Australian Broker Call *Extra* Edition – Apr 09, 2025

Daily Market Reports | Apr 09 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)

ALK   ALL   AOV (2)   ASX   BRG   CWY   D2O   FPH   GYG   KAR   LIC   LNW   LOV   MFG (2)   NXL   WDS  

ALK    ALKANE RESOURCES LIMITED

Gold & Silver - Overnight Price: $0.65

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

Moelis considers Alkane Resources' 3Q25 production and cash outcomes to be broadly in line with its forecasts and marked a solid rebound from the December quarter.

The company reiterated FY25 production guidance of 70-80koz, and the broker believes the lower end is easily achievable given the output so far is 50.9koz. The broker's forecast is 70.9koz.

The analyst also noted recent drilling results at Tomingley were encouraging and show potential for broader resource expansion.

Buy retained. Target price $1.00.

This report was published on April 7, 2025.

Target price is $1.00 Current Price is $0.65 Difference: $0.35
If ALK meets the Moelis target it will return approximately 54% (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 4.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.55.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming - Overnight Price: $59.58

Jarden rates ((ALL)) as Neutral (3) -

Jarden considers the possibility of Aristocrat Leisure opting for an M&A given the US$750m buyback program is not utilised yet.

The broker is not supportive of any such potential move because it would increase the company's investment risk, and recent M&A activity such as in the James Hardie ((JHX)) instance, has heightened concerns around strategic acquisition.

Neutral maintained. The broker will turn positive on the stock if 1H25 result surprises to the upside or share price declines.

Target price rises to $68 from $67 on updated valuation assumptions. 

This report was published on April 4, 2025.

Target price is $68.00 Current Price is $59.58 Difference: $8.42
If ALL meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $77.07, suggesting upside of 27.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 90.00 cents and EPS of 266.40 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 266.8, implying annual growth of 30.3%.
Current consensus DPS estimate is 89.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 22.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 100.00 cents and EPS of 297.20 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 296.1, implying annual growth of 11.0%.
Current consensus DPS estimate is 99.8, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 20.4.

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

AOV    AMOTIV LIMITED

Automobiles & Components - Overnight Price: $7.28

Goldman Sachs rates ((AOV)) as Buy (1) -

Goldman Sachs' notes Amotiv's trading update was disappointing, but the commentary on the effect of US tariffs suggested minimal impact.

The company flagged the lighting, power and electrical (LPE) segment continues to experience challenges from muted Australian reseller demand, but US was strong. The 4WD segment was affected by soft new vehicle sales demand. 

The powertrain and undercar (PU) segment was performing well due to the resilience of the wear and repair markets. Regarding tariffs, the company's current revenue exposure to the US was only 8%, and it was exploring re-sourcing, re-pricing and alternative manufacturing and supply locations.

Buy. Target unchanged at $12.20.

This report was published on April 4, 2025.

Target price is $12.20 Current Price is $7.28 Difference: $4.92
If AOV meets the Goldman Sachs target it will return approximately 68% (excluding dividends, fees and charges).
Current consensus price target is $11.65, suggesting upside of 65.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 41.00 cents and EPS of 74.00 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 9.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.8, implying annual growth of 14.3%.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 8.7.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 44.00 cents and EPS of 81.00 cents.
At the last closing share price the estimated dividend yield is 6.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.9, implying annual growth of 5.1%.
Current consensus DPS estimate is 43.5, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 8.3.

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.