Australian Broker Call

Ord Minnett rates AOF as Hold (3) -

Ord Minnett notes the settlement of 64 Northbourne Ave, Canberra, with a special distribution of 9¢ announced by Australian Unity Office Fund.

The broker highlights both announcements were pre-flagged at the FY24 results, and only one asset remains to be sold—468 St Kilda Rd, Melbourne—before the fund’s wind-up.

Two assets are due for settlement in 2H25: $80.5m in March 2025 for Valentine Ave, Parramatta, and $51.5m in April 2025 for Charlotte St, Brisbane.

Following the sale, the analyst lowers the target price by -10% to $1.10 and retains a Hold rating.

Target price is $1.10 Current Price is $1.21 Difference: minus $0.11 (current price is over target).
If AOF meets the Ord Minnett target it will return approximately minus 9% (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: 0.0

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

Morgans rates CPU as Add (1) -

Computershare's management reconfirmed FY25 EPS growth guidance of 7.5%, emphasising increased confidence in achieving the target at the AGM.

Morgans previously highlighted concerns over FY25 guidance due to downside risks from lower interest rates but now views the outlook as overly "conservative," states the analyst.

The broker notes continued strength in employee share plans and more robust corporate actions than previously expected. FY25 margin guidance remains unchanged.

Computershare has completed 60% of the $750m buyback, with full completion expected by the end of FY25.

Morgans lifts EPS forecasts by 1% for FY25/FY26 following the AGM update. The target price rises to $33.37 from $28.57 on valuation grounds. The Add rating remains unchanged.

Target price is $33.37 Current Price is $30.45 Difference: $2.92
If CPU meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $30.47, suggesting downside of -2.0% (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

Morgans rates EGH as Add (1) -

Morgans resumes research coverage of Eureka Group following the completion of a $70.4m equity raising to acquire 479 additional dwellings for $49.9m and a $7.5m investment in village expansion projects.

Management expects the expansion and acquisitions to contribute to underlying EBITDA growth of at least 16% in FY25, with EPS growth of 8%.

Following the equity raising, the broker notes Aspen Group ((APZ)) sold 50% of its holding in Eureka Group, reducing its stake to 13% from 38%.

Morgans forecasts assets under management to grow at 10% per annum from FY24 to FY27, with an estimated compound annual growth rate in EPS of 9% over the same period.

The target price increases to 80c from 75c. The Add rating remains unchanged.

Target price is $0.80 Current Price is $0.59 Difference: $0.21
If EGH meets the Morgans target it will return approximately 36% (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 ELD as Buy (1) -

FY24 underlying earnings (EBIT) for Elders were in line with guidance, as a higher-than-expected contribution from the agency segment was largely offset by weaker retail performance and higher corporate overheads, explains Bell Potter.

While no formal guidance was provided, the broker notes management commentary suggests improved market conditions, with FY24 acquisitions expected to contribute positively in FY25.

The Buy rating and $9.45 target price remain unchanged.

Target price is $9.45 Current Price is $8.65 Difference: $0.8
If ELD meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.33, suggesting upside of 19.9% (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

Citi rates ELD as Buy (1) -

Elders reported mixed results, Citi observes, with EBIT at the lower half of the guidance range in FY24. With leverage at 3.1x and return on capital at 11.3%, the analyst believes the company is "well positioned."

The broker highlights the potential for the company to achieve FY25 EBIT of $170m compared to $128m in FY24. Normalisation of 1Q25 EBIT may help close the gap, Citi states, supported by bolt-ons and average to stable conditions in FY25.

The company also announced the acquisition of Delta Agribusiness, subject to regulatory approval, with a decision expected before 1H25. Earnings accretion is expected to be skewed to 2H25, the broker notes.

Elders remains Buy rated with an unchanged target of $9.75.

Target price is $9.75 Current Price is $8.65 Difference: $1.1
If ELD meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.33, suggesting upside of 19.9% (ex-dividends)

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 ELD as No Rating (-1) -

FY24 underlying profit for Elders of $64m fell short of Macquarie’s forecast of $70.5m and consensus of $68m, driven by lower EBIT and higher interest costs.

Management commentary indicates a more stable crop input pricing environment, which is expected to support margins, notes the broker.

The company announced the acquisition of Delta Agribusiness for -$475m, funded through a combination of a $245m equity raise, $110m in debt, and $190m in Elders scrip.

Due to research restrictions, Macquarie is unable to provide a rating or target price.

Current Price is $8.65. Target price not assessed.

Current consensus price target is $9.33, suggesting upside of 19.9% (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

UBS rates ELD as Neutral (3) -

UBS found the released set of FY24 financial numbers "broadly in line", though it is noted AgChem's performance disappointed, while cash generation was another disappointment.

Reduced expectations for Retail Products margins lead to a -3% downgrade to forecasts. The company also announced the acquisition of Delta Ag, which is not yet incorporated into forecasts or valuation.

UBS predicts most of the anticipated synergies will be backended, i.e. delivered in FY26/27.

Neutral. Target $9.

Target price is $9.00 Current Price is $8.65 Difference: $0.35
If ELD meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.33, suggesting upside of 19.9% (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

Citi rates FPR as Buy (1) -

Citi notes FleetPartners Group's FY24 results reflect ongoing solid performance, with EPS advancing 13% on the year.

Australia and novated leasing continued to perform strongly, with sufficient momentum to generate over $800m in new business writings. The broker forecasts a slight decline in new business writings in FY25 of -5%, as around 16% will result from pipeline orders being filled.

The analyst expects FY25 to mark the bottom of net operating income pre-end of lease and provisions, as excess management fees and commissions roll off.

A return to dividends in FY27 is likely, with share buybacks in the interim at $52m in FY25 and $50m in FY26. Citi raises EPS forecasts by 2.2% in FY25 and 1.5% in FY26.

Buy rating unchanged, with a slight reduction in the target price to $3.90.

Target price is $3.90 Current Price is $3.10 Difference: $0.8
If FPR meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates FPR as Upgrade to Outperform from Neutral (1) -

Improved vehicle supply in FY24 reduced the order pipeline for FleetPartners Group and drove a 16 percentage point increase in new business writing (NBW) growth, explains Macquarie.

FY24 net profit (NPATA) profit exceeded the broker’s forecast by 8.3%. NBW rose by 21% year-on-year, with contributions from Novated up 36%, Corporate Fleet Australia up 28%, and Corporate Fleet New Zealand down -8%.

Macquarie raises the target price by 5.5% to $3.65 and upgrades the rating to Outperform from Neutral.

Target price is $3.65 Current Price is $3.10 Difference: $0.55
If FPR meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in September.

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 FPR as Overweight (1) -

FleetPartners Group's net operating income (NOI) pre-End-of-Lease (EOL) of $158.7m exceeded consensus forecasts by 2%, notes Morgan Stanley. EOL income of $70.6m also outperformed market expectations of $64.2m, driven by a rebound in disposals.

Assets under management or origination funding (AUMOF) growth was strong at 11%, with management projecting an average growth rate of 5% for FY25, adds the broker.

Management announced a new $30m buyback for 1H25.

Morgan Stanley maintains an Overweight rating with a $3.90 target price and an Industry View of In-line.

Target price is $3.90 Current Price is $3.10 Difference: $0.8
If FPR meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates FPR as Upgrade to Buy from Accumulate (1) -

Ord Minnett upgrades FleetPartners Group to Buy from Accumulate, raising the target price to $3.60 from $3.50.

The broker notes the company delivered another strong result for FY24, with growth in novated leasing driving an increase in assets under management or financed.

Net operating income pre-end-of-lease and provisions met expectations but exceeded consensus by 2%, while net profit was 5% above expectations, driven by higher end-of-lease income.

Management announced an additional $30m buyback for 1H25, lifting the total buyback to 32% of the company's shares, the analyst states.

Ord Minnett identified a slight delay in the Accelerate program as the only "hiccup" in an otherwise positive update.

Target price is $3.60 Current Price is $3.10 Difference: $0.5
If FPR meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates HLS as Hold (3) -

Healius provided a trading update at the AGM. Morgans notes no quantitative guidance was offered, but pathology market share has stabilised over the past half year, with year-to-date revenues up 5.9% and volumes up 4.5%.

Management expects 1H25 EBIT to be in line with the prior year, with ongoing investment in revenue growth and persistent labour cost pressures, along with other inflationary factors. 2H25 performance is anticipated to "materially increase," according to the broker.

The broker lowers EPS forecasts by -102% for FY25 and -22% for FY26 due to reduced pathology margins.

The Hold rating is maintained, and the target price decreases to $1.39 from $1.53.

Healius is scheduled to release its 1H25 results in February 2025, followed by an Investor Day in March 2025.

Target price is $1.39 Current Price is $1.33 Difference: $0.06
If HLS meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.39, suggesting upside of 5.7% (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 JHX as Neutral (3) -

Citi reviews the potential for the incoming Trump administration to revisit the privatisation of government-sponsored entities Fannie Mae and Freddie Mac, ending the government's conservatorship of the organisations.

In July 2008, Congress created the Federal Housing Finance Agency and placed Fannie Mae and Freddie Mac under its control to restore confidence in the businesses.

With full control of Congress, the incoming administration, as part of a lower-bureaucracy environment, could privatise the entities, leading to increased mortgage and securitisation competition, reduced taxpayer risks, and possibly higher mortgage rates.

The broker considers this an issue worth monitoring while maintaining a Neutral rating with a $56 target price on James Hardie Industries.

Target price is $56.00 Current Price is $55.15 Difference: $0.85
If JHX meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $59.14, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates LOV as Neutral (3) -

UBS analysts have pared back their forecasts as the number of new store openings is running behind on expectations. Lovisa Holdings is expected to update the market at its AGM, scheduled for this Friday.

EBIT margin forecasts have been slightly increased.

UBS stays positive on the retailer's potential and global store rollout, sticking with its Neutral rating as the risks are now considered 'balanced'. Target drops to $29 from $33.

Target price is $29.00 Current Price is $27.99 Difference: $1.01
If LOV meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $31.69, suggesting upside of 15.9% (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

Citi rates MND as Buy (1) -

Monadelphous Group has updated its shareholders today with a more upbeat outlook compared to three months ago, Citi analysts observe.

Momentum is anticipated to accelerate in H2 with the services provider having secured $1.5bn in work to date in FY25.

Citi analysts comment they are being "encouraged" by the favourable mix shift in segmental contract wins. As the percentage of E&C contracts is rising, the broker is not surprised management expects a better margin outcome.

Buy. Target $16.20. Citi remains positive on the company's prospects.

Target price is $16.20 Current Price is $12.51 Difference: $3.69
If MND meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $14.39, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates NEM as Buy (1) -

Newmont Corp hosted investors at Tanami and Cadia, which together account for approximately 15% of the miner's gold production and 17% of consensus EBITDA expectations.

Citi notes the Tanami shaft project remains on track for 2H27, expected to increase production by 150–200koz per annum to 600koz per annum. Management emphasised a projected reduction of around -30% in operating costs, which would elevate the asset to the first quartile.

Investor focus centred on the tailings dam strategy at Cadia following the 2018 dam failure. The analyst highlights the tailings storage plans post-2027 are yet to be finalised and approved.

The CEO reiterated guidance for around 5.6Moz of production at all-in sustaining costs of approximately US$1,500/oz, supported by -US$3.1bn in capex. Newmont Corp reconfirmed 6Moz remains a "good mid-cycle" target, according to the broker.

Buy rating maintained, with a target price of US$66.

Target price is $95.00 Current Price is $63.99 Difference: $31.01
If NEM meets the Citi target it will return approximately 48% (excluding dividends, fees and charges).

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: 0.5

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

Macquarie rates NEM as Outperform (1) -

The analysts at Macquarie have an unchanged outlook for the Cadia and Tanami operations after site tours hosted by Newmont Corp.

Outperform rating remains. The broker's target price for Newmont Corp rises by $2.00 to $82.00 due to recent Australian dollar weakness.

Target price is $82.00 Current Price is $63.99 Difference: $18.01
If NEM meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

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: 0.5

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

Ord Minnett rates NEM as Hold (3) -

Newmont Corp recently hosted an analyst tour of Tanami in the Northern Territory and Cadia in NSW.

Discussions with management reaffirmed Ord Minnett's view of softer prospects for both the legacy Newmont operations and those acquired from Newcrest Mining. The Nevada Gold Mines division, part-owned with Barrick Gold, remains a key factor in the lower outlook.

The broker notes management is "dissatisfied" with the performance of Nevada Gold Mines, with investors awaiting updates at Barrick's strategy day on 22 November.

No changes were made to earnings forecasts.

The target price decreases to $77.50 from $90, with a Hold rating maintained.

Target price is $77.50 Current Price is $63.99 Difference: $13.51
If NEM meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

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: 0.5

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

Bell Potter rates NHC as Hold (3) -

In line with Bell Potter's forecasts, New Hope reported quarterly saleable production of 2.7mt and sales of 2.8mt.

As Hunter Valley rail constraints eased, Bengalla sales increased by 20% quarter-on-quarter, and FOB cash costs decreased by -19%, while New Acland sales declined by -37% due to shipment timing, explain the analysts.

After incorporating FY25 guidance for group saleable production of 10.8-11.9mt and sales of 10.7-11.8mt, the broker maintains a Hold rating and a $4.60 target.

Target price is $4.60 Current Price is $4.81 Difference: minus $0.21 (current price is over target).
If NHC 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 $4.75, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

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

Citi rates NHC as Neutral (3) -

Citi's first take on New Hope's 1Q25 results indicates a "solid" quarterly update, with total coal sales up 8% on the previous quarter to 2.8Mt, driven by a 21% rise in sales at Bengalla.

The broker notes this was a record quarter for Bengalla, as disruptions eased alongside a rundown in inventories and coal stocks.

New Acland continues to ramp up with a "solid" performance, as saleable coal production rose 8% to 0.5Mt.

Management guided saleable coal production of 10.8Mt to 11.8Mt, with EBITDA expected to rise between 5% and 2% for FY25/FY26, based on higher volume assumptions.

Citi makes no change to its target price of $5 and maintains a Neutral rating due to the valuation.

Target price is $5.00 Current Price is $4.81 Difference: $0.19
If NHC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.75, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

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

Bell Potter rates PBH as Hold (3) -

Bell Potter is uncertain about the accuracy of a recent media article regarding a potential merger or takeover of PointsBet Holdings but suspects there may be some truth to the speculation.

The broker has previously highlighted PointsBet as an attractive target due to increasing barriers to entry in Australia and the company’s position as the fifth largest player in the sector.

Bell Potter raises its target price to 95c from 80c, reflecting a higher valuation multiple based on the takeover speculation. Hold rating maintained.

Target price is $0.95 Current Price is $0.96 Difference: minus $0.01 (current price is over target).
If PBH meets the Bell Potter target it will return approximately minus 1% (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 PDN as Buy (1) -

For both political and economic reasons, Russia plans to redirect shipments of enriched uranium to countries like China after announcing a temporary export ban to the US until the end of 2025, notes Citi.

The broker explains the US has historically relied on Russia for a significant portion of its nuclear fuel supply, with Russia accounting for over 40% of the global market for enriched uranium.

This move is seen as retaliation against existing US import restrictions and aligns with Citi's prior bull case scenario for uranium prices, which assigns a 15% probability to prices averaging around US$150/lb in 2025.

Citi maintains its $11.50 target price and Buy rating for Paladin Energy.

Target price is $11.50 Current Price is $7.69 Difference: $3.81
If PDN meets the Citi target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $12.33, suggesting upside of 55.8% (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: 1.0

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

Macquarie rates RSG as Outperform (1) -

Macquarie reduces its target price for Resolute Mining by -40% to 57c due to heightened country risk after management confirmed its Mali assets (Syama) will be subject to the new Mali mining code, which includes provisions for increased government ownership.

Management has signed a memorandum of understanding (MoU) with the Mali government, involving an initial payment of -US$80m for claims against the company, with an additional -US$80m to follow.

Macquarie retains its Outperform rating, citing the recent -43% share price decline.

Target price is $0.57 Current Price is $0.38 Difference: $0.19
If RSG meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

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: 0.0

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

Citi rates SHL as Neutral (3) -

Citi notes Sonic Healthcare reconfirmed FY25 EBITDA guidance of $1.7bn–$1.75bn, representing a constant currency increase of 6%–9% year-on-year, in line with consensus expectations at AGM.

The company reported EBITDA growth of over 10% for the first four months of FY25, compared to consensus growth estimates of 12.5%.

Australian pathology revenue exceeded consensus by around 8% and outperformed competitors, with Healius (HLS) reporting 5.9% growth and Australian Clinical Labs (ACL) achieving 6% volume growth.

The analyst highlights radiology advanced approximately 11%, exceeding 1H25 consensus expectations. The headcount reduction is nearly complete, addressing inflationary pressures.

Neutral rating, $27 target price.

Target price is $27.00 Current Price is $26.20 Difference: $0.8
If SHL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $27.70, suggesting downside 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 VEE as Add (1) -

Veem's trading update and FY25 guidance at the AGM fell below Morgans' expectations due to weakness in gyrostabilisers and defence sales, partially offset by higher industrial product sales. FY25 earnings are "likely" to be below FY24 levels but above FY23.

Morgans highlights strong propeller sales, averaging around $2.5m per month or $30m annually. The Sharrow propeller rollout program is expected to continue, with the company focusing on specialised products for specific customers.

The broker lowers EBITDA forecasts by -23% and -29% for FY25–FY27 due to reduced 'gyros' and defence sales, coupled with softer margin expectations.

The target price is reduced to $1.70 from $2.25. No change to Add rating.

Target price is $1.70 Current Price is $1.25 Difference: $0.455
If VEE meets the Morgans target it will return approximately 37% (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