Australian Broker Call

Citi rates AMC as Neutral (3) -

Adding to previous takeaways on the merger between Amcor and Berry, Citi notes some investor concerns, higher EPS generation could come at the "expense" of return on capital and a potentially more cyclical portfolio.

The broker believes the merger is logical, and is expected to generate -US$650m in synergies or around 3% of sales.

Citi explains Berry is being merged at a lower valuation multiple, some -20% below Amcor's. The analyst views this as indicative of the more cyclical nature of Berry's earnings profile due to exposure to commoditised products.

Berry has been diversifying into consumer packaging. Amcor remains Neutral rated. Target price is $17.

Target price is $17.00 Current Price is $15.51 Difference: $1.49
If AMC meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $16.12, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.0

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

Morgans rates AMC as Hold (3) -

Morgans observes the acquisition of Berry Global for around US$14.7bn in an all-scrip transaction by Amcor, with support from both boards.

The analyst notes the Berry merger could add EPS accretion of 21% in the first year and 33% in the third year, which is marginally below management's target of over 35%. Morgans also expects a 13.7% return on investment by FY28.

Synergies of US$650m per annum are expected, including US$530m from costs, US$60m in annual interest charges, and US$60m from revenues.

Morgans explains the size of the transaction, at over 100% of Amcor's market cap, may keep investors cautious.

No change to the Hold rating and target price of $15.75, as several approvals are still pending. The broker's earnings forecasts remain unchanged.

Target price is $15.75 Current Price is $15.51 Difference: $0.24
If AMC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.12, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.0

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

Ord Minnett rates AMC as Upgrade to Hold from Lighten (3) -

Following the merger announcement with Berry Global for US$8.4bn, Ord Minnett upgrades Amcor to Hold from Lighten and raises the target price to $15.50 from $14.10.

The merged group is targeting cost savings and revenue boosts of US$650m per annum within three years.

Amcor shareholders will own 63% of the merged group, with Berry shareholders at 37%. The deal is expected to be completed by mid-2025.

The broker has included half of the anticipated earnings benefits into forecasts, with EPS estimates raised by 2% in FY26 and 10% in FY27.

Target price is $15.50 Current Price is $15.51 Difference: minus $0.01 (current price is over target).
If AMC meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.12, suggesting upside of 0.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.0

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

Citi rates AX1 as Buy (1) -

Gross margin is being sacrificed to drive sales at Accent Group, as consumers increasingly shop on promotion, notes Citi.

The trading update for the first 20 weeks of FY25 showed like-for-like sales growth of 3.5%, slightly below the 3.7% consensus forecast for 1H25.

Total sales are up 6.8%, down from 8.7% for the first seven weeks of FY25, and below the -8.0% consensus estimate for 1H25.

Management explained that promotions have resulted in gross margins falling by -70bps, exceeding the -40bps decline forecast by consensus, highlight the analysts.

CODB/Sales are improving in line with Citi's forecasts, and the store rollout is surpassing expectations.

Citi maintains a Buy rating with a $2.57 target price.

Target price is $2.57 Current Price is $2.53 Difference: $0.04
If AX1 meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Morgan Stanley rates BHP as Overweight (1) -

Morgan Stanley's visit to BHP Group's Escondida operation highlighted the company's increased focus on leaching technologies as a future driver of copper production.

BHP is constructing a demonstration plant to test its patented leach technology, which is expected to improve recovery rates to 60-70% from 30-40%. Cycle times are also expected to fall to approximately 300 days, which the broker notes is lower than other technologies.

The broker maintains an Overweight rating with a target price of $46.85. Industry View: Attractive.

Target price is $46.85 Current Price is $40.08 Difference: $6.77
If BHP meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $45.46, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.8

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

Bell Potter rates DGL as Hold (3) -

Given an improved macroeconomic backdrop, Bell Potter had anticipated a correspondingly stronger operating performance from DGL Group in 1H FY25, but management's trading update was softer-than-expected.

A “modest” year-on-year increase in revenue and gross margin is guided for the first half, with underlying earnings (EBITDA) expected to be “broadly” in line with the previous corresponding period.

Management expects profit to be lower due to higher depreciation and amortisation (D&A), driven by acquisitions made in FY24 and FY25, explains the broker.

Bell Potter lowers the target price to 53c from 55c and maintains a Hold rating.

Target price is $0.53 Current Price is $0.55 Difference: minus $0.02 (current price is over target).
If DGL meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.56, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgans rates ELD as Add (1) -

Morgans views the FY24 result for Elders as "weak." After a tough 1Q24, 2H24 showed notable improvements, although the $475m acquisition of Delta Agribusiness overshadowed the period, the analyst states.

The broker believes the company is paying a "full price" for Delta, with new equity raised increasing shares on issue by over 34%, which lowers EPS accretion.

Morgans downgrades EPS forecasts by -5% to -8% for FY25-FY28 due to higher-than-expected depreciation and amortisation charges.

With an attractive dividend yield and a positive outlook for FY25, including several growth projects over the next few years, Morgans rates the stock an Add with a $9.52 target price, up from $9.50

Target price is $9.52 Current Price is $7.47 Difference: $2.05
If ELD meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates FPH as Outperform (1) -

For Fisher & Paykel Healthcare's 1H results due on 28 November, Macquarie forecasts a profit of NZ$156m (constant currency), aligning with the mid-point of the company’s guidance range of NZ$150-160m.

On a reported basis, the broker’s forecast is -3% below the consensus estimate of NZ$159m.

Macquarie raises the target price to NZ$41.80 from NZ$39.20, reflecting EPS revisions, an updated risk-free rate, and a model roll-forward, and retains an Outperform rating.

Current Price is $33.56. Target price not assessed.

Current consensus price target is $23.06, suggesting downside of -31.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.0

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

Bell Potter rates IPX as Speculative Buy (1) -

Bell Potter believes its new forecast of US$110/kg for Iperionx's titanium production margins, up from US$60/kg, is likely highly conservative.

The broker highlights that, despite a marginally slower ramp-up, recent contract wins with Ford and Aperam showcase the company's focus on securing higher-value contracts ahead of titanium production.

Bell Potter raises the target price to $5.25 from $3.95 and maintains a Speculative Buy rating.

Target price is $5.25 Current Price is $4.04 Difference: $1.21
If IPX meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates LGI as Buy (1) -

Broadly in line with Bell Potter's forecast, LGI's management updated AGM guidance for underlying earnings (EBITDA) growth to 12-15%, up from low double-digit growth.

Following a reduction in the assumed weighted average cost of capital (WACC) due to a lower market risk premium and adjustments for the higher guidance, the broker raises the target price to $3.55 from $3.40.

Bell Potter maintains a Buy rating.

Target price is $3.55 Current Price is $3.10 Difference: $0.45
If LGI meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates NCK as Buy (1) -

Citi explains Nick Scali continues to experience freight forwarding issues with Lion Gate and has not been able to access some goods, as that company is now in administration.

Nick Scali has been ordered by the court to pay an outstanding $2m owed to Lion Global, but the issue remains unresolved. The broker cites media reports Nick Scali has also been ordered to pay additional costs.

Approximately 240 containers are stuck with accompanying wharf charges, and negative customer reviews could impact the company's image, the analyst believes.

Management provided no guidance. Citi lowers EPS forecasts by -8% for FY25 and tweaks FY26 estimate up.

The target price decreases to $15.31 from $15.93. No change to the Buy rating.

Target price is $15.31 Current Price is $13.84 Difference: $1.47
If NCK meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $15.30, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Citi rates NIC as Buy (1) -

Nickel Industries reported weaker-than-expected underlying rotary kiln electric furnace earnings margins in the September quarter, Citi observes, at US$1,144/t compared to US$1,614/t in the June quarter, due to increased nickel costs.

The broker highlights Hengjaya mine earnings advanced to US$108m from US$79m in the June quarter, supported by a forex gain of US$24.2m.

Citi notes the approval process has continued to raise mine capacity at Hengjaya to 22Mt per annum, with cash on hand at quarter-end at US$193m after US$72m in dividends and US$380m for Excelsior Nickel Cobalt.

Citi adjusts EPS forecasts following the 3Q 2024 update. The FY25 estimate rises by 8.8%, while the FY26 estimate is reduced by -1.3%.

A Buy rating, High risk, with a $1.05 target price remains. The analyst sees cash flow generation over "growth" as a key factor for the share price to move higher.

Target price is $1.05 Current Price is $0.92 Difference: $0.135
If NIC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.21, suggesting upside of 34.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.8

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

Bell Potter rates NWL as Hold (3) -

Netwealth Group's AGM trading update revealed a funds under administration (FUA) run rate exceeding Bell Potter's forecasts, with management reiterating a positive outlook for FY25.

Cost guidance remains unchanged, notes the broker, with management highlighting measurable AI-driven efficiencies in employee functions, including back office operations and engineering development.

Bell Potter raises the target price to $27.80 from $26 and maintains a Hold rating.

Target price is $27.80 Current Price is $29.57 Difference: minus $1.77 (current price is over target).
If NWL meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.76, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Shaw and Partners rates NXG as Buy, High Risk (1) -

NexGen Energy expects to receive a license to construct and operate the Rook uranium project in Canada by early 2025, following a Commission Hearing Date.

This timeline follows confirmation from the Canadian Nuclear Safety Commission (CNSC) of the successful completion of its technical review.

The analysts reiterate NexGen presents an excellent opportunity to gain exposure to the nuclear thematic without near-term commissioning risks.

The Buy, High Risk rating and $16.20 target price are unchanged.

Target price is $16.20 Current Price is $12.90 Difference: $3.3
If NXG meets the Shaw and Partners target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 1.0

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

Macquarie rates PLL as Upgrade to Neutral from Underperform (3) -

Sayona Mining and Piedmont Lithium have announced a 50/50 all-stock merger, accompanied by $40m equity raisings each and a conditional $69m placement via a revolving credit facility (RCF).

Macquarie views the transaction as a de facto takeover by Sayona Mining, given that the only producing asset, North American Lithium, is owned by Sayona.

The broker highlights management of the combined entity will predominantly come from Sayona, with the stock primarily listed on the ASX and secondarily on Nasdaq. Piedmont Lithium's operations are based in the US and Ghana.

Macquarie nearly doubles Piedmont Lithium's target price to 21c from 11c and upgrades the rating to Neutral from Underperform, citing the value-accretive removal of the offtake agreement enabled by the merger.

Target price is $0.21 Current Price is $0.19 Difference: $0.025
If PLL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates PNI as Neutral (3) -

Pinnacle Investment Management is executing on its ambition to expand its footprint across the globe by acquiring two minority stakes in a structured capital manager in the US (VSS) and in distribution platform Pacific Asset in the UK.

UBS, in an initial response, suggests the UK deal seems most beneficial, offering higher growth potential at a lower multiple.

The broker also notes the high PE shares in Pinnacle are trading on has allowed the company to raise more than required for both deals, keeping powder dry and making sure Pinnacle Investment remains well-funded for ongoing expansion.

Broader commentary does have a more cautious tone, with the broker highlighting its revised price target ($21.40 from $19.30) already places the PE premium 25% above the historical average. Neutral.

Target price is $21.40 Current Price is $21.44 Difference: minus $0.04 (current price is over target).
If PNI meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.79, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Bell Potter rates PWH as Upgrade to Buy from Hold (1) -

Bell Potter lowers its target for PWR Holdings to $8.00 from $9.75 and upgrades to Buy from Hold on valuation following a 1H trading update well below expectations. 

The broker had forecast a $8.7m profit, but management now expects $3.2-3.7m for the period.

Revenue is anticipated to decline in the OEM and Aftermarket segments, remain flat in Motorsports, and rise strongly in Aerospace & Defence, prompting Bell Potter to reduce revenue forecasts by -9% for FY25, FY26, and FY27.

The broker views the 1H update as an aberration and highlights the potential for a significantly improved H2 and FY26, presenting a buying opportunity

Target price is $8.00 Current Price is $6.85 Difference: $1.15
If PWH meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $9.34, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

UBS rates PWH as Neutral (3) -

UBS saw PWR Holdings providing a "somewhat surprising" profit warning, only one month after the AGM. The new profit guidance is no less than -55% below market consensus (at the midpoint).

Management is looking to reduce costs in response. UBS now believes FY25 will have a hefty skew towards H2.

The broker observes, following two profit downgrades, the multiple has de-rated noticeably. UBS still doesn't think the shares are attractively priced.

Earnings estimates have received the chainsaw treatment. UBS still compares PWR Holdings against a basket of quality small caps, but the price target drops to $7.50 from $10.20. Neutral rating retained.

Target price is $7.50 Current Price is $6.85 Difference: $0.65
If PWH meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.34, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Citi rates PWR as Upgrade to Buy from Neutral (1) -

Citi upgrades Peter Warren Automotive to Buy from Neutral, as the analyst believes the fall in the share price has been "overdone."

The broker notes the loss of three "niche" EV programs, a weaker aftermarket scenario, and recent staff hires impacting operating leverage but views these negatives as more than discounted.

Citi lowers EPS forecasts by -34.4% and -10.9% for FY25 and FY26, respectively, due to the loss of EV programs and the weaker aftermarket outlook.

The target price dips to $9.45 from $10.85. Citi believes the company offers significant intellectual property, a robust balance sheet, and good offshore growth potential.

Target price is $9.45 Current Price is $1.75 Difference: $7.7
If PWR meets the Citi target it will return approximately 440% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting upside of 112.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates QBE as Hold (3) -

Ord Minnett has reviewed QBE Insurance's outlook, raising the target price to $21 from $19 ahead of the insurer's trading update on 27 November.

The broker expects QBE to achieve its 2024 guidance, driven by lower disaster claims and higher revenue generation from crop insurance.

Rising bond yields are also expected to assist earnings performance.

With lower levels of insurance protection, the stock remains a Hold rating.

Target price is $21.00 Current Price is $19.26 Difference: $1.74
If QBE meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $19.91, suggesting upside of 1.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.9

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

Morgan Stanley rates SEK as Overweight (1) -

Morgan Stanley considers Seek's AGM trading update and reiterated FY25 guidance are important for a stock that has been in an earnings downgrade cycle for around two years.

While the consensus view is bearish, with some seeing the stock as structurally broken, the broker assesses the majority of earnings declines have been cyclical.

Positively, according to the analysts, management confidently cited improving volumes in Australia, higher yield and a rising probability of monetisation of its Growth fund investment.

Overweight retained. Target rises to $30 from $28. Industry View: Attractive.

Target price is $30.00 Current Price is $26.54 Difference: $3.46
If SEK meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $27.44, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Ord Minnett rates SHL as Lighten (4) -

Sonic Healthcare's trading update revealed revenue growth in the first four months of FY25 exceeded Ord Minnett's run rate for its FY25 forecast.

The broker expects revenue growth of 8.3% for 1H25 and earnings growth of 10%, slowing to 5.3% and 4%, respectively in 2H25.

Ord Minnett believes ongoing cost inflation will continue to pressure margins.

The target price is raised to $23.85 from $23.50. No change to the Lighten rating.

Target price is $23.85 Current Price is $27.79 Difference: minus $3.94 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.77, suggesting upside of 0.7% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgans rates STO as Upgrade to Add from Hold (1) -

Santos is upgraded to Add from Hold by Morgans as the share price trades at a discount to the revised target price of $7.40, down from $7.90.

The broker's key takeaways from the investor day include a lack of major surprises. Management revealed a strategic shift to invest in existing infrastructure and slow growth as the ideal mechanism to add shareholder value.

Management has lowered the medium-term production target to 100-120mmboe from 100-140mmboe, with a revised capital payout of over 60% of actual free cash flow, compared to over 40% of pre-capex cash flow.

Morgans lowers EPS forecasts for FY25 and FY26 due to changes in capex assumptions for PNG LNG and the Cooper Basin.

The analyst highlights the "backfill" strategy could put some greenfield projects in doubt, including Dorado.

Target price is $7.40 Current Price is $6.79 Difference: $0.61
If STO meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.04, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 1.0

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

Ord Minnett rates STO as Buy (1) -

Following Santos' investor day, Ord Minnett lowers the target price to $8.40 from $8.50 while retaining a Buy rating.

The broker notes a shift in management's strategy from growth to shareholder returns, with the dividend payout now set at 60%-100% of free cash flow, including growth in capex, compared to over 40% currently.

Ord Minnett believes the market is underestimating the company's ability to generate free cash flow and management's determination to increase shareholder returns.

The analyst lowers EPS forecast by -2% for 2024 and raises EPS forecast by 9% for 2025.

Target price is $8.40 Current Price is $6.79 Difference: $1.61
If STO meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.04, suggesting upside of 18.8% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 1.0

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

Macquarie rates SYA as Upgrade to Neutral from Underperform (3) -

Sayona Mining and Piedmont Lithium have announced a 50/50 all-stock merger alongside $40m equity raisings each, with a conditional $69m placement via a revolving credit facility (RCF).

Macquarie suggests the transaction functions as a de facto takeover by Sayona Mining, as the only producing asset, North American Lithium (NAL), is owned by Sayona. Piedmont Lithium's operations are based in the US and Ghana.

Further supporting this view, the broker notes the combined entity’s management will predominantly come from Sayona, with the stock primarily listed on the ASX and secondarily on Nasdaq.

Macquarie doubles Sayona Mining’s target price to 4c and upgrades the rating to Neutral from Underperform, citing the value-accretive removal of the offtake agreement enabled by the merger.

Target price is $0.04 Current Price is $0.04 Difference: $0.005
If SYA meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Shaw and Partners rates TEA as Downgrade to Hold from Buy (3) -

Management at Tasmea's AGM issued a trading update and guided to FY25 profit of $48m, which is at the upper end of the consensus range but slightly below Shaw and Partners' forecast of $50m.

The broker retains its $2.50 target price and downgrades the rating to Hold from Buy following a doubling of the share price over the past three months.

Tasmea listed on the ASX on 29 April at an initial price of $1.56 per share.

Target price is $2.50 Current Price is $3.15 Difference: minus $0.65 (current price is over target).
If TEA meets the Shaw and Partners target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Citi rates WTC as Buy (1) -

WiseTech Global's headcount grew by 40 year-to-date, up 23% year-on-year, compared to 37% growth in 4Q24 on the previous corresponding period.

The Citi analyst has mixed views on the apparent slowdown in hiring in FY25.

On one hand, the broker views this as positive, supporting the belief earnings guidance is conservative. It could also indicate a softer revenue outlook for the company.

Citi anticipates WiseTech Global will reconfirm FY25 guidance at the AGM, with "industry volumes" acting as a tailwind, the analyst explains.

No change to the Buy rating with a $124.50 target price.

Target price is $124.50 Current Price is $138.48 Difference: minus $13.98 (current price is over target).
If WTC meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $118.78, suggesting downside of -14.4% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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