Australian Broker Call

Bell Potter rates AIS as Buy (1) -

Aeris Resources reported an FY23 result in line with Bell Potter's forecasts, although profit fell short due to higher finance and administration charges. No dividend was declared.

While the result was in line, it reflects a disappointing year, the broker suggests, which was also the first full year of ownership of the Round Oak assets (including Jaguar). The poor result was driven by weaker production performances Aeris' own assets and the underperformance of Jaguar.

Group earnings margins dropped from 24% in FY22 to just 5% in FY23. The outlook remains highly leveraged to increasing copper grades at the Tritton copper mine, where high grade ore sources are commencing production and exploration success is likely to
sustain it.

Bell Potter retains Buy and a 29c target.

Target price is $0.29 Current Price is $0.24 Difference: $0.05
If AIS meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgans rates AMX as Add (1) -

While operating costs such as aero and further R&D investments into MetroMap dragged on FY23 profit, revenue for Aerometrex was a beat against the analyst's forecast.

Regarding revenue, the broker is positive on FY24 due to a strong 2H exit rate and management commentary around a strong pipeline.

Morgans target falls to 45c from 47c after allowing for a higher cost base and higher capital requirements. While cost pressures linger, it's assumed they will abate in the near term.

The risk reward profile for Aerometrex is attractive, according to the broker, and the Add rating is maintained.

Target price is $0.45 Current Price is $0.32 Difference: $0.13
If AMX meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates ART as Add (1) -

Morgans assesses a resilient performance, taking into account macroeconomic conditions, from Airtasker after reviewing largely pre-released FY23 results.

Despite the gross marketplace volume (GMV) decreasing on the sequential half, largely due to lower consumer demand, revenue increased by around 2% half-on-half on the improved take-rate, observes the analyst.

The better take-rate was due to increased task completion rates and optimisation of fees, notes the broker.

Morgans makes minor changes to its forecasts and raises its target to 53c from 52c. Add.

Target price is $0.53 Current Price is $0.21 Difference: $0.32
If ART meets the Morgans target it will return approximately 152% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Morgans rates BBT as Add (1) -

While 4Q key operational metrics for BlueBet Holdings were already available, the FY23 earnings (EBITDA) loss was greater than Morgans was anticipating. It's thought June 30 cash of $22.7m leaves the business well capitalised to absorb such losses.

Guidance for a FY24 earnings loss of -$15m, down from -$19m is less than the broker previously forecast due to a reduction in advertising and marketing expenses. As a result, Australia is expected to be EBITDA positive in FY24.

Morgans target falls to 80c from 90c due to a slower than originally thought US market penetration. The Add rating is unchanged on Australian growth and substantial long-term potential in the US.

Target price is $0.80 Current Price is $0.22 Difference: $0.58
If BBT meets the Morgans target it will return approximately 264% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates BBT as Buy (1) -

FY23 earnings (EBITDA) for BlueBet Holdings were in line with Ord Minnett's forecast. It's felt the FY23 investment in product and platforms positions the company well for future benefits.

Management anticipates the marketing spend in Australia will fall by around -30% in a more normalised environment and expects only modest headcount changes.

Also, the investment in technology has been completed with the launch of the BlueBet Global Platform slated for Q1 FY24.

The Buy rating and 80c target are maintained.

Target price is $0.80 Current Price is $0.22 Difference: $0.58
If BBT meets the Ord Minnett target it will return approximately 264% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates CAR as Buy (1) -

In a positive start to FY24, especially for Private, Citi points out Private listings on Carsales.com.au are up around 60% year-on-year and and Dealer used listings continue to rise.

Dealer used inventory continues to increase, which suggests to the analyst improving new car supply.

The Buy rating and $29.65 target are unchanged.

Target price is $29.65 Current Price is $28.86 Difference: $0.79
If CAR meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $27.73, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates CCX as Neutral (3) -

FY23 earnings were a miss compared to the forecasts by Macquarie and consensus due to higher-than-expected promotional activity. The 2H delivered another half of losses as expected.

A strategic review by management aims to simplify operations, already evidenced by the recent EMEA exit, and will support a return to 60% gross margins and fulfilment costs at less than 19% of sales, suggests the analyst.

Cost-out and a refined customer focus leads to a 12% upgrade to the broker's FY25 EPS forecast. The target rises to 49c from 39c. Neutral. Losses are still expected in FY24.

Target price is $0.49 Current Price is $0.46 Difference: $0.03
If CCX meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.51, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates CHN as Downgrade to Hold from Add (3) -

Negatives contained within the scoping study on the Gonneville project drives Morgans to downgrade its rating for Chalice Mining to Hold from Add and slash its target to $3.45 from $8.20. A more challenging path to development is now expected.

Key differences against the broker's expectations were in the average feed grades, expected recoveries and estimated development capex for the study's two production scenarios.

The analyst takes nickel as an example, noting recoveries are now expected to average 43% and 41% under the two scenarios compared to the broker's forecasts of 65% and 62%, respectively.

While there is still potential for Gonneville to become a tier 1 asset, Morgans would like to see evidence in the numbers before gaining more conviction.

Target price is $3.45 Current Price is $3.31 Difference: $0.14
If CHN meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.44, suggesting upside of 92.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates CKF as Neutral (3) -

Taking direction from commentary at the Collins Foods AGM, Citi lowers its target to 11.10 from 11.25.

While management increased the FY24 store rollout to 18 gross new stores from 13, margin pressures are expected to linger for the remainder of 2023, despite a moderation in price of some relevant commodities.

Citi prefers to wait for evidence of easing inflationary pressures, particularly for chicken, before upgrading its rating from Neutral. 

Target price is $11.10 Current Price is $9.93 Difference: $1.17
If CKF meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.99, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates CMW as Buy (1) -

FY23 operating earnings for Cromwell Property of $158.6m fell short of Ord Minnett's $175m forecast due to lower performance and transaction fees, along with higher-than-expected costs for the Polish retail portfolio.

While expecting further asset price falls and factoring in a future equity raising, the broker maintains its 85c target and Buy rating. It's felt the market is being overly bearish on the Office sector and is not allowing for Cromwell's funds management business.

The analyst assumes FY24 operating earnings of $155m and a dividend of 3.3cpu, following the FY23 payout of 5.5cpu.

Target price is $0.85 Current Price is $0.47 Difference: $0.38
If CMW meets the Ord Minnett target it will return approximately 81% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgan Stanley rates DTC as Underweight (5) -

Morgan Stanley has updated its forecasts post Damstra Holdings' release of FY23 financials. The broker retains an Underweight rating. Industry view: In-Line.

The result itself was largely pre-guided, but is still labelled as "soft" and on this basis estimates have been re-based to a lower level. Ultimately, the damage done is some -4%-45% off an already low base, the broker points out.

Valuation has remained unchanged at 10c. Damstra Holdings outlook remains opaque, in the broker's view.

Target price is $0.10 Current Price is $0.13 Difference: minus $0.025 (current price is over target).
If DTC meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

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

Macquarie rates FPH as Downgrade to Neutral from Outperform (3) -

Macquarie lowers its rating for Fisher & Paykel Healthcare (March year end) to Neutral from Outperform following the release of FY24 guidance. The target is lowered to NZ$24.30 from NZ$28.09 on revised operational assumptions and updated currency assumptions.

The broker believes any earnings disappointment will result in a multiple de-rating.

FY24 guidance is for revenue of circa NZ$1.7bn, with around 200bps of gross margin improvement (constant currency).

The analyst moderates FY24 Hospital hardware growth assumptions based on trading year-to-date. Revenue of NZ$106m is forecast, below initial guidance for NZ$115m.

Current Price is $20.62. Target price not assessed.

Current consensus price target is $20.50, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.2

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

Morgans rates GHY as Speculative Buy (1) -

Morgans leaves its Speculative Buy rating and 76c target unchanged following Gold Hydrogen's FY23 results, despite operating costs slightly higher than anticipated.

While an investment in Gold Hydrogen is a high risk proposition, the analyst notes the high rewards on offer in the company's attempt to discover and develop a naturally occurring hydrogen deposit.

Target price is $0.76 Current Price is $0.28 Difference: $0.475
If GHY meets the Morgans target it will return approximately 167% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates IMM as Spculative Buy (1) -

Immutep closed FY23 with $123.4m cash at hand, which is expected to provide runway into early 2026. The FY23 results were largely as Bell Potter expected, with operating expenses increasing 17% year on year.

Immutep plans to start a Phase 3 lung cancer trial in the second half FY24 for lead drug 'efti’. Lung cancer is the prioritised indication due to the strong clinical data generated to date, large market opportunity, and need for more effective chemo-free treatments, the broker notes.

If efti can reproduce similar data from its Phase 2 trials in upcoming Phase 3 trials, there will be clear clinical utility and a "blockbuster" commercial opportunity.

Speculative Buy and 55c target retained.

Target price is $0.55 Current Price is $0.28 Difference: $0.265
If IMM meets the Bell Potter target it will return approximately 93% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates LVH as Add (1) -

The FY23 result for LiveHire was largely known thanks to quarterly reporting and Morgans makes only minor forecast changes. The Add rating is maintained despite the tougher operating environment remaining a challenge.

Management notes assistance for FY24 margins will emanate from the late-FY23 restructure of the cost base, which will accelerate the cash flow breakeven date to 24 months hence. The analyst cautions an investment in LiveHire is for the more-risk tolerant.

The target falls to 19c from 21c on forecast changes and a roll-forward of the broker's valuation.

Target price is $0.19 Current Price is $0.06 Difference: $0.135
If LVH meets the Morgans target it will return approximately 245% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates MEI as Initiation of coverage with Speculative Buy (1) -

Bell Potter initiates coverage of Meteoric Resources with a Speculative Buy rating and a 40c target. Meteoric is progressing the Caldeira ionic clay rare earths deposit in Brazil.

The Caldeira project boasts a growing resource of high-grade magnet rare earths crucial for the transition to a low carbon world.

The broker views the Caldeira project and Meteoric as being attractively positioned and anticipates the miner will look to de-risk the project over the next 12 months, with further diamond drilling increasing the Resource confidence.

Target price is $0.40 Current Price is $0.24 Difference: $0.16
If MEI meets the Bell Potter target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates MMI as Buy (1) -

Metro Mining's 1H NPAT loss of -$16.7m was in line with Shaw and Partners forecast and demonstrated a $12.7m improvement on the outcome in FY22. Strong earnings growth and a return to profitability is expected in the 2H.

In a taste of future upside from expanded production, according to the analyst, the June quarter showed the benefits of higher pricing, improved operational performance and lower freight costs.

The Buy rating and 6c target are unchanged.

Target price is $0.06 Current Price is $0.02 Difference: $0.039
If MMI meets the Shaw and Partners target it will return approximately 186% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates MMS as Neutral (3) -

Following a strong FY23 result, Citi increases its earnings forecasts for McMillan Shakespeare. The Neutral rating is kept given upside from electric vehicle demand is already in the share price and risks from the upcoming SA government contract renewal and NDIS review.

The broker's target rises to $17.95 from $16.10 on higher peer multiples and increased volume growth, as well as higher yields in the Group Remuneration Services (GRS) segment. 

Also, Citi's earnings forecasts rise on the expectation elevated re-marketing yields in Asset Management Services (AMS) will be maintained for longer, partially offset by lower earnings in Plan and Support Services (PSS).

Target price is $17.95 Current Price is $18.02 Difference: minus $0.07 (current price is over target).
If MMS meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.75, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates MSB as Speculative Hold (3) -

Mesoblast reported a net loss of -US$82m for FY23. More importantly, Bell Potter suggests, the CEO outlined the revised strategy for bringing remestemcel-L to market and this included further detail of the content of the recent Complete Response Letter not previously discussed with the market.

The key question now becomes whether the company can satisfy the FDA on the lingering issues of potency and batch consistency. The upcoming discussion will provide further clarification on the nature of the data the FDA now requires.

Mesoblast will consider a range of options to fund the business including strategic partnerships. This isn’t the optimal outcome for shareholders, Bell Potter notes, but in the circumstances it is realistic.

In the interim, aggressive cost cutting measures are required in order to extend the cash runway. Target falls to 58c from 60, Speculative Hold retained.

Target price is $0.58 Current Price is $0.46 Difference: $0.12
If MSB meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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 PBH as Buy (1) -

FY23 earnings for PointsBet Holdings were in line with company guidance and management reiterated FY24 guidance of  “group EBITDA to be at or close to breakeven from April 2024”.

The receipt of US$175m was also announced as the first phase of the sale of the US business for US$225m.

Management expects earnings for the Australian business will “significantly offset” the losses in the Canadian business in FY24.

Ord Minnett maintains its Buy rating and $1.95 target.

Target price is $1.95 Current Price is $1.69 Difference: $0.265
If PBH meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates RDG as Buy (1) -

Resource Development's FY23 revenues grew 10% year on year but missed Bell Potter due to weaker than expected garnet revenue, as water management issues encountered within the Lucky Bay wet processing plant impacted garnet production.

Modifications to the wet processing plant are ongoing and production is expected to continue rising steadily. The broker has incorporated a more conservative Phase 1 production ramp-up profile, with nameplate capacity expected to be achieved in the Sep Q FY24 rather than the Dec Q FY23.

Bell Potter views Lucky Bay reaching nameplate capacity as an important milestone as the company becomes an established miner, with growing expected earnings and cash flow to complement its mining services business.

Target falls to 6.4c from 7.6c, Buy retained.

Target price is $0.06 Current Price is $0.05 Difference: $0.017
If RDG 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:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates RMC as Downgrade to Hold from Buy (3) -

Resimac Group's FY23 results were mixed, Bell Potter suggests. The home loan book is shrinking, down -14% from end-FY22. Net interest income has decreased with higher costs pushing up the cost/income ratio.

Offsetting this is net interest margins have stabilised and competition in the mortgage market is not as tough as it was 6-12 months ago, the broker notes. In addition, bad debt charges remain low helped by low unemployment and low loan-to-value ratios.

Bell Potter believes the short-term outlook for the shares probably depend more on the growth of the loan book than improvement in the net interest margins, bad debts or the cost/income ratio.

The company may be near a turning point, and the forecasts suggest that the shares remain lowly valued, but to buy the shares now requires a belief that the home loan book is about to start growing or the asset finance business will take up the running.

Downgrade to Hold. Target falls to $1.09 from $1.12.

Target price is $1.09 Current Price is $1.05 Difference: $0.04
If RMC meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.07, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates STO as Buy (1) -

Santos will sell -2.6% of PNG LNG to Kumul for US576m, plus US160m of project finance debt, with an option for Kumul to acquire a further -2.4%. Citi points out the price is in line with the original offer by Kumul.

Having accepted the offer, Santos clearly has confidence in Kumul’s capacity to finance completion, in the analysts view, and the proceeds come with little risk to investors.

The  $9.00 target and Buy rating are unchanged.

Target price is $9.00 Current Price is $7.81 Difference: $1.19
If STO meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Macquarie rates STO as Outperform (1) -

Macquarie considers the sale by Santos of a -2.6% interest in PNG LNG to Kumul for US$576m is a positive, as delays were a major overhang for the share price.

The broker feels Kumul is unlikely to exercise its option for a further -2.4% (expiry June 30, 2024) granted for US$524m, allowing Santos to either retain its remaining stake or shop it around to other buyers.

The overall valuation effect of the sale is fairly neutral and the broker's target slips to $9.85 from $9.90. Outperform rating retained. 

Target price is $9.85 Current Price is $7.81 Difference: $2.04
If STO meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Morgan Stanley rates STO as Overweight (1) -

Santos has announced it will sell -2.6% of PNG LNG to Kumul for US$576m, plus circa US$160m proportional debt, and the broker comments the move is broadly consistent with its own forecasts.

The agreement also includes an option for Kumul to acquire a further -2.4% for US$524m, plus circa US$140m proportional debt, expiring 30 June 2024.

Overweight rating. Target is $8.88. Industry view: Attractive.

Target price is $8.88 Current Price is $7.81 Difference: $1.07
If STO meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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 TRP as Speculative Buy (1) -

FY23 results were in line with forecasts and Tissue Repair ended the period with $21.4m in cash, which Morgans deems sufficient to fund the Phase 3 clinical trial in venous leg ulcers.

The trial is expected to start recruitment in Q3 FY24 after delays in manufacturing the active ingredient, explains the analyst.

The Speculative Buy rating and 79c target are unchanged.

Target price is $0.79 Current Price is $0.27 Difference: $0.52
If TRP meets the Morgans target it will return approximately 193% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates XTE as Buy (1) -

XTEK reported an FY23 result ahead of both guidance and Bell Potter's estimates. Revenue increased but margins fell, due to higher
revenue contribution from the lower margin Technology division, as well as increased opex.

Operating cash flow was weak and there was a material reduction in the cash balance, however this was a result of prepaid revenues recognised in the cash balance being unwound, rather than any significant cash burn, the broker notes.

XTEK continues to perform strongly, maintaining strong revenue growth while remaining "extremely" cheap, However in Bell Potter's view, a lack of visibility over future revenue (which is common in this industry) is weighing on the share price.

Target falls to 70c from 80c, Buy retained.

Target price is $0.70 Current Price is $0.36 Difference: $0.34
If XTE meets the Bell Potter target it will return approximately 94% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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