Australian Broker Call
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March 08, 2024
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, 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.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
GL1 GLOBAL LITHIUM RESOURCES LIMITED
New Battery Elements
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Overnight Price: $0.58
Shaw and Partners rates GL1 as Buy (1) -
Shaw and Partners observes Global Lithium Resources' ongoing metallurgical testwork at Manna continues to result in high grades and strong recoveries.
The broker grabs the opportunity to highlight the "outstanding value" currently on offer, with the lithium market expected to see a recovery in pricing later in the year.
The Buy rating is retained with a target price of $2.20.
Target price is $2.20 Current Price is $0.58 Difference: $1.62
If GL1 meets the Shaw and Partners target it will return approximately 279% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.20 cents. |
Forecast for FY25:
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.30 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.92
Macquarie rates GMD as Neutral (3) -
Genesis Minerals' second half result disappointed Macquarie at the earnings line, reporting earnings of $48m. This represents a -24% miss to the broker's forecast, attributed to higher operating costs in the period. Net profits came in at $15m, a -36% miss to the broker.
The broker did note a strong cash position at the end of the half, with Genesis Minerals holding net cash of $155m, although noting this is before acquisition costs the broker expects to be paid within FY24. The broker feels the company remains well capitalised for growth.
The Outperform rating and target price of $2.00 are retained.
Target price is $2.00 Current Price is $1.92 Difference: $0.083
If GMD meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $1.91, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.8, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 32.4. |
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.5, implying annual growth of 12.1%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 28.9. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.33
Ord Minnett rates LLC as Buy (1) -
The new depths reached by Lendlease Group's stock price in 2024 are, says Ord Minnett, partly due to the company's balance sheet, but the broker remains confident earnings can improve.
The company targets gearing between 10-20%, despite reporting gearing of 23% in February. The company expects gearing near the midpoint of this range by June, which Ord Minnett finds reasonable given cash proceeds from Residences One Sydney Harbour of $1.5bn.
According to the broker, execution of these sales are critical, but it does not anticipate many settlement defaults.
The Buy rating and target price of $13.30 are retained.
Target price is $13.30 Current Price is $6.33 Difference: $6.97
If LLC meets the Ord Minnett target it will return approximately 110% (excluding dividends, fees and charges).
Current consensus price target is $9.17, suggesting upside of 41.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 16.00 cents and EPS of 37.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 53.6, implying annual growth of N/A. Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 12.1. |
Forecast for FY25:
Ord Minnett forecasts a full year FY25 dividend of 24.90 cents and EPS of 62.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 69.2, implying annual growth of 29.1%. Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 3.5%. Current consensus EPS estimate suggests the PER is 9.3. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $15.22
Citi rates MP1 as Buy (1) -
Megaport has disclosed an intention to invest back into the Australian market, with the company having recently been more focused on investing into the US and reducing cash burn. The company intends to re-engage with local partners and customers.
This aim was relayed at the company's recent World Tour event, which Citi considers a first step in reconnecting domestically. The broker sees positive momentum for the company in Australia, with Megaport also announcing it is starting to see demand for global WAN locally.
The Buy rating and target price of $16.80 are retained.
Target price is $16.80 Current Price is $15.22 Difference: $1.58
If MP1 meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $14.25, suggesting downside of -6.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.8, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 172.3. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 0.00 cents and EPS of 11.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.5, implying annual growth of 98.9%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 86.6. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Bell Potter rates NOU as Initiate Coverage With Speculative Buy (1) -
Bell Potter initiates coverage on Noumi, formerly known as Freedom Foods, with a Speculative Buy rating and target of 15.5c. An investment in Noumi provides leverage to growth in alternative protein markets.
The company is involved in plant based dairy substitutes and UHT dairy beverage markets under market leading brands Milklab and Australia’s own.
The broker explains Noumi has a vertically integrated consumer nutritionals platform and a B2B ingredients platform.
The analysts like Noumi's market leading position in the fast growing plant based dairy alternative market and the exposure to rising milk fat pricing trends in the Dairy and Nutritionals platform over FY25-26.
Target price is $0.16 Current Price is $0.13 Difference: $0.03
If NOU meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.50 cents. |
Forecast for FY25:
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.40 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SXL SOUTHERN CROSS MEDIA GROUP LIMITED
Print, Radio & TV
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Overnight Price: $0.99
Ord Minnett rates SXL as Buy (1) -
Ord Minnett was unsurprised by Southern Cross Media's rejection of the takeover bid made by ARN Media ((A1N)) and Anchorage Capital, feeling the company had no choice but to formally reject the proposal to appease shareholders who had been waiting for action.
According to the broker, Southern Cross Media has grappled with how to value the reconstituted ARN Media, which shareholders would take a 33% stake in, under the offer, and due diligence failed to provide any clarity.
Ord Minnett expects ARN Media and Anchorage Capital may look to re-engage with Southern Cross Media at some point.
The Buy rating and target price of $1.70 are retained.
Target price is $1.70 Current Price is $0.99 Difference: $0.715
If SXL meets the Ord Minnett target it will return approximately 73% (excluding dividends, fees and charges).
Current consensus price target is $1.02, suggesting upside of 4.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 3.00 cents and EPS of 5.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.2, implying annual growth of -19.8%. Current consensus DPS estimate is 3.7, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 15.8. |
Forecast for FY25:
Ord Minnett forecasts a full year FY25 dividend of 5.00 cents and EPS of 9.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 8.0, implying annual growth of 29.0%. Current consensus DPS estimate is 5.7, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 12.3. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $12.95
Bell Potter rates WA1 as Initiation of coverage with a Speculative Buy (1) -
Bell Potter begins research coverage of WA1 Resources which intends to mine niobium, which in the form of ferro-niobium is used as a micro-alloy to strengthen steel.
WA1 Resources is progressing with the West Arunta Niobium project which includes the Luni prospect, in North-Western Australia, which has the potential to be a globally significant Tier-1 asset, according to the broker.
A maiden indicated resource for Luni will support initial development studies, notes Bell Potter.
By strengthening steel, ferro-niobium helps reduce steel consumption, thus reducing the weight in applications, costs and associated carbon emissions, explain the analysts.
Target price is $17.65 Current Price is $12.95 Difference: $4.7
If WA1 meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.50 cents. |
Forecast for FY25:
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 4.80 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
| Company | Last Price | Broker | New Target | Prev Target | Change | |
| NOU | Noumi | $0.12 | Bell Potter | 0.16 | 0.18 | -11.43% |
Summaries
| GL1 | Global Lithium Resources | Buy - Shaw and Partners | Overnight Price $0.58 |
| GMD | Genesis Minerals | Neutral - Macquarie | Overnight Price $1.92 |
| LLC | Lendlease Group | Buy - Ord Minnett | Overnight Price $6.33 |
| MP1 | Megaport | Buy - Citi | Overnight Price $15.22 |
| NOU | Noumi | Initiate Coverage With Speculative Buy - Bell Potter | Overnight Price $0.13 |
| SXL | Southern Cross Media | Buy - Ord Minnett | Overnight Price $0.99 |
| WA1 | WA1 Resources | Initiation of coverage with a Speculative Buy - Bell Potter | Overnight Price $12.95 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 6 |
| 3. Hold | 1 |
Friday 08 March 2024
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