Australian Broker Call *Extra* Edition – Apr 27, 2025

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)

ALC   ALD   BOQ   CKF (2)   CVV   DHG   DYL   FEX   ILU   KAR (2)   MYX   NAN   NEC   NWS   PRN   QBE   REA   RIO   SEK   SHV   STN   THL   TLX  

ALD    AMPOL LIMITED

Consumer Products & Services - Overnight Price: $22.42

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

Ampol's 1Q25 update showed gross profit of US$50m at Lytton refinery fell short of Goldman Sachs' US$59m forecast, largely due to Cyclone Alfred impact.

Convenience Retail and New Zealand earnings before interest and tax grew in 1Q and compares with the broker's forecast for a -6% year-on-year and -13%  decline in 1H23 on the previous period. The broker is not adjusting forecasts due to volatile quarterly movements, but has flagged upside risks.

The F&I International business also performed well compared with the broker's expectation.

No change to earnings (EBITDA) forecasts. Target rises to $30.80 from $30.60. Buy retained.

This report was published on April 17, 2025.

Target price is $30.80 Current Price is $22.42 Difference: $8.38
If ALD meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $29.40, suggesting upside of 31.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 37.00 cents and EPS of 74.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.7, implying annual growth of 199.0%.
Current consensus DPS estimate is 96.7, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 143.00 cents and EPS of 186.00 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.3, implying annual growth of 34.9%.
Current consensus DPS estimate is 159.7, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 10.8.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco - Overnight Price: $8.24

Canaccord Genuity rates ((CKF)) as Hold (3) -

Canaccord Genuity admires the strategic initiatives announced by Collins Foods under its new CEO, seeing them as offering higher medium-term growth optionality.

The decision to exit Taco Bell is wise, the broker notes, but without full details makes no change to forecasts for now. The German expansion and realignment of Netherlands operations would require higher capex and leave less free cash flow.

Minor revisions to FY2526 forecasts, with capex the biggest change in the medium-term forecasts.

Target unchanged at $8. Hold maintained, with stronger volume growth in Australia needed to see the broker become more constructive on the stock.

This report was published on April 23, 2025.

Target price is $8.00 Current Price is $8.24 Difference: minus $0.24 (current price is over target).
If CKF meets the Canaccord Genuity target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.75, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 22.00 cents and EPS of 37.60 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.9, implying annual growth of -21.1%.
Current consensus DPS estimate is 22.4, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 21.7.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 dividend of 25.50 cents and EPS of 45.80 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.9, implying annual growth of 36.9%.
Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 15.9.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices - Overnight Price: $4.59

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

Following a site tour of Nanosonics' facilities to see the Coris system in operation, Wilsons believes the product could get 2-3 times higher average selling price than initially assumed.

The broker also thinks its assumption for the Quantum consumable pricing revenue is on the conservative side.

The analyst reiterated Coris would become earnings before interest and tax positive in a few years and the current share pricing only factors 50% of the value.

Overweight. Target unchanged at $6.

This report was published on April 23, 2025.

Target price is $6.00 Current Price is $4.59 Difference: $1.41
If NAN meets the Wilsons target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $4.66, suggesting upside of 1.6%(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 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 44.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 74.0.

Forecast for FY26:

Wilsons forecasts a full year FY26 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 97.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.4, implying annual growth of 19.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 62.0.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NAN    NANOSONICS LIMITED

Medical Equipment & Devices - Overnight Price: $4.59

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

Following a site tour of Nanosonics' facilities to see the Coris system in operation, Wilsons believes the product could get 2-3 times higher average selling price than initially assumed.

The broker also thinks its assumption for the Quantum consumable pricing revenue is on the conservative side.

The analyst reiterated Coris would become earnings before interest and tax positive in a few years and the current share pricing only factors 50% of the value.

Overweight. Target unchanged at $6.

This report was published on April 23, 2025.

Target price is $6.00 Current Price is $4.59 Difference: $1.41
If NAN meets the Wilsons target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $4.66, suggesting upside of 1.6%(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 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 44.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 74.0.

Forecast for FY26:

Wilsons forecasts a full year FY26 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 97.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.4, implying annual growth of 19.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 62.0.

Market Sentiment: 0.1
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.