital raise and entitlement issue.

The broker sees revenue benefits from the company moving to Automated Number Plate Recognition at current sites and existing Peak Parking sites.

The broker also notes the multiple paid for Peak Parking is more consistent with 7.4x EV/EBITDA  for 2025, rather than 8.0x as the company saved on startup expenses by not opting for greenfield expansion.

Buy. Target unchanged at $1.63.

This report was published on April 1, 2025.

Target price is $1.63 Current Price is $0.79 Difference: $0.845
If SPZ 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 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.71.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.15.

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

SXE    SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

Mining Sector Contracting - Overnight Price: $1.78

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

Moelis has raised FY26-27 EBITDA and EPS forecasts for Southern Cross Electrical Engineering following its acquisition of Force Fire Holdings.

The purchase price is up to -$53.5m, made up of -$36.3m cash payment now and deferred and contingent payments later.

The company expects at least 18% EPS accretion on a FY25 proforma basis and the broker has mirrored this with an 18% lift in FY26 and FY27 EPS forecasts.

EBITDA forecast for FY26 was raised by 17% and for FY27 by 18%. Buy retained. Target rises to $2.20 from $2.10.

This report was published on March 31, 2025.

Target price is $2.20 Current Price is $1.78 Difference: $0.42
If SXE meets the Moelis target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 7.50 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.47.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 7.50 cents and EPS of 15.50 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.48.

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.

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.